Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934

July 2024

Commission File Number 1-14728

LATAM Airlines Group S.A.

(Translation of Registrant’s Name Into English)

Presidente Riesco 5711, 20th floor

Las Condes

Santiago, Chile

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

LATAM AIRLINES GROUP S.A.

The following exhibits are attached:

EXHIBIT NO.		DESCRIPTION
99.1		Unaudited Interim Consolidated Financial Statements as of March 31, 2024 and for the three-month periods ended March 31, 2024 and 2023
99.2		Management’s Discussion and Analysis of Financial Condition and Results of Operations as of March 31, 2024 and for the three-month period ended March 31, 2024 and 2023

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

LATAM Airlines Group S.A.

By:	/s/ Ramiro Alfonsin
	Name:	Ramiro Alfonsin
	Title:	CFO

Date: July 18, 2024

Exhibit 99.1

LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2024

CONTENTS

Consolidated Statements of Financial Position		F-3
Consolidated Statements of Income by Function		F-5
Consolidated Statements of Comprehensive Income		F-6
Consolidated Statements of Changes in Equity		F-7
Consolidated Statements of Cash Flows - Direct Method		F-9
Notes to the Consolidated Financial Statements		F-10

CLP	-	CHILEAN PESO
UF	-	CHILEAN UNIDAD DE FOMENTO
ARS	-	ARGENTINE PESO
US$	-	UNITED STATES DOLLAR
THUS$	-	THOUSANDS OF UNITED STATES DOLLARS
MUS$	-	MILLIONS OF UNITED STATES DOLLARS
COP	-	COLOMBIAN PESO
BRL/R$	-	BRAZILIAN REAL
THR$	-	THOUSANDS OF BRAZILIAN REAL

F-1

Contents of the Notes to the interim consolidated financial statements of LATAM Airlines Group S.A. and Subsidiaries.

Notes		Page
1 - General information		F-10
2 - Summary of material accounting policies		F-15
2.1. Basis of Preparation		F-15
2.2. Basis of Consolidation		F-17
2.3. Foreign currency transactions		F-17
2.4. Property, plant and equipment		F-19
2.5. Intangible assets other than goodwill		F-19
2.6. Borrowing costs		F-19
2.7. Losses for impairment of non-financial assets		F-20
2.8. Financial assets		F-20
2.9. Derivative financial instruments and embedded derivatives		F-20
2.10. Inventories		F-22
2.11. Trade and other accounts receivable		F-22
2.12. Cash and cash equivalents		F-22
2.13. Capital		F-22
2.14. Trade and other accounts payables		F-22
2.15. Interest-bearing loans		F-22
2.16. Current and deferred taxes		F-23
2.17. Employee benefits		F-23
2.18. Provisions		F-24
2.19. Revenue from contracts with customers		F-24
2.20. Leases		F-25
2.21. Non-current assets (or disposal groups) classified as held for sale		F-26
2.22. Maintenance		F-26
2.23. Environmental costs		F-27
3 - Financial risk management		F-27
3.1. Financial risk factors		F-27
3.2. Capital risk management		F-37
3.3. Estimates of fair value		F-37
4 - Accounting estimates and judgments		F-39
5 - Segment information		F-41
6 - Cash and cash equivalents		F-43
7 - Financial instruments		F-44
8 - Trade and other accounts receivable current, and non-current accounts receivable		F-45
9 - Accounts receivable from/payable to related entities		F-47
10 - Inventories		F-48
11 - Other financial assets		F-49
12 - Other non-financial assets		F-50
13 - Non-current assets and disposal group classified as held for sale		F-51
14 - Investments in subsidiaries		F-52
15 - Intangible assets other than goodwill		F-55
16 - Property, plant and equipment		F-57
17 - Current and deferred tax		F-62
18 - Other financial liabilities		F-67
19 - Trade and other accounts payables		F-75
20 - Other provisions		F-76
21 - Other non financial liabilities		F-78
22 - Employee benefits		F-79
23 - Accounts payable, non-current		F-82
24 - Equity		F-82
25 - Revenue		F-89
26 - Costs and expenses by nature		F-89
27 - Other income, by function		F-91
28 - Foreign currency and exchange rate differences		F-91
29 - Earning (Loss) per share		F-97
30 - Contingencies		F-98
31 - Commitments		F-122
32 - Transactions with related parties		F-125
33 - Share based payments		F-127
34 - Statement of cash flows		F-130
35 - Events subsequent to the date of the financial statements		F-133

F-2

LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

ASSETS

		As of		As of
	Note	March 31, 2024		December 31, 2023
		ThUS$		ThUS$
		Unaudited
Current Assets
Cash and cash equivalents	6 - 7		1,851,373		1,714,761
Other financial assets	7 - 11		178,325		174,819
Other non-financial assets	12		181,786		185,264
Trade and other accounts receivable	7 - 8		1,369,166		1,385,910
Accounts receivable from related entities	7 - 9		7		28
Inventories	10		585,315		592,880
Current tax assets	17		67,276		47,030
Total current assets other than non-current assets (or disposal groups) classified as held for sale			4,233,248		4,100,692
Non-current assets (or disposal groups) classified as held for sale	13		102,863		102,670
Total current assets			4,336,111		4,203,362
Non-current assets
Other financial assets	7 - 11		39,260		34,485
Other non-financial assets	12		161,388		168,621
Accounts receivable	7 - 8		12,371		12,949
Intangible assets other than goodwill	15		1,124,053		1,151,986
Property, plant and equipment	16		9,225,657		9,091,130
Deferred tax assets	17		4,374		4,782
Total non-current assets			10,567,103		10,463,953
Total assets			14,903,214		14,667,315

The accompanying Notes 1 to 35 form an integral part of these interim consolidated financial statements.

F-3

LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

LIABILITIES AND EQUITY

LIABILITIES	Note	As of March 31, 2024			As of December 31, 2023
		ThUS$			ThUS$
		Unaudited
Current liabilities
Other financial liabilities	7 - 18		676,638			596,063
Trade and other accounts payables	7 - 19		1,742,214			1,765,279
Accounts payable to related entities	7 - 9		12,291			7,444
Other provisions	20		9,533			15,072
Current tax liabilities	17		2,658			2,371
Other non-financial liabilities	21		3,242,240			3,301,906
Total current liabilities			5,685,574			5,688,135

Non-current liabilities
Other financial liabilities	7 - 18		6,400,346			6,341,669
Accounts payable	7 - 23		435,147			418,587
Other provisions	20		983,749			926,736
Deferred tax liabilities	17		372,448			382,359
Employee benefits	22		139,845			122,618
Other non-financial liabilities	21		298,051			348,936
Total non-current liabilities			8,629,586			8,540,905
Total liabilities			14,315,160			14,229,040

EQUITY
Share capital	24		5,003,534			5,003,534
Retained earnings/(losses)	24		645,207			464,411
Other equity	24		39			39
Other reserves	24		(5,050,063	)		(5,017,682	)
Parent’s ownership interest			598,717			450,302
Non-controlling interest	14		(10,663	)		(12,027	)
Total equity			588,054			438,275
Total liabilities and equity			14,903,214			14,667,315

The accompanying Notes 1 to 35 form an integral part of these interim consolidated financial statements.

F-4

LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME BY FUNCTION

		For the period ended March 31,
	Note	2024			2023
		ThUS$			ThUS$
		Unaudited

Revenue	5 - 25		3,267,199			2,771,642
Cost of sales	26		(2,393,859	)		(2,169,069	)
Gross margin			873,340			602,573
Other income	27		54,134			33,816
Distribution costs	26		(158,292	)		(121,359	)
Administrative expenses	26		(187,442	)		(145,552	)
Other expenses	26		(140,978	)		(106,445	)
Other (losses)			(46,431	)		(19,683	)
Income from the operational activities			394,331			243,350
Financial income			31,450			17,922
Financial costs	26		(191,385	)		(164,164	)
Foreign exchange gains			39,627			17,408
Result of indexation units			1,075			(338	)
Income before taxes			275,098			114,178
Income tax benefits/(expense)	17		(15,143	)		6,879
NET INCOME FOR THE PERIOD			259,955			121,057

Income attributable to owners of the parent			258,279			121,801
Income attributable to non-controlling interest	14		1,676			(744	)
NET INCOME FOR THE PERIOD			259,955			121,057
EARNING PER SHARE

Basic earnings per share (US$)	29		0.000427			0.000202
Diluted earnings per share (US$)	29		0.000427			0.000201

The accompanying Notes 1 to 35 form an integral part of these interim consolidated financial statements.

F-5

LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

		For the period ended at March 31,
	Note	2024			2023
		ThUS$			ThUS$
		Unaudited

NET INCOME FOR THE PERIOD			259,955			121,057
Components of other comprehensive income (loss) that will not be reclassified to income before taxes
Other comprehensive (loss), before taxes, (losses) by new measurements on defined benefit plans	24		(15,295	)		(5,777	)
Total other comprehensive (loss) that will not be reclassified to income before taxes			(15,295	)		(5,777	)
Components of other comprehensive income that will be reclassified to income before taxes
Currency translation differences (losses) on currency translation, before tax			(43,769	)		(5,804	)
Other comprehensive loss, before taxes, currency translation differences			(43,769	)		(5,804	)
Cash flow hedges
Gains (losses) on cash flow hedges before taxes	24		72,287			(28,876	)
Reclassification adjustment on cash flow hedges before tax	24		(26,406	)		(1,833	)
Other comprehensive income (losses), before taxes, cash flow hedges			45,881			(30,709	)
Change in value of time value of options
Gains/(Losses) on change in value of time value of options before tax	24		(28,627	)		16,359
Reclassification adjustments on change in value of time value of options before tax	24		8,812			5,598
Other comprehensive income, before taxes, changes in the time value of the options			(19,815	)		21,957
Total other comprehensive income that will be reclassified to income before taxes			(17,703	)		(14,556	)
Other components of other comprehensive income (loss), before taxes			(32,998	)		(20,333	)
Income tax relating to other comprehensive income that will not be reclassified to income
Income tax relating to new measurements on defined benefit plans	17		594			70
Income tax relating to other comprehensive income that will not be reclassified to income			594			70
Income tax relating to other comprehensive income (loss) that will be reclassified to income

Income tax related to cash flow hedges in other comprehensive income (loss)	17		—			(97	)
Income taxes related to components of other comprehensive loss will be reclassified to income			—			(97	)
Total Other comprehensive income			(32,404	)		(20,360	)
Total comprehensive income			227,551			100,697

Comprehensive income attributable to owners of the parent			225,898			101,600
Comprehensive income attributable to non-controlling interests			1,653			(903	)
TOTAL COMPREHENSIVE INCOME			227,551			100,697

The accompanying Notes 1 to 35 form an integral part of these interim consolidated financial statements.

F-6

LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

		Attributable to owners of the parent
								Change in other reserves
	Note	Share capital		Other equity		Treasury shares		Currency translation reserve			Cash flow hedging reserve			Gains (Losses) from changes in the time value of the options			Actuarial gains or losses on defined benefit plans reserve			Shares based payments reserve		Other sundry reserve			Total other reserve			Retained earnings/ (losses)			Parent’s ownership interest			Non- controlling interest			Total equity
		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Equity as of January 1, 2024			5,003,534		39		—		(3,830,611	)		(38,678	)		32,947			(48,559	)		37,235		(1,170,016	)		(5,017,682	)		464,411			450,302			(12,027	)		438,275
Total increase (decrease) in equity
Net income for the period	24		—		—		—		—			—			—			—			—		—			—			258,279			258,279			1,676			259,955
Other comprehensive income (loss)			—		—		—		(43,750	)		45,881			(19,815	)		(14,697	)		—		—			(32,381	)		—			(32,381	)		(23	)		(32,404	)
Total comprehensive income			—		—		—		(43,750	)		45,881			(19,815	)		(14,697	)		—		—			(32,381	)		258,279			225,898			1,653			227,551
Transactions with shareholders
Dividends	25		—		—		—		—			—			—			—			—		—			—			(77,483	)		(77,483	)		—			(77,483	)
Increase (decrease) through transfers and other changes, equity	24-34		—		—		—		—			—			—			—			—		—			—						—			(289	)		(289	)
Total transactions with shareholders			—		—		—		—			—			—			—			—		—			—			(77,483	)		(77,483	)		(289	)		(77,772	)
Closing balance as of March 31, 2024 (Unaudited)			5,003,534		39		—		(3,874,361	)		7,203			13,132			(63,256	)		37,235		(1,170,016	)		(5,050,063	)		645,207			598,717			(10,663	)		588,054

The accompanying Notes 1 to 35 form an integral part of these interim consolidated financial statements.

F-7

LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

		Attributable to owners of the parent
										Change in other reserves
													Cash			Gains (Losses) from changes in the time			Actuarial gains or losses on defined			Shares
										Currency			flow			value of			benefit			based		Other			Total			Retained			Parent’s			Non-
		Share		Other			Treasury			translation			hedging			the			plans			payments		sundry			other			earnings/			ownership			controlling			Total
	Note	capital		equity			shares			reserve			reserve			options			reserve			reserve		reserve			reserve			(losses)			interest			interest			equity
		ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Equity as of January 1, 2023			13,298,486		39			(178	)		(3,805,560	)		36,542			(21,622	)		(28,117	)		37,235		(1,972,651	)		(5,754,173	)		(7,501,896	)		42,278			(11,557	)		30,721
Total increase (decrease) in equity
Net income/(loss) for the period	24		—		—			—			—			—			—			—			—		—			—			121,801			121,801			(744	)		121,057
Other comprehensive income			—		—			—			(5,646	)		(30,806	)		21,957			(5,706	)		—		—			(20,201	)		—			(20,201	)		(159	)		(20,360	)
Total comprehensive income			—		—			—			(5,646	)		(30,806	)		21,957			(5,706	)		—		—			(20,201	)		121,801			101,600			(903	)		100,697
Transactions with shareholders Increase for other Contributions from the owners	24		—		4,926			—			—			—			—			—			—		(4,076	)		(4,076	)		—			850			—			850
Increase (decrease) Through transfers and other changes, Equity	24 -33		4,926		(4,926	)		—			—			—			—			—			—		—			—			57,129			57,129			(79	)		57,050
Total transactions with shareholders			4,926		—			—			—			—			—			—			—		(4,076	)		(4,076	)		57,129			57,979			(79	)		57,900
Closing balance as of March 31, 2023 (Unaudited)			13,303,412		39			(178	)		(3,811,206	)		5,736			335			(33,823	)		37,235		(1,976,727	)		(5,778,450	)		(7,322,966	)		201,857			(12,539	)		189,318

The accompanying Notes 1 to 35 form an integral part of these interim consolidated financial statements.

F-8

LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - DIRECT METHOD

		For the period ended
		March 31,
	Note	2024			2023
		ThUS$			ThUS$
		Unaudited
Cash flows from operating activities
Cash collection from operating activities
Proceeds from sales of goods and services			3,313,955			3,062,687
Other cash receipts from operating activities			79,829			42,779
Payments for operating activities
Payments to suppliers for the supply goods and services	34		(2,510,340	)		(2,198,954	)
Payments to and on behalf of employees			(344,111	)		(363,929	)
Other payments for operating activities			(94,536	)		(64,261	)
Income taxes (paid)			(22,644	)		(5,653	)
Other cash inflows (outflows)	34		35,972			(30,734	)
Net cash (outflow) inflow from operating activities			458,125			441,935
Amounts raised from sale of property, plant and equipment			19,966			42,349
Purchases of property, plant and equipment			(102,484	)		(97,886	)
Purchases of intangible assets			(13,297	)		(13,593	)
Interest received			37,417			23,273
Other cash inflows (outflows)	34		27,589			20,111
Net cash (outflow) inflow from investing activities			(30,809	)		(25,746	)
Cash flows inflow (out flow) from financing activities
Loans repayments	34		(51,350	)		(82,363	)
Payments of lease liabilities	34		(86,035	)		(56,687	)
Dividends paid	34		(289	)		—
Interest paid			(129,510	)		(84,298	)
Other cash (outflows) inflows	34		719			(2,946	)
Net cash inflow (outflow) from financing activities			(266,465	)		(226,294	)
Net (decrease) increase in cash and cash equivalents before effect of exchanges rate change			160,851			189,895
Effects of variation in the exchange rate on cash and cash equivalents			(24,239	)		8,850
Net (decrease) increase in cash and cash equivalents			136,612			198,745
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	6		1,714,761			1,216,675
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	6		1,851,373			1,415,420

The accompanying Notes 1 to 35 form an integral part of these interim consolidated financial statements.

F-9

LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 (UNAUDITED)

NOTE 1 - GENERAL INFORMATION

LATAM Airlines Group S.A. (“LATAM” or the “Company”) is an open stock company which holds the values inscribed in the Registro de Valores of the Commission for the Financial Market, whose shares are listed in Chile on the Electronic Stock Exchange of Chile - Stock Exchange and the Santiago Stock Exchange. LATAM’s ADRs are currently trading in the United States of America on the OTC (Over-The-Counter) markets.

Its main business is the air transport of passengers and cargo, both in the domestic markets of Chile, Peru, Colombia, Ecuador and Brazil, as well as in a series of regional and international routes in America, Europe and Oceania. These businesses are developed directly or by its subsidiaries in Chile, Ecuador, Peru, Brazil, Colombia and Paraguay. In addition, the Company has subsidiaries that operate in the cargo business in Chile, Brazil and Colombia.

The Company is located in Chile, in the city of Santiago, on Avenida Presidente Riesco No. 5711, Las Condes commune.

As of March 31, 2024, the Company’s statutory capital is represented by 604,441,789,335 ordinary shares without nominal value. As of that date, 604,437,877,587 shares were subscribed and paid. The foregoing, considering the capital increase approved by the shareholders of the company at an extraordinary meeting held on July 5, 2022, in the context of the implementation of its reorganization plan approved and confirmed in the Chapter 11 Proceedings, as well as the Capital decrease required for the Chilean Capital Markets law that appears in a public deed dated September 6, 2023, granted at the Notaría of Santiago of Mr. Eduardo Javier Diez Morello.

The major shareholders of the Company, considering the total amount of subscribed and paid shares, are Banco de Chile on behalf of State Street which owns 45.98%, Banco de Chile on behalf of Non-Resident Third Parties with 11.54%, Delta Air Lines with 10.05% and Qatar Airways with 10.03% ownership.

As of March 31, 2024, the Company had a total of 2,163 shareholders in its registry. At that date, approximately 0.01% of the Company’s capital stock was in the form of ADRs.

During 2024, the Company had an average of 36,190 employees, ending this period with a total of 36,477 collaborator, distributed in 5,178 Administration employees, 18,289 in Operations, 8,840 Cabin Crew and 4,170 Command crew.

F-10

The main subsidiaries included in these consolidated financial statements are as follows:

Percentage ownership

		Country	Functional	As March 31, 2024						As December 31, 2023
Tax No.	Company	of origin	Currency	Direct		Indirect		Total		Direct		Indirect		Total
				%		%		%		%		%		%
				Unaudited
96.969.680-0	Lan Pax Group S.A. and Subsidiaries	Chile	US$		99.9959		0.0041		100.0000		99.9959		0.0041		100.0000
Foreign	Latam Airlines Perú S.A.	Peru	US$		23.6200		76.1900		99.8100		23.6200		76.1900		99.8100
93.383.000-4	Lan Cargo S.A.	Chile	US$		99.8940		0.0041		99.8981		99.8940		0.0041		99.8981
76.717.244-3	Prime Cargo SpA.	Chile	CLP		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
Foreign	Connecta Corporation	U.S.A.	US$		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
Foreign	Prime Airport Services Inc. and Subsidiary	U.S.A.	US$		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
96.951.280-7	Transporte Aéreo S.A.	Chile	US$		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
96.631.520-2	Fast Air Almacenes de Carga S.A.	Chile	CLP		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
Foreign	Laser Cargo S.R.L.	Argentina	ARS		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
96.969.690-8	Lan Cargo Inversiones S.A. and Subsidiary	Chile	US$		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
96.575.810-0	Inversiones Lan S.A.	Chile	US$		99.9000		0.1000		100.0000		99.9000		0.1000		100.0000
96.847.880-K	Technical Training LATAM S.A.	Chile	CLP		99.8300		0.1700		100.0000		99.8300		0.1700		100.0000
Foreign	Latam Finance Limited	Cayman Island	US$		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000
Foreign	Peuco Finance Limited	Cayman Island	US$		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000
Foreign	Professional Airline Services INC.	U.S.A.	US$		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000
Foreign	Jarletul S.A.	Uruguay	US$		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
Foreign	Latam Travel S.R.L.	Bolivia	US$		99.0000		1.0000		100.0000		99.0000		1.0000		100.0000
76.262.894-5	Latam Travel Chile II S.A.	Chile	US$		99.9900		0.0100		100.0000		99.9900		0.0100		100.0000
Foreign	Latam Travel S.A.	Argentina	ARS		94.0100		5.9900		100.0000		94.0100		5.9900		100.0000
Foreign	TAM S.A. and Subsidiaries (*)	Brazil	BRL		63.0987		36.9013		100.0000		63.0987		36.9013		100.0000

(*)

As of March 31, 2024, the indirect participation percentage of TAM S.A. and its Subsidiaries is from Holdco I S.A., a company which LATAM Airlines Group S.A. has a 100% share on economic rights and 51.04% of political rights. Its percentage arose as a result of the provisional measure No. 863 of the Brazilian government implemented in December of 2018 that allows foreign capital to have up to 100% of the share ownership of a Brazilian Airline.

F-11

Financial Information

		Statement of financial position														Net Income
																For the period ended
																At March 31,
		As of March 31, 2024							As of December 31, 2023							2024			2023
Tax No.	Company	Assets		Liabilities		Equity			Assets		Liabilities		Equity			Gain/(loss)
		ThUS$		ThUS$		ThUS$			ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
		Unaudited														Unaudited
96.969.680-0	Lan Pax Group S.A. and Subsidiaries (*)		391,940		1,793,206		(1,046,717	)		487,236		1,835,537		(1,000,622	)		(53,974	)		44,557
Foreign	Latam Airlines Perú S.A.		374,525		287,981		86,544			334,481		285,645		48,836			37,707			(14,356	)
93.383.000-4	Lan Cargo S.A.		423,771		210,954		212,817			391,430		189,019		202,411			12,417			(25,684	)
76.717.244-3	Prime Cargo SpA.		815		—		815			912		—		912			—			—
Foreign	Connecta Corporation		61,795		6,804		54,991			64,054		6,790		57,264			(2,273	)		(790	)
Foreign	Prime Airport Services Inc. and Subsidiary (*)		19,487		16,926		2,560			19,435		17,241		2,194			368			195
96.951.280-7	Transporte Aéreo S.A.		280,084		152,730		127,354			280,117		151,066		129,051			(78	)		17,092
96.631.520-2	Fast Air Almacenes de Carga S.A.		12,526		7,931		4,595			14,255		10,455		3,800			1,592			250
Foreign	Laser Cargo S.R.L.		—		1		(1	)		—		1		(1	)		—			—
Foreign	Lan Cargo Overseas Limited and Subsidiaries (*)		—		—		—			—		—		—			—			(319	)
96.969.690-8	Lan Cargo Inversiones S.A. and Subsidiary (*)		198,792		96,816		(58,884	)		166,503		80,502		(71,744	)		15,975			(6,202	)
96.575.810-0	Inversiones Lan S.A. (*)		1,196		47		1,149			1,238		50		1,188			(40	)		33
96.847.880-K	Technical Training LATAM S.A.		1,297		892		405			1,246		893		353			110			118
Foreign	Latam Finance Limited		113		208,620		(208,507	)		114		208,621		(208,507	)		—			—
Foreign	Professional Airline Services INC.		17,337		12,154		5,183			15,571		10,943		4,628			310			413
Foreign	Jarletul S.A.		16		1,101		(1,085	)		16		1,101		(1,085	)		—			(2	)
Foreign	Latam Travel S.R.L.		93		—		93			92		—		92			—			—
76.262.894-5	Latam Travel Chile II S.A.		356		1,239		(883	)		356		1,239		(883	)		—			—
Foreign	Latam Travel S.A.		3,987		1,301		2,686			4,547		1,554		2,993			(3,136	)		(1,079	)
Foreign	TAM S.A. and Subsidiaries (*)		4,251,039		2,909,425		1,341,614			4,240,748		3,027,373		1,212,329			168,595			3,693

(*)	The Equity reported corresponds to Equity attributable to owners of the parent, it does not include Non-controlling participation.

In addition, the following special purpose entities have been consolidated: (1) Chercán Leasing Limited, intended to finance advance payments of aircraft; (2) Guanay Finance Limited, intended for the issue of a securitized bond with future credit card payments (Liquidated in May 2023); and (3) Yamasa Sangyo Aircraft LA1 Kumiai, Yamasa Sangyo Aircraft LA2 Kumiai, earmarked for aircraft financing. These companies have been consolidated as required by IFRS 10.

All entities over which LATAM has control have been included in the consolidation. The Company has analyzed the control criteria in accordance with the requirements of IFRS 10.

Changes occurred in the consolidation perimeter between January 1, 2023 and March 31, 2024, are detailed below:

(1)

Incorporation or acquisition of companies

On March 29, 2023, a capital increase was made in TAM S.A. carried out a capital increase, through the contribution of LATAM Airlines Group S.A. of accounts receivable for ThUS$785,865; consequently, there were no significant changes in the shareholder composition and therefore did not generate any effect within the Consolidated Financial Statements.

On March 29, 2023, a capital increase was made in TAM Linheas Aéreas S.A carried out a capital increase, through the contribution of TAM S.A. of accounts receivable for ThUS$785,865; consequently, there were no significant changes in the shareholder composition and therefore did not generate any effect within the Consolidated Financial Statements.

F-12

On March 29, 2023, a capital increase was made in Aerovías de Integración Regional S.A. through the contribution of made a capital increase where Holdco Colombia I SpA made a contribution through accounts receivable for ThUS$120,410, consequently, there were no significant changes in the shareholder composition and therefore did not generate any effect within the Consolidated Financial Statements.

On April 14, 2023, a capital reduction was carried out in Lan Argentina S.A. through the absorption of losses in the sum of ThUS$160,170. Consequently, there were no significant changes in the shareholding composition and therefore it did not generate any effect within the Consolidated Financial Statements.

On June 7, 2023, a capital increase was made in TAM S.A. carried out a capital increase, through the contribution of LATAM Airlines Group S.A. of accounts receivable for ThUS$308,031, consequently, there were no significant changes in the shareholder composition and therefore did not generate any effect within the Consolidated Financial Statements.

On June 7, 2023, a capital increase was made in TAM Linheas Aéreas S.A carried out a capital increase, through the contribution of TAM S.A. of accounts receivable for ThUS$308,031, consequently, there were no significant changes in the shareholder composition and therefore did not generate any effect within the Consolidated Financial Statements.

On June 13 and 14, 2023, Inversiones Lan S.A. made a purchase of 923 shares from third parties, for an a total amount of ThUS$23, of the subsidiary Aerovías de Integración Regional S.A., consequently, these transactions generated a decrease in the non-controlling interest, without generating significant effects on the Consolidated Financial Statements.

On July 21, 2023, a capital increase was carried out in Latam Airlines Ecuador S.A through the contribution of accounts receivable held by Holdco Ecuador S.A for ThUS$3,100, consequently, there were no significant changes in the shareholding composition and Therefore, it did not generate any effect within the Consolidated Financial Statements.

On July 28, 2023, Lan Cargo S.A purchased 1 share of Lan Cargo Overseas Limited from Inversiones Lan S.A. Consequently, there were no significant changes in the shareholding composition and therefore did not generate any effect within the Consolidated Financial Statements.

On August 1, 2023, Inversiones Lan S.A. purchased 1 share of Americonsult SA de CV from Lan Cargo Overseas Limited. Consequently, there were no significant changes in the shareholding composition and therefore did not generate any effect within the Consolidated Financial Statements.

On August 4, 2023, the merger of Holdco Colombia II SpA into Lan Pax Group S.A takes place, acquiring the latter all of its assets, liabilities, rights and obligations. As a result of the above, Holdco Colombia II SpA is dissolved. On the same date Lan Pax Group S.A carries out a capital increase of ThUS$347 in Holdco Colombia I SpA through the contribution of 47,010 shares of Aerovías de Integración Regional S.A. These transactions were carried out between entities under common control of LATAM Airlines Group S.A. Group. and, therefore, did not generate any effect within the Consolidated Financial Statements.

On September 11, 2023, the company Mas Investment Limited was liquidated and its controller Lan Cargo Overseas Limited acquired all its assets, liabilities, rights and obligations, as a result of the liquidation, including the investments that Mas Investment Limited held in the following companies: (i) Consultoría Administrativa Profesional S.A. de C.V., equivalent to 49,500 shares; (ii) Americonsult, S.A. de C.V., equivalent to 499 shares; (iii) Transporte Aéreo S.A. equivalent to 109,662 shares; and (iv) Inversiones Aereas S.A., equivalent to 15,216 shares. These transactions were carried out between entities under common control of LATAM Airlines Group S.A. and, therefore, did not generate any effect within the Consolidated Financial Statements.

F-13

On September 11, 2023, the company Lan Cargo Overseas Limited was liquidated and its controller Lan Cargo S.A acquired all its all its assets, liabilities, rights and obligations, as a result of the liquidation, including the investments that Lan Cargo Overseas Limited held in the following companies: (i) Prime Airport Services Inc., equivalent to 105 shares; (ii) Americonsult de Costa Rica S.A, equivalent to 66 shares; (iii) Americonsult de Guatemala, Sociedad Anónima, equivalent to 50 shares; (iv) Consultoría Administrativa Profesional S.A. de C.V., equivalent to 49,500 shares; (v) Americonsult, S.A. de C.V., equivalent to 499 shares; (vi) Transporte Aéreo S.A. equivalent to 109,662 shares; and (vii) Inversiones Aereas S.A., equivalent to 15,216 shares. These transactions were carried out between entities under common control of LATAM Airlines Group S.A. and, therefore, did not generate any effect within the Consolidated Financial Statements.

On September 15, 2023, a capital increase was made in TAM S.A. through the contribution of ThUS$106,104 on accounts receivable from LATAM Airlines Group S.A.; consequently, there were no significant changes in the shareholder composition and therefore did not generate any effect within the Consolidated Financial Statements.

On September 15, 2023, a capital increase was made in TAM Linheas Aéreas S.A through the contribution of ThUS$106,104 on accounts receivable from TAM S.A., consequently, there were no significant changes in the shareholder composition and therefore did not generate any effect within the Consolidated Financial Statements.

On October 23 and 30, 2023, Inversiones Lan S.A. purchased a total 183 shares from Non- controlling interest, for an a total amount of ThUS$2, of the subsidiary Aerovías de Integración Regional S.A., consequently, these transactions generated a decrease in non-controlling interest, with no generating significant effects on the Consolidated Financial Statements.

On December 6, 2023, the company Prime Cargo SpA was incorporated, which is 100% owned by Lan Cargo S.A., whose exclusive purpose is to carry out storage activities for all types of products and/or merchandise.

On December 29, 2023, LATAM Airlines Group S.A. purchased of 2,392,166 preferred shares of Inversora Cordillera S.A. a Transportes Aéreos del Mercosur S.A.;consequently, the shareholding composition of Inversora Cordillera S.A. is as follows: Lan Pax Group S.A. with 99.95% and LATAM Airlines Group S.A. with 0.05%. These transactions were between subsidiaries of LATAM Airlines Group not generating any effects within the Consolidated Financial Statements.

On December 29, 2023, LATAM Airlines Group S.A. purchased of 53,376 preferred shares of LAN Argentina S.A. a Transportes Aéreos del Mercosur S.A.;consequently, the shareholding composition of LAN Argentina S.A. is as follows: Lan Pax Group S.A. with 4.99%, Inversora Cordillera S.A. with 94.96% and LATAM Airlines Group S.A. with 0.05%. These transactions were between subsidiaries of LATAM Airlines Group not generating any effects within the Consolidated Financial Statements.

On March 18, 2024, a capital reduction was carried out in Inversiones Aéreas S.A. through the absorption of accumulated losses in the sum of ThUS$175,140. As a consequence of this decrease in capital, the number of shares was reduced by 6,634,496, without modifying the original participation of its shareholders. This transaction did not generate any effect within the Consolidated Financial Statements.

F-14

NOTE 2 - SUMMARY OF MATERIAL ACCOUNTING POLICIES

The following describes the principal accounting policies adopted in the preparation of these consolidated financial statements.

2.1.

Basis of Preparation

These consolidated financial statements of LATAM Airlines Group S.A. and Subsidiaries as of March 31, 2024 and for the three months ended March 31, 2024 and 2023, have been prepared in accordance with International Accounting Standard 34 (IAS 34), Interim Financial Reporting, as issued by the International Accounting Standards Board.

The consolidated financial statements have been prepared under the historic-cost criterion, although modified by the valuation at fair value of certain financial instruments.

The preparation of the consolidated financial statements in accordance with IFRS Accounting Standards requires the use of certain critical accounting estimates. It also requires management to use its judgment in applying the Company’s accounting policies. Note 4 describe the areas that imply a greater degree of judgment or complexity or the areas where the assumptions and estimates are significant to the consolidated financial statements.

These consolidated financial statements have been prepared in accordance with the accounting policies used by the Company in the preparation of the 2023 consolidated financial statements, except for the standards and interpretations adopted as of January 1, 2024.

(a)

Application of new standards for the year 2024:

Accounting pronouncements with implementation effective from January 1, 2024:

	Issuance Date	Effective Date:
(i) Standards and amendments

Amendment to IAS 1: Presentation of financial statements, on classification of liabilities.	January 2020	01/01/2024

Amendment to IAS 1: Presentation of financial statements, on noncurrent liabilities with covenants.	October 2022	01/01/2024

Amendment to IFRS 16: Leases, on sales with leaseback.	September 2022	01/01/2024

Amendments to IAS 7 “Statement of cash flows” and IFRS 7 “Financial Instruments: Information to be Disclosed”	May 2023	01/01/2024

The application of these accounting standards as of January 1, 2024, had no significant effect on the Company’s consolidated financial statements.

F-15

(b)

Accounting pronouncements not in force for the financial year beginning on January 1, 2024:

	Issuance Date	Effective Date:
(i) Standards and amendments

Amendments to IAS 21: Lack of Exchangeability	August 2023	01/01/2025

IFRS 18: Presentation and disclosures in the financial statements	April 2024	01/01/2027

The Company’s management is evaluating the impacts that the application of IFRS 18 Presentation and disclosures in the financial statements may have on the consolidated financial statements. Where it is estimated that the adoption of the amendment to IAS 21 will not have significant effects on the company’s consolidated financial statements in the year of its first adoption.

(c)

Chapter 11 Filing and Exit

Chapter 11 Filing and Procedure: Due to the effects on the operation of the restrictions established in the countries to control the effects of the COVID-19 pandemic, on May 25, 2020 the Board of LATAM Airlines Group S.A. (“LATAM Parent”) resolved unanimously that LATAM Parent and some its subsidiaries should initiate a reorganization process in the United States of America according to the rules established in the Bankruptcy Code by filing a voluntary petition for relief in accordance with the same, which petition was submitted on May 26, 2020 and was jointly administered under Case Number 20- 11254. Subsequently, Piquero Leasing Limited (July 7, 2020) and TAM S.A. and its subsidiaries in Brazil (July 9, 2020) joined the process (the voluntary petitions, collectively, the “Bankruptcy Filing” and each LATAM entity that filed a petition, a “Debtor” and jointly, the “Debtors”).

As part of their overall reorganization process, while the Chapter 11 proceedings were outstanding the Debtors sought and received relief in certain non-U.S. jurisdictions (i.e., Cayman Islands, Chile and Colombia).

The Bankruptcy Filing for each of the Debtors (each one, respectively, a “Petition Date”) was jointly administered under the caption “In re LATAM Airlines Group S.A. et al.” Case Number 20- 11254. On June 18, 2022, the Bankruptcy Court issued a memorandum decision approving the Debtors’ joint plan of reorganization (the “Plan”) and rejecting all remaining objections and entered an order confirming the Plan (the “Confirmation Order”). On November 3, 2022 (the “Effective Date”), the Plan was substantially consummated and each of the Debtors emerged from the Chapter 11 proceedings as “Reorganized Debtors”. Thereafter, the Reorganized Debtors were permitted to operate their businesses and manage their properties without supervision of the Bankruptcy Court and free of the restrictions of the Bankruptcy Code.

Pursuant to the Plan, the Company received an infusion of approximately US$8.19 billion through a mix of new equity, convertible notes and debt, which enabled the Company to exit Chapter 11 with appropriate capitalization to effectuate its business plan. Upon emergence, the Company had total debt of approximately US$6.8 billion, cash and cash equivalents of approximately US$1.1 billion and revolving undrawn facilities in the amount of US$1.1 billion.

Pursuant to the Plan and Backstop Agreements, LATAM raised up to US$500 million through a new revolving credit facility and approximately US$2.25 billion in total new money debt financing through exit financing (new term loan and new notes).

As customary in this type of restructurings, the docket of the Chapter 11 proceedings remained open after the Effective Date to finalize the reconciliation process of certain claims that were still outstanding as of the Effective Date, as well as to resolve certain administrative matters.

On June 29, 2023, the Bankruptcy Court entered a final decree in the Chapter 11 proceedings ordering that Case Number 20- 11254 and its docket be closed (the “Final Decree”). The foregoing, as a result of the resolution of substantially all remaining matters in the Chapter 11 proceedings and all appeals of the Confirmation Order.

F-16

2.2.

Basis of Consolidation

(a)

Subsidiaries

Subsidiaries are all the entities (including special-purpose entities) over which the Company has the power to control the financial and operating policies, which are generally accompanied by a holding of more than half of the voting rights. In evaluating whether the Company controls another entity, the existence and effect of potential voting rights that are currently exercisable or convertible at the date of the consolidated financial statements are considered. The subsidiaries are consolidated from the date on which control is passed to the Company and they are excluded from the consolidation on the date they cease to be so controlled. The results and cash are incorporated from the date of acquisition.

Balances, transactions and unrealized gains on transactions between the Company’s entities are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment loss of the asset transferred. When necessary, in order to ensure uniformity with the policies adopted by the Company, the accounting policies of the subsidiaries are modified.

To account for and identify the financial information to be disclosed when carrying out a business combination, such as the acquisition of an entity by the Company, the acquisition method provided for in IFRS 3: Business combinations is used.

(b)

Transactions with non-controlling interests

The Group applies the policy of considering transactions with non-controlling interests, when not related to the loss of control, as equity transactions without an effect on income.

(c)

Sales of subsidiaries

When a subsidiary is sold and a percentage of participation is not retained, the Company derecognizes the assets and liabilities of the subsidiary, the non-controlling interest and other components of equity related to the subsidiary. Any gain or loss resulting from the loss of control is recognized in the consolidated income statement by function within Other gains (losses).

If LATAM Airlines Group S.A. and Subsidiaries retain an ownership of participation in the disposed subsidiary which does not represent control, this is recognized at fair value on the date that control is lost and the amounts previously recognized in Other comprehensive income are accounted as if the Company had disposed directly the assets and related liabilities, which can cause these amounts to be reclassified to profit or loss. The percentage retained valued at fair value is subsequently accounted using the equity method.

(d)

Investees or associates

Investees or associates are all entities over which LATAM Airlines Group S.A. and Subsidiaries have significant influence but have no control. This usually arises from holding between 20% and 50% of the voting rights. Investments in associates are booked using the equity method and are initially recognized at their cost.

2.3.

Foreign currency transactions

(a)

Presentation and functional currencies

The items included in the financial statements of each of the entities of LATAM Airlines Group S.A. and its Subsidiaries are valued using the currency of the main economic environment in which the entity operates (the functional currency). The functional currency of LATAM Airlines Group S.A. is the United States Dollar, which is also the presentation currency of the consolidated financial statements of LATAM Airlines Group S.A. and Subsidiaries.

(b)

Transactions and balances

Foreign currency transactions are translated to the functional currency using the exchange rates on the transaction dates. Foreign currency gains and losses resulting from the liquidation of these transactions and from the translation at the closing exchange rates of the monetary assets and liabilities denominated in foreign currency are shown in the consolidated statement of income by function except when deferred in Other comprehensive income as qualifying cash flow hedges.

F-17

(c)

Adjustment due to hyperinflation

After July 1, 2018, the Argentine economy was considered, for purposes of IFRS Accounting Standards, hyperinflationary. The consolidated financial statements of the subsidiaries whose functional currency is the Argentine Peso have been restated.

The non-monetary items of the statement of financial position as well as the income statement, comprehensive income and cash flows of the group’s entities, whose functional currency corresponds to a hyperinflationary economy, are adjusted for inflation and re-expressed in accordance with the variation of the consumer price index (“CPI”), at each presentation date of its financial statements. The re-expression of non-monetary items is made from the date of initial recognition in the statements of financial position and considering that the financial statements are prepared under the historical cost criterion.

Net losses or gains arising from the re-expression of non-monetary ítems and income and costs are recognized in the consolidated income statement under “Result of indexation units”.

Net gains and losses on the re-expression of opening balances due to the initial application of IAS 29 are recognized in consolidated retained earnings.

Re-expression due to hyperinflation will be recorded until the period or exercise in which the economy of the entity ceases to be considered as a hyperinflationary economy. At that time, the adjustments made by hyperinflation will be part of the cost of non-monetary assets and liabilities.

The comparative amounts in the consolidated financial statements of the Company are presented in a stable currency and are not adjusted for subsequent changes in the price level or exchange rates.

(d)

Group entities

The results and the financial situation of the Group’s entities, whose functional currency is different from the presentation currency of the consolidated financial statements, of LATAM Airlines Group S.A., which does not correspond to the currency of a hyperinflationary economy, are converted into the currency of presentation as follows:

(i)

Assets and liabilities of each consolidated statement of financial position presented are translated at the closing exchange rate on the consolidated statement of financial position date;

(ii)

The revenues and expenses of each income statement account are translated at the exchange rates prevailing on the transaction dates, and

(iii)

All the resultant exchange differences by conversion are shown as a separate component in other comprehensive income, within “Gain (losses) from exchange rate difference, before tax”.

For those subsidiaries of the group whose functional currency is different from the presentation currency and corresponds to the currency of a hyperinflationary economy; its restated results, cash flow and financial situation are converted to the presentation currency at the closing exchange rate on the date of the consolidated financial statements.

The exchange rates used correspond to those fixed in the country where the subsidiary is located, whose functional currency is different to the U.S. dollar.

F-18

2.4.

Property, plant and equipment

The land of LATAM Airlines Group S.A. and its Subsidiaries, are recognized at cost less any accumulated impairment loss. The rest of the Property, plant and equipment are recorded, both at their initial recognition and their subsequent measurement, at their historical cost, restated for inflation when appropriate, less the corresponding depreciation and any loss due to impairment.

The amounts of advances paid to the aircraft manufacturers are capitalized by the Company under Construction in progress until they are received.

Subsequent costs (replacement of components, improvements, extensions, etc.) are included in the value of the initial asset or are recognized as a separate asset, only when it is probable that the future economic benefits associated with the elements of property, plant and equipment, will flow to the Company and the cost of the item can be determined reliably. The value of the replaced component is written off. The rest of the repairs and maintenance are charged to income when they are incurred.

The depreciation of the Property, plant and equipment is calculated using the linear method over their estimated technical useful lives; except in the case of certain technical components which are depreciated on the basis of cycles and hours flown. This charge is recognized in the captions “Cost of sale” and “Administrative expenses”.

The residual value and the useful life of assets are reviewed and adjusted, if necessary, once a year. Useful lives are detailed in Note 16 (d).

When the value of an asset exceeds its estimated recoverable amount, its value is immediately reduced to its recoverable amount.

Losses and gains from the sale of property, plant and equipment are calculated by comparing the consideration with the book value and are included in the consolidated statement of income.

2.5.

Intangible assets other than goodwill

(a)

Airport slots and Loyalty program

Airport slots and the Loyalty program correspond to intangible assets with indefinite useful lives and are annually tested for impairment as an integral part of the CGU Air Transport.

Airport Slots correspond to an administrative authorization to carry out operations of arrival and departure of aircraft, at a specific airport, within a certain period of time.

The Loyalty program corresponds to the system of accumulation and exchange of points that is part of TAM Linhas Aereas S.A.

The airport slots and Loyalty program were recognized at fair value under IFRS 3, as a consequence of the business combination with TAM S.A. and Subsidiaries.

(b)

Computer software

Licenses for computer software acquired are capitalized on the basis of the costs incurred in acquiring them and preparing them for using the specific software. These costs are amortized over their estimated useful lives, for which the Company has defined useful lives between 3 and 10 years.

Expenses related to the development or maintenance of computer software which do not qualify for capitalization, are shown as an expense when incurred. The personnel costs and other costs directly related to the production of unique and identifiable computer software controlled by the Company, are shown as intangible Assets other than Goodwill when they have met all the criteria for capitalization.

2.6.

Borrowing costs

Interest costs incurred for the construction of any qualified asset are capitalized over the time necessary for completing and preparing the asset for its intended use. Other interest costs are recognized in the consolidated statement of income by function when accrued.

F-19

2.7.

Losses for impairment of non-financial assets

Intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Assets subject to amortization are tested for impairment losses whenever any event or change in circumstances indicates that the carrying amount may not be recoverable. An impairment loss is recognized for the excess of the carrying amount of the asset over its recoverable amount. The recoverable amount is the fair value of an asset less the costs of sale or the value in use, whichever is greater. For the purpose of evaluating impairment losses, assets are grouped at the lowest level for which there are largely independent cash inflows (cash generating unit. Non-financial assets, other than goodwill, that would have suffered an impairment loss are reviewed if there are indicators of reversal of losses. Impairment losses are recognized in the consolidated statement of income by function under “Other gains (losses)”.

2.8.

Financial assets

The Company classifies its financial assets in the following categories: at fair value (either through other comprehensive income, or through gains or losses), and at amortized cost. The classification depends on the business model of the entity to manage the financial assets and the contractual terms of the cash flows.

The group reclassifies debt investments when, and only when, it changes its business model to manage those assets.

In the initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset classified at amortized cost, the transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets accounted for at fair value through profit or loss are recorded as expenses in the consolidated statement of income by function.

(a)

Debt instruments

The subsequent measurement of debt instruments depends on the group’s business model to manage the asset and cash flow characteristics of the asset. The Company has two measurement categories in which the group classifies its debt instruments:

Amortized cost: the assets held for the collection of contractual cash flows where those cash flows represent only payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in income when the asset is derecognized or impaired. Interest income from these financial assets is included in financial income using the effective interest rate method.

Fair value through profit or loss: assets that do not meet the criteria of amortized cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit or loss and is presented net in the consolidated statement of income by function within other gains / (losses) in the period or exercise in which it arises.

(b)

Equity instruments

Changes in the fair value of financial assets at fair value through profit or loss are recognized in other gains / (losses) in the consolidated statement of income by function as appropriate.

The Company evaluates in advance the expected credit losses associated with its debt instruments recorded at amortized cost. The applied impairment methodology depends on whether there has been a significant increase in credit.

2.9.

Derivative financial instruments and embedded derivatives

Derivative financial instruments and hedging activities

Initially at fair value on the date on which the derivative contract was made and are subsequently valued at their fair value. The method to recognize the resulting loss or gain depends on whether the derivative designated as a hedging instrument and, if so, the nature of the item being hedged.

F-20

The Company designates certain derivatives as:

(a)

Hedge of an identified risk associated with a recognized liability or an expected highly- probable transaction (cash-flow hedge), or

(b)

Derivatives that do not qualify for hedge accounting.

At the beginning of the transaction, the Company documents the economic relationship between the hedged items existing between the hedging instruments and the hedged items, as well as its objectives for risk management and the strategy to carry out various hedging operations. The Company also documents its assessment, both at the beginning and on an ongoing basis, as to whether the derivatives used in the hedging transactions are highly effective in offsetting the changes in the fair value or cash flows of the items being hedged.

The total fair value of the hedging derivatives is booked as Other non-current financial asset or liability if the remaining maturity of the item hedged is over 12 months, and as an Other current financial asset or liability if the remaining term of the item hedged is less than 12 months.

Derivatives not booked as hedges are classified as Other financial assets or liabilities.

(a)

Cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is shown in the statement of other comprehensive income. The loss or gain relating to the ineffective portion is recognized immediately in the consolidated statement of income by function under other gains (losses). Amounts accumulated in equity are reclassified to profit or loss in the periods or exercise when the hedged item affects profit or loss. When these amounts correspond to hedging derivatives of highly probable items that give rise to non-financial assets or liabilities, in which case, they are recorded as part of the non-financial assets or liabilities.

For fuel price hedges, the amounts shown in the statement of other comprehensive income are reclassified to results under the line-item Cost of sales to the extent that the fuel subject to the hedge is used.

Gains or losses related to the effective part of the change in the intrinsic value of the options are recognized in the cash flow hedge reserve within equity. Changes in the time value of the options related to this part are recognized within Other Consolidated Comprehensive Income in the costs of the hedge reserve within equity.

When a hedging instrument matures, is sold, or fails to meet the requirements to be accounted for as a hedge, any gain or loss accumulated in the statement of Other comprehensive income until that moment, remains in the statement of other comprehensive income and is reclassified to the consolidated statement of income when the hedged transaction is finally recognized.

When it is expected that the hedged transaction is no longer going to occur, the gain or loss accumulated in the statement of other comprehensive income is taken immediately to the consolidated statement of income by function as “Other gains (losses)”.

(b)

Derivatives not booked as a hedge

The changes in fair value of any derivative instrument that is not booked as a hedge are shown immediately in the consolidated statement of income in “Other gains (losses)”.

Embedded derivatives

The Company assesses the existence of embedded derivatives in financial instrument contracts. Derivatives embedded in non-derivative host contracts are treated as separate derivatives when they meet the definition of a derivative, their risks and characteristics are not closely related to those of the host contracts and the contracts are not measured at FVTPL as a whole. LATAM Airlines Group S.A. has determined that no embedded derivatives currently exist.

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2.10.

Inventories

Inventories, are shown at the lower of cost and their net realizable value. The cost is determined on the basis of the weighted average cost method (WAC). The net realizable value is the estimated selling price in the normal course of business, less estimated costs necessary to make the sale.

2.11.

Trade and other accounts receivable

Commercial accounts receivable are initially recognized at their fair value and subsequently at their amortized cost in accordance with the effective rate method, less the provision for impairment according to the model of the expected credit losses. The Company applies the simplified approach permitted by IFRS 9, which requires that expected lifetime losses be recognized upon initial recognition of accounts receivable.

In the event that the Company transfers its rights to any financial asset (generally accounts receivable) to a third party in exchange for a cash payment, the Company evaluates whether all risks and rewards have been transferred, in which case the account receivable is derecognized.

The existence of significant financial difficulties on the part of the debtor, the probability that the debtor goes bankrupt or financial reorganization are considered indicators of a significant increase in credit risk.

The carrying amount of the asset is reduced as the provision account is used and the loss is recognized in the consolidated income statement under “Cost of sales”. When an account receivable is written off, it is regularized against the provision account for the account receivable.

2.12.

Cash and cash equivalents

Cash and cash equivalents include cash and bank balances, time deposits in financial institutions, and other short-term and highly liquid investments and a low risk of loss of value.

2.13.

Capital

The common shares are classified as net equity.

Incremental costs directly attributable to the issuance of new shares or options are shown in net equity as a deduction from the proceeds received from the placement of shares.

2.14.

Trade and other accounts payables

Trade payables and other accounts payable are initially recognized at fair value and subsequently at amortized cost.

2.15.

Interest-bearing loans

Financial liabilities are shown initially at their fair value, net of the costs incurred in the transaction. Later, these financial liabilities are valued at their amortized cost; any difference between the proceeds obtained (net of the necessary arrangement costs) and the repayment value, is shown in the consolidated statement of income during the term of the debt, according to the effective interest rate method.

Financial liabilities are classified in current and non-current liabilities according to the contractual payment dates of the nominal principal and compliance with contractual agreements at the closing date of these financial statements.

Convertible Notes

The component parts of the convertible notes issued by LATAM Airlines Group S.A. are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or at the instrument’s maturity date. The conversion option classified as equity is determined by the deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in other equity, net of income tax effects. and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in other equity until the conversion option is exercised, in which case, the balance recognized in other equity will be transferred to share capital. Where the conversion option remains unexercised at maturity date of the convertible bond, the balance recognized in other equity will be transferred to retained earnings. No gain or loss is recognized in profit or loss upon conversion or expiration of the conversion option.

F-22

Transaction costs that relate to the issue of the convertible notes are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are charged directly to equity.

2.16.

Current and deferred taxes

The tax expense for the period or exercise comprises income and deferred taxes.

The current income tax expense is calculated based on tax laws enacted at the date of the statement of financial position, in the countries in which the subsidiaries and associates operate and generate taxable income.

Deferred taxes are recognized on the temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. When deferred taxes arise from the initial recognition of a liability or an asset in a transaction other than a business combination, which at the time of the transaction does not affect either the accounting result or the tax profit or loss, they are recorded. Deferred tax is determined using the tax rates (and laws) that have been enacted or substantially enacted at the date of the consolidated statements of financial position and are expected to apply when the related deferred tax asset is realized or the deferred tax liability discharged.

Deferred tax assets are recognized only to the extent it is probable that the future taxable profit will be available against which the temporary differences can be utilized.

The tax (current and deferred) is recognized in the statement of income by function, unless it relates to an item recognized in other comprehensive income, directly in equity. In this case the tax is also recognized in other comprehensive income or, directly in the statement of income by function, respectively.

Deferred tax assets and liabilities are offset if, and only if:

(a)

there is a legally enforceable right to set off current tax assets and liabilities, and

(b)

the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either:

(i)

the same taxable entity, or

(ii)

different taxable entities which intend to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

LATAM Airlines Group S.A has evaluated the potential impact from the implementation of the “GloBE or Pillar Two rules”, which seeks to ensure that multinational groups pay a minimum effective tax rate of 15%. As of March 31, 2024, this regulation has not been adopted in Chile (where LATAM has its headquarters) or in other jurisdictions where LATAM Airlines Group S.A has operating companies. Therefore, it has not been necessary to estimate a potential impact of its application from its entry into force (January 1, 2024). At the close of this financial statements, the group does not present expenses or income for current taxes related to the Pillar Two income tax.

LATAM Airlines Group S.A. and its Subsidiaries have adopted the exception of paragraph 4A of IAS 12, incorporated in the amendment published on May 23, 2023, relating to the recognition and disclosure of deferred tax assets and liabilities related to Pillar Two income taxes.

2.17.

Employee benefits

(a)

Personnel vacations

The Company recognizes the expense for personnel vacations on an accrual basis.

F-23

(b)

Share-based compensation

The compensation plans implemented based on the value of the shares of the Company are recognized in the consolidated financial statements in accordance with IFRS 2: Share-based payments, for cash settled awards the fair value, updated as of the closing date of each reporting period or exercise, is recorded as a liability with charge to remuneration.

(c)

Post-employment and other long-term benefits

Provisions are made for these obligations by applying the method of the projected unit credit method, and considering estimates of future permanence, mortality rates and future wage increases determined on the basis of actuarial calculations. The discount rates are determined by reference to market interest-rate curves. Actuarial gains or losses are shown in other comprehensive income.

(d)

Incentives

The Company has an annual incentives plan for its personnel for compliance with objectives and individual contribution to the results. The incentives eventually granted consist of a given number or portion of monthly remuneration and the provision is made on the basis of the amount estimated for distribution.

(e)

Termination benefits

The group recognizes termination benefits at the earlier of the following dates: (a) when the group terminates the employee relationship; and (b) when the entity recognizes costs for a restructuring that is within the scope of IAS 37 and involves the payment of terminations benefits.

2.18.

Provisions

Provisions are recognized when:

(i)

The Company has a present legal or constructive obligation as a result of a past event;

(ii)

It is probable that payment is going to be required to settle an obligation; and

(iii)

A reliable estimate of the obligation amount can be made.

2.19.

Revenue from contracts with customers

(a)

Transportation of passengers and cargo

The Company recognizes the sale for the transportation service as a deferred income liability, which is recognized as income when the transportation service has been provided or expired. In the case of air transport services sold by the Company and that will be made by other airlines, the liability is reduced when they are remitted to said airlines. The Company periodically reviews whether it is necessary to make an adjustment to deferred income liabilities, mainly related to returns, changes, among others.

Compensations granted to clients for changes in the levels of services or billing of additional services such as additional baggage, change of seat, among others, are considered modifications of the initial contract, therefore, they are deferred until the corresponding service is provided.

(b)

Expiration of air tickets

The Company estimates on a monthly basis the probability of expiration of air tickets, with refund clauses, based on their history of use. Air tickets without a refund clause expire on the date of the flight in case the passenger does not show up.

(c)

Costs associated with the contract

The costs related to the sale of air tickets are capitalized and deferred until the moment of providing the corresponding service. These assets are included under the heading “Other current non-financial assets” in the Consolidated Classified Statement of Financial Position.

F-24

(d)

Frequent passenger program

The Company maintains the following loyalty programs: LATAMPASS’s and LATAMPASS’s Brazil, whose objective is building customer loyalty through the delivery of miles or points.

These programs give their frequent passengers the possibility of earning LATAMPASS’s miles or points, which grant the right to a selection of both air and non-air awards. Additionally, the Company sells the LATAMPASS miles or points to financial and non-financial partners through commercial alliances to award miles or points to their customers.

To reflect the miles and points earned, the loyalty program mainly includes two types of transactions that are considered revenue arrangements with multiple performance obligations: (1) Passenger Ticket Sales Earning miles or points (2) miles or points sold to financial and non-financial partner.

(1)

Passenger Ticket Sales Earning Miles or Points.

In this case, the miles or points are awarded to customers at the time that the company performs the flight.

To value the miles or points earned with travel, we consider the quantitative value a passenger receives by redeeming miles for a ticket rather than paying cash, which is referred to as Equivalent Ticket Value (“ETV”). Our estimate of ETV is adjusted for miles and points that are not likely to be redeemed (“breakage”).

The balance of miles and points that are pending to redeem are included within deferred revenue.

(2)

Miles sold to financial and non-financial partners

To value the miles or points earned through financial and non-financial partners, the performance obligations with the client are estimated separately. To calculate these performance obligations, different components that add value in the commercial contract must be considered, such as marketing, advertising and other benefits, and finally the value of the points awarded to customers based on our ETV. The value of each of these components is finally allocated in proportion to their relative prices. The performance obligations associated with the valuation of the points or miles earned become part of the Deferred Revenue, and the remaining performance obligations are recorded as revenue when the miles or points are delivered to the client.

When the miles and points are exchanged for products and services other than the services provided by the Company, the income is recognized immediately; when the exchange is made for air tickets of any airline of LATAM Airlines Group S.A. and Subsidiaries, the income is deferred until the air transport service is provided.

The miles and points that the Company estimates will not be exchanged are recognized in the results based on the consumption pattern of the miles or points effectively exchanged by customers. The Company uses statistical models to estimate the probability of exchange, which is based on historical patterns and projections.

2.20.

Leases

The Company recognizes contracts that meet the definition of a lease as a right of use asset and a lease liability on the date when the underlying asset is available for use.

Right of use assets are measured at cost including the following:

The amount of the initial measurement of the lease liability;

Lease payment made at or before commencement date;

Initial direct costs, and

Restoration costs.

The right of use assets are recognized in the statement of financial position in Property, plant and equipment.

Lease liabilities include the net present value of the following payments:

Fixed payments including in substance fixed payment.

Variable lease payments that depend on an index or a rate;

The exercise price of a purchase option, if it is reasonably certain that the option will be exercised.

The discount rate that LATAM Airlines Group S.A. uses is the interest rate implicit in the lease, if that rate can be readily determined. This is the rate of interest that causes the present value of (a) lease payments and (b) the unguaranteed residual value to equal the sum of (i) the fair value of the underlying asset and (ii) any initial direct costs of the lessor.

F-25

LATAM Airlines Group S.A. uses its incremental borrowing rate if the interest rate implicit in the lease cannot be readily determined.

Lease liabilities are recognized in the statement of financial position under “Other financial liabilities, current or non-current”.

Interest accrued on financial liabilities is recognized in the consolidated statement of income in “Financial costs”.

Principal and interest are present in the consolidated cash flow as “Payments of lease liability” and “Interest paid”, respectively, within financing cash flows.

Payments associated with short-term leases without purchase options and leases of low-value assets are recognized on a straight-line basis in profit or loss at the time of accrual. Those payments are presented within operating cash flows.

The Company analyzes the financing agreements of aircraft, mainly considering characteristics such as:

(a)	That the Company initially acquired the aircraft or took an important part in the process of direct acquisition with the manufacturers.

(b)	Due to the contractual conditions, it is virtually certain that the Company will execute the purchase option of the aircraft at the end of the lease term.

Since these financing agreements are “substantially purchases” and not leases, the related liability is considered as a financial debt classified under IFRS 9 and continues to be presented within the “Other financial liabilities” described in Note 18. On the other hand, the aircraft are presented in Property, Plant and Equipment, as described in Note 16, as “own aircraft”.

The Group qualifies as sale and lease transactions, operations that lead to a sale according to IFRS 15. More specifically, a sale is considered as such if there is no option to purchase the goods at the end of the lease term.

If the sale by the seller-lessee is classified as a sale in accordance with IFRS 15, the underlying asset is derecognized, and a right-of-use asset equal to the portion retained proportionally of the amount of the asset is recognized.

If the sale by the seller-lessee is not classified as a sale in accordance with IFRS 15, the transferred assets are kept in the financial statements and a financial liability equal to the sale price is recognized (received from the buyer-lessor).

2.21.

Non-current assets or disposal groups classified as held for sale

Non-current assets (or disposal groups) classified as assets held for sale are shown at the lesser of their book value and the fair value less costs to sell.

2.22.

Maintenance

The costs incurred for scheduled heavy maintenance of the aircraft’s fuselage and engines are capitalized and depreciated until the next maintenance. The depreciation rate is determined on technical grounds, according to the use of the aircraft expressed in terms of cycles and flight hours.

In case of aircraft include in property, plant and equipment, these maintenance cost are capitalized as Property, plant and equipment, while in the case of aircraft on right of use, a liability is accrued based on the use of the main components is recognized, since a contractual obligation with the lessor to return the aircraft on agreed terms of maintenance levels exists. These are recognized as Cost of sales.

Additionally, some contracts that comply with the definition of lease establish the obligation of the lessee to make deposits to the lessor as a guarantee of compliance with maintenance and return conditions. These deposits, often called maintenance reserves, accumulate until a major maintenance is performed; and once done, recovery is requested to the lessor. At the end of the contract period, there is comparison between the reserves that have been paid and required return conditions, and compensation between the parties are made if applicable.

F-26

The unscheduled maintenance of aircraft and engines, as well as minor maintenance, are charged to results as incurred.

2.23.

Environmental costs

Disbursements related to environmental protection are charged to results when incurred or accrue.

NOTE 3 - FINANCIAL RISK MANAGEMENT

3.1.

Financial risk factors

The Company is exposed to different financial risks: (a) market risk, (b) credit risk, and (c) liquidity risk. The risk management of the Company aims to minimize the adverse effects of financial risks affecting the company.

(a)

Market risk

Due to the nature of its operations, the Company has exposure to market factors such as: (i) fuel-price risk, (ii) exchange -rate risk (FX), and (iii) interest -rate risk.

The Company has developed manuals and procedures to manage the market risk, which goal is to identify, quantify, monitor and mitigate the adverse effects of changes in market factors mentioned above.

For the foregoing, Management monitors the evolution of fuel price levels, exchange rates and interest rates, quantifies their exposures and their risk, and develops and executes hedging strategies.

(i)

Fuel-price risk

Exposure:

For the execution of its operations, the Company purchases a fuel called Jet Fuel grade 54 USGC, which is subject to the fluctuations of international fuel prices.

Mitigation:

To hedge the fuel-price risk exposure, the Company operates with derivative instruments (swaps and options) whose underlying assets may be different from Jet Fuel, such as West Texas Intermediate (“WTI”) crude, Brent (“BRENT”) crude and distillate Heating Oil (“HO”), which may have a high correlation with Jet Fuel and greater liquidity.

Fuel Hedging Results:

During the period ended March 31, 2024, the Company recognized gains of US$19.1 million for fuel hedging net of premiums in the costs of sales for the year. During the period ended March 31, 2023, the Company recognized gains of US$0.8 million for fuel hedging net of premiums in the costs of sales for the year.

As of March 31, 2024, the market value of the fuel positions amounted to US$37.20 million (positive). At the end of December 2023, this market value was US$22.1 million (positive).

F-27

The following tables show the level of hedge for different periods:

Positions as of March 31, 2024 (*) (Unaudited)	Maturities
	Q224			Q324			Q424			Q125			Total
Percentage of coverage over the expected volume of consumption		32	%		30	%		30	%		3	%		24	%

Positions as of December 31, 2023 (*)	Maturities
	Q124			Q224			Q324			Q424			Total
Percentage of coverage over the expected volume of consumption		35	%		32	%		30	%		22	%		30	%

(*)

The percentage shown in the table considers all the hedging instruments (swaps and options).

Sensitivity analysis

A drop in fuel price positively affects the Company through a reduction in costs. However, also negatively affects contracted positions as these are acquired to protect the Company against the risk of a rise in price. Therefore, the policy is to maintain a hedge-free percentage in order to be competitive in the event of a drop in price.

The current hedge positions are booked as cash flow hedge contracts, so a variation in the fuel price has an impact on the Company’s net equity.

The following table shows the sensitivity of financial instruments according to reasonable changes in the price of fuel and their effect on equity.

The calculations were made considering a parallel movement of US$ 5 per barrel in the underlying reference price curve at the end of March 2024 and the end of December 2023. The projection period was defined until the end of the last fuel hedging contract in force, being the last business day of the second half of 2025.

Benchmark price	Positions as of March 31, 2024 effect on Equity	Positions as of December 31, 2023 effect on Equity
(US$ per barrel)	(MUS$)	(MUS$)
	Unaudited
+5	+10.2	+10.8
-5	-12.7	-10.7

Given the fuel hedging structure for the year 2024, which considers a portion free of hedges, a vertical drop of 5 dollars in the JET reference price (considered as the monthly daily average), would have meant an impact of approximately US$ 34.2 million lower fuel cost. For the same period, a vertical rise of 5 dollars in the JET reference price (considered as the monthly daily average), would have meant an approximate impact of US$ 40.2 million in higher fuel costs.

(ii)

Foreign exchange rate risk:

Exposure:

The functional currency of the financial statements of the Parent Company is the US dollar, so that the risk of the Transactional and Conversion exchange rate arises mainly from the Company’s business, strategic and accounting operating activities that are expressed in a monetary unit other than the functional currency.

The subsidiaries of LATAM are also exposed to foreign exchange risk whose impact affects the Company’s Consolidated Income.

The largest operational exposure to LATAM’s exchange risk comes from the concentration of businesses in Brazil, which are mostly denominated in Brazilian real (R$), and are actively managed by the Company.

At a lower concentration, the Company is also exposed to the fluctuation of other currencies, such as: Euro, Pound sterling, Australian dollar, Colombian peso, Chilean peso, Argentine peso, Paraguayan guarani, Mexican peso, Peruvian Sol and New Zealand dollar.

Mitigation:

The Company mitigates currency risk exposures by contracting hedging or non-hedging derivative instruments or through natural hedges or execution of internal operations.

F-28

Exchange Rate Hedging Results (FX):

As of March 31, 2024, the Company recognized losses of US$1.4 million for FX hedging derivatives net of premiums reflected in the cost of sale. At the end of March of 2023, the Company recognize gains for US$1.9 million for FX hedging derivatives cost of sales.

As of March 31, 2024, the market value of hedging FX derivative positions is US$2.9 million (positive). As of December 31, 2023, the market value of the hedging FX derivative positions was US$ 1.5 million (negative). As of March 31, 2024, the Company has current hedging FX derivatives for US$160 million. . As of December 31, 2023, the Company holds current hedging FX derivatives of US$414 million.

Sensitivity analysis:

A depreciation of the R$/US$ exchange rate, negatively affects the Company’s operating cash flows, however, also positively affects the value of the positions of derivatives contracted.

The following table shows the sensitivity of current hedging FX derivative instruments according to reasonable changes in the exchange rate and its effect on equity.

Appreciation (depreciation)	Effect on equity as of March 31, 2024	Effect on equity as of December 31, 2023
of R$/US$	(MUS$)	(MUS$)
	Unaudited
-10%	-11.1	-10.0
+10%	+11.2	+19.0

Impact of Exchange rate variation in the Consolidated Income Statements (Foreign exchange gains/losses).

In the case of TAM S.A., whose functional currency is the Brazilian real, a large part of its liabilities is expressed in US dollars. Therefore, when converting financial assets and liabilities, from US dollar to Brazilian reais, they have an impact on the result of TAM S.A., which is consolidated in the Company’s Income Statement.

In order to reduce the impact on the Company’s result caused by appreciations or depreciations of R$/US$, the Company carries out internal operations to reduce the net exposure in US$ for TAM S.A.

The following table shows the impact of the Exchange Rate variation on the Consolidated Income Statement when the R$/US$ exchange rate appreciates or depreciates by 10%:

Appreciation (depreciation)	Effect on Income Statement for the year ended March 31, 2024	Effect on Income Statement for the year ended March 31, 2023
of R$/US$	(MUS$)	(MUS$)
	Unaudited	Unaudited
-10%	-15.1	+44.1
+10%	+15.1	-44.1

Impact of the exchange rate variation in the Equity, from translate the subsidiaries financial statements into US Dollars (Cumulative Translate Adjustment).

Since the functional currency of TAM S.A. and Subsidiaries is the Brazilian real, the Company presents the effects of the exchange rate fluctuations in Other comprehensive income (Cumulative Translation Adjustment) by converting the Statement of financial position and Income statement of TAM S.A. and Subsidiaries from their functional currency to the U.S. dollar, which is the presentation currency of the consolidated financial statement of LATAM Airlines Group S.A. and Subsidiaries.

F-29

The following table shows the impact on the Cumulative Translation Adjustment included in Other comprehensive income recognized in Total equity in the case of an appreciation or depreciation of 10% in the exchange rate R$/US$:

Appreciation (depreciation)	Effect at March 31, 2024	Effect at December 31, 2023
of R$/US$	MUS$	MUS$
	Unaudited
-10%	+335.42	+327.01
+10%	-274.44	-267.56

(iii)

Interest -rate risk:

Exposure:

The Company has exposure to fluctuations in interest rates affecting the future cash flows of the assets, and current and future financial liabilities.

The Company is mainly exposed to the Secured Overnight Financing Rate (“SOFR”) and other less relevant interest rates such as Brazilian Interbank Certificates of Deposit (“CDI”) . Due to the fact that the publication of LIBOR ceased by June 30th 2023, the company has effectively migrated to SOFR as an alternative rate, which was fully materialized on September 30th 2023.

Of the company’s financial debt subject to variable rates, all of the contracts maintain exposure to the SOFR reference rate.

Mitigation:

Currently, 50% (50% as of December 31, 2023) of the debt has fixed rate. The variable debt is indexed to the reference rate based on SOFR.

Likewise, most of the company’s liquidity is denominated in dollars and indexed to a return rate similar and with alike fluctuation to the SOFR rate, which helps reduce exposure.

Rate Hedging Results:

During the period ended March 31, 2024, the Company did not recognized any losses for premiums paid. As of March 31, 2023, losses of US$1.3 million (negative) were recognized corresponding to the recognition in profit for premiums paid.

As of March 31, 2024, the Company has no interest rate derivatives outstanding, at the end of December 2023 the Company did not have interest rate derivatives outstanding.

As of March 31, 2024, the Company did not recognize a decrease in the right-of-use asset due to the expiration of derivatives associated with some aircraft leases. On this same date, a lower depreciation expense of the right-of-use asset for US$ 0.5 million (positive) is recognized. At the end of December 2023, the Company recognized US$ 0.2 million for this same concept.

As of March 31, 2024, the Company did not settle any derivatives associated with hedges of leased aircraft.

Sensitivity analysis:

The following table shows the sensitivity of changes in financial obligations that are not hedged against interest-rate variations. These changes are considered reasonably possible, based on current market conditions each date.

Increase (decrease)	Positions as of March 31, 2024 effect on Income	Positions as of December 31, 2023 effect on Income
of future curve	(Loss) before taxes	(Loss) before tax
SOFR rate	(MUS$)	(MUS$)
	Unaudited	Unaudited
+100 basis points	-19.99	-20.27
-100 basis points	+19.99	+20.27

F-30

A large part of the derivatives of current rates are recorded as cash flow hedge contracts, therefore, a variation in interest rates has an impact on the market value of the derivatives, whose changes affect the equity of the entity.

The calculations were made by vertically increasing (decreasing) 100 base points of the interest rate curve, both scenarios being reasonably possible according to historical market conditions.

The sensitivity calculation hypothesis must assume that the forward curves of interest rates will not necessarily reflect the real value of the compensation of the flows. In addition, the interest rate structure is dynamic over time.

During the periods presented, the Company did not record any losses for ineffectiveness in the consolidated income statement for this type of coverage.

(b)

Credit risk

Credit risk occurs when the counterparty does not comply with its obligations to the Company under a specific contract or financial instrument, resulting in a loss in the market value of a financial instrument (only financial assets, not liabilities). The customer portfolio as of March 31, 2024 has experienced an increased by 6% compared to the balance as of December 31, 2023, mainly due to an increase in passenger transportation operations (travel agencies and corporate) that increased by 20% in its sales, mainly affecting the payment methods credit card 23%, and cash sales 15%. In relation to the cargo business, it presented a decrease in its operations of 7% compared to December 2023. There was special consideration for the Expected Credit Loss calculation for the clients with balance at the year end that management considered risky. The Expected Credit Loss at the end of March 2024 had a decrease 8% compared to the end of December 2023, as a result of the decrease in the portfolio due to collection, and due to the application of write-offs.

The Company is exposed to credit risk due to its operational activities and its financial activities, including deposits with banks and financial institutions, investments in other types of instruments, exchange rate transactions and derivatives contracts.

To reduce the credit risk related to operational activities, the company has implemented credit limits to limit the exposure of its debtors, which are permanently monitored for the LATAM network, when deemed necessary, agencies have been blocked for cargo and passenger businesses.

(i)

Financial activities

Cash surpluses that remain after the financing of assets necessary for the operation are invested according to credit limits approved by the Company’s Board, mainly in time deposits with different financial institutions, private investment funds and short-term mutual funds. These investments are booked as Cash and cash equivalents and other current financial assets.

In order to reduce counterparty risk and to ensure that the risk assumed is known and managed by the Company, investments are diversified among different banking institutions (both local and international). The Company evaluates the credit standing of each counterparty and the levels of investment, based on (i) its credit rating, and (ii) investment limits according to the Company’s level of liquidity. According to these two parameters, the Company chooses the most restrictive parameter of the previous two and based on this, establishes limits for operations with each counterparty.

The Company has no guarantees to mitigate this exposure.

(ii)

Operational activities

The Company has four large sales “clusters”: travel agencies, cargo agents, airlines and credit-card administrators. The first three are governed by International Air Transport Association (“IATA”), international organization comprising most of the airlines that represent over 90% of scheduled commercial traffic and one of its main objectives is to regulate the financial transactions between airlines and travel agents and cargo. When an agency or airline does not pay their debt, it is excluded from operating with IATA’s member airlines. In the case of credit-card administrators, they are fully guaranteed by 100% by the issuing institutions.

F-31

Under certain of the Company’s credit card processing agreements, the financial institutions have the right to require that the Company maintain a reserve equal to a portion of advance ticket sales that have been processed by that financial institution, but for which the Company has not yet provided the air transportation. Additionally, the financial institutions have the ability to require additional collateral reserves or withhold payments related to receivables to be collected if increased risk is perceived related to liquidity covenants in these agreements or negative balances occur.

The exposure consists of the term granted, which fluctuates between 1 and 45 days.

One of the tools the Company uses for reducing credit risk is to participate in global entities related to the industry, such as IATA, Business Sales Processing (“BSP”), Cargo Account Settlement Systems (“CASS”), IATA Clearing House (“ICH”) and banks (credit cards). These institutions fulfill the role of collectors and distributors between airlines and travel and cargo agencies. In the case of the Clearing House, it acts as an offsetting entity between airlines for the services provided between them. A reduction in term and implementation of guarantees has been achieved through these entities.

The sales invoicing of TAM Linhas Aéreas S.A. related with cargo agents for domestic transportation in Brazil is done directly by TAM Linhas Aereas S.A.

Credit quality of financial assets

The external credit evaluation system used by the Company is provided by IATA. Internal systems are also used for particular evaluations or specific markets based on trade reports available on the local market. The internal classification system is complementary to the external one, i.e. for agencies or airlines not members of IATA, the internal demands are greater.

To reduce the credit risk associated with operational activities, the Company has established credit limits to mitigate the exposure of their debtors which are monitored permanently (mainly in case of operational activities of TAM Linhas Aéreas S.A. with travel agents). The bad-debt rate in the principal countries where the Company has a presence is insignificant.

(c)

Liquidity risk

Liquidity risk represents the risk that the Company does not have sufficient funds to pay its obligations.

Due to the cyclical nature of its business, the operation and investment needs, along with the need for financing, the Company requires liquid funds, defined as Cash and cash equivalents plus other short-term financial assets, to meet its payment obligations.

The balance of liquid funds, future cash generation and the ability to obtain financing, provide the Company with alternatives to meet future investment and financing commitments.

As of March 31, 2024, the balance of liquid funds is US$1,851 million ((US$ 1,715 million as of December 31, 2023), which are invested in short-term instruments through financial entities with a high credit rating classification.

As of March 31, 2024, LATAM maintains two Revolving Credit Facility for a total of US$1,100 million, one for an amount of US$600 million and another for an amount of US$500 million, which are fully available. The first of these lines is secured by and subject to the availability of certain collateral (i.e. aircraft, engines and spare parts). The second one, is secured by certain intangibles assets of the Company, which are shared with other Chapter 11 exit financing debt.

F-32

Class of liability for the analysis of liquidity risk ordered by date of maturity as of March 31, 2024 (Unaudited)

Debtor: LATAM Airlines Group S.A. Tax No. 89.862.200-2 Chile.

						Up to		More than 90 days		More than one to		More than three to		More than								Annual
Tax No.	Creditor		Creditor country	Currency		90 days		to one year		three years		five years		five years		Total		Nominal value		Amortization		Effective rate		Nominal rate
						ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$				%		%
Bank loans
0-E		GOLDMAN SACHS	U.S.A.		US$		43,843		129,838		314,827		1,158,315		—		1,646,823		1,086,250		Quarterly		20.24		14.97

Obligations with the public
97.036.000-K		SANTANDER	Chile		UF		—		2,912		5,772		5,772		164,495		178,951		144,291		To the expiration		2.00		2.00
0-E		WILMINGTON TRUST COMPANY	U.S.A.		US$		76,906		76,906		307,625		697,438		793,625		1,952,500		1,150,000		To the expiration		15.00		13.38
97.036.000-K		SANTANDER	Chile		US$		—		—		—		—		6		6		3		To the expiration		1.00		1.00

Guaranteed obligations
0-E		BNP PARIBAS	U.S.A.		US$		5,853		17,525		43,006		41,319		116,416		224,119		168,792		Quarterly		6.92		6.92
0-E		WILMINGTON TRUST COMPANY	U.S.A.		US$		5,902		17,142		42,745		40,781		47,801		154,371		127,409		Quarterly/Monthly		8.73		8.73

Other guaranteed obligation
0-E		EXIM BANK	U.S.A.		US$		444		6,351		43,524		43,488		11,231		105,038		99,109		Quarterly		2.29		2.05
0-E		MUFG	U.S.A.		US$		12,770		37,754		4,218		—		—		54,742		52,335		Quarterly		7.11		7.11
0-E		CREDIT AGRICOLE	France		US$		13,661		26,027		75,003		238,441		—		353,132		266,768		To the expiration		9.39		9.39

Financial lease
0-E		NATIXIS	France		US$		10,469		30,704		75,073		71,001		87,580		274,827		206,865		Quarterly		7.54		7.54
0-E		US BANK	U.S.A.		US$		17,193		42,018		6,573		—		—		65,784		64,524		Quarterly		4.51		3.20
0-E		EXIM BANK	U.S.A.		US$		3,193		42,550		200,756		143,197		60,588		450,284		413,072		Quarterly		4.12		3.30
0-E		BANK OF UTAH	U.S.A.		US$		5,896		17,724		47,679		58,688		107,262		237,249		170,008		Monthly		10.71		10.71

Others loans
0-E		OTHERS (*)	Chile		US$		99		—		—		—		—		99		99		To the expiration		—		—
		TOTAL					196,229		447,451		1,166,801		2,498,440		1,389,004		5,697,925		3,949,525

(●)	Obligation with creditors for executed letters of credit.

F-33

Class of liability for the analysis of liquidity risk ordered by date of maturity as of March 31, 2024 (Unaudited)

Debtor: TAM S.A. Tax No. 02.012.862/0001-60, Brazil.

Up to

More than
90 days

More than
one to

More than
three to

More than

Annual

Tax No.

Creditor

Creditor
country

Currency

90
days

to one
year

three
years

five
years

Total

Nominal
value

Amortization

Effective
rate

Nominal
rate

ThUS$

Financial lease

0-E

NATIXIS

France

US$

510

1,530

4,080

9,886

—

16,006

Quarterly

—

TOTAL

510

1,530

4,080

9,886

—

16,006

Class of liability for the analysis of liquidity risk ordered by date of maturity as of March 31, 2024 (Unaudited) Debtor:

LATAM Airlines Group S.A. Tax No. 89.862.200-2, Chile.

						Up to		More than 90 days		More than one to		More than three to		More than								Annual
Tax No.	Creditor		Creditor country	Currency		90 days		to one year		three years		five years		five years		Total		Nominal value		Amortization		Effective rate		Nominal rate
						ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$				%		%
Lease Liability
	AIRCRAFT		OTHERS		US$		144,478		436,400		1,154,914		961,011		1,780,072		4,476,875		3,017,820		—		—		—
		OTHER	OTHERS		US$
		ASSETS					2,532		7,578		20,101		20,620		61,531		112,362		62,149		—		—		—
					CLP		17		52		67		—		—		136		134		—		—		—
					UF		405		1,142		2,601		2,205		4,361		10,714		10,705		—		—		—
					COP		122		234		243		128		—		727		564		—		—		—
					EUR		30		84		120		16		—		250		240		—		—		—
					BRL		2,318		6,835		14,830		14,505		24,084		62,572		34,924		—		—		—
					MXN		104		295		211		—		—		610		608		—		—		—
Trade and other accounts payables
	OTHERS		OTHERS		US$		990,209		8,117		—		—		—		998,326		709,933		—		—		—
					CLP		31,647		1,857		—		—		—		33,504		64,317		—		—		—
					BRL		296,091		7,282		—		—		—		303,373		409,474		—		—		—
					Other currency		136,528		2,089		—		—		—		138,617		118,189		—		—		—
Accounts payable to related parties currents
Foreign		Qatar Airways	Qatar		US$		—		4,895		—		—		—		4,895		4,895		—		—		—
Foreign		Delta Air Lines, Inc.	USA		US$		—		7,396		—		—		—		7,396		7,396		—		—		—
		Total					1,604,481		484,256		1,193,087		998,485		1,870,048		6,150,357		4,441,348
		Total consolidated					1,801,220		933,237		2,363,968		3,506,811		3,259,052		11,864,288		8,406,879

F-34

Class of liability for the analysis of liquidity risk ordered by date of maturity as of December 31, 2023

Debtor: LATAM Airlines Group S.A. Tax No. 89.862.200-2 Chile.

						Up to		More than 90 days		More than one to		More than three to		More than								Annual
Tax No.	Creditor		Creditor country	Currency		90 days		to one year		three years		five years		five years		Total		Nominal value		Amortization		Effective rate		Nominal rate
						ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$				%		%
Bank loans

97.023.000-9	GOLDMAN	SACHS	U.S.A.		US$		44,721		127,878		302,953		1,192,355		—		1,667,907		1,089,000		Quarterly		20.31		15.04

Obligations with the public
97.030.000-7		SANTANDER	Chile		UF		—		3,230		6,409		6,409		182,647		198,695		160,214		At Expiration		2.00		2.00
0-E		WILMINGTON TRUST COMPANY	U.S.A.		US$		—		153,813		307,625		697,438		793,625		1,952,501		1,150,000		At Expiration		15.00		13.38
97.036.000-K		SANTANDER	Chile		US$		—		—		—		—		6		6		3		At Expiration		1.00		1.00

Guaranteed obligations
0-E		BNP PARIBAS	U.S.A.		US$		5,940		17,082		41,319		40,578		120,730		225,649		171,704		Quarterly		6.98		6.98
0-E		WILMINGTON TRUST COMPANY	U.S.A.		US$		5,948		16,928		42,098		40,736		54,056		159,766		132,585		Quarterly/Monthly		8.76		8.76

Other guaranteed obligation
0-E		EXIM BANK	U.S.A.		US$		452		1,348		43,531		43,494		16,665		105,490		99,109		Quarterly		2.29		2.05
0-E		MUFG	U.S.A.		US$		12,919		37,926		16,649		—		—		67,494		64,102		Quarterly		7.11		7.11
0-E		CREDIT AGRICOLE	France		US$		6,451		33,576		75,714		243,842		—		359,583		266,768		At Expiration		9.43		9.43

Financial lease
0-E		NATIXIS	France		US$		10,653		30,443		73,474		70,443		94,995		280,008		215,357		Quarterly		7.58		7.58
0-E		US BANK	U.S.A.		US$		17,984		50,411		17,681		—		—		86,076		84,177		Quarterly		4.41		3.16
0-E		PK AIRFINANCE	U.S.A.		US$		—		—		—		—		—		—		—		Quarterly		—		—
0-E		EXIM BANK	U.S.A.		US$		3,262		9,389		216,015		148,582		75,118		452,366		413,072		Quarterly		4.13		3.31
0-E		BANK OF UTAH	U.S.A.		US$		5,891		17,705		47,590		54,357		117,597		243,140		172,582		Monthly		10.71		10.71

Others loans
0-E		OTHERS (*)	Chile		US$		104		—		—		—		—		104		104		At Expiration		—		—
		TOTAL					114,325		499,729		1,191,058		2,538,234		1,455,439		5,798,785		4,018,777

(●)	Obligation with creditors for executed letters of credit.

F-35

Class of liability for the analysis of liquidity risk ordered by date of maturity as of December 31, 2023

Debtor: TAM S.A. Tax No. 02.012.862/0001-60, Brazil.

Up to

More than
90 days

More than
one to

More than
three to

More than

Annual

Tax No.

Creditor

Creditor
country

Currency

90
days

to one
year

three
years

five
years

Total

Nominal
value

Amortization

Effective
rate

Nominal
rate

ThUS$

Financial leases

0-E

NATIXIS

France

US$

1,020

1,530

4,080

9,376

—

16,006

Semiannual/Quarterly

—

TOTAL

1,020

1,530

4,080

9,376

—

16,006

Class of liability for the analysis of liquidity risk ordered by date of maturity as of December 31, 2023

Debtor: LATAM Airlines Group S.A. Tax No. 89.862.200-2, Chile.

						Up to		More than 90 days		More than one to		More than three to		More than								Annual
Tax No.	Creditor		Creditor country	Currency		90 days		to one year		three years		five years		five years		Total		Nominal value		Amortization		Effective rate		Nominal rate
						ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$				%		%
Lease Liability
	AIRCRAFT		OTHERS		US$		139,599		419,554		1,116,682		928,238		1,685,262		4,289,335		2,894,195		—		—		—
		OTHER	OTHERS		US$
		ASSETS					2,523		7,276		14,863		846		1,404		26,912		25,680		—		—		—
					CLP		19		57		94		—		—		170		135		—		—		—
					UF		557		1,255		2,906		2,426		5,099		12,243		11,097		—		—		—
					COP		122		308		266		148		—		844		667		—		—		—
					EUR		63		101		172		23		—		359		296		—		—		—
					BRL		2,314		6,871		15,177		14,438		25,742		64,542		35,841		—		—		—
					MXN		24		71		8		—		—		103		84		—		—		—
Trade and other accounts payables
	OTHERS		OTHERS		US$		846,541		7,063		—		—		—		853,604		709,933		—		—		—
					CLP		44,593		8,072		—		—		—		52,665		64,317		—		—		—
					BRL		309,999		7,671		—		—		—		317,670		409,474		—		—		—
					Other currency		178,740		5,522		—		—		—		184,262		118,189		—		—		—
Accounts payable to related parties currents
Foreign		Qatar Airways	Qatar		US$		—		2,312		—		—		—		2,312		2,312		—		—		—
Foreign		Delta Air Lines, Inc.	USA		US$		—		5,132		—		—		—		5,132		5,132		—		—		—
		Total					1,525,094		471,265		1,150,168		946,119		1,717,507		5,810,153		4,277,352
		Total consolidated					1,640,439		972,524		2,345,306		3,493,729		3,172,946		11,624,944		8,312,135

F-36

The Company has fuel, interest rate and exchange rate hedging strategies involving derivatives contracts with different financial institutions.

As of March 31, 2024, the Company maintains guarantees for US$6.6 million corresponding to derivative transactions. The decrease is due to: i) Increase in the number of hedging contracts and ii) changes in fuel prices, exchange rates and interest rates. At the end of 2023, the Company had guarantees for US $ 11 million corresponding to derivative transactions.

3.2.

Capital risk management

The objectives of the Company, in relation to capital management are: (i) to meet the minimum equity requirements and (ii) to maintain an optimal capital structure.

The Company monitors contractual obligations and regulatory requirements in the different countries where the group’s companies are domiciled to ensure faithful compliance with the minimum equity requirement, the most restrictive limit of which is to maintain positive liquid equity.

Additionally, the Company periodically monitors the short and long term cash flow projections to ensure that it has sufficient cash generation alternatives to meet future investment and financing commitments.

The Company’s international credit rating is the result of its ability to meet its long-term financial commitments. As of March 31, 2024, The Company has a national scale rating of BBB with stable outlook by Fitch, a rating of BBB with stable outlook by ICR and a rating of BBB- with stable outlook by Feller. On an international scale, it has a rating of B+ with a positive outlook by Standard & Poor’s and a rating of B1 with a stable outlook by Moody’s.

3.3.

Estimates of fair value.

At March 31, 2024, the Company maintained financial instruments that should be recorded at fair value. These are grouped into two categories:

Derivative financial instruments:

This category includes the following instruments:

Fuel derivative contracts,

Currency derivative contracts.

Financial Investments:

This category includes the following instruments:

Investments in short-term Mutual Funds (cash equivalent).

The Company has classified the fair value measurement using a hierarchy that reflects the level of information used in the assessment. This hierarchy consists of 3 levels (I) fair value based on quoted prices in active markets for identical assets or liabilities, (II) fair value calculated through valuation methods based on inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) and (III) fair value based on inputs for the asset or liability that are not based on observable market data.

The fair value of financial instruments traded in active markets, such as investments acquired for trading, is based on quoted market prices at the close of the period using the current price of the buyer. The fair value of financial assets not traded in active markets (derivative contracts) is determined using valuation techniques that maximize use of available market information. Valuation techniques generally used by the Company are quoted market prices of similar instruments and / or estimating the present value of future cash flows using forward price curves of the market at period end.

F-37

The following table shows the classification of financial instruments at fair value, depending on the level of information used in the assessment:

	As of March 31, 2024								As of December 31, 2023
			Fair value measurements using values considered as								Fair value measurements using values considered as
	Fair value		Level I		Level II		Level III		Fair value		Level I		Level II		Level III
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
	Unaudited
Assets
Cash and cash equivalents		58,608		58,608		—		—		89,706		89,706		—		—
Short-term mutual funds		58,608		58,608		—		—		89,706		89,706		—		—
Other financial assets, current		40,309		—		40,309		—		22,136		—		22,136		—
Fair value of fuel derivatives		37,177		—		37,177		—		22,136		—		22,136		—
Fair value of foreign currency derivative		3,132		—		3,132		—		—		—		—		—

Liabilities

Other financial liabilities, current		247		—		247		—		1,544		—		1,544		—
Fair value of foreign currency derivatives		247		—		247		—		1,544		—		1,544		—

F-38

Additionally, at March 31, 2024, the Company has financial instruments which are not recorded at fair value. In order to meet the disclosure requirements of fair values, the Company has valued these instruments as shown in the table below:

	As of March 31, 2024				As of December 31, 2023
	Book value		Fair value		Book value		Fair value
	ThUS$		ThUS$		ThUS$		ThUS$
	Unaudited
Cash and cash equivalents		1,792,765		1,792,765		1,625,055		1,625,055
Cash on hand		3,006		3,006		2,019		2,019
Bank balance		657,917		657,917		552,187		552,187
Overnight		29,865		29,865		75,236		75,236
Time deposits		1,101,977		1,101,977		995,613		995,613
Other financial assets, current		138,016		138,016		152,683		152,683
Other financial assets		138,016		138,016		152,683		152,683
Trade debtors, other accounts receivable and Current accounts receivable		1,369,166		1,369,166		1,385,910		1,385,910
Accounts receivable from entities related, current		7		7		28		28
Other financial assets, non-current		39,260		39,260		34,485		34,485
Accounts receivable, non-current		12,371		12,371		12,949		12,949
Other current financial liabilities		676,391		905,500		594,519		867,791
Accounts payable for trade and other accounts payable, current		1,742,214		1,742,214		1,765,279		1,765,279
Accounts payable to entities related, current		12,291		12,291		7,444		7,444
Other financial liabilities, non current		6,400,346		6,260,143		6,341,669		6,174,294
Accounts payable, non current		435,147		435,147		418,587		418,587

The book values of accounts receivable and payable are assumed to approximate their fair values, due to their short-term nature. In the case of cash on hand, bank balances, overnight, time deposits and accounts payable, non-current, fair value approximates their carrying values.

The fair value of other financial liabilities is estimated by discounting the future contractual cash flows at the current market interest rate for similar financial instruments (Level II). In the case of Other financial assets, the valuation was performed according to market prices at period end. The book value of Other financial liabilities, current or non-current, do not include lease liabilities.

NOTE 4 - ACCOUNTING ESTIMATES AND JUDGMENTS

The Company has used estimates to value and record some of the assets, liabilities, revenue, expenses and commitments. Basically, these estimates refer to:

(a)

Impairment of Intangible asset with indefinite useful life

Management conducts an impairment test annually or more frequently if events or changes in circumstances indicate potential impairment. An impairment loss is recognized for the amount by which the carrying amount of the cash generating unit (CGU) exceeds its recoverable amount.

Management’s value-in-use calculations included significant judgments and assumptions relating to revenue growth rates, exchange rates, discount rates, inflation rates, fuel price. The estimation of these assumptions requires significant judgment by management as these variables are inherently uncertain; however, the assumptions used are consistent with the Company’s forecasts approved by management. Therefore, management evaluates and updates the estimates as necessary in light of conditions that affect these variables. The main assumptions used as well as the corresponding sensitivity analyses are shown in Note 15.

F-39

(b)

Depreciation expense and impairment of Properties, Plant and Equipment

The depreciation of assets is calculated based on a straight-line basis, except for certain technical components depreciated on cycles and hours flown. These useful lives are reviewed on an annual basis according to the Company’s future economic benefits associated with them.

Changes in circumstances such as: technological advances, business model, planned use of assets or capital strategy may result in a useful life different from what has been estimated. When it is determined that the useful life of property, plant, and equipment must be reduced, as may occur in line with changes in planned usage of assets, the difference between the net book value and estimated recoverable value is depreciated, in accordance with the revised remaining useful life.

The residual values are estimated according to the market value that the assets will have at the end of their life. The residual value and useful life of the assets are reviewed, and adjusted if necessary, once a year. When the value of an asset is greater than its estimated recoverable amount, its value is immediately reduced to its recoverable amount.

The Company has concluded that the Properties, Plant and Equipment cannot generate cash inflows to a large extent independent of other assets, therefore the impairment assessment is made as an integral part of the only Cash Generating Unit maintained by the Company, Air Transport. The Company checks when there are signs of impairment, whether the assets have suffered any impairment losses at the Cash Generated Unit level.

(c)

Recoverability of deferred tax assets

Management records deferred taxes on the temporary differences that arise between the tax bases of assets and liabilities and their amounts in the financial statements. Deferred tax assets on tax losses are recognized to the extent that it is probable that future tax benefits will be available to offset temporary differences.

The Company applies significant judgment in evaluating the recoverability of deferred tax assets. In determining the amounts of the deferred tax asset to be accounted for, management considers tax planning strategies, historical profitability, projected future taxable income (considering assumptions such as: growth rate, exchange rate, discount rate and fuel price consistent with those used in the impairment analysis of the group's cash-generating unit) and the expected timing of reversals of existing temporary differences.

(d)

Air tickets sold that will not be finally used.

The Company records the sale of air tickets as deferred revenue. Ordinary revenue from the sale of tickets is recognized in the statement of income when the passenger transportation service is provided or expires due to non-use. The Company evaluates the probability of expiration of air tickets on a monthly basis, based on the history of use. A change in this probability could impact revenue in the year in which the change occurs and in future years.

As of March 31, 2024, deferred revenues associated with air tickets sold amount to ThUS$1,837,179 (ThUS$2,009,242 as of December 31, 2023). A hypothetical change of one percentage point in the probability of expiration of up to ThUS$9,792 per month (ThUS$10,150 as of December 31, 2023).

(e)

Valuation of the miles and points awarded to the holders of the loyalty programs, pending use.

As of March 31, 2024, deferred revenue associated with the LATAM Pass loyalty program from Spanish-speaking countries increased to ThUS $1,058,870 (ThUS$1,099,580 as of December 31, 2023). An hypothetical change of one percentage point in the probability of redemption would translate into a cumulative impact of ThUS$31,965 on the results of 2024 (ThUS$as of March 31, 2023). Deferred revenue associated with the LATAM Pass Brazil loyalty program increased to ThUS$202,806 as of March 31, 2024 (ThUS$179,151 as of December 31, 2023). An hypothetical change of one percentage point in the exchange probability would result in an accumulated impact of ThUS$4,998 on the results of 2023 (ThUS$3,728 as of March 31, 2023).

The company, in conjunction with an external consultant, estimates the probability of non-use based on a predictive model, according to the redemption behaviors and validity of miles and points using significant judgments and critical assumptions which consider the historical use activity and the expected use pattern.

F-40

(f)

Legal Contingencies

In the case of known contingencies, the Company records a provision when it has a present obligation, whether legal or constructive, as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the obligation amount can be made. The assessment of contingencies inherently involves the exercise of significant judgment and estimates of the outcome of future events, the likelihood of loss being incurred and when determining whether a reliable estimate of the loss can be made. The Company assesses its liabilities and contingencies based upon the best information available, uses the knowledge, experience and professional judgment to the specific characteristics of the known risks. This process facilitates the early assessment and quantification of potential risks in individual cases or in the development of contingent matters. If we are unable to reliably estimate the obligation or conclude no loss is probable but it is reasonably possible that a loss may be incurred, no provision is recorded but the contingency is disclosed in the notes to the consolidated financial statements.

Company recognized as the present obligation under an onerous contract as a provision when a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.

(g)

Leases

In year 2022, as a result of the arrival of new aircraft and the significant change in the flows of many current contracts, the Company evaluated the relevance in the current scenario of continuing to use the implicit rate, a methodology used in recent years, or whether it should in instead use a different approximation for calculating the rate. It was concluded that the implicit rate was not being able to reflect the economic environment in which the company operates, therefore it was not accurately representing the Company's indebtedness conditions. Because of this, all new contracts entered into from 2022 and all contracts that were modified from 2022 used the incremental rate. Existing contracts that remained unchanged continued using the original implicit discount rate.

(i)

Discount rate

To determine the present value of lease payments, the Company uses the implicit rate in the contracts when it is easily determinable. Otherwise, it uses the lessee's estimated incremental borrowing rate, which is derived from the information available at the lease commencement date. We consider our recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates. A one percentage point decrease in our estimate of the rates used in determining the current lease liabilities for the registered fleet as of March 31, 2024, would increase the lease liability by approximately US$116 million (US$111 million as of December 31, 2023).

(ii)

Lease term

In determining the lease term, all facts and circumstances that create an economic incentive to exercise an extension option are considered. Extension options (or periods after termination options) are only included in the lease term if it is reasonably certain that the lease will be extended (or not terminated). This is reviewed if a significant event or significant change in circumstances occurs that affects this assessment and is within the lessee's control.

In any case, it is possible that events that may take place in the future make it necessary to modify them in future periods, which would be done prospectively.

NOTE 5 - SEGMENT INFORMATION

As of March 31, 2024, the Company considers that it has a single operating segment, Air Transport. This segment corresponds to the route network for air transport and is based on the way in which the business is managed, according to the centralized nature of its operations, the ability to open and close routes, as well as reassignment (airplanes, crew, personnel, etc.) within the network, which implies a functional interrelation between all of them, making them inseparable. This segment definition is one of the most common in the worldwide airline industry.

F-41

The Company’s revenues by geographic area are as follows:

	For the period ended at March 31,
	2024		2023
	ThUS$		ThUS$
	Unaudited
Peru		269,152		217,290
Argentina		74,829		73,506
U.S.A.		323,692		289,986
Europe		244,908		230,860
Colombia		170,625		133,800
Brazil		1,418,423		1,090,692
Ecuador		93,417		80,105
Chile		501,787		492,877
Asia Pacific and rest of Latin America		170,366		162,526
Income from ordinary activities		3,267,199		2,771,642
Other operating income		54,134		33,816

The Company allocates revenues by geographic area based on the point of sale of the passenger ticket or cargo. Assets are composed primarily of aircraft and aeronautical equipment, which are used throughout the different countries, so it is not possible to assign a geographic area.

The Company has no customers that individually represent more than 10% of sales.

F-42

NOTE 6 - CASH AND CASH EQUIVALENTS

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Cash on hand		3,006		2,019
Bank balances (1)		657,917		552,187
Overnight		29,865		75,236
Total Cash		690,788		629,442
Cash equivalents
Time deposits		1,101,977		995,613
Mutual funds		58,608		89,706
Total cash equivalents		1,160,585		1,085,319
Total cash and cash equivalents		1,851,373		1,714,761

(1)

As of March 31, 2024, within the item bank balances are ThUS$513,865 related to banks accounts that pay interest to the Company for the daily or monthly balances (ThUS$391,966 as of December 31, 2023)

Cash and cash equivalents are denominated in the following currencies:

	As of		As of
Currency	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Argentine peso		4,990		3,438
Brazilian real		452,055		520,796
Chilean peso		27,520		47,933
Colombian peso		29,910		36,326
Euro		20,445		25,329
US Dollar		1,257,907		1,020,467
Pound Sterling		7,203		5,073
Mexican peso		6,276		8,159
R.P. Chinese Yuan		24,500		20,801
Other currencies		20,567		26,439
Total		1,851,373		1,714,761

F-43

NOTE 7 - FINANCIAL INSTRUMENTS

Financial instruments by category

As of March 31, 2024 (Unaudited)

	Measured at		At fair value with
	amortized		changes		Hedge
Assets	cost		in results		derivatives		Total
	ThUS$		ThUS$		ThUS$		ThUS$
Cash and cash equivalents		1,792,765		58,608		—		1,851,373
Other financial assets, current		138,016		—		40,309		178,325
Trade and others accounts receivable, current		1,369,166		—		—		1,369,166
Accounts receivable from related entities, current		7		—		—		7
Other financial assets, non current		39,260		—		—		39,260
Accounts receivable, non current		12,371		—		—		12,371
Total		3,351,585		58,608		40,309		3,450,502

	Measured at		At fair value with
	amortized		changes		Hedge
Liabilities	cost		in results		derivatives		Total
	ThUS$		ThUS$		ThUS$		ThUS$
Other financial liabilities, current		676,391		—		247		676,638
Trade and others accounts payable, current		1,742,214		—		—		1,742,214
Accounts payable to related entities, current		12,291		—		—		12,291
Other financial liabilities, non-current		6,400,346		—		—		6,400,346
Accounts payable, non-current		435,147		—		—		435,147
Total		9,266,389		—		247		9,266,636

As of December 31, 2023

	Measured at		At fair value with
	amortized		changes		Hedge
Assets	cost		in results		derivatives		Total
	ThUS$		ThUS$		ThUS$		ThUS$
Cash and cash equivalents		1,625,055		89,706		—		1,714,761
Other financial assets, current		152,683		—		22,136		174,819
Trade and others accounts receivable, current		1,385,910		—		—		1,385,910
Accounts receivable from related entities, current		28		—		—		28
Other financial assets, non current		34,485		—		—		34,485
Accounts receivable, non current		12,949		—		—		12,949
Total		3,211,110		89,706		22,136		3,322,952

F-44

	Measured at		At fair value with
	amortized		changes		Hedge
Liabilities	cost		in results		derivatives		Total
	ThUS$		ThUS$		ThUS$		ThUS$
Other financial liabilities, current		594,519		—		1,544		596,063
Trade and others accounts payable, current		1,765,279		—		—		1,765,279
Accounts payable to related entities, current		7,444		—		—		7,444
Other financial liabilities, non-current		6,341,669		—		—		6,341,669
Accounts payable, non-current		418,587		—		—		418,587
Total		9,127,498		—		1,544		9,129,042

NOTE 8 - TRADE AND OTHER ACCOUNTS RECEIVABLE CURRENT, AND NON-CURRENT ACCOUNTS RECEIVABLE

	As of March 31,			As of December 31,
	2024			2023
	ThUS$			ThUS$
	Unaudited
Trade accounts receivable		1,258,820			1,185,792
Other accounts receivable		182,119			277,845
Total trade and other accounts receivable		1,440,939			1,463,637
Less: Expected credit loss		(59,402	)		(64,778	)
Total net trade and accounts receivable		1,381,537			1,398,859
Less: non-current portion – accounts receivable		(12,371	)		(12,949	)
Trade and other accounts receivable, current		1,369,166			1,385,910

The fair value of trade and other accounts receivable does not differ significantly from the book value.

To determine the expected credit losses, the Company groups accounts receivable for passenger and cargo transportation depending on the characteristics of shared credit risk and maturity.

	As of March 31, 2024							As December 31, 2023
	Expected		Gross book		Impairment loss			Expected		Gross book		Impairment loss
Portfolio maturity	loss rate (1)		value (2)		Provision			loss rate (1)		value (2)		Provision
	%		ThUS$		ThUS$			%		ThUS$		ThUS$
			Unaudited
Up to date		1%		1,101,148		(13,183	)		1%		1,022,845		(12,672	)
From 1 to 90 days		1%		101,376		(1,470	)		3%		102,977		(2,989	)
From 91 to 180 days		28%		10,219		(2,842	)		25%		8,350		(2,048	)
From 181 to 360 days		39%		6,515		(2,561	)		44%		7,868		(3,491	)
Over 360 days		99%		39,562		(39,346	)		100%		43,752		(43,578	)
Total				1,258,820		(59,402	)				1,185,792		(64,778	)

(1)	Corresponds to the consolidated expected rate of accounts receivable.

(2)	The gross book value represents the maximum credit risk value of trade accounts receivables.

F-45

Currency balances composition of Trade and other accounts receivable and non-current accounts receivable are as follow:

	As of March 31,		As of December 31,
Currency	2024		2023
	ThUS$		ThUS$
	Unaudited
Argentine Peso		13,057		13,827
Brazilian Real		923,317		825,749
Chilean Peso		75,847		75,050
Colombian Peso		10,669		12,720
Euro		88,249		90,699
US Dollar		233,528		344,347
Australian Dollar		6,288		5,097
Japanese Yen		3,880		4,695
Pound Sterling		2,952		3,390
Peruvian Sol		9,527		7,640
Korean Won		7,428		5,882
Other Currencies		6,795		9,763
Total		1,381,537		1,398,859

Movements of the expected credit losses of Trade accounts receivables are as follows:

	Opening balance			Write-offs		(Increase) Decrease			Closing balance
Periods	ThUS$			ThUS$		ThUS$			ThUS$
From January 1 to March 31, 2023 (Unaudited)		(67,232	)		3,091		6			(64,135	)
From April 1 to December 31, 2023 (Unaudited)		(64,135	)		4,031		(4,674	)		(64,778	)
From January 1 to March 31, 2024 (Unaudited)		(64,778	)		4,966		410			(59,402	)

Once pre-judicial and judicial collection efforts are exhausted, the assets are written off against the allowance. The Company only uses the allowance method rather than direct write-off, to ensure control.

The historical and current renegotiations are not significant, and the policy is to analyze case by case to classify them according to the existence of risk, determining they need to be reclassified to pre-judicial collection accounts.

The maximum credit-risk exposure at the date of presentation of the information is the fair value of each one of the categories of accounts receivable indicated above.

As of March 31, 2024 (Unaudited)

As of December 31, 2023

Gross exposure

Gross

Exposure net

Gross exposure

Gross

Exposure net

according to

impaired

of risk

according to

Impaired

of risk

balance

exposure

concentrations

balance

exposure

concentrations

ThUS$

Trade accounts receivable

1,258,820

(59,402

)

1,199,418

1,185,792

(64,778

)

1,121,014

Other accounts receivable

182,119

—

182,119

277,845

—

277,845

There are no relevant guarantees covering credit risk and these are valued when they are settled; no materially significant direct guarantees exist. Existing guarantees, if appropriate, are made through IATA.

F-46

NOTE 9 - ACCOUNTS RECEIVABLE FROM/PAYABLE TO RELATED ENTITIES

(a)	Accounts Receivable

Tax No.

Related party

Relationship

Country of
origin

Currency

As of
March 31,
2024

As of
December 31,
2023

ThUS$

Unaudited

76.335.600-0

Parque de Chile S.A.

Related director

Chile

CLP

96.810.370-9

Inversiones Costa Verde Ltda. y CPA.

Related director

Chile

CLP

Foreign

Inversora Aeronáutica Argentina S.A.

Related director

Argentina

ARS

—

Total current assets

(b)

Accounts payable

Current liabilities

Tax No.

Related party

Relationship

Country of
origin

Currency

As of
March 31,
2024

As of
December 31,
2023

ThUS$

Unaudited

Foreign

Qatar Airways

Indirect shareholder

Qatar

US$

4,895

2,312

Foreign

Delta Air Lines, Inc.

Shareholder

U.S.A.

US$

7,396

5,132

Total current liabilities

12,291

7,444

Transactions between related parties have been carried out on arm’s length conditions between interested and duly-informed parties. The transaction terms for the liabilities of the period 2024 correspond from 30 days to 1 year of maturity, and the nature of the settlement of transactions are monetary.

F-47

NOTE 10 - INVENTORIES

The composition of Inventories is as follows:

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Technical stock (*)		531,475		540,342
Non-technical stock (**)		53,840		52,538
Total		585,315		592,880

(*)	Correspond to spare parts and materials that will be used in both own and third-party maintenance services.

(**)	Consumption of on-board services, uniforms and other indirect materials

These are valued at their average acquisition cost net of their obsolescence provision according to the following detail:

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Provision for obsolescence Technical stock		50,724		45,621
Provision for obsolescence Non-technical stock		3,541		5,228
Total		54,265		50,849

The resulting amounts do not exceed the respective net realization values.

As of March 31, 2024, the Company registered ThUS$65,247 (ThUS$47,281 for the period ended March 31, 2023), the income statements, mainly related to on-board consumption and maintenance, which is part of the Cost of sales.

F-48

NOTE 11 - OTHER FINANCIAL ASSETS

(a)	The composition of other financial assets is as follows:

	Current Assets				Non-current assets				Total Assets
	As of March 31,		As of December 31,		As of March 31,		As of December 31,		As of March 31,		As of December 31,
	2024		2023		2024		2023		2024		2023
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
(1) Other financial assets	Unaudited				Unaudited				Unaudited

Deposits in guarantee (aircraft)		29,252		31,624		14,475		9,736		43,727		41,360
Guarantees for margins of derivatives		6,595		12,829		—		—		6,595		12,829
Other investments		—		—		494		494		494		494
Other guarantees given		102,169		108,230		24,291		24,255		126,460		132,485
Subtotal of other financial assets		138,016		152,683		39,260		34,485		177,276		187,168

(2) Hedging derivative asset

Fair value of foreign currency derivatives		3,132		—		—		—		3,132		—
Fair value of fuel price derivatives		37,177		22,136		—		—		37,177		22,136
Subtotal of derivative assets		40,309		22,136		—		—		40,309		22,136
Total Other Financial Assets		178,325		174,819		39,260		34,485		217,585		209,304

The different derivative hedging contracts maintained by the Company are described in Note 18.

(b)	The balances composition by currencies of the Other financial assets are as follows:

	As of		As of
Type of currency	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Brazilian real		21,251		18,767
Chilean peso		5,698		6,440
Colombian peso		1,454		1,461
Euro		7,265		7,974
U.S.A dollar		179,074		171,852
Other currencies		2,843		2,810
Total		217,585		209,304

F-49

NOTE 12 - OTHER NON-FINANCIAL ASSETS

The composition of other non-financial assets is as follows:

	Current assets				Non-current assets				Total Assets
	As of		As of		As of		As of		As of		As of
	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
	Unaudited				Unaudited				Unaudited
(a) Advance payments
Aircraft insurance and other		20,858		25,992		—		—		20,858		25,992
Others		3,287		3,740		4,469		5,740		7,756		9,480
Subtotal advance payments		24,145		29,732		4,469		5,740		28,614		35,472
(b) Contract assets (1)
GDS costs		18,203		22,738		—		—		18,203		22,738
Credit card commissions		34,667		37,200		—		—		34,667		37,200
Travel agencies commissions		10,772		12,421		—		—		10,772		12,421
Subtotal advance payments		63,642		72,359		—		—		63,642		72,359
(c) Other assets
Sales tax		92,598		81,785		10,218		13,753		102,816		95,538
Other taxes		1,143		1,130		—		—		1,143		1,130
Contributions to the International Aeronautical Telecommunications Society (“SITA”)		258		258		739		739		997		997
Contributions to Aeronautical Service Companies		—		—		60		60		60		60
Judicial deposits		—		—		145,902		148,329		145,902		148,329
Subtotal other assets		93,999		83,173		156,919		162,881		250,918		246,054
Total Other Non - Financial Assets		181,786		185,264		161,388		168,621		343,174		353,885

(1) Movement of Contracts assets:

					Cumulative
					translation
	Initial balance		Activation		adjustment			Amortization			Final balance
	ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
From January 1 to March 31, 2023 (Unaudited)		48,567		47,152		(8,020	)		(38,341	)		49,358
From April 1 to December 31, 2023 (Unaudited)		49,358		195,565		10,052			(182,616	)		72,359
From January 1 to March 31, 2024 (Unaudited)		72,359		60,704		(951	)		(68,470	)		63,642

F-50

NOTE 13 - NON-CURRENT ASSETS AND DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE

Non-current assets and disposal group classified as held for sale at March 31, 2024 and December 31, 2023, are detailed below:

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
Current assets	Unaudited
Aircraft		100,963		100,658
Engines and rotables		1,900		2,012
Other assets		—		—
Total		102,863		102,670

The balances are presented at the lower of book value and fair value less cost to sell. The fair value of these assets was determined based on quoted prices in active markets for similar assets or liabilities. This is a level II measurement as per the fair value hierarchy set out in Note 3.3 (2). There were no transfers between levels for recurring fair value measurements during the period.

Assets reclassified from Property, plant and equipment to Non-current assets or groups of assets for disposal classified as held for sale During 2020, 11 Boeing 767 aircraft were transferred from the Property, plant and equipment, to Non-current assets item or groups of assets for disposal classified as held for sale. During 2021, the sale of 5 aircraft was completed. During the year 2022 the sale of 3 aircraft was finalized and during the year 2023 the sale of 1 aircraft was finalized.

During 2021, associated with the fleet restructuring plan, 3 engines of the Airbus A350 fleet were transferred from the Property, plant and equipment to Non-current assets or groups of assets for disposal classified as held for sale, of which during the same year the sale of 1 engine was finalized. Additionally, during the year 2022, the sale of 1 engine was finalized and some materials and spare parts of this same fleet were transferred to Non-current assets or groups of assets for disposal classified as held for sale. During the year 2023, the sale of 1 engine, some spare parts, and materials was finalized.

During 2022, 28 Airbus A319 family aircraft were transferred from Property, plant and equipment to Non-current assets or asset groups for disposal classified as held for sale. Additionally, adjustments for US$ 345 million of expenses were recognized within results as part of Other gains (losses) to record these assets at their net realizable value. During 2023, the engines associated with these aircraft were added, generating additional adjustments of US $39 million, which were recorded in the result as part of Other gains (losses), in order to register these assets at their net realizable value.

During 2022, 6 aircraft and 8 engines of the Airbus A320 family were transferred from Property, plant and equipment to Non-current assets or asset groups for disposal classified as held for sale, and as of December 31, 2022, the sale of 3 aircrafts were finalized and as of December 31, 2023, the sale of 2 aircraft and 8 engines were finalized. During 2022, adjustments for US$ 25 million of expenses were recognized to record these assets at their net realizable value, and since the fleet restructuring process had already been completed, these adjustments were recorded in results as part of Other expenses by function. During the year 2023, 6 Airbus A320 aircraft were transferred from the Property, Plant, and Equipment category to the Non-current Assets or Asset Groups held for sale category. Additionally, during the year 2023, adjustments of US$9 million in expenses were recognized to record these assets at their net realizable value. These adjustments were recorded in the results as part of Other expenses by function.

During 2023, 1 Boeing 767 family aircraft was transferred from Property, plant and equipment to Non-current assets or asset groups for disposal classified as held for sale. Additionally, adjustments for US$ 3 million of expenses were recognized within results as part of Other expenses by function to record these assets at their net realizable value.

F-51

The detail of the fleet classified as non-current assets and disposal group classified as held for sale is as follows:

			As of		As of
Aircraft	Model		March 31, 2024		December 31, 2023
			Unaudited
Boeing 767		300F		3		3
Airbus A320		200		7		7
Airbus A319		100		28		28
Total				38		38

NOTE 14 - INVESTMENTS IN SUBSIDIARIES

(a)

Investments in subsidiaries

The Company has investments in companies recognized as investments in subsidiaries. All the companies defined as subsidiaries have been consolidated within the financial statements of LATAM Airlines Group S.A. and Subsidiaries. The consolidation also includes special-purpose entities.

Detail of significant subsidiaries:

Ownership

Name of significant subsidiary

Country of
incorporation

Functional
currency

As of
March 31,
2024

As of
December 31,
2023

Unaudited

Latam Airlines Perú S.A.

Peru

US$

99.81000

Lan Cargo S.A.

Chile

US$

99.89810

Línea Aérea Carguera de Colombia S.A.

Colombia

US$

90.46000

Transporte Aéreo S.A.

Chile

US$

100.00000

Latam Airlines Ecuador S.A.

Ecuador

US$

100.00000

Aerovías de Integración Regional S.A.

Colombia

COP

99.23168

TAM Linhas aéreas S.A.

Brazil

BRL

100.00000

ABSA Aerolimhas Brasileiras S.A.

Brazil

US$

100.00000

Transportes Aéreos del Mercosur S.A.

Paraguay

PYG

94.98000

The consolidated subsidiaries do not have significant restrictions for transferring funds to the parent company.

F-52

Summary financial information of significant subsidiaries

													Statement of Income for the
													3 months period ended at
	Statement of financial position as of March 31, 2024												March 31, 2024
Name of significant subsidiary	Total Assets		Current Assets		Non-current Assets		Total Liabilities		Current Liabilities		Non-current Liabilities		Revenue		Net Income/(loss)
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
	Unaudited												Unaudited
Latam Airlines Perú S.A.		374,525		355,672		18,853		287,981		283,387		4,594		428,041		37,726
Lan Cargo S.A.		423,771		125,325		298,446		210,954		142,742		68,212		109,184		12,417
Línea Aérea Carguera de Colombia S.A.		198,792		70,791		128,001		75,948		75,661		287		65,747		15,964
Transporte Aéreo S.A.		280,084		37,044		243,040		152,730		120,487		32,243		102,321		(78	)
Latam Airlines Ecuador S.A.		135,177		131,602		3,575		119,507		108,582		10,925		76,760		(5,518	)
Aerovías de Integración Regional S.A.		136,330		131,216		5,114		143,470		140,594		2,876		139,887		(13,755	)
TAM Linhas Aéreas S.A.		4,120,183		2,457,053		1,663,130		2,894,320		1,930,149		964,171		1,573,653		166,073
ABSA Aerolinhas Brasileiras S.A.		519,627		509,823		9,804		560,394		532,994		27,400		40,553		(1,963	)
Transportes Aéreos del Mercosur S.A.		42,679		40,024		2,655		22,640		20,744		1,896		15,123		3,203

													Statement of Income for the
													3 months period ended at
	Statement of financial position as of December 31, 2023												March 31, 2024
Name of significant subsidiary	Total Assets		Current Assets		Non-current Assets		Total Liabilities		Current Liabilities		Non-current Liabilities		Revenue		Net Income/(loss)
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
													Unaudited
Latam Airlines Perú S.A.		334,481		312,628		21,853		285,645		281,208		4,437		329,455		(14,356	)
Lan Cargo S.A.		391,430		122,877		268,553		189,019		157,003		32,016		78,329		(25,684	)
Línea Aérea Carguera de Colombia S.A.		166,520		57,240		109,280		59,640		59,344		296		49,810		(76	)
Transporte Aéreo S.A.		280,117		37,436		242,681		151,066		117,121		33,945		110,248		17,092
Latam Airlines Ecuador S.A.		152,676		149,155		3,521		131,488		120,917		10,571		61,164		4,033
Aerovías de Integración Regional S.A.		191,878		186,612		5,266		185,799		182,923		2,876		100,032		(11,223	)
TAM Linhas Aéreas S.A.		4,119,149		2,417,115		1,702,034		3,024,805		2,061,406		963,399		1,228,158		28,873
ABSA Aerolinhas Brasileiras S.A.		500,177		490,548		9,629		538,982		510,978		28,004		37,756		(25,297	)
Transportes Aéreos del Mercosur S.A.		49,713		46,976		2,737		26,772		24,833		1,939		12,893		1,795

F-53

(b)

Non-controlling interests

		Country	As of March 31,		As of December 31,		As of March 31,			As of December 31,
Equity	Tax No.	of origin	2024		2023		2024			2023
			%		%		ThUS$			ThUS$
			Unaudited				Unaudited
Latam Airlines Perú S.A.	Foreign	Peru		0.19000		0.19000		164			93
Aerovías de Integración Regional S.A.	Foreign	Colombia		0.77400		0.77400		(5,152	)		(5,049	)
Linea Aérea Carguera de Colombia S.A.	Foreign	Colombia		9.54000		9.54000		(6,898	)		(8,421	)
Transportes Aéreos del Mercosur S.A.	Foreign	Paraguay		5.02000		5.02000		1,006			1,152
Lan Cargo S.A. and Subsidiaries	93.383.000-4	Chile		0.10196		0.10196		217			198
Total								(10,663	)		(12,027	)

		Country	For the period ended At March 31,				For the period ended At March 31,
Incomes	Tax No.	of origin	2024		2023		2024			2023
			%		%		ThUS$			ThUS$
							Unaudited
Latam Airlines Perú S.A	Foreign	Peru		0.19000		0.19000		72			(726	)
Aerovías de Integración Regional S.A.	Foreign	Colombia		0.77400		0.78236		(106	)		(88	)
Linea Aérea Carguera de Colombia S.A.	Foreign	Colombia		9.54000		9.54000		1,523			—
Transportes Aéreos del Mercosur S.A.	Foreign	Paraguay		5.02000		5.02000		161			90
Lan Cargo S.A. and Subsidiaries	93.383.000-4	Chile		0.10196		0.10196		26			(17	)
Other companies								—			(3	)
Total								1,676			(744	)

F-54

NOTE 15 - INTANGIBLE ASSETS OTHER THAN GOODWILL

The details of intangible assets are as follows:

	Classes of intangible assets				Classes of intangible assets
	(net)				(gross)
	As of		As of		As of		As of
	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
	ThUS$		ThUS$		ThUS$		ThUS$
	Unaudited				Unaudited
Airport slots		638,520		658,949		638,520		658,949
Loyalty program		212,826		219,636		212,826		219,636
Computer software		140,789		156,337		594,308		597,164
Developing software		131,864		117,010		131,864		117,010
Other assets		54		54		1,369		1,369
Total		1,124,053		1,151,986		1,578,887		1,594,128

Movement in Intangible assets other than goodwill:

	Computer
	software and
	others			Developing			Airport			Loyalty
	Net			software			slots			program (1)			Total
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Opening balance as January 1, 2023		143,575			107,652			625,368			203,791			1,080,386
Additions		—			8,672			—			—			8,672
Transfer software and others		34,826			(34,830	)		—			—			(4	)
Foreign exchange		919			172			15,877			5,508			22,476
Amortization		(14,447	)		—			—			—			(14,447	)
Closing balance as of March 31, 2023 (Unaudited)		164,873			81,666			641,245			209,299			1,097,083
Opening balance as of April 1, 2023 (Unaudited)		164,873			81,666			641,245			209,299			1,097,083
Additions		298			70,174			—			—			70,472
Transfer software and others		34,384			(35,098	)		—			—			(714	)
Foreign exchange		1,693			268			17,704			10,337			30,002
Amortization		(44,857	)		—			—			—			(44,857	)
Closing balance as of December 31, 2023		156,391			117,010			658,949			219,636			1,151,986
Opening balance as of January 1, 2024		156,391			117,010			658,949			219,636			1,151,986
Additions		—			16,178			—			—			16,178
Transfer software and others		1,025			(1,127	)		—			—			(102	)
Foreign exchange		(1,052	)		(197	)		(20,429	)		(6,810	)		(28,488	)
Amortization		(15,521	)		—			—			—			(15,521	)
Closing balance as of March 31, 2024 (Unaudited)		140,843			131,864			638,520			212,826			1,124,053

The amortization of each period is recognized in the consolidated income statement within administrative expenses.

The cumulative amortization of computer software and others as of March 31, 2024 amounts to ThUS$454,834 (ThUS$442,142 as of December 31, 2023).

F-55

Impairment Test Intangible Assets with an indefinite useful life

As of March 31, 2024, the Company maintains only the CGU “Air Transport”.

The CGU “Air transport” considers the transport of passengers and cargo, both in the domestic markets of Chile, Peru, Argentina, Colombia, Ecuador and Brazil, as well as in a series of regional and international routes in America, Europe, Africa and Oceania.

As of March 31, 2024, no indications of impairment have been identified for the Air Transport CGU, which require a new impairment test to be carried out.

As of December 31, 2023, in accordance with the accounting policy, the Company performed the annual impairment test.

The recoverable amount of the CGU was determined based on calculations of the value in use. These calculations use projections of 5 years of cash flows after taxes from the financial budgets approved by management. Cash flows beyond the budgeted period are extrapolated using growth rates and estimated average volumes, which do not exceed long-term average growth rates.

Management’s cash flow projections included significant judgements and assumptions related to annual revenue growth rates, discount rate, inflation rates, the exchange rate and the price of fuel. The annual revenue growth rate is based on past performance and management’s expectations of market development in each of the countries in which it operates. The discount rates used for the CGU “Air transport” are determined in US dollars, after taxes, and reflect specific risks related to the relevant countries of each of the operations. Inflation rates and exchange rates are based on the data available from the countries and the information provided by the Central Banks of the various countries where it operates, and the price of fuel is determined based on estimated levels of production, the competitive environment of the market in which they operate and their commercial strategy.

The recoverable values were determined using the following assumptions:

		CGU
		Air transport
Annual growth rate (Terminal)	%	0.0 – 4.3
Exchange rate	R$/US$	5.28 – 5.57
Discount rate based on the Weighted Average Cost of Capital (WACC)	%	8.7 – 10.7
Fuel Price	US$/barrel	100

The result of the impairment test, which includes a sensitivity analysis of its main variables, showed that the recoverable amount exceeded the book value of the cash-generating unit, and therefore no impairment was identified.

The CGU is sensitive to annual growth rates, discounts and exchange rates and fuel price. The sensitivity analysis included the individual impact of changes in critical estimates in determining recoverable amounts, namely:

	Increase WACC Maximum		Decrease rate Terminal growth Minimal		Increase fuel price Maximum US$/barrel
	%		%
Air Transportation CGU		10.7		0		100

In none of the above scenarios an impairment of the cash-generating unit was identified.

F-56

NOTE 16 - PROPERTY, PLANT AND EQUIPMENT

The composition by category of Property, plant and equipment is as follows:

	Gross Book Value				Accumulated depreciation						Net Book Value
	As of		As of		As of			As of			As of		As of
	March 31,		December 31,		March 31,			December 31,			March 31,		December 31,
	2024		2023		2024			2023			2024		2023
	ThUS$		ThUS$		ThUS$			ThUS$			ThUS$		ThUS$
	Unaudited				Unaudited						Unaudited
a) Property, plant and equipment
Construction in progress (1)		275,171		258,246		—			—			275,171		258,246
Land		43,606		44,244		—			—			43,606		44,244
Buildings		127,885		129,036		(61,807	)		(61,478	)		66,078		67,558
Plant and equipment		10,853,715		10,738,500		(4,670,282	)		(4,508,356	)		6,183,433		6,230,144
Own aircraft (3)		9,956,696		9,856,365		(4,414,742	)		(4,259,729	)		5,541,954		5,596,636
Other (2)		897,019		882,135		(255,540	)		(248,627	)		641,479		633,508
Machinery		28,504		29,092		(27,099	)		(27,716	)		1,405		1,376
Information technology equipment		163,002		163,382		(145,830	)		(146,040	)		17,172		17,342
Fixed installations and accessories		183,502		186,179		(131,897	)		(131,769	)		51,605		54,410
Motor vehicles		49,741		49,560		(44,244	)		(44,385	)		5,497		5,175
Leasehold improvements		263,104		266,631		(55,774	)		(53,201	)		207,330		213,430
Subtotal Properties, plant and equipment		11,988,230		11,864,870		(5,136,933	)		(4,972,945	)		6,851,297		6,891,925
b) Right of use
Aircraft (3)		5,334,810		5,388,147		(3,052,111	)		(3,243,065	)		2,282,699		2,145,082
Other assets		275,000		248,614		(183,339	)		(194,491	)		91,661		54,123
Subtotal Right of use		5,609,810		5,636,761		(3,235,450	)		(3,437,556	)		2,374,360		2,199,205
Total		17,598,040		17,501,631		(8,372,383	)		(8,410,501	)		9,225,657		9,091,130

(1)

As of March 31, 2024, includes advances paid to aircraft manufacturers for ThUS$247,780 (ThUS$242,069 as of December 31, 2023).

(2)

Consider mainly rotables and tools.

(3)

There were reclassified to Non-current assets or groups of assets for disposal as held for sale the following aircrafts: As of December 31, 2023, 1 Boeing B767 and 6 Airbus A320 (see Note 13).

F-57

(a)

Movement in the different categories of Property, plant and equipment:

										Plant and			Information technology			Fixed installations &			Motor			Leasehold			Property, Plant and
	Construction in progress			Land			Buildings net			equipment net			equipment net			accessories net			vehicles net			improvements net			equipment net
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Opening balance as January 1, 2023		388,810			44,349			68,996			6,304,848			16,609			37,072			423			160,027			7,021,134
Additions		3,185			—			—			139,859			1,246			—			—			2,283			146,573
Disposals		—			—			—			(8,807	)		—			—			—			—			(8,807	)
Retirements		—			—			—			(23,533	)		—			(1	)		—			—			(23,534	)
Depreciation expenses		—			—			(1,024	)		(166,070	)		(1,402	)		(1,852	)		(17	)		(2,464	)		(172,829	)
Foreign exchange		1,131			535			375			7,538			164			611			—			3,807			14,161
Other increases (decreases) (*)		9,921			—			—			30,211			59			64			—			4,768			45,023
Changes, total		14,237			535			(649	)		(20,802	)		67			(1,178	)		(17	)		8,394			587
Closing balance as of March 31, 2023 (Unaudited)		403,047			44,884			68,347			6,284,046			16,676			35,894			406			168,421			7,021,721
Opening balance as of April 1, 2023 (Unaudited)		403,047			44,884			68,347			6,284,046			16,676			35,894			406			168,421			7,021,721
Additions		5,650			—			—			730,781			4,548			4,246			—			46,583			791,808
Disposals		—			—			—			6,106			(1	)		—			(16	)		—			6,089
Retirements		(83	)		—			—			(64,119	)		(12	)		(1	)		—			—			(64,215	)
Depreciation expenses		—			—			(3,080	)		(550,520	)		(4,516	)		(6,937	)		(51	)		(7,721	)		(572,825	)
Foreign exchange		(405	)		910			1,130			16,307			372			665			12			7,690			26,681
Other increases (decreases) (*)		(149,963	)		(1,550	)		1,161			(186,257	)		275			20,543			—			(1,543	)		(317,334	)
Changes, total		(144,801	)		(640	)		(789	)		(47,702	)		666			18,516			(55	)		45,009			(129,796	)
Closing balance as of December 31, 2023		258,246			44,244			67,558			6,236,344			17,342			54,410			351			213,430			6,891,925
Opening balance as of January 1, 2024		258,246			44,244			67,558			6,236,344			17,342			54,410			351			213,430			6,891,925
Additions		1,977			—			—			187,933			1,575			143			—			119			191,747
Disposals		—			—			—			(4	)		(8	)		—			—			—			(12	)
Retirements		—			—			—			(10,452	)		—			(5	)		—			—			(10,457	)
Depreciation expenses		—			—			(1,019	)		(183,457	)		(1,458	)		(2,247	)		(16	)		(2,730	)		(190,927	)
Foreign exchange		(287	)		(638	)		(461	)		(13,641	)		(221	)		(1,831	)		—			(5,551	)		(22,630	)
Other increases (decreases)		15,235			—			—			(26,723	)		(58	)		1,135			—			2,062			(8,349	)
Changes, total		16,925			(638	)		(1,480	)		(46,344	)		(170	)		(2,805	)		(16	)		(6,100	)		(40,628	)
Closing balance as of March 31, 2024 (Unaudited)		275,171			43,606			66,078			6,190,000			17,172			51,605			335			207,330			6,851,297

(*)

This Amount included the following aircrafts reclassified to Non-current assets or groups of assets for disposal as held for sale: As of December 31, 2023, 1 Boeing B767 ThUS$(21,578) and 6 Airbus A320 ThUS$(36,326).

F-58

(b)

Right of use assets:

							Net right
							of use
	Aircraft			Others			assets
	ThUS$			ThUS$			ThUS$
Opening balance as January 1, 2023		1,326,821			63,706			1,390,527
Additions		—			1,099			1,099
Depreciation expense		(37,800	)		(4,029	)		(41,829	)
Cumulative translate adjustment		23			623			646
Other increases (decreases)		(15,792	)		(2,094	)		(17,886	)
Total changes		(53,569	)		(4,401	)		(57,970	)
Closing balance as of March 31, 2023 (Unaudited)		1,273,252			59,305			1,332,557
Opening balance as of April 1, 2023 (Unaudited)		1,273,252			59,305			1,332,557
Additions		1,013,314			1,889			1,015,203
Depreciation expense		(140,770	)		(10,787	)		(151,557	)
Cumulative translate adjustment		33			2,728			2,761
Other increases (decreases)		(747	)		988			241
Total changes		871,830			(5,182	)		866,648
Closing balance as of December 31, 2023		2,145,082			54,123			2,199,205
Opening balance as of January 1, 2024		2,145,082			54,123			2,199,205
Additions		121,003			556			121,559
Depreciation expense		(61,789	)		(2,778	)		(64,567	)
Cumulative translate adjustment		(6	)		(774	)		(780	)
Other increases (decreases)		78,409			40,534			118,943
Total changes		137,617			37,538			175,155
Closing balance as of March 31, 2024 (Unaudited)		2,282,699			91,661			2,374,360

(c)

Fleet composition

		Aircraft included						Aircraft included
		in Property, plant and equipment						as Rights of use assets					Total fleet
		As of			As of			As of		As of			As of		As of
Aircraft	Model	March 31, 2024			December 31, 2023			March 31, 2024		December 31, 2023			March 31, 2024		December 31, 2023
		Unaudited						Unaudited					Unaudited
Boeing 767	300ER		11	(3)		11	(3)		—		—			11		11
Boeing 767	300F		16	(2) (3)		16	(2) (3)		1		1			17		17
Boeing 777	300ER		4			4			6		6			10		10
Boeing 787	8		4			4			6		6			10		10
Boeing 787	9		2			2			25		24			27		26
Airbus A319	100		11	(2)		11			1		1			12		12
Airbus A320	200		85	(2)		83	(2)		44		46	(1)		129		129
Airbus A320	NEO		1			1			23		23			24		24
Airbus A321	200		19			19			30		30			49		49
Airbus A321	NEO		—			—			9		7			9		7
Total			153			151			145		144			298		295

(1)

Include one aircraft with a short-term lease, which was excluded from the right of use.

(2)

Some aircraft of these fleets were reclassified to non-current assets or groups of assets for disposal as held for sale, (see Note 13).

(3)

Considers the conversions from Boeing 767-300ER to Boeing 767-300F Aircraft.

F-59

(d)

Method used for the depreciation of Property, plant and equipment:

		Useful life (years)
	Depreciation method	minimum		maximum
Buildings	Straight line without residual value		20		50
Plant and equipment	Straight line with residual value of 20% in the short-haul fleet and 36% in the long-haul fleet. (*)		5		30
Information technology equipment	Straight line without residual value		5		10
Fixed installations and accessories	Straight line without residual value		10		10
Motor vehicle	Straight line without residual value		10		10
Leasehold improvements	Straight line without residual value		5		8
Assets for rights of use	Straight line without residual value		1		25

(*)

Except in the case of Boeing 767-300ER, Airbus A320 Family and Boeing 767-300F fleets which consider a lower residual value, due to the extension of their useful life to 22, 25 and 30 years respectively. Additionally, certain technical components are depreciated based on cycles and hours flown.

(e)

Additional information regarding Property, plant and equipment:

(i)

Property, plant and equipment pledged as guarantee:

Description of Property, plant and equipment pledged as guarantee:

				As of March 31, 2024				As of December 31, 2023
Guarantee agent (1)	Creditor company	Committed Assets	Fleet	Existing Debt		Book Value		Existing Debt		Book Value
				ThUS$		ThUS$		ThUS$		ThUS$
				Unaudited
Wilmington Trust Company	MUFG	Aircraft and engines	Airbus A319		2,227		12,018		2,703		12,326
			Airbus A320		9,397		119,414		17,441		151,873
			Boeing 767		16,664		139,125		20,427		143,281
			Boeing 777		127,409		141,784		132,585		144,186

Credit Agricole	Credit Agricole	Aircraft and engines	Airbus A319		3,413		3,375		3,413		3,752
			Airbus A320		190,001		136,506		190,001		142,075
			Airbus A321		6,007		4,280		6,007		4,393
			Boeing 767		8,849		22,038		8,849		23,018
			Boeing 787		58,499		38,147		58,499		38,971

Bank Of Utah	BNP Paribas	Aircraft and engines	Boeing 787		168,792		205,503		171,704		208,601
Total direct guarantee					591,258		822,190		611,629		872,476

For syndicated loans, given their own characteristics, the guarantee agent is the representative of the creditors.

The amounts of the current debts are presented at their nominal value. The net book values correspond to the assets granted as collateral.

Additionally, there are indirect guarantees associated with assets booked within Property, Plant and Equipment whose total debt as of March 31, 2024, amounts to ThUS$873,017 (ThUS$898,166 as of December 31, 2023). The book value of the assets with indirect guarantees as of March 31, 2024, amounts to ThUS$1,910,744 (ThUS$1,925,069 as of December 31, 2023).

F-60

As of March 31, 2024, the Company keeps valid letters of credit related to right of use assets according to the following detail:

Creditor Guarantee	Debtor	Type	Value ThUS$		Release date
GE Capital Aviation Services Ltd.	LATAM Airlines Group S.A.	Three letters of credit		5,544	Dec 6, 2024
Empreendimentos Imobiliarios LTDA	Tam Linhas Aéreas S.A.	One letter of credit		25,820	Apr 29, 2024
				31,364

(ii)

Commitments and others

Fully depreciated assets and commitments for future purchases are as follows:

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Gross book value of fully depreciated property, plant and equipment still in use		290,948		288,454
Commitments for the acquisition of aircraft (*)		15,700,000		15,700,000

(*)

According to the manufacturer’s price list.

Aircraft purchase commitments:

	Year of delivery
Manufacturer	2024		2025		2026		2027-2030		Total
Airbus S.A.S.
A320neo Family		3		11		9		65		88
The Boeing Company
Boeing 787-9		-		-		-		5		5
Total		3		11		9		70		93

As of March 31, 2024, as a result of the different aircraft purchase contracts signed with Airbus S.A.S., 88 Airbus aircraft of the A320 family remain to be received with deliveries between 2024 and 2030. The approximate amount, according to manufacturer list prices, is ThUS$13,800,000.

As of March 31, 2024, as a result of the different aircraft purchase contracts signed with The Boeing Company, 5 Boeing aircraft of the 787 Dreamliner remain to be received with deliveries between 2027 and 2028. The approximate amount, according to manufacturer list prices, is ThUS$1,900,000.

The delivery dates of some of these aircraft could be modified as a result of the continuous discussions that are held with suppliers in the context of the current manufacturers’ supply chain.

Aircraft operational lease commitments:

As of March 31, 2024, as a result of the different aircraft operating lease contracts signed with AerCap Holdings N.V., 3 Airbus aircraft of the Airbus A320neo family with delivery between 2024 and 4 Boeing 787 Dreamliner aircraft with delivery dates within 2025 remain to be received.

As of March 31, 2024, as a result of the different aircraft operating lease contracts signed with Air Lease Corporative , 1 Airbus aircraft of the A320neo family with delivery dates within 2024 remain to be received.

F-61

As of March 31, 2024, as a result of the different aircraft operating lease contracts signed with Avolon Aerospace Leasing Limited, 1 Airbus aircraft of the A320neo family with delivery date within 2024 remain to be received.

As of March 31, 2024, as a result of the different aircraft operating lease contracts signed with Air Lease Corporation, 5 Airbus A321XLR family aircraft with delivery dates between 2026 and 2027 remain to be received.

(iii)

Capitalized interest costs with respect to Property, plant and equipment.

		For the period ended At March 31,
		2024		2023
		Unaudited
Average rate of capitalization of capitalized interest costs	%		10.73		8.45
Costs of capitalized interest	ThUS$		5,635		6,268

NOTE 17 - CURRENT AND DEFERRED TAXES

In the year ended March 31, 2024, the income tax provision was calculated and recorded, applying the semi-integrated tax system and a rate of 27%, based on the provisions of the Law. No. 21,210, published in the Official Gazette of the Republic of Chile, dated February 24, 2020, which updates the Tax Legislation.

The net result for deferred tax corresponds to the variation of the period, of the assets and liabilities for deferred taxes generated by temporary differences and tax losses.

For the permanent differences that give rise to a book value of assets and liabilities other than their tax value, no deferred tax has been recorded since they are caused by transactions that are recorded in the financial statements and that will have no effect on income tax expense.

(a)

Current taxes

(a.1) The composition of the current tax assets is the following:

	Current assets				Non-current assets				Total assets
	As of		As of		As of		As of		As of		As of
	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
	Unaudited				Unaudited				Unaudited
Provisional monthly payments (advances)		41,439		18,982		—		—		41,439		18,982
Other recoverable credits		25,837		28,048		—		—		25,837		28,048
Total current tax assets		67,276		47,030		—		—		67,276		47,030

F-62

(a.2) The composition of the current tax liabilities are as follows:

Current liabilities

Non-current liabilities

Total liabilities

As of

March 31,
2024

December 31,
2023

March 31,
2024

December 31,
2023

March 31,
2024

December 31,
2023

ThUS$

Unaudited

Income tax provision

2,658

2,371

—

2,658

2,371

Total current tax liabilities

2,658

2,371

—

2,658

2,371

(b)

Deferred taxes

The balances of deferred tax are the following:

	Assets						Liabilities
	As of			As of			As of			As of
Concept	March 31, 2024			December 31, 2023			March 31, 2024			December 31, 2023
	ThUS$			ThUS$			ThUS$			ThUS$
	Unaudited						Unaudited
Properties, Plants and equipment		(911,318	)		(941,136	)		71,474			70,745
Assets by right of use		(629,100	)		(585,957	)		38			54
Lease Liabilities		835,482			792,781			(33	)		(74	)
Amortization		(111,321	)		(112,002	)		—			10
Provisions		182,354			222,409			80,887			81,091
Revaluation of financial instruments		4,844			(889	)		—			—
Tax losses		617,497			613,264			(87,107	)		(86,320	)
Intangibles		—			—			291,055			300,359
Other		15,936			16,312			16,134			16,494
Total		4,374			4,782			372,448			382,359

The balance of deferred tax assets and liabilities are composed primarily of temporary differences to be reversed in the long term.

F-63

Movements of Deferred tax assets and liabilities

(b.1) From January 1 to March 31, 2023 (Unaudited)

	Opening balance			Recognized in			Recognized in			Exchange			Ending
	Assets/			consolidated			comprehensive			rate			balance
	(liabilities)			income			income			variation			Asset (liability)
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Property, plant and equipment		(1,088,140	)		11,142			—			—			(1,076,998	)
Assets for right of use		(367,182	)		15,553			—			—			(351,629	)
Lease Liabilities		586,993			(10,945	)		—			—			576,048
Amortization		(88,182	)		1,162			—			—			(87,020	)
Provisions		(60,386	)		14,106			70			—			(46,210	)
Revaluation of financial instruments		2,438			(2,343	)		(97	)		—			(2	)
Tax losses (*)		946,659			(35,535	)		—			—			911,124
Intangibles		(270,512	)		(436	)		—			(6,988	)		(277,936	)
Others		(398	)		38			—			—			(360	)
Total		(338,710	)		(7,258	)		(27	)		(6,988	)		(352,983	)

(b.2) From April 1 to December 31, 2023 (Unaudited)

	Opening balance			Recognized in			Recognized in		Exchange			Ending
	Assets/			consolidated			comprehensive		rate			balance
	(liabilities)			income			income		variation			Asset (liability)
	ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
Property, plant and equipment		(1,076,998	)		65,117			—		—			(1,011,881	)
Assets for right of use		(351,629	)		(234,382	)		—		—			(586,011	)
Lease Liabilities		576,048			216,807			—		—			792,855
Amortization		(87,020	)		(24,992	)		—		—			(112,012	)
Provisions		(46,210	)		186,847			681		—			141,318
Revaluation of financial instruments		(2	)		(4,588	)		3,701		—			(889	)
Tax losses (*)		911,124			(211,540	)		—		—			699,584
Intangibles		(277,936	)		(5,771	)		—		(16,652	)		(300,359	)
Others		(360	)		178			—		—			(182	)
Total		(352,983	)		(12,324	)		4,382		(16,652	)		(377,577	)

F-64

(b.3) From January 1 to March 31, 2024 (Unaudited)

	Opening balance			Recognized in			Recognized in		Exchange		Ending
	Assets/			consolidated			comprehensive		rate		balance
	(liabilities)			income			income		variation		Asset (liability)
	ThUS$			ThUS$			ThUS$		ThUS$		ThUS$
Property, plant and equipment		(1,011,881	)		29,089			—		—		(982,792	)
Assets for right of use		(586,011	)		(43,127	)		—		—		(629,138	)
Lease Liabilities		792,855			42,660			—		—		835,515
Amortization		(112,012	)		691			—		—		(111,321	)
Provisions		141,318			(40,445	)		594		—		101,467
Revaluation of financial instruments		(889	)		5,733			—		—		4,844
Tax losses (*)		699,584			5,020			—		—		704,604
Intangibles		(300,359	)		146			—		9,158		(291,055	)
Others		(182	)		(16	)		—		—		(198	)
Total		(377,577	)		(249	)		594		9,158		(368,074	)

(*)

Unrecognized deferred tax assets:

Deferred tax assets are recognized to the extent that it is probable that sufficient taxable profits will be generated in the future. In total the Company has not recognized deferred tax assets for ThUS$3,483,065 at March 31, 2024 (ThUS$3,572,528 as of December 31, 2023) which include deferred tax assets related to negative tax results of ThUS$12,097,966 at March 31, 2024 (ThUS$12,206,634 at December 31, 2023).

(Expenses) / Income from deferred taxes and income tax:

	For the period ended at March 31,
	2024			2023
	ThUS$			ThUS$
	Unaudited
Current tax (expense) benefit		(14,894	)		14,137
Adjustments to the current tax of the previous year		—			—
Total current tax (expense) benefit		(14,894	)		14,137
(Expense)/benefit for deferred tax recognition for tax losses		—			—
Deferred income for relative taxes to the creation and reversal of temporary differences		(249	)		(7,258	)
Total deferred income tax		(249	)		(7,258	)
Income tax (expense)/benefit		(15,143	)		6,879

F-65

Income tax (expense) / Income benefit:

	For the period ended at March 31,
	2024			2023
	ThUS$			ThUS$
	Unaudited
Current tax (expense) benefit, foreign		(14,322	)		14,393
Current tax (expense) benefit, domestic		(572	)		(256	)
Total current tax (expense) benefit		(14,894	)		14,137
Foreign Deferred tax (expense) benefit, for tax losses compensation		—			—
Deferred tax (expense) benefit, foreign		(215	)		(1,040	)
Deferred tax (expense) benefit, domestic		(34	)		(6,218	)
Total deferred tax (expense) benefit		(249	)		(7,258	)
Income tax (expense)/benefit		(15,143	)		6,879

Income before tax from the Chilean legal tax rate (27% as of March 31, 2024 and 2023)

	For the 3 months period ended						For the 3 months period ended
	At March 31,						At March 31,
	2024			2023			2024			2023
	ThUS$			ThUS$			%			%
	Unaudited
Income tax benefit/(expense) using the legal tax rate		(74,276	)		(30,828	)		(27.00	)		(27.00	)
Tax effect by change in tax rate		—			—			—			—
Tax effect of rates in other jurisdictions		(13,318	)		1,762			(4.84	)		1.54
Tax effect of non-taxable income		10,261			1,564			3.73			1.37
Tax effect of disallowable expenses		(8,201	)		(1,670	)		(2.98	)		(1.46	)
Other increases (decreases):
Derecognition of deferred tax liabilities for early termination of aircraft financing		10,179			13,608			3.70			11.92
Derecognition of deferred tax assets not recoverable		—			—			—			—
Deferred tax asset not recognized		67,789			22,141			24.64			19.39
Other increases (decreases)		(7,577	)		302			(2.75	)		0.26
Total adjustments to tax expense using the legal rate		59,133			37,707			21.50			33.02
Income tax benefit/(expense) using the effective rate		(15,143	)		6,879			(5.50	)		6.02

Deferred taxes related to items charged to equity:

	For the 3 months period ended At March 31,
	2024		2023
	ThUS$		ThUS$
	Unaudited
Aggregate deferred taxation of components of other comprehensive income		594		(27	)

F-66

NOTE 18 - OTHER FINANCIAL LIABILITIES

The composition of other financial liabilities is as follows:

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Current
(a) Interest bearing loans		365,002		292,982
(b) Lease Liability		311,389		301,537
(c) Hedge derivatives		247		1,544
Total current		676,638		596,063
Non-current
(a) Interest bearing loans		3,584,591		3,675,212
(b) Lease Liability		2,815,755		2,666,457
Total non-current		6,400,346		6,341,669

(a)

Interest bearing loans

Obligations with credit institutions and debt instruments:

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Current
Bank loans (2)		52,277		53,141
Guaranteed obligations (4)		29,101		28,697
Other guaranteed obligations (1)		72,345		67,005
Subtotal bank loans		153,723		148,843
Obligation with the public (3)		76,370		34,731
Financial leases		134,810		109,304
Other loans		99		104
Total current		365,002		292,982
Non-current
Bank loans (2)		980,032		976,293
Guaranteed obligations (4)		266,813		275,225
Other guaranteed obligations (1)		346,386		363,345
Subtotal bank loans		1,593,231		1,614,863
Obligation with the public (3)		1,252,184		1,268,107
Financial leases		739,176		792,242
Total non-current		3,584,591		3,675,212
Total obligations with financial institutions		3,949,593		3,968,194

(1)	The committed “Revolving Credit Facility (RCF)” is guaranteed by collateral composed of aircraft, engines and spare parts, which was fully drawn until November 3, 2022. Once emerged from Chapter 11, the line was fully paid and of March 31, 2024 and December 31, 2023, it is available to be used.

F-67

(2)

The “Term Loan B Facility” of US$ 1,100 million (US$ 1,086 million outstanding as of March 31, 2024), includes a minimum liquidity restriction, requiring us to maintain a minimum liquidity, measured at the consolidated Company (LATAM Airlines Group S.A.) level, of US$ 750 million. If these covenant criteria is not fulfilled at any point in time, then the obligations may be accelerated into short-term obligations, at the lenders request. As of March 31, 2024, the Company complies with the aforementioned minimum liquidity covenant.

(3)

The 13.375% senior secured notes due 2027 for an aggregate principal amount of US$ 450 million and the 13.375% senior secured notes due 2029 for and aggregate principal amount of MUS$ 700 include a minimum liquidity restriction, requiring us to maintain a minimum liquidity, measured at the consolidated Company (LATAM Airlines Group S.A.) level, of US$ 750 million. If these covenant criteria is not fulfilled at any point in time, then the obligations may be accelerated into short-term obligations, at the lenders request. As of March 31, 2024, the Company complies with the aforementioned minimum liquidity covenant.

(4)

The “Spare Engine Facility” of US$ 275 million (US$ 267 million outstanding as of March 31, 2024), includes a minimum liquidity restriction, requiring us to maintain a minimum liquidity, measured for the consolidated Company (LATAM Airlines Group S.A.) level, of US$ 750 million. This in addition to another liquidity restriction measured individually for LATAM Airlines Group S.A. and TAM Linhas Aéreas S.A. with a minimum level of US$ 400 million. If these covenants criteria is not fulfilled at any point in time, then the obligations may be accelerated into short-term obligations, at the lenders request. As of March 31, 2024, the Company complies with the aforementioned minimum liquidity covenants.

Balances by currency of interest bearing loans are as follows:

	As of		As of
	March 31, 2024		December 31, 2023
Currency	ThUS$		ThUS$
	Unaudited
Chilean peso (U.F.)		145,478		160,730
US Dollar		3,804,115		3,807,464
Total		3,949,593		3,968,194

F-68

Interest-bearing loans due in installments to March 31, 2024 (Unaudited)

Debtor: LATAM Airlines Group S.A. and Subsidiaries, Tax No. 89.862.200-2, Chile.

				Nominal values												Accounting values
						More than		More than		More than		More				More than		More than		More than		More
				Up to		90 days		one to		three to		than	Total		Up to	90 days		one to		three to		than		Total			Annual
		Creditor		90		to one		three		five		five	nominal		90	to one		three		five		five		accounting			Effective		Nominal
Tax No.	Creditor	country	Currency	days		year		years		years		years	value		days	year		years		years		years		value		Amortization	rate		rate
				ThUS$		ThUS$		ThUS$		ThUS$		ThUS$	ThUS$		ThUS$	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			%		%
Bank loans
0-E	GOLDMAN SACHS	U.S.A.	US$		2,750		8,250		22,000		1,053,250	—		1,086,250	44,027		8,250		22,000		958,032		—		1,032,309	Quarterly		20.24		14.97
Obligations with the
public
97.036.000-K	SANTANDER	Chile	UF		—		—		—		—	144,291		144,291	—		1,187		—		—		144,291		145,478	At Expiration		2.00		2.00
97.036.000-K	SANTANDER	Chile	US$		—		—		—		—	3		3	—		—		—		—		3		3	At Expiration		1.00		1.00
0-E	WILMINGTON TRUST COMPANY	U.S.A.	US$		—		—		—		450,000	700,000		1,150,000	75,183		—		—		434,204		673,686		1,183,073	At Expiration		15.00		13.38
Guaranteed
obligations
0-E	BNP PARIBAS	U.S.A.	US$		3,001		9,393		27,054		29,216	100,128		168,792	3,999		9,393		26,409		28,827		99,810		168,438	Quarterly		6.92		6.92
0-E	WILMINGTON TRUST COMPANY	U.S.A.	US$		3,874		11,767		32,534		34,271	44,963		127,409	3,942		11,767		32,533		34,271		44,963		127,476	Quarterly/Monthly		8.73		8.73
Other guaranteed
obligations
0-E	CITIBANK	U.S.A.	US$		—		—		—		—	—		—	34		—		—		—		—		34	Quarterly		1.00		1.00
0-E	JP MORGAN CHASE	U.S.A.	US$		—		—		—		—	—		—	17		—		—		—		—		17	Quarterly		0.63		0.63
0-E	CREDIT AGRICOLE	France	US$		7,333		7,333		29,334		222,768	—		266,768	11,465		7,333		26,154		221,973		—		266,925	At Expiration		9.39		9.39
0-E	MUFG	U.S.A.	US$		11,872		36,308		4,155		—	—		52,335	11,903		36,308		4,155		—		—		52,366	Quarterly		7.11		7.11
0-E	EXIM BANK	U.S.A.	US$		—		5,005		40,842		42,307	10,955		99,109	280		5,005		40,842		42,307		10,955		99,389	Quarterly		2.29		2.05
Financial leases
0-E	NATIXIS	France	US$		6,559		19,891		54,754		54,754	70,907		206,865	8,235		20,698		54,427		57,079		70,278		210,717	Quarterly		7.54		7.54
0-E	US BANK	U.S.A.	US$		16,743		41,260		6,521		—	—		64,524	17,153		41,261		5,301		—		—		63,715	Quarterly		4.51		3.20
0-E	EXIM BANK	U.S.A.	US$		—		32,988		184,716		136,646	58,722		413,072	1,891		32,988		183,253		136,645		58,763		413,540	Quarterly		4.12		3.30
0-E	BANK OF UTAH	U.S.A.	US$		2,643		7,391		24,322		42,408	93,244		170,008	2,643		7,391		24,322		42,408		93,244		170,008	Monthly		10.71		10.71
Others loans
0-E	Various (*)		US$		99		—		—		—	—		99	99		—		—		—		—		99	At Expiration		—		—
	Total				54,874		179,586		426,232		2,065,620	1,223,213		3,949,525	180,871		181,581		419,396		1,955,746		1,195,993		3,933,587

(*)	Obligation to creditors for executed letters of credit.

F-69

Interest-bearing loans due in installments to March 31, 2024 (Unaudited)

Debtor: TAM S.A. and Subsidiaries, Tax No. 02.012.862/0001-60, Brazil

Nominal values

Accounting values

More than

More
than

More than

More
than

Up to

90 days

one to

three to

than

Total

Up to

90 days

one to

three to

than

Total

Annual

Creditor

to one

three

five

nominal

to one

three

five

accounting

Effective

Nominal

Tax No.

Country

Currency

days

year

years

value

days

year

years

value

Amortization

rate

ThUS$

Financial lease

0-E

NATIXIS

France

US$

1,020

1,530

4,080

9,376

—

16,006

1,020

1,530

4,080

9,376

—

16,006

Quarterly

—

Total

1,020

1,530

4,080

9,376

—

16,006

1,020

1,530

4,080

9,376

—

16,006

Total
consolidated

55,894

181,116

430,312

2,074,996

1,223,213

3,965,531

181,891

183,111

423,476

1,965,122

1,195,993

3,949,593

F-70

Interest-bearing loans due in installments to December 31, 2023

Debtor: LATAM Airlines Group S.A. and Subsidiaries, Tax No. 89.862.200-2, Chile.

				Nominal values												Accounting values
						More than		More than		More than		More						More than		More than		More than		More
				Up to		90 days		one to		three to		than		Total		Up to		90 days		one to		three to		than		Total			Annual
		Creditor		90		to one		three		five		five		nominal		90		to one		three		five		five		accounting			Effective		Nominal
Tax No.	Creditor	country	Currency	days		year		years		years		years		value		days		year		years		years		years		value		Amortization	rate		rate
				ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			%		%
Bank loans
0-E	SANTANDER	Spain	US$																								—	Quarterly		—		—
0-E	GOLDMANSACHS	U.S.A.	US$		2,750		8,250		22,000		1,056,000		—		1,089,000		44,891		8,250		22,000		954,293		—		1,029,434	Quarterly		20.31		15.04
Obligations
with the
public
97.036.000-K	SANTANDER	Chile	UF		—		—		—		—		160,214		160,214		—		516		—		—		160,214		160,730	At Expiration		2.00		2.00
97.036.000-K	SANTANDER	Chile	US$		—		—		—		—		3		3		—		—		—		—		3		3	At Expiration		1.00		1.00
0-E	WILMINGTON
	TRUST COMPANY	U.S.A.	US$		—		—		—		450,000		700,000		1,150,000		—		34,215		—		434,204		673,686		1,142,105	At Expiration		15.00		13.38

Guaranteed obligations
0-E	BNP PARIBAS	U.S.A.	US$		2,912		9,168		26,772		28,945		103,907		171,704		3,936		9,168		26,121		28,553		103,541		171,319	Quarterly		6.98		6.98
0-E	WILMINGTON
	TRUST COMPANY	U.S.A.	US$		3,854		11,693		32,356		34,083		50,599		132,585		3,900		11,693		32,356		34,083		50,571		132,603	Quarterly/Monthly		8.76		8.76
Other guaranteed obligations
0-E	CITIBANK	U.S.A.	US$		—		—		—		—		—		—		33		—		—		—		—		33	Quarterly		1.00		1.00
0-E	JP MORGAN
	CHASE	U.S.A.	US$		—		—		—		—		—		—		17		—		—		—		—		17	Quarterly		0.63		0.63
0-E	CREDIT
	AGRICOLE	France	US$		—		14,667		29,333		222,768		—		266,768		4,241		14,667		26,154		221,708		—		266,770	At Expiration		9.43		9.43
0-E	MUFG	U.S.A.	US$		11,768		35,960		16,374		—		—		64,102		11,805		35,960		16,374		—		—		64,139	Quarterly		7.11		7.11
0-E	EXIM BANK	U.S.A.	US$		—		—		40,662		42,122		16,325		99,109		282		—		40,662		42,122		16,325		99,391	Quarterly		2.29		2.05
Financial leases
0-E	NATIXIS	France	US$		6,516		19,779		54,443		56,972		77,647		215,357		8,559		19,779		54,117		56,754		77,555		216,764	Quarterly		7.58		7.58
0-E	US BANK	U.S.A.	US$		17,374		49,311		17,492		—		—		84,177		17,905		49,311		15,731		—		—		82,947	Quarterly		4.41		3.16
0-E	EXIM BANK	U.S.A.	US$		—		—		197,499		141,169		74,404		413,072		1,933		—		195,741		141,169		74,404		413,247	Quarterly		4.13		3.31
0-E	BANK OF UTAH	U.S.A.	US$		2,575		7,202		23,637		37,304		101,864		172,582		2,575		7,202		23,637		37,304		101,864		172,582	Monthly		10.71		10.71
Other loan
0-E	Various (*)		US$		104		—		—		—		—		104		104		—		—		—		—		104	At Expiration		—		—
	Total				47,853		156,030		460,568		2,069,363		1,284,963		4,018,777		100,181		190,761		452,893		1,950,190		1,258,163		3,952,188

(*)	Obligation to creditors for executed letters of credit.

F-71

Interest-bearing loans due in installments to December 31, 2023

Debtor: TAM S.A. and Subsidiaries, Tax No. 02.012.862/0001-60, Brazil

Nominal values

Accounting values

More than

More
than

More than

More
than

Up to

90 days

one to

three to

than

Total

Up to

90 days

one to

three to

than

Total

Annual

Creditor

to one

three

five

nominal

to one

three

five

accounting

Effective

Nominal

Tax No.

Country

Currency

days

year

years

value

days

year

years

value

Amortization

rate

ThUS$

Financial

lease

0-E

NATIXIS

France

US$

510

1,530

4,080

9,886

—

16,006

510

1,530

4,080

9,886

—

16,006

Semiannual/Quarterly

—

Total

510

1,530

4,080

9,886

—

16,006

510

1,530

4,080

9,886

—

16,006

Total consolidated

48,363

157,560

464,648

2,079,249

1,284,963

4,034,783

100,691

192,291

456,973

1,960,076

1,258,163

3,968,194

(*)	Obligation to creditors for executed letters of credit.

F-72

(b)

Lease Liability:

The movement of the lease liabilities corresponding to the period reported are as follow:

							Lease
	Aircraft			Others			Liability Total
	ThUS$			ThUS$			ThUS$
Opening balance as January 1, 2023		2,134,972			81,482			2,216,454
New contracts		—			1,099			1,099
Lease termination		—			(203	)		(203	)
Renegotiations		(10,887	)		(2,737	)		(13,624	)
Payments		(77,430	)		(6,944	)		(84,374	)
Accrued interest		46,269			2,375			48,644
Exchange differences		1			2,537			2,538
Cumulative translation adjustment		(1	)		2,455			2,454
Other increases (decreases)		(258	)		—			(258	)
Changes		(42,306	)		(1,418	)		(43,724	)
Closing balance as of March 31, 2023 (Unaudited)		2,092,666			80,064			2,172,730
Opening balance as of April 1, 2023 (Unaudited)		2,092,666			80,064			2,172,730
New contracts		943,178			1,877			945,055
Lease termination		(13,258	)		(1,609	)		(14,867	)
Renegotiations		3,693			4,956			8,649
Payments		(298,576	)		(16,333	)		(314,909	)
Accrued interest		166,231			7,258			173,489
Exchange differences		(1	)		(259	)		(260	)
Cumulative translation adjustment		7			(2,158	)		(2,151	)
Other increases (decreases)		258			—			258
Changes		801,532			(6,268	)		795,264
Closing balance as of December 31, 2023		2,894,198			73,796			2,967,994
Opening balance as of January 1, 2024		2,894,198			73,796			2,967,994
New contracts		117,607			556			118,163
Lease termination		(1,920	)		(8	)		(1,928	)
Renegotiations		78,844			41,770			120,614
Payments		(139,869	)		(5,945	)		(145,814	)
Accrued interest		68,963			3,531			72,494
Exchange differences		—			(2,605	)		(2,605	)
Subsidiaries conversion difference		—			(1,775	)		(1,775	)
Changes		123,626			35,524			159,150
Closing balance as of March 31, 2024 (Unaudited)		3,017,824			109,320			3,127,144

The Company recognizes interest payments related to lease liabilities in the consolidated result under Finance costs (See Note 26(c)). The Average discount rates for calculation of lease liability are as follows.

	Discount rate			Discount rate
	March 2024			December 2023
	Unaudited
Aircraft		9.18	%		9.10	%
Others		7.67	%		6.43	%

F-73

(c)

Hedge derivatives

	Current liabilities				Non-current liabilities				Total hedge derivatives
	As of March 31,		As of December 31,		As of March 31,		As of December 31,		As of March 31,		As of December 31,
	2024		2023		2024		2023		2024		2023
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
	Unaudited				Unaudited				Unaudited
Fair value of foreign currency derivatives		247		1,544		—		—		247		1,544
Total hedge derivatives		247		1,544		—		—		247		1,544

The foreign currency derivatives correspond to options, forwards and swaps.

Hedging operation

The fair values of net assets/ (liabilities), by type of derivative, of the contracts held as hedging instruments are presented below:

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Fuel options (1)		37,177		22,136
Foreign currency derivative R$/BRL$ (2)		2,885		(1,544	)

(1)

Hedge significant variations in cash flows associated with market risk implicit in the changes in the price of future fuel purchases. These contracts are recorded as cash flow hedges.

(2)

Hedge significant variations in expected cash flows associated with the market risk implicit in changes in exchange rates, particularly the US$/BRL. These contracts are recorded as cash flow hedge contracts.

The Company only maintains cash flow hedges. In the case of fuel and currency hedges, the cash flows subject to said hedges will occur and will impact results in the next 12 months from the date of the consolidated statement of financial position.

All hedging operations have been performed for highly probable transactions, except for fuel hedge. See Note 3.

See Note 24 (f) for reclassification to profit or loss for each hedging operation and Note 17 (b) for deferred taxes related.

F-74

NOTE 19 - TRADE AND OTHER ACCOUNTS PAYABLES

The composition of Trade and other accounts payables is as follows:

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Current
(a) Trade and other accounts payables		1,473,820		1,408,201
(b) Accrued liabilities		268,394		357,078
Total trade and other accounts payables		1,742,214		1,765,279

(a)

Trade and other accounts payable:

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Trade creditors		1,227,779		1,176,985
Other accounts payable		246,041		231,216
Total		1,473,820		1,408,201

The details of Trade and other accounts payables are as follows:

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Boarding Fees		250,930		249,291
Maintenance		213,265		167,466
Airport charges and overflight		153,284		138,901
Handling and ground handling		144,492		133,114
Suppliers technical purchases		142,048		126,302
Aircraft Fuel		103,590		94,878
Other personnel expenses		93,514		96,351
Leases, maintenance and IT services		91,644		100,842
Professional services and advisory		76,939		63,756
Services on board		56,740		58,365
Marketing		27,945		51,035
Crew		21,831		25,936
Air companies		17,439		26,371
Agencies sales commissions		7,053		16,899
Aircraft Insurance		5,122		12,256
Others		67,984		46,438
Total trade and other accounts payables		1,473,820		1,408,201

F-75

(b)

Liabilities accrued:

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Aircraft and engine maintenance		34,621		129,473
Accrued personnel expenses		114,650		97,733
Accounts payable to personnel (1)		92,289		114,769
Others accrued liabilities		26,834		15,103
Total accrued liabilities		268,394		357,078

(1)	Participation in profits and bonuses (Note 22 letter b).

NOTE 20 - OTHER PROVISIONS

	Current liabilities				Non-current liabilities				Total Liabilities
	As of March 31,		As of December 31,		As of March 31,		As of December 31,		As of March 31,		As of December 31,
	2024		2023		2024		2023		2024		2023
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
	Unaudited				Unaudited				Unaudited
Provision for contingencies (1)
Tax contingencies		3,343		7,003		621,527		614,882		624,870		621,885
Civil contingencies		5,788		7,702		153,379		142,305		159,167		150,007
Labor contingencies		402		367		194,883		155,501		195,285		155,868
Other		—		—		11,541		11,571		11,541		11,571
Provision for European
Commission investigation (2)		—		—		2,419		2,477		2,419		2,477

Total other provisions (3)		9,533		15,072		983,749		926,736		993,282		941,808

(1)	Provisions for contingencies:

The tax contingencies correspond to litigation and tax criteria related to the tax treatment applicable to direct and indirect taxes, which are found in both administrative and judicial stage.

The civil contingencies correspond to different demands of civil order filed against the Company.The labor contingencies correspond to different demands of labor order filed against the Company.

Provisions are recognized in the consolidated income statement in administrative expenses or tax expenses, as appropriate.

The Company maintains other judicial processes, individually and cumulatively , do not have a significant impact on these financial statements

(2)	Provision made for proceedings brought by the European Commission for possible breaches of free competition in the freight market.

(3)

Total other provision as of March 31, 2024, and December 31, 2023, include the fair value of the contingencies arising at the time of the business combination with TAM S.A and subsidiaries,with a probability of loss under 50%, which are not recognized in the normal course of IFRS Accounting Standards application and which only in the context of a business combination should be recognized under IFRS Accounting Standards.

F-76

Movement of provisions:

	Legal			European Commission
	claims (1)			Investigation (1)			Total
	ThUS$			ThUS$			ThUS$

Opening balance as January 1, 2023		940,140			2,397			942,537
Increase in provisions		96,150			—			96,150
Provision used		(8,921	)		—			(8,921	)
Difference by subsidiaries conversion		14,734			—			14,734
Reversal of provision		(90,077	)		—			(90,077	)
Exchange difference		(9,429	)		35			(9,394	)
Closing balance as of March 31, 2023 (Unaudited)		942,597			2,432			945,029

Opening balance as of April 1, 2023 (Unaudited)		942,597			2,432			945,029
Increase in provisions		353,256			—			353,256
Provision used		(61,923	)		—			(61,923	)
Difference by subsidiaries conversion		(84,297	)		—			(84,297	)
Reversal of provision		(220,041	)		—			(220,041	)
Exchange difference		9,739			45			9,784
Closing balance as of December 31, 2023		939,331			2,477			941,808

Opening balance as of January 1, 2024		939,331			2,477			941,808
Increase in provisions		150,466						150,466
Provision used		(20,214	)					(20,214	)
Difference by subsidiaries conversion		(21,707	)					(21,707	)
Reversal of provision		(56,345	)					(56,345	)
Exchange difference		(668	)		(58	)		(726	)
Closing balance as of March 31, 2024 (Unaudited)		990,863			2,419			993,282

(1)	See details of litigation and government investigations with a material impact in Note 30.

F-77

NOTE 21 - OTHER NON-FINANCIAL LIABILITIES

	Current liabilities				Non-current liabilities				Total Liabilities
	As of March 31,		As of December 31,		As of March 31,		As of December 31,		As of March 31,		As of December 31,
	2024		2023		2024		2023		2024		2023
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
	Unaudited				Unaudited				Unaudited
Deferred revenue (1)(2)		2,905,696		3,044,664		298,051		348,936		3,203,747		3,393,600
Sales tax		12,404		17,801		—		—		12,404		17,801
Retentions		50,552		48,649		—		—		50,552		48,649
Other taxes		5,314		6,892		—		—		5,314		6,892
Dividends payable		252,032		174,549		—		—		252,032		174,549
Other sundry liabilities		16,242		9,351		—		—		16,242		9,351
Total other non-financial liabilities		3,242,240		3,301,906		298,051		348,936		3,540,291		3,650,842

Deferred Revenue Movement

			Deferred revenue
	Initial balance		(1) Recognition		Use			Loyalty program (Award and redeem)			Expiration of tickets			Translation Difference			Others provisions			Final balance
	ThUS$		ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
From January 1 to March 31, 2023 (Unaudited)		2,953,289		3,350,319		(3,249,507	)		43,131			(92,526	)		22,314			(6,876	)		3,020,144
From April 1 to December 31, 2023 (Unaudited)		3,020,144		10,888,640		(10,255,989	)		(25,451	)		(299,472	)		62,674			3,054			3,393,600
From January 1 to March 31, 2024 (Unaudited)		3,393,600		3,778,075		(3,826,388	)		(17,055	)		(91,890	)		(33,684	)		1,089			3,203,747

(1)	The balance includes mainly, deferred revenue for services not provided as of March 31, 2024 and December 31, 2023 and for the frequent flyer LATAM Pass program.

LATAM Pass is LATAM’s frequent flyer program that allows rewarding the preference and loyalty of its customers with multiple benefits and privileges, through the accumulation of miles or points that can be exchanged for tickets or for a varied range of products and services. Clients accumulate miles or points LATAM Pass every time they fly in LATAM and other airlines associated with the program, as well as by buying in stores or use the services of a vast network of companies that have agreements with the program around the world.

(2)	As of March 31, 2024, Deferred Income includes Th US$40,500 related to the compensation from Delta Air Lines, Inc., which is recognized in the income statement based on the estimation of income differentials until the implementation of the strategic alliance.

F-78

NOTE 22 - EMPLOYEE BENEFITS

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Retirements payments		70,277		57,785
Resignation payments		7,091		11,537
Other obligations		62,477		53,296
Total liability for employee benefits		139,845		122,618

(a)

The movement in retirements, resignations and other obligations:

	Opening		Increase (decrease) current service		Benefits			Actuarial (gains)			Currency			Closing
	balance		provision		paid			losses			translation			balance
	ThUS$		ThUS$		ThUS$			ThUS$			ThUS$			ThUS$

From January 1 to March 31, 2023		93,488		12,715		(579	)		(5,777	)		4,948			104,795
From April 1 to December 31, 2023 (Unaudited)		104,795		45,721		(6,122	)		(15,421	)		(6,355	)		122,618
From January 1 to March 31, 2024 (Unaudited)		122,618		42,637		(1,270	)		(15,295	)		(8,845	)		139,845

The main assumptions used in the calculation of the provision in Chile are presented below:

	For the period ended At March 31,
Assumptions	2024			2023
	Unaudited
Discount rate		5.85	%		5.37	%
Expected rate of salary increase		3.00	%		3.00	%
Rate of turnover		2.96	%		5.02	%
Mortality rate		RV-2020			RV-2014
Inflation rate		3.23	%		3.46	%
Retirement age of women		60			60
Retirement age of men		65			65

The discount rate is based on the bonds issued by the Central Bank of Chile with a maturity of 20 years. The RV-2020 and RV-2014 mortality tables correspond to those established by the Commission for the Financial Market of Chile. The inflation rates are based on the yield curves of the long term nominal and inflation adjusted bonds based on BCU and BCPs issued by the Central Bank of Chile.

The calculation of the present value of the defined benefit obligation is sensitive to the variation of some actuarial assumptions such as discount rate, salary increase, rotation and inflation.

F-79

The sensitivity analysis for these variables is presented below:

	Effect on the liability
	As of			As of
	March 31, 2024			December 31, 2023
	ThUS$			ThUS$
	Unaudited
Discount rate
Change in the accrued liability an closing for increase in 100 b.p.		(5,171	)		(3,913	)
Change in the accrued liability an closing for decrease of 100 b.p.		5,902			4,369
Rate of wage growth
Change in the accrued liability an closing for increase in 100 b.p.		5,487			4,133
Change in the accrued liability an closing for decrease of 100 b.p.		(4,983	)		(3,811	)

(b)

The liability for short-term:

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Profit-sharing and bonuses (*)		92,289		114,769

(*)	Accounts payables to employees (Note 19 letter b)

The participation in profits and bonuses related to an annual incentive plan for achievement of certain objectives.

(c)

CIP (Corporate Incentive Plan)

With the aim of incentivizing the retention of talent among the executives of the Company and in response to the exit of the Chapter 11 Procedure, it was agreed to grant an extraordinary and exceptional incentive called Corporate Incentive Plan (hereinafter also “CIP”), which will be enforceable and paid subject to compliance with the terms, clauses and conditions approved at the Board meeting dated April 25, 2023. In summary, the CIP contemplates three categories oriented to three different groups or categories of employees, whether they are hired by the Company directly, or in other companies of the LATAM group. These categories are as follows: Non-Executive Employees;

Executives Not part of the Global Executive Meeting o “GEM”; and GEM Executives. Employees in each of these groups are only eligible for the CIP that corresponds to their respective category. The terms of each of these CIP categories were communicated to the respective employees between the months of January to December 2023.

Below are more background on each of the different categories of the CIP. Additionally, in Note 33 describes in more detail the main terms and conditions of the last two categories of the CIP (i.e., Non-GEM Executives; and GEM Executives):

Non-Executive Employees: The first subprogram was aimed at non-executive employees who, while hired in LATAM as of December 31, 2020, were still in their position as of April 30, 2023, which includes a fixed and guaranteed payment in cash on certain dates, depending on the country where the employee is hired.

This subprogram is available to those employees who were unable to qualify for one of the two categories below, or who were able to do so, chose not to participate in them.

F-80

ii)

Executives Not part of the GEM: The second subprogram applies to senior executives not part of the GEM (Global Executive Meeting – Senior Managers, Managers, Assistant Managers). This program contemplates the creation of remuneration synthetic Units (hereinafter, simply “Units”) that, by reference, are considered as equivalent to the price of one share of LATAM Airlines Group S.A., and consequently, in case they become effective, they grant the worker the right to receive the payment in cash that results from multiplying the number of Units that become effective by the value per share of LATAM Airlines Group S.A. that should be considered in accordance with CIP.

In this context, this program contemplates two different bonuses: (1) a withholding bonus, consisting of the amount in cash resulting from Units that are assigned to the respective employee, these Units being paid at 20% at month 15 and 80% at month 24, in each case, counted from the exit date of Chapter 11 Procedure (i.e., November 3, 2022) (the “Exit Date”). This is consequently a guaranteed payment for these employees; and (2) a bonus associated with the certain financial indicators of LATAM Airlines Group S.A. and its subsidiaries, which is reflected in Note 19 (b), becoming effective 20% at month 15 and 80% at month 24, in each case, from the Exit Date. Consequently, this is an eventual payment that is only made if these indicators are reached.

iii)

GEM Executives: The third subprogram applies to the Company´s GEM executives (Global Executive Meeting) (CEO and employees whose job description is “vice presidents” or “directors”). This program, in essence, contemplates the creation of remuneration synthetic Units that, by referential means, are considered as equivalent to the price of one share of LATAM Airlines Group S.A. and consequently, in case they become effective, they grant the worker the right to receive the payment in cash that results from multiplying the number of Units that become effective by the value per share of LATAM Airlines Group S.A. that must be considered according to the CIP.

These Units are divided into:

(1) Units associated with the employee’s permanence in the Company (“RSUs” – Retention Shares Units); and (2) Units associated with both the employee’s permanence in the Company and the performance of LATAM Airlines Group S.A. (“PSUs” – Performance Shares Units). This performance is ultimately measured according to the share price of LATAM Airlines Group S.A. in the terms and conditions of the CIP.

Both the RSUs and the PSUs are consequently associated with the passage of time, becoming effective by partialities according to the calendar contemplated by the CIP. For the case of RSUs, having a vesting guaranteed by partialities as explained in more detail in Note 33. On the other hand, the PSUs also consider the market value of the share of LATAM Airlines Group S.A. considering a liquid market. However, as long as there is no such liquid market, the share price will be determined on the basis of representative transactions. As explained in more detail in Note 33, PSUs constitute a contingent and non-guaranteed payment.

In addition, some GEM Executives will also be entitled to receive a fixed and guaranteed cash payment (“MPP” – Management Protection Plan) on certain dates according to the CIP. Those employees who are eligible for this MPP will also be eligible for a limited number of additional MSUs (“MPP Based RSUs”).

In all cases, the respective employees must have remained as such in the Company at the corresponding accrual date to qualify for these benefits.

During the year of 2024 until the month of March, the amount accrued related to this CIP was MUS$ 20.71, which is recorded in the “Administrative expenses” line of the Consolidated Statement of Income by Function. As of March 31, 2024, the amount of this plan recorded in the consolidated statement of financial position is MUS$ 131.28.

F-81

(d)

Employment expenses are detailed below:

	For the period ended at March 31,
	2024		2023
	ThUS$		ThUS$
	Unaudited
Salaries and wages		335,635		294,437
Short-term employee benefits		56,278		34,946
Other personnel expenses		33,839		30,482
Total		425,752		359,865

NOTE 23 - ACCOUNTS PAYABLE, NON-CURRENT

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Aircraft and engine maintenance		369,992		348,578
Fleet (JOL)		40,000		40,000
Airport and Overflight Taxes		8,361		11,337
Provision for vacations and bonuses		16,633		18,518
Other sundry liabilities		161		154
Total accounts payable, non-current		435,147		418,587

NOTE 24 - EQUITY

(a)

Capital

The Company’s objective is to maintain an appropriate level of capitalization that enables it to ensure access to the financial markets for carrying out its medium and long-term objectives, optimizing the return for its shareholders and maintaining a solid financial position.

The paid capital of the Company at March 31, 2024, amounts to ThUS$5,003,534 divided into 604,437,877,587 common stock of a same series (ThUS $5,003,534 divided into 604,437,877,587 shares as of December 31, 2023), a single series nominative, ordinary character with no par value. The total number of authorized shares of the Company as of March 31, 2024, corresponds to 604,441,789,335 shares. There are no special series of shares and no privileges. The form of its stock certificates and their issuance, exchange, disablement, loss, replacement and other similar circumstances, as well as the transfer of the shares, is governed by the provisions of the Corporate Law and its regulations.

F-82

At the Company’s Extraordinary Shareholders’ Meeting held on April 20, 2023, it was agreed to:

i) A decrease in the Company’s capital for an amount of ThUS$7,501,896, without altering the number and characteristics of the shares into which it is divided, by absorbing the Company’s accumulated losses as of December 31, 2022 for the same amount;

ii) Others decrease of the Company’s capital for an amount of ThUS$178, without altering the number and characteristics of the shares into which it is divided, through the absorption of the equity account of “Treasury Shares” as of December 31, 2022 for the same amount, produced on the occasion of the January 2013 reduction of capital stock by operation of law that took place in accordance with the provisions of Article 27 of the Corporations Law.

iii) Deduction of the Company´s capital the account “Costs of issuing shares and new convertible notes, for an amount of ThUS$810,279.

On September 6, 2023, by public deed granted at the Notary of Santiago of Mr. Eduardo Diez Morello, under repertoire number 15,327-2023 entitled “Declaración de Colocación y Vencimiento Plazo de Colocación Bonos Convertibles “Series G”, “Series H” and “Series I” and Reducción de Capital de Pleno Derecho”, it was realized that on September 5, 2023 the maturity of the placement term (the “Placement Term”) of Convertible Notes issued on the occasion of the capital increase agreed at the Company’s Extraordinary Shareholders’ Meeting held on July 5, 2022. Consequently, in accordance with the mentioned in number Four of Clause Six of the respective notes issuance contract (the “Issuance Agreement”), as of that date the amount placed against it remained unchanged, and consequently the Convertible Notes not placed on that date were null and void. For the sake of completeness, it was declared that upon maturity of the Placement Term, 123,605,720 Series G Convertible Notes and 37 Series I Convertible Notes (collectively, the “Unplaced Convertible Notes”) remained unplaced, for an amount of US$ 123,605,720 and US$37, respectively (hereinafter, together, the “Unplaced Amount”). The conversion option of the Unplaced Convertible Notes was backed by 1,965,903,665 shares as equity.

Likewise, in the aforementioned deed it was realized that since all the Unplaced Convertible Bonds have been terminated, since they have been null and void, they cannot be converted into shares of the issuer, consequently reducing the Company’s Capital Share by an amount equal to the Unplaced Amount.

Therefore, as of September 6, 2023, the amount of the Share Capital was reduced by law in the amount of ThUS$123,606, equivalent to 1,965,903,665 shares. As of that date, the total statutory share capital of the Company was reduced by law from the amount of ThUS$5,127,182, divided into 606,407,693,000 shares, of the same and unique series, without par value, to the amount of ThUS$5,003,576, divided into 604,441,789,335 shares, of which MUS$ 5,003,534, equivalent to 604,437,877,587 shares, are fully paid. To date, the balance of MUS$42, equivalent to 3,911,748 shares, are pending of subscription and payment and are intended exclusively to respond to the conversion of 42,398 Series H Convertible Notes.

F-83

(b)	Movement of authorized shares

The following table shows the movement of the authorized, fully paid shares and back-up shares to be delivered in the event that the respective conversion option is exercised under the convertible notes currently issued by the Company:

	As of March 31, 2024 (Unaudited)								As of December 31, 2023
	N° of authorized Shares		N° of Subscribed of shares and paid or delivered pursuant to the exercise of the conversion option		N° of convertible notes back-up shares pending to place		N° of shares to subscribe or not used		N° of authorized shares			N° of Subscribed of shares and paid or delivered pursuant to the exercise of the conversion option		N° of convertible notes back-up shares pending to place			N° of shares to subscribe or not used

Opening Balance		604,441,789,335		604,437,877,587		3,911,748		—		606,407,693,000			604,437,584,048		4,205,287			1,965,903,665
Convertible Notes H		—		—		—		—		—			293,539		(293,539	)		—
Reduction of full right (*)		—		—		—		—		(1,965,903,665	)		—		—			(1,965,903,665	)
Subtotal		—		—		—		—		(1,965,903,665	)		293,539		(293,539	)		(1,965,903,665	)
Closing Balance		604,441,789,335		604,437,877,587		3,911,748		—		604,441,789,335			604,437,877,587		3,911,748			—

(*)

See letter (a) above, in the same Note.

(c)

Share capital

The following table shows the movement of share capital:

	Paid- in
	Capital
	ThUS$
Initial balance as of January 1, 2023		13,298,486
Placement during the conversion options period - Convertible Notes G		17,401
Absorption of Accumulated Losses as of December 31, 2022 (2)		(7,501,896	)
Absorption of treasury shares (2)		(178	)
Deduction of issuance and placement costs of shares and bonds convertible into shares (2)		(810,279	)
Subtotal		(8,294,952	)
Ending balance as of December 31, 2023		5,003,534
Initial balance as of January 1, 2024		5,003,534
There were no movements during the period		—
Ending balance as of March 31, 2024 (Unaudited)		5,003,534

(1)	It only includes Convertible Notes bonds delivered as payment of debts recognized in Chapter 11.

(2)	As explained in letter a) of this Note, at the Company's Extraordinary Shareholders' Meeting held on April 20, 2023, it was agreed to absorb retained losses and reduce the Company's capital.

(d)	Treasury stock

At March 31, 2024, the Company held no treasury stock. The remaining of ThUS$(178) corresponds to the difference between the amount paid for the shares and their book value, at the time of the full right decrease of the shares which held in its portfolio. As explained in letter a) of this same Note, at the Company's Extraordinary Shareholders' Meeting held on April 20, 2023, an absorption of the Company's capital was agreed for an amount of ThUS$178.

F-84

(e)

Other equity- Value of conversion right - Convertible Notes

(e.1)

Notes subscription

The Convertible Notes were issued to be place in exchange for a cash contribution, in exchange for settlement of Chapter 11 Proceeding or a combination of both. Convertible Notes issued in exchange for cash were valued at fair value (the cash received). Notes issued in exchange for settlement of Chapter 11 claims were valued considering the discount that each group of liabilities settled on at the emergence date. The table below shows the 3 Convertible Notes at their nominal values, the adjustment, if any, to arrive at their fair values and the amount of transaction costs. The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. The equity portion is recognized under Other equity at the time the Convertible Notes are issued.

	As of December 31, 2023
								Total
	Convertible			Convertible		Convertible		Convertible
Concepts	Notes G			Notes H		Notes I		Notes
	ThUS$			ThUS$		ThUS$		ThUS$
Face Value		17,401			—		—		17,401
Adjustment to fair value Convertible Notes at the date of issue		(14,401	)		—		—		(14,401	)
Subtotal		(14,401	)		—		—		(14,401	)
Fair Value of Notes		3,000			—		—		3,000
Equity component at the date of issue		3,000			—		—		3,000

During the period ended March 31, 2024, there was no subscription of convertible bonds.

(e.2)

Conversion of notes into shares

As of December 31, 2023, the following notes have been converted into shares:

	As of December 31, 2023
	Convertible			Convertible			Convertible			Total Convertible
Concepts	Notes G			Notes H			Notes I			Notes
	ThUS$			ThUS$			ThUS$			ThUS$
Conversion percentage		100.000	%		99.997	%		100.000	%
Conversion option of convertible notes exercised		1,133,397			1,372,798			6,863,427			9,369,622
Total Converted Notes		1,133,397			1,372,798			6,863,427			9,369,622

As of March 31, 2024, no bonds have been converted into shares.

The conversion option from the issuance of convertible notes classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument (i.e. convertible notes) as a whole. This is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion option is exercised, in which case, the balance recognized in equity will be transferred to share capital. To the date of issuance of these financial statements, the portion not converted into equity corresponds to ThUS$39.

(e.3)

The Convertible Notes

The contractual conditions of the G, H and I Convertible Notes consider the delivery of a fixed number of shares of LATAM Airlines Group S.A. at the time of settlement of the conversion option of each of them. The foregoing determined the classification of convertible notes as equity instruments, with the exception of Bond H, which considers, in addition to the delivery of a fixed number of shares, the payment of 1% annual interest with certain conditions for its payment and its accrual from 60 days after the exit Date. The payment of this interest gives rise to the recognition of a liability component for the class H convertible notes.

At the date of issue, the fair value of the liability component in the amount of ThUS$102,031 was estimated using the prevailing market interest rate for similar non-convertible instruments.

Transaction costs relating to the liability component are included in the carrying amount of the liability portion and amortized over the period of the convertible notes using the effective interest method.

F-85

(f)

Reserve of share-based payments

Movement of Reserves of share-based payments:

Stock

Opening

option

Closing

Periods

balance

plan

balance

ThUS$

From January 1 to March 31, 2023 (Unaudited)

37,235

—

37,235

From April 1 to December 31, 2023 (Unaudited)

37,235

—

37,235

From January 1 to March 31, 2024 (Unaudited)

37,235

—

37,235

These reserves are related to share based payment plans that expired during the first quarter of 2023. No equity instruments were issued and no amounts were paid associated with these plans.

(g)

Other sundry reserves

Movement of Other sundry reserves:

				Transactions with
	Opening			non-controlling		Legal		Other sundry			Others increases		Closing
Periods	balance			interest		reserves		reserves			(Decreases)		Balance
	ThUS$			ThUS$		ThUS$		ThUS$			ThUS$		ThUS$
From January 1 to March 31, 2023 (Unaudited)		(1,972,651	)		—		—		(4,076	)		—		(1,976,727	)
From April 1 to December 31, 2023 (Unaudited)		(1,976,727	)		16,648				(10,325	)		800,388		(1,170,016	)
From January 1 to March 31, 2024 (Unaudited)		(1,170,016	)		—		—		—			—		(1,170,016	)

Balance of Other sundry reserves comprise the following:

	As of			As of
	March 31, 2024			December 31, 2023
	ThUS$			ThUS$
	Unaudited
Higher value for TAM S.A. share exchange (1)		2,665,692			2,665,692
Reserve for the adjustment to the value of fixed assets (2)		2,620			2,620
Transactions with non-controlling interest (3)		(211,582	)		(211,582	)
Adjustment to the fair value of the New Convertible Notes (4)		(3,624,871	)		(3,624,871	)
Others		(1,875	)		(1,875	)
Total		(1,170,016	)		(1,170,016	)

(1)

Corresponds to the difference between the value of the shares of TAM S.A., acquired by Sister Holdco S.A. (under the Subscriptions) and by Holdco II S.A. (by virtue of the Exchange Offer), which is recorded in the declaration of completion of the merger by absorption, and the fair value of the shares exchanged by LATAM Airlines Group S.A. as of June 22, 2012.

(2)

Corresponds to the technical revaluation of the fixed assets authorized by the Commission for the Financial Market in the year 1979, in Circular No. 1529. The revaluation was optional and could be made only once; the originated reserve is not distributable and can only be capitalized.

(3)

The balance corresponds to the loss generated by: Lan Pax Group S.A. e Inversiones Lan S.A. in the acquisition of shares of Aerovías de Integración Regional S.A. for ThUS$(3,480) and ThUS$(20), respectively; the acquisition of TAM S.A. of the minority interest in Aerolinhas Brasileiras S.A. for ThUS$(885), the acquisition of Inversiones Lan S.A. of the minority participation in Aerovías de Integración Regional S.A. for an amount of ThUS$(2) and the acquisition of a minority stake in Aerolane S.A. by Lan Pax Group S.A. for an amount of ThUS$(21,526) through Holdco Ecuador S.A. (3) The loss due to the acquisition of the minority interest of Multiplus S.A. for ThUS$(184,135) (see Note 1), (4) and the acquisition of a minority interest in LATAM Airlines Perú S.A. through LATAM Airlines Group S.A for an amount of ThUS$(3,225) and acquisition of the minority stake in LAN Argentina S.A. and Inversora Cordillera through Transportes Aéreos del Mercosur S.A. for an amount of ThUS$(3,383). The movements during 2023 was the following: (5) acquisition of the non-controlling interest of Aerovías de Integración Regional S.A. for an amount of ThUS$(23) and (6) amendment of articles in the legal statutes of association related to premiums for the issuance of shares in the subsidiaries Aerovías de Integración Regional S.A. for a total amount of ThUS$5.097.

(4)

The adjustment to the fair value of the Convertible Notes delivered in exchange for settlement of Chapter 11 claims was valued considering the discount that each group of liabilities settled on at the emergence date. These relate to: gain on the haircut for the accounts payable and other accounts payable for ThUS$2,564,707 as of December 31, 2023, gain on the haircut for the financial liabilities for ThUS$420,436 as of December 31, 2023,and gain on the haircut of lease liabilities which is booked against the right of use asset for ThUS$639,728 as of December 31, 2023.

F-86

(h)

Reserves with effect in other comprehensive income.

Movement of Reserves with effect in other comprehensive income:

	Currency			Cash flow			Gains (Losses) on change on value			Actuarial gain or loss on
	translation			hedging			of time value			defined benefit
	reserve			reserve			of options			plans reserve			Total
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Opening balance as of January 1, 2023		(3,805,560	)		36,542			(21,622	)		(28,117	)		(3,818,757	)
Change in fair value of hedging instrument recognized in OCI		—			(30,725	)		16,364			—			(14,361	)
Reclassified from OCI to profit or loss		—			(1,833	)		5,598			—			3,765
Deferred tax		—			(97	)		—			—			(97	)
Actuarial reserves by employee benefit plans		—			—			—			(5,776	)		(5,776	)
Deferred tax actuarial IAS by employee benefit plans		—			—			—			70			70
Translation difference subsidiaries		(5,646	)		1,849			(5	)		—			(3,802	)
Closing balance as of March 31, 2023 (Unaudited)		(3,811,206	)		5,736			335			(33,823	)		(3,838,958	)
Increase (decrease) due to application of new accounting standars		—			—			—			—			—
Opening balance as of April 1, 2023 (Unaudited)		(3,811,206	)		5,736			335			(33,823	)		(3,838,958	)
Change in fair value of hedging instrument recognized in OCI		—			(2,133	)		9,370			—			7,237
Reclassified from OCI to profit or loss		—			(24,735	)		23,220			—			(1,515	)
Reclassified from OCI to the value of the hedged asset		—			(11,112	)		—			—			(11,112	)
Deferred tax		—			3,701			—			—			3,701
Actuarial reserves by employee benefit plans		—			—			—			(15,416	)		(15,416	)
Deferred tax actuarial IAS by employee benefit plans		—			—			—			680			680
Translation difference subsidiaries		(19,405	)		(10,135	)		22			—			(29,518	)
Closing balance as of December 31, 2023		(3,830,611	)		(38,678	)		32,947			(48,559	)		(3,884,901	)

Opening balance as of January 1, 2024		(3,830,611	)		(38,678	)		32,947			(48,559	)		(3,884,901	)
Change in fair value of hedging instrument recognized in OCI		—			72,299			(28,589	)		—			43,710
Reclassified from OCI to profit or loss		—			(26,406	)		8,812			—			(17,594	)
Actuarial reserves by employee benefit plans		—						—			(15,291	)		(15,291	)
Deferred tax actuarial IAS by employee benefit plans		—						—			594			594
Translation difference subsidiaries		(43,750	)		(12	)		(38	)		—			(43,800	)
Closing balance as of March 31, 2024 (Unaudited)		(3,874,361	)		7,203			13,132			(63,256	)		(3,917,282	)

(h.1)

Cumulative translate difference

These are originated from exchange differences arising from the translation of any investment in foreign entities (or Chilean investments with a functional currency different to that of the parent), and from loans and other instruments in foreign currency designated as hedges for such investments. When the investment (all or part) is sold or disposed and a loss of control occurs, these reserves are shown in the consolidated statement of income as part of the loss or gain on the sale or disposal. If the sale does not involve loss of control, these reserves are transferred to non-controlling interests.

(h.2)

Cash flow hedging reserve

These are originated from the fair value valuation at the end of each period of the outstanding derivative contracts that have been defined as cash flow hedges. When these contracts expire, these reserves should be adjusted, and the corresponding results recognized.

F-87

(h.3)

Reserves of actuarial gains or losses on defined benefit plans

Correspond to the increase or decrease in the present value obligation for defined benefit plans due to changes in actuarial assumptions, and experience adjustments, which are the effects of differences between the previous actuarial assumptions and the actual events that have occurred.

(i)

Retained earnings/(losses) Movement of Retained earnings/(losses):

				Result					Others
	Opening			for the					increase		Closing
Periods	balance			period		Dividends			(decreases) (1)		balance
	ThUS$			ThUS$		ThUS$			ThUS$		ThUS$
From January 1 to March 31, 2023 (Unaudited)		(7,501,896	)		121,801		57,129			—		(7,322,966	)
From April 1 to December 31, 2023 (Unaudited)		(7,322,966	)		460,030		(231,678	)		7,559,025		464,411
From January 1 to March 31, 2024 (Unaudited)		464,411			258,279		(77,483	)		—		645,207

(1)

The detail of Other increases (decreases) is as follows:

	As of
	December 31, 2023
	ThUS$
Absorption accumulated losses (*)		7,501,896
Reversal of dividends		57,129
Total		7,559,025

(*)

See letter a) under this same Note.

(j)

Dividends per share

	Minimum mandatory dividend			Minimum mandatory dividend
Description of dividend	2024			2023
Amount of the dividend (ThUS$)		77,483	(*)		174,549,000	(**)
Number of shares among which the dividend is distributed		604,437,877,587			604,437,877,587
Dividend per share (US$)		0.000128			0.000289

(*)

It corresponds to mandatory minimum dividend provision charged to equity related to the net income for the year 2024. In the event of a net income for the year 2024, the proposed minimum dividend must be approved by the Board of Directors when appropriate in accordance with the applicable regulations.

(**)

See Note 35.

F-88

NOTE 25 - REVENUE

The detail of revenues is as follows:

	For the period ended at March 31,
	2024		2023
	ThUS$		ThUS$
	Unaudited
Passengers		2,897,842		2,394,352
Cargo		369,357		377,290
Total		3,267,199		2,771,642

NOTE 26 - COSTS AND EXPENSES BY NATURE

(a)	Costs and operating expenses

The main operating costs and administrative expenses are detailed below:

	For the period ended at March 31,
	2024			2023
	ThUS$			ThUS$
	Unaudited
Aircraft fuel		(1,024,373	)		(1,059,759	)
Other rentals and landing fees		(387,659	)		(297,345	)
Aircraft maintenance		(194,231	)		(137,603	)
Aircraft rental (*)		(1,233	)		(23,732	)
Commissions		(61,732	)		(49,980	)
Passenger services		(76,131	)		(63,133	)
Other operating expenses		(376,637	)		(272,953	)
Total		(2,121,996	)		(1,904,505	)

(*)

Aircraft Lease Contracts include lease payments based on Power by the Hour (PBH) at the beginning of the contract and fixed-rent payments later on. For these contracts that contain an initial period based on PBH and then a fixed amount, a right of use asset and a lease liability was recognized at the date of modification of the contract. These amounts continue to be amortized over the contract term on a straight-line basis starting from the modification date of the contract. Therefore, as a result of the application of the lease accounting policy, the expenses for the year include both the lease expense for variable payments (Aircraft Rentals) as well as the expenses resulting from the amortization of the right of use assets (included in the Depreciation line included in b) below) and interest from the lease liability (included in Lease Liabilities letter c) below)

	For the period ended at March 31,
	2024			2023
	ThUS$			ThUS$
	Unaudited
Payments for leases of low-value assets		(5,645	)		(5,138	)
Total		(5,645	)		(5,138	)

F-89

(b)	Depreciation and amortization Depreciation and amortization are detailed below:

	For the period ended at March 31,
	2024			2023
	ThUS$			ThUS$
	Unaudited
Depreciation (*)		(317,301	)		(263,607	)
Amortization		(15,521	)		(14,447	)
Total		(332,822	)		(278,054	)

(*)

Included within this amount is the depreciation of the Property, plant and equipment (See Note 16 (a)) and the maintenance of the aircraft recognized as right of use assets. The maintenance cost amount included in the depreciation line at March 31, 2024 is ThUS$155,463 (ThUS$129,045 for the same period in 2023).

(c)

Financial costs

The detail of financial costs is as follows:

	For the period ended at March 31,
	2024			2023
	ThUS$			ThUS$
	Unaudited
Bank loan interests		(100,010	)		(98,197	)
Financial leases		(13,156	)		(15,168	)
Lease liabilities		(73,283	)		(49,285	)
Other financial instruments		(4,936	)		(1,514	)
Total		(191,385	)		(164,164	)

Costs and expenses by nature presented in this note plus the Employee expenses disclosed in Note 22, are equivalent to the sum of cost of sales, distribution costs, administrative expenses, other expenses and financing costs presented in the consolidated statement of income by function.

F-90

NOTE 27 - OTHER INCOME, BY FUNCTION

Other income, by function is as follows:

	For the period ended at March 31,
	2024		2023
	ThUS$		ThUS$
	Unaudited
Tours		15,064		11,176
Customs and warehousing		7,201		6,197
Maintenance		1,064		998
Income from non-airlines products LATAM Pass		12,694		4,865
Other miscellaneous income		18,111		10,580
Total		54,134		33,816

NOTE 28 - FOREIGN CURRENCY AND EXCHANGE RATE DIFFERENCES

The functional currency of LATAM Airlines Group S.A. is the US dollar, LATAM has subsidiaries whose functional currency is different to the US dollar, such as the chilean peso, argentine peso, colombian peso, brazilian real and guaraní.

The functional currency is defined as the currency of the primary economic environment in which an entity operates. For each entity and all other currencies are defined as a foreign currency.

Considering the above, the balances by currency mentioned in this note correspond to the sum of foreign currency of each of the entities that are part of the LATAM Airlines Group S.A. and Subsidiaries.

Following are the current exchange rates for the US dollar, on the dates indicated:

	As of		As of December 31,
	March 31,		2023		2022
	Unaudited
Argentine peso		857.42		807.98		177.12
Brazilian real		5.00		4.85		5.29
Chilean peso		981.71		877.12		855.86
Colombian peso		3,857.86		3,872.49		4,845.35
Euro		0.92		0.90		0.93
Australian dollar		1.53		1.46		1.47
Boliviano		6.86		6.86		6.86
Mexican peso		16.61		16.91		19.50
New Zealand dollar		1.67		1.58		1.58
Peruvian Sol		3.71		3.70		3.81
Paraguayan Guarani		7,377.0		7,270.6		7,332.20
Uruguayan peso		37.35		38.81		39.71

F-91

Foreign currency

The foreign currency detail of balances of monetary items in current and non-current assets is as follows:

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Current assets

Cash and cash equivalents		335,432		386,216
Argentine peso		2,982		1,808
Brazilian real		4,114		7,108
Chilean peso		27,488		47,907
Colombian peso		13,465		8,968
Euro		20,445		25,329
U.S. dollar		209,411		237,251
Other currency		57,527		57,845

Other financial assets, current		12,418		14,659
Chilean peso		2,998		4,367
Euro		3,633		3,722
U.S. dollar		5,184		5,971
Other currency		603		599

Other non - financial assets, current		45,066		36,654
Chilean peso		12,036		12,354
Euro		4,151		5,310
U.S. dollar		7,608		10,735
Other currency		21,271		8,255

Trade and other accounts receivable, current		285,960		279,586
Argentine peso		12,681		12,831
Chilean peso		70,763		69,588
Colombian peso		1,672		1,453
Euro		88,249		90,699
U.S. dollar		75,957		68,893
Other currency		36,638		36,122

Accounts receivable from related entities, current		7		27
Chilean peso		7		27

Tax current assets		22,306		17,258
Chilean peso		2,999		2,202
Colombian peso		5,139		6,084
Peruvian sun		11,837		7,108
Other currency		2,331		1,864

F-92

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Current assets

Total current assets		701,189		734,400
Argentine peso		15,663		14,639
Brazilian real		4,114		7,108
Chilean peso		116,291		136,445
Colombian peso		20,276		16,505
Euro		116,478		125,060
U.S. Dollar		298,160		322,850
Other currency		130,207		111,793

	As of		As of
	March 31, 2024		December 31, 2023
	ThUS$		ThUS$
	Unaudited
Non-current assets

Other financial assets, non-current		15,202		15,375
Brazilian real		3,690		3,807
Chilean peso		2,700		2,073
Euro		3,632		4,252
U.S. dollar		1,983		2,071
Other currency		3,197		3,172

Other non - financial assets, non-current		10,116		9,856
Brazilian real		10,034		9,789
Other currency		82		67

Accounts receivable, non-current		4,155		4,732
Chilean peso		4,155		4,732

Deferred tax assets		701		1,048
Colombian peso		507		859
U.S. dollar		148		144
Other currency		46		45

Total non-current assets		30,174		31,011
Brazilian real		13,724		13,596
Chilean peso		6,855		6,805
Colombian peso		507		1,700
Euro		3,632		4,252
U.S. dollar		2,131		2,230
Other currency		3,325		2,428

F-93

The foreign currency detail of balances of monetary items in current liabilities and non-current is as follows:

	Up to 90 days				91 days to 1 year
	As of		As of		As of		As of
	March 31,		December 31,		March 31,		December 31,
	2024		2023		2024		2023
	ThUS$		ThUS$		ThUS$		ThUS$
	Unaudited				Unaudited
Current liabilities

Other financial liabilities, current		4,768		4,331		1,842		1,010
Chilean peso		1,615		1,364		1,265		702
U.S. dollar		2,618		2,510		—		—
Other currency		535		457		577		308
Trade and other accounts payables, current		542,447		616,032		6,574		9,583
Argentine peso		4,349		2,074		135		132
Brazilian real		13,088		13,401		757		922
Chilean peso		100,698		128,838		1,857		1,560
Euro		33,741		54,744		10		7
U.S. dollar		344,356		350,635		199		1,797
Peruvian sol		38,985		42,347		3,585		4,994
Mexican peso		745		2,019		—		—
Pound sterling		3,667		17,379		1		11
Uruguayan peso		1,076		706		4		39
Other currency		1,742		3,889		26		121
Accounts payable to related entities, current		6,431		5,154		—		—
U.S. dollar		6,431		5,154		—		—
Other provisions, current		17		16		6,889		12,429
Chilean peso		—		—		4		4
Other currency		17		16		6,885		12,425

Current liabilities

Other non-financial liabilities, current		22,440		15,634		5,149		6,099
Argentine peso		1,500		836		757		445
Chilean peso		12,694		4,338		2,181		4,026
Colombian peso		864		1,456		809		1,066
U.S. dollar		6,268		7,305		465		416
Other currency		1,114		1,699		937		146

Total current liabilities		576,103		641,167		20,454		29,121
Argentine peso		5,849		2,910		892		577
Brazilian real		13,088		13,401		757		922
Chilean peso		115,007		134,540		5,307		6,292
Colombian peso		864		1,456		809		1,066
Euro		33,741		54,744		10		7
U.S. dollar		359,673		365,604		664		2,213
Other currency		47,881		68,512		12,015		18,044

F-94

	More than 1 to 3 years				More than 3 to 5 years				More than 5 years
	As of March 31,		As of December 31,		As of March 31,		As of December 31,		As of March 31,		As of December 31,
	2024		2023		2024		2023		2024		2023
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
	Unaudited				Unaudited				Unaudited
Non-current liabilities

Other financial liabilities, non- current		24,663		32,867		7,215		2,871		149,857		165,511
Chilean peso		9,229		17,020		6,935		2,500		149,301		164,942
U.S. dollar		13,585		14,110		—		—		—		—
Other currency		1,849		1,737		280		371		556		569

Accounts payable, non-current		64,258		72,783		—		—		—		—
Chilean peso		14,902		16,774		—		—		—		—
U.S. dollar		47,772		54,441		—		—		—		—
Other currency		1,584		1,568		—		—		—		—

Other provisions, non-current		48,837		49,427		—		—		—		—
Argentine peso		4,059		3,570		—		—		—		—
Brazilian real		41,248		42,244		—		—		—		—
Colombian peso		389		395		—		—		—		—
Euro		2,978		3,053		—		—		—		—
U.S. dollar		163		165		—		—		—		—

Provisions for employees benefits,
non-current		88,836		79,749		—		—		—		—
Chilean peso		84,230		76,247		—		—		—		—
U.S. dollar		4,606		3,502		—		—		—		—

Total non-current liabilities		226,594		234,826		7,215		2,871		149,857		165,511
Argentine peso		4,059		3,570		—		—		—		—
Brazilian real		41,248		42,244		—		—		—		—
Chilean peso		108,361		110,041		6,935		2,500		149,301		164,942
Colombian peso		389		395		—		—		—		—
Euro		2,978		3,053		—		—		—		—
U.S. dollar		66,126		72,218		—		—		—		—
Other currency		3,433		3,305		280		371		556		569

F-95

	As of			As of
	March 31,			December 31,
	2024			2023
	ThUS$			ThUS$
	Unaudited
General summary of foreign currency:

Total assets		731,363			765,411
Argentine peso		15,663			14,639
Brazilian real		17,838			20,704
Chilean peso		123,146			143,250
Colombian peso		20,783			18,205
Euro		120,110			129,312
U.S. dollar		300,291			325,080
Other currency		133,532			114,221

Total liabilities		980,223			1,073,496
Argentine peso		10,800			7,057
Brazilian real		55,093			56,567
Chilean peso		384,911			418,315
Colombian peso		2,062			2,917
Euro		36,729			57,804
U.S. dollar		426,463			440,035
Other currency		64,165			90,801

Net position
Argentine peso		4,863			7,582
Brazilian real		(37,255	)		(35,863	)
Chilean peso		(261,765	)		(275,065	)
Colombian peso		18,721			15,288
Euro		83,381			71,508
U.S. dollar		(126,172	)		(114,955	)
Other currency		69,367			23,420

F-96

NOTE 29 – EARNINGS (LOSS) PER SHARE

	For the period ended at March 31,
	2024			2023
	Unaudited
Basic earnings per share
Income attributable to owners of the parent (ThUS$)		258,279			121,801
Weighted average number of shares, basic		604,437,877,587	(*)		604,437,844,972	(*)
Basic earnings per share (US$)		0.000427			0.000202

	For the period ended at March 31,
	2024			2023
	Unaudited
Diluted earnings per share
Income attributable to owners of the parent (ThUS$)		258,279		121,801
Weighted average number of shares, diluted		604,441,789,335	(**)	606,407,693,000	(**)
Diluted earnings per share (US$)		0.000427		0.000201

(*)

As of March 31, 2024, the weighted average number of shares considers 604,437,877,587 shares outstanding from January 1, 2024 to March 31, 2024. As of March 31, 2023, the number of weighted basic shares considers 604,437,584,048 outstanding shares from January 1, 2023 to March 31, 2023. From January 10 to March 31, 2023, the number of shares outstanding increased due to the partial conversion of the Convertible Note H.

(**)

As of March 31, 2024, the number of weighted diluted shares considers 604,437,877,587 shares outstanding and 3,911,748 shares outstanding from January 1, 2024 until March 31, 2024, assuming the full conversion of the Convertibles Notes that were issued on the date of exit from Chapter 11 (See movement of shares in Note 24). As of March 31, 2023, the number of weighted diluted shares considers 604,437,584,048 shares from January 1, 2023 to March 31, 2023, and 1,970,108,952 shares outstanding from January 1 to 31. March 2023, assuming the full conversion of the convertible bonds that were issued on the date of exit from Chapter 11.

F-97

NOTE 30 – CONTINGENCIES

Lawsuits

Lawsuits filed by LATAM Airlines Group S.A. and Subsidiaries

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
LATAM Finance Limited	Grand Court of the Cayman Islands	-	Request for a provisional bankruptcy process.	On May 26, 2020, LATAM Finance Limited submitted a request for a provisional liquidation in the Grand Court of the Cayman Islands, covered in the reorganization proceeding filed before the Bankruptcy Court of the United States of America, which was accepted on May 27, 2020 by the Grand Court of the Cayman Islands. On September 28, 2020, LATAM Finance Limited filed a petition to suspend the liquidation. On October 9, 2020, the Grand Court of Cayman Islands accepted the petition and extended the status of temporary liquidation for a period of 6 months. On May 13, 2021, LATAM Finance Limited filed a petition to suspend the liquidation. On May 18, 2021, the Grand Court of Cayman Islands accepted the petition and extended the status of temporary liquidation until October 9, 2021. On December 1, 2021, LATAM Finance Limited filed a petition to suspend the liquidation, which was accepted by the Grand Court of Cayman Islands. This extended the status of the provisional liquidation through April 9, 2022. On August 22, 2022, LATAM Finance Limited petitioned for a suspension of the liquidation, which was granted by the Grand Court of the Cayman Islands. The provisional liquidation was extended to October 9, 2022 and the process continues in effect. That petition was sustained by the Grand Court of the Cayman Islands on October 4, 2022. On September 30, 2022, LATAM Finance Limited filed an application for validation of security obligations arising in connection with the DIP to Exit and new DIP facilities. On October 04, 2022, the Grand Court made an Order validating such application. Currently the proceeding remains open.	-0-

F-98

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
Peuco Finance Limited	Grand Court of the Cayman Islands	-	Request for a provisional bankruptcy process.	On May 26, 2020, Peuco Finance Limited submitted a request for a provisional liquidation in Grand Court of the Cayman Islands, covered in the reorganization proceeding filed before the Bankruptcy Court of the United States of America, which was accepted on May 27, 2020 by the Grand Court of the Cayman Islands. On September 28, 2020, Peuco Finance Limited filed a petition to suspend the liquidation. On October 9, 2020, the Grand Court of Cayman Islands accepted the petition and extended the status of temporary liquidation for a period of 6 months. The lawsuit continues to be active. On May 13, 2021, Peuco Finance Limited filed a petition to suspend the liquidation. On May 18, 2021, the Grand Court of Cayman Islands accepted the petition and extended the status of temporary liquidation until October 9, 2021. On December 1, 2021, Peuco Finance Limited filed a petition to suspend the liquidation, which was accepted by the Grand Court of Cayman Islands. This extended the status of the provisional liquidation through April 9, 2022. On August 22, 2022, Peuco Finance Limited petitioned for a suspension of the liquidation, which was granted by the Grand Court of the Cayman Islands. The provisional liquidation was extended to October 9, 2022 and the process continues in effect. That petition was sustained by the Grand Court of the Cayman Islands on October 4, 2022. On September 30, 2022, Peuco Finance Limited filed an application for validation of security obligations arising in connection with the DIP to Exit and new DIP facilities. On October 04, 2022, the Grand Court made an Order validating such application. Currently the proceeding remains open.	-0-

F-99

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
Piquero Leasing Limited	Grand Court of the Cayman Islands	-	Request for a provisional bankruptcy process.	On July 08, 2020, Piquero Leasing Limited submitted a request for a provisional liquidation in Grand Court of the Cayman Islands, covered in the reorganization proceeding filed before the Bankruptcy Court of the United States of America, which was accepted on July 10, 2020, by the Grand Court of the Cayman Islands. Piquero Leasing Limited entered a motion to suspend the liquidation on September 28, 2020. On October 9, 2020 the Grand Court of the Cayman Islands granted the motion and extended the provisional liquidation status for 6 months. On May 13, 2021, Piquero Leasing Limited filed a petition to suspend the liquidation. On May 18, 2021, the Grand Court of Cayman Islands accepted the petition and extended the status of temporary liquidation until October 9, 2021. On December 1, 2021, Piquero Leasing Limited filed a petition to suspend the liquidation, which was accepted by the Grand Court of Cayman Islands. This extended the status of the provisional liquidation through April 9, 2022. On August 22, 2022, Piquero Leasing Limited petitioned for a suspension of the liquidation, which was granted by the Grand Court of the Cayman Islands. The provisional liquidation was extended to October 9, 2022 and the process continues in effect. Currently the proceeding remains open.	-0-

F-100

Lawsuits received by LATAM Airlines Group S.A. and Subsidiaries.

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
LATAM Airlines Group S.A. y Lan Cargo S.A.	Comisión Europea	-	Investigation of alleged infringements to free competition of cargo airlines, especially fuel surcharge. On December 26th, 2007, the General Directorate for Competition of the European Commission notified Lan Cargo S.A. and LATAM Airlines Group S.A. the instruction process against twenty five cargo airlines, including Lan Cargo S.A., for alleged breaches of competition in the air cargo market in Europe, especially the alleged fixed fuel surcharge and freight.	On April 14th, 2008, the notification of the European Commission was replied. The appeal was filed on January 24, 2011. On May 11, 2015, we attended a hearing at which we petitioned for the vacation of the Decision based on discrepancies in the Decision between the operating section, which mentions four infringements (depending on the routes involved) but refers to Lan in only one of those four routes; and the ruling section (which mentions one single conjoint infraction). On November 9th, 2010, the General Directorate for Competition of the European Commission notified Lan Cargo S.A. and LATAM Airlines Group S.A. the imposition of a fine in the amount of ThUS$8,838 (€8.220.000 Euros) This fine is being appealed by Lan Cargo S.A. and LATAM Airlines Group S.A. On December 16, 2015, the European Court of Justice revoked the Commission’s decision because of discrepancies. The European Commission did not appeal the decision, but presented a new one on March 17, 2017 reiterating the imposition of the same fine on the eleven original airlines. The fine totals €776,465,000 Euros. It imposed the same fine as before on Lan Cargo and its parent, LATAM Airlines Group S.A., totaling €8.2 million Euros. On May 31, 2017 Lan Cargo S.A. and LATAM Airlines Group S.A. filed a petition with the General Court of the European Union seeking vacation of this decision. We presented our defense in December 2017. On July 12, 2019, we attended a hearing before the European Court of Justice to confirm our petition for vacation of judgment or otherwise, a reduction in the amount of the fine. On March 30, 2022, the European Court issued its ruling and lowered the amount of our fine from KUS$8,838 (€8,220,000 Euros) to KUS$2,419 (€2,240,000 Euros). This ruling was appealed by LAN Cargo S.A. and LATAM on June 9, 2022. The other eleven airlines also appealed the ruling affecting them. The European Commission responded to our appeal of September 7, 2022. Lan Cargo S.A. and LATAM answered the Commission’s arguments on November 11, 2022. Finally, the European Commission replied to our defense in January 2023. On February 13, 2023, LAN Cargo, S.A. and LATAM requested the European Court to hold an oral hearing to ensure the Court’s full understanding of some points of the discussion. The European Court held a hearing on April 10, 2024.	2,419

F-101

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
Lan Cargo S.A. y LATAM Airlines Group S.A.	In the Ovre Romerike Disrtict Court (Noruega) y Directie Juridische Zaken Afdeling Ceveil Recht (Países Bajos)	-	Lawsuits filed against European airlines by users of freight services in private lawsuits as a result of the investigation into alleged breaches of competition of cargo airlines, especially fuel surcharge. Lan Cargo S.A. and LATAM Airlines Group S.A., have been sued in court proceedings directly and/or in third party, based in England, Norway, the Netherlands and Germany, these claims were filed in England, Norway, the Netherlands and Germany, but are only ongoing in Norway and the Netherlands.	The two cases still pending, in Norway and the Netherlands, are in the evidence confirmation stage. The Norway case has been inactive since January 2014, but there has been judicial activity in the Netherlands case. In the Netherlands, most of the airlines involved in this case have been forced to withdraw their claim against LATAM and Lan Cargo after their previous claims in the Chapter 11 proceedings before the New York Court were dismissed. So, Lufthansa, Lufthansa Cargo, British Airways, Air France, KLM, Martinair and Singapore have withdrawn their claims and now only the Thai Airways claim is still ongoing against LATAM and Lan Cargo.	-0-

Aerolinhas Brasileiras S.A.	Justicia Federal.	0008285-53.2015.403.6105	An action seeking to quash a decision and petitioning for early protection in order protection in order to obtain a revocation of the penalty imposed by the Brazilian Competition Authority (CADE) in the investigation of cargo airlines alleged fair trade violations, in in particular the fuel surcharge.	This action was filed by presenting a guaranty – policy – in order to suspend the effects of the CADE’s decision regarding the payment of the following fines: (i) ABSA: ThUS$10,438; (ii) Norberto Jochmann: ThUS$201; (iii) Hernan Merino: ThUS$ 102; (iv) Felipe Meyer: ThUS$ 102. The action also deals with the affirmative obligation required by the CADE consisting of the duty to publish the condemnation in a widely circulating newspaper. This obligation had also been stayed by the court of federal justice in this process. Awaiting CADE’s statement. ABSA began a judicial review in search of an additional reduction in the fine amount. The Judge’s decision was published on March 12, 2019, and we filed an appeal against it on March 13, 2019	10,850

F-102

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
Aerolinhas Brasileiras S.A.	Justicia Federal.	0001872-58.2014.4.03.6105	An annulment action with a motion for preliminary injunction, was filed on 28/02/2014, in order to cancel tax debts of PIS, CONFINS, IPI and II, connected with the administrative process 10831.005704/2006-43	The statement was authenticated on January 29, 2016. A new insurance policy was submitted on March 30, 2016 with the change to the guarantee requested by PGFN. On 05/20/2016 the process was sent to PGFN, which was manifested on 06/03/2016. The Decision denied the company’s request in the lawsuit. The court (TRF3) made a decision to eliminate part of the debt and keep the other part (already owed by the Company, but which it has to pay only at the end of the process: ThUS$3.850 – R$ 19.252.271,21 - probable y MUS$8.659 – R$ 43299802,03 - possible). We must await a decision on the Treasury appeal.	12,510

Tam Linhas Aéreas S.A.	Tribunal Regional Federal da 2a Região.	2001.51.01.012530-0 (vinculado a esteproceso los Pas 19515.721154/2014-71, 19515.002963/2009-12)	Ordinary judicial action brought for the purpose of declaring the nonexistence of legal relationship obligating the company to collect the Air Fund.	Unfavorable court decision in first instance. Currently expecting the ruling on the appeal filed by the company. In order to suspend chargeability of Tax Credit a Guaranty Deposit to the Court was delivered for R$ 260.223.373,10-original amount in 2012/2013, which currently equals ThUS$82.473 (R$412.369.986,27). The court decision requesting that the Expert make all clarifications requested by the parties in a period of 30 days was published on March 29, 2016. The plaintiffs’ submitted a petition on June 21, 2016 requesting acceptance of the opinion of their consultant and an urgent ruling on the dispute. No amount additional to the deposit that has already been made is required if this case is lost. A ruling is currently pending on the company’s appeal.	82,473

Tam Linhas Aéreas S.A.	Secretaria da Receita Federal do Brasil.	10880.725950/2011-05	Ordinary judicial action brought for the purpose of declaring the nonexistence of legal relationship obligating the company to collect the Air Fund.	The objection (manifestação de inconformidade) filed by the company was rejected, which is why the voluntary appeal was filed. The case was assigned to the 1st Ordinary Group of Brazil’s Administrative Council of Tax Appeals (CARF) on June 8, 2015. TAM’s appeal was included in the CARF session held August 25, 2016. An agreement that converted the proceedings into a formal case was published on October 7, 2016. The company has received the results of the due diligence and presented a claim. We must wait for an administrative decision.	36,404

F-103

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
Tam Linhas Aéreas S.A.	Secretaria da Receita Federal do Brasil.	10880.722.355/2014-52	On August 19th, 2014 the Federal Tax Service issued a notice of violation stating that compensation credits Program (PIS) and the Contribution for the Financing of Social Security COFINS by TAM are not directly related to the activity of air transport.	An objection was filed administratively on September 17, 2014. The lower court rendered a partially favorable ruling on June 1, 2016 that reversed the previous separate fine. A voluntary remedy was filed on June 30, 2015 on which a judgment by the Board of Tax Appeals is pending. The case was sent to the Second Panel of the Fourth Room of the Third Judgment Section of the Board of Tax Appeals (abbreviated as CARF in Portuguese). The CARF judges partially sustained the company’s appeal to pay part of the debt (we did not appeal the other part). The Ministry of Finance of Brazil filed a special remedy. The CARF dismissed the Ministry’s remedy in September 2019, but it filed a complaint that was denied by the CARF. The final calculations by the Federal Internal Revenue Service are pending.	11,365

TAM Linhas Aéreas S.A.	10 ª Vara das Execuções Fiscais Federais de São Paulo	0061196-68.2016.4.03.6182	Tax Enforcement Lien No. 0020869- 47.2017.4.03.6182 on Profit-Based Social Contributions from 2004 to 2007.	This tax enforcement was referred to the 10th Federal Jurisdiction on February 16, 2017. A petition reporting our request to submit collateral was recorded on April 18, 2017. At this time, the period is pending for the plaintiff to respond to our petition. The bond was replaced. The evidentiary stage has begun.	34,684

TAM Linhas Aéreas Federal S.A.	Secretaría de Receita	5002912.29.2019.4.03.6100	A lawsuit disputing the debit in the administrative proceeding 16643.000085/2009-47, reported in previous notes, consisting of a notice demanding recovery of the Income and Social Assessment Tax on the net profit (SCL) resulting from the itemization royalties and use of the TAM trademark	The lawsuit was assigned on February 28, 2019. A decision was rendered on March 1, 2019 stating that no guarantee was required. On 04/06/2020 TAM Linhas Aéreas S.A. had a favorable decision (sentence). The National Treasury can appeal. Today, we await the final decision.	10,093


TAM Linhas Aéreas Federal S.A.	Delegacía de Receita	10611.720852/2016-58	An improper charge of the Contribution for the Financing of Social Security (COFINS) on an import	There is no predictable decision date because it depends on the court of the government agency. On June 29, 2023, the company decided to propose a composition to the National Treasurer on payment of the debt, but with the legal deductions stipulated in Law 246/2022. We are awaiting a response from the authority.	15,051

F-104

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
TAM Linhas Aéreas S.A.	Delegacía de Receita Federal	16692.721.933/2017-80	The Internal Revenue Service of Brazil issued a notice of violation because TAM applied for credits offsetting contributions for the the Social Integration Program (PIS) and the Social Security Funding Contribution (COFINS) that do not bear a direct relationship to air transport (Referring to 2012).	An administrative defense was presented on May 29, 2018. The process has become a judicial proceeding.	30,330

SNEA (Sindicato Nacional das empresas aeroviárias)	União Federal	0012177- 54.2016.4.01.3400	A claim against the 72% increase in airport control fees (TAT-ADR) and approach control fees (TAT-APP) charged by the Airspace Control Department (“DECEA”).	On January 30th, 2024, SNEA obtained a favorable court decision from the 2nd Instance (TRF1), regarding its appeal. SNEA filed an appeal (motion for clarification) to clarify missing points regarding the deposits made with the court. The company is awaiting the decision.	104,547

TAM Linhas Aéreas S.A.	União Federal	2001.51.01.020420-0	TAM and other airlines filed a recourse claim seeking a finding that there is no legal or tax basis to be released from collecting the Additional Airport Fee (“ATAERO”).	A decision by the superior court is pending. The amount is indeterminate because even though TAM is the plaintiff, if the ruling is against it, it could be ordered to pay a fee.	-0-

TAM Linhas Aéreas S.A.	Receita Federal do Brasil	19515-720.823/2018-11	An administrative claim to collect alleged differences in SAT payments for the periods 11/2013 to 12/2017.	A defense was presented on November 28, 2018. The Court dismissed the Company’s appeal in August 2019. Then on September 17, 2019, Company filed a voluntary appeal (CRSF (Administrative Tax Appeals Board)) that is pending a decision.	122,853

F-105

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10880.938832/2013-19	The decision denied the reallocation petition and did not equate the Social Security Tax (COFINS) credit declarations for the second quarter of 2011, which were determined to be in the non-cumulative system	An administrative defense was argued on March 19, 2019. The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal to the Brazilian Administrative Council of Tax Appeals (CARF) that is pending a decision.	22,080

TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10880.938834/2013- 16	The decision denied the reallocation petition and did not equate the Social Security Tax (COFINS) credit declarations for the third quarter of 2011, which were determined to be in the non-cumulative system.	An administrative defense was argued on March 19, 2019. The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal to the Brazilian Administrative Council of Tax Appeals (CARF) that is pending a decision.	16,369

TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10880.938837/2013- 41	The decision denied the reallocation petition and did not equate the Social Security Tax (COFINS) credit declarations for the fourth quarter of 2011, which were determined to be in the non-cumulative system.	An administrative defense was argued on March 19, 2019. The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal to the Brazilian Administrative Council of Tax Appeals (CARF) that is pending a decision.	21,354

TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10880.938838/2013- 96	The decision denied the reallocation petition and did not equate the Social Security Tax (COFINS) credit declarations for the first quarter of 2012, which were determined to be in the non-cumulative system.	We presented our administrative defense. The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal to the Brazilian Administrative Council of Tax Appeals (CARF) that is pending a decision.	13,753

F-106

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
LATAM Airlines Group Argentina, Brasil, Perú, Ecuador, y TAM Mercosur.	Juzgado de 1° Instancia en lo Civil y Comercial Federal N° 11 de la ciudad de Buenos Aires	1408/2017	Consumidores Libres Coop. Ltda. filed this claim on March 14, 2017 regarding a provision of services. It petitioned for the reimbursement of certain fees or the difference in fees charged for passengers who purchased a ticket in the last 10 years but did not use it.	Federal Commercial and Civil Trial Court No. 11 in the city of Buenos Aires. After 2 years of arguments on jurisdiction and competence, the claim was assigned to this court and an answer was filed on March 19, 2019. The Court ruled in favor of the defendants on March 26, 2021, denying the precautionary measure petitioned by the plaintiff. The plaintiff requested on several occasions the opening of the trial, which was rejected by the Court due to the lack of notification of previous resolutions. The evidentiary stage has not yet begun in this case.	-0-

TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10.880.938842/2013- 54	The decision denied the petition for reassignment and did not equate the COFINS credit statements for the third quarter of 2012 that had been determined to be in the non-accumulative system.	We presented our administrative defense. The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal to the Brazilian Administrative Council of Tax Appeals (CARF) that is pending a decision.	15,792

TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10.880.938844/2013- 43	The decision denied the petition for reassignment and did not equate the COFINS credit statements for the third quarter of 2012 that had been determined to be in the non-accumulative system.	We presented our administrative defense. The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal (CARF) that is pending a decision.	14,467

TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10880.938841/2013- 18	The decision denied the petition for reassignment and did not equate the COFINS credit statements for the second quarter of 2012 that had been determined to be in the non-accumulative system.	We presented our administrative defense. The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal (CARF) that is pending a decision.	14,250

F-107

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10840.727719/2019- 71	Collection of PIS / COFINS tax for the period of 2014.	We presented our administrative defense on January 11, 2020. The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal (CARF) that is pending a decision.	43,655

Latam- Airlines Ecuador S.A.	Tribunal Distrital de lo Fiscal	17509-2014-0088	An audit of the 2006 Income Tax Return that disallowed fuel expenses, fees and other items because the necessary support was not provided, according to Management.	On August 6, 2018, the District Tax Claims Court rendered a decision denying the request for a refund of a mistaken payment. An appeal seeking vacation of this judgment by the Court was filed on September 5th and we are awaiting a decision by the Appellate judges. As of December 31, 2018, the attorneys believed that the probability of recovering this sum had fallen to 30%-40% because of the pressure being put by the Executive Branch on the National Court of Justice and the Judiciary in general for rulings not to affect government revenues and because the case involves differences that are based on insufficient documentation supporting the expense. Given the percentage loss (above 50%), the accounting write-off of this recovery has been carried out. As of this date, the Sala Especializada de lo Contencioso Tributario de la Corte Nacional de Justicia has decided by ruling not to accept the appeal, so the Company is analyzing whether to take additional actions or close the process. The company has decided not to continue with the lawsuit.	12,505

TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10880.910559/2017- 91	Compensation non equate by Cofins	It is about the non-approved compensation of Cofins. Administrative defense submitted (Manifestação de Inconformidade). The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal (CARF) that is pending a decision.	12,414

TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10880.910547/2017- 67	Compensation non equate by Cofins	We presented our administrative defense (Manifestação de Inconformidade). The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal (CARF) that is pending a decision.	14,328

TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10880.910553/2017- 14	Compensation non equate by Cofins	We presented our administrative defense (Manifestação de Inconformidade). The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal (CARF) that is pending a decision.	13,830

TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10880.910555/2017- 11	Compensation non equate by Cofins	We presented our administrative defense (Manifestação de Inconformidade). The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal (CARF) that is pending a decision.	14,564

F-108

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10880.910560/2017- 16	Compensation non equate by Cofins	We presented our administrative defense (Manifestação de Inconformidade). The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal (CARF) that is pending a decision.	12,745

TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10880.910550/2017- 81	Compensation non equate by Cofins	We presented our administrative defense (Manifestação de Inconformidade). The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal (CARF) that is pending a decision.	14,748

TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10880.910549/2017- 56	Compensation non equate by Cofins	We presented our administrative defense (Manifestação de Inconformidade). The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal (CARF) that is pending a decision.	12,339

TAM Linhas Aéreas S.A.	Receita Federal de Brasil	10880.910557/2017- 01	Compensation non equate by Cofins	We presented our administrative defense (Manifestação de Inconformidade). The Court dismissed the Company’s defense in December 2020. The Company filed a voluntary appeal (CARF) that is pending a decision.	11,691

TAM Linhas Aéreas S.A	Receita Federal do Brasil	10840.722712/2020- 05	Administrative trial that deals with the collection of PIS/Cofins proportionality (fiscal year 2015).	We presented our administrative defense (Manifestação de Inconformidade). A decision is pending. The Company filed a voluntary appeal (CARF) that is pending a decision.	34,083

TAM Linhas Aéreas S.A.	Receita Federal do Brasil	10880.978948/2019- 86	It is about the non-approved compensation/reimbursement of Cofins for the 4th Quarter of 2015.	TAM filed its administrative defense on July 14, 2020. A decision is pending. The Company filed a voluntary appeal (CARF) that is pending a decision.	18,885

TAM Linhas Aéreas S.A.	Receita Federal do Brasil	10880.978946/2019-97	It is about the non-approved compensation/reimbursement of Cofins for the 3th Quarter of 2015	TAM filed its administrative defense on July 14, 2020. A decision is pending. The Company filed a voluntary appeal (CARF) that is pending a decision.	11,428

TAM Linhas Aereas S.A.	Receita Federal do Brasil	10880.978944/2019-06	It is about the non-approved compensation/reimbursement of Cofins for the 2th Quarter of 2015	TAM filed its administrative defense on July 14, 2020. A decision is pending. The Company filed a voluntary appeal (CARF) that is pending a decision.	12,108

F-109

Company

Court

Case Number

Origin

Stage of trial

Amounts

Committed (*)

ThUS$

Latam Airlines Group S.A

23° Juzgado Civil de Santiago

C-8498-2020

Class Action Lawsuit filed by the National Corporation of Consumers and Users (CONADECUS) against LATAM Airlines Group S.A. for alleged breaches of the Law on Protection of Consumer Rights due to flight cancellations caused by the COVID- 19 Pandemic, requesting the nullity of possible abusive clauses, the imposition of fines and compensation for damages in defense of the collective interest of consumers. LATAM has hired specialist lawyers to undertake its defense.

On 06/25/2020 we were notified of the lawsuit. On 04/07/2020 we filed a motion for reversal against the ruling that declared the action filed by CONADECUS admissible, the decision is pending to date. On 07/11/2020 we requested the Court to comply with the suspension of this case, ruled by the 2nd Civil Court of Santiago, in recognition of the foreign reorganization procedure pursuant to Law No. 20,720, for the entire period that said proceeding lasts, a request that was accepted by the Court. CONADECUS filed a remedy of reconsideration and an appeal against this resolution should the remedy of reconsideration be dismissed. The Court dismissed the reconsideration on August 3, 2020, but admitted the appeal. On March 1, 2023, the Court of Appeals resolved to omit the hearing of the case and pronouncement regarding the appeal, in view of the fact that in January 2023 LATAM's request the end of the suspension of the process that was decreed by resolution of July 17, 2020 in case file C-8498-2020 of the 23rd Civil Court of Santiago, for which the file was sent to the first instance to continue processing. On November 24, 2023, the Court dismissed LATAM’S motion for reversal against the ruling that declared the action filed by CONADECUS admissible. Accordingly, on December 4, 2023, LATAM filed the statement of defense. A reconciliation hearing was held on March 27, 2024, but no agreement was reached. The amount at the moment is undetermined.

-0-

F-110

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
Latam Airlines Group S.A.	25° Juzgado Civil de Santiago	C-8903-2020	Class Action Lawsuit filed by AGRECU against LATAM Airlines Group S.A. for alleged breaches of the Law on Protection of Consumer Rights due to flight cancellations caused by the COVID-19 Pandemic, requesting the nullity of possible abusive clauses, the imposition of fines and compensation for damages in defense of the collective interest of consumers. LATAM has hired specialist lawyers to undertake its defense.	On July 7, 2020 we were notified of the lawsuit. We filed our answer to the claim on August 21, 2020. A settlement was reached with AGRECU at that hearing that was approved by the Court on October 5, 2020. On October 7, 2020, the 25th Civil Court confirmed that the decision approving the settlement was final and binding. CONADECUS filed a brief on October 4, 2020 to become a party and oppose the agreement, which was dismissed on October 5, 2020. It petitioned for an official correction on October 8, 2020 and the annulment of all proceedings on October 22, 2020, which were dismissed, costs payable by CONADECUS, on November 16, 2020 and November 20, 2020, respectively. LATAM presented reports on the implementation of the agreement on May 19, 2021, November 19, 2021 and May 19, 2022, which concluded its obligation to report on that implementation. On December 28, 2022 the Civil Court ordered the filing of the file. The National Consumer and User Association (CONADECUS) filed appeals against these decisions with the Santiago Appellate Court that were joined under Case #14,213-2020. Arguments were made on March 8, 2023. In a decision on August 8, 2023, the Appellate Court dismissed the appeals by CONADECUS, costs included. On August 26, 2023, CONADECUS filed a petition based on technicalities and substance against the Appellate Court ruling in order to have it reversed by the Supreme Court. LATAM petitioned that such appeals be declared inadmissible in a brief filed September 13, 2023. On November 30, 2023, the Supreme Court declared CONADECUS’ petition inadmissible. On December 7, 2023, LATAM petitioned that the Appellate Court determine the costs of the procedure, which must be defrayed by CONADECUS. The procedural costs were set on December 19, 2023 and personal costs were decided on January 3, 2024. The costs of the trial court are currently pending, which were petitioned by LATAM on December 20, 2023. CONADECUS currently has no petitions against the settlement reached between LATAM and AGRECU. The amount at the moment is undetermined.	-0-

TAM Linhas Aéreas S.A	Receita Federal de Brasil	13074.726429/2021-41	It is about the non-approved compensation/reimbursement of Cofins for the periods 07/2016 to 06/2017.	TAM filed its administrative defense. (Manifestação de Inconformidade). A decision is pending	19,531

F-111

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
TAM Linhas Aéreas S.A.	Receita Federal de Brasil	2007.34.00.009919- 3(0009850- 54.2007.4.01.3400)	A lawsuit seeking to review the incidence of the Social Security Contribution taxed on 1/3 of vacations, maternity payments and medical leave for accident.	A decision is pending	72,573

TAM Linhas Aéreas S.A.	Tribunal del Trabajo de Brasília/DF	0000038- 25.2021.5.10.0017	This civil suit was filed by the National Pilots Union seeking that the company be ordered to pay for meals daily when pilots are on alert status.	The hearing is scheduled for April 15, 2024.	13,933

TAM Linhas Aéreas S.A.	UNIÃO FEDERAL	0052711- 85.1998.4.01.0000	An indemnity claim to collect a differentiated price from the Federal Union because of the disruption of the economic equilibrium in the concession agreements between 1988 and 1992. The indemnity, should the action prosper, cannot be estimated (Price Freeze).	The lawsuit began in 1993. In 1998, there was a decision favorable to TAM. The process reached the Court, and in 2019, the decision was against TAM. The company has appealed and a decision is pending.	-0-

TAM Linhas Aéreas S.A	Tribunal do Trabajo de São Paulo	1000115- 90.2022.5.02.0312	A class action whereby the Air Transport Union is petitioning for payment of additional hazardous and unhealthy work retroactively and in the future for maintenance/CML employees.	The instruction hearing is pending in this case, scheduled for 12:02 p.m. on April 25, 2024	15,709

TAM Linhas Aéreas S.A	Receita Federal	15746.728063/2022- 00	This is an administrative claim regarding alleged irregularities in the payment of Technical Assistance (SAT) in 2018.	The administrative defense has been presented and a decision is pending.	17,749

F-112

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
TAM Linhas Aéreas S.A	União Federal	1003320-78.2023.4.06.3800	Legal action to discuss the debit of the administrative process 10611.720630/2017-16 (fine for violation of incorrect registration in DI- import declaration)	Distributed on January 19, 2023. The company obtained a precautionary measure suspending the collection without the need for a guarantee. Process awaiting response from the National Treasury. The decision was in favor of the company and the debt was canceled. A remedy filed by Fazenda is pending.	21,289

TAM Linhas Aéreas S.A	União Federal	12585.720017/2012-84	This is a petition to recover a credit (proportional) in the 3rd quarter of 2010 under the Social Security Financing Contribution program (abbreviated as COFINS in Portuguese).	An administrative defense was presented but was dismissed. The company filed a voluntary remedy before CARF that was also dismissed. A decision on the special remedy is now pending.	10,348

TAM Linhas Aéreas S.A	União Federal	10880-982.487/2020-80	This is a petition to recover a credit (proportional) in the 4th quarter of 2016 under the Social Security Financing Contribution program (abbreviated as COFINS in Portuguese)	An administrative defense was presented but was dismissed. The company filed a voluntary remedy before CARF. A decision on the special remedy is now pending.	10,169

TAM Linhas Aéreas S.A	União Federal	10880-967.530/2022-49	This is a petition to recover a credit (proportional) in the 1st quarter of 2018 under the Social Security Financing Contribution program (abbreviated as COFINS in Portuguese).	An administrative defense was presented. A decision is pending.	10,522

TAM Linhas Aéreas S.A	União Federal	10880-967.532/2022-38	This is a petition to recover a credit (proportional) in the 2nd quarter of 2018 under the Social Security Financing Contribution program (abbreviated as COFINS in Portuguese).	An administrative defense was presented and a decision is pending.	11,290

F-113

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
TAM Linhas Aéreas S.A	União Federal	10880-967.533/2022-82	This is a petition to recover a credit (proportional) in the 4th quarter of 2018 under the Social Security Financing Contribution program (abbreviated as COFINS in Portuguese).	An administrative defense was presented and a decision is pending.	19,883

TAM Linhas Aéreas S.A	União Federal	19613.725650/2023-86	A Notice of Violation prepared in the petition by the Social Integration Program (abbreviated as PIS in Portuguese) and by COFINS on taxable events allegedly occurring between May 2018 and December 2018.	An administrative defense was presented and a decision is pending.	13,968

LATAM Airlines Group S.A.	Tribunal de Defensa de la Libre Competencia	445-2022	On May 21, 2022, Agunsa filed a petition to TDLC for a preliminary preparatory measure of exhibition of documents in respect of Aerosan, Depocargo, Sociedad Concesionaria Nuevo Pudahuel and Fast Air in which Agunsa claimed that it was impacted by alleged anti-competition practices on the import cargo warehousing market at the Arturo Merino Benitez International Airport.	Fast Air was served on June 9, 2022 and on June 13, 2022, it lodged opposition against this petition, which was partially sustained by the Antitrust Court (TDLC) on July 19, 2022, in which the new exhibition date was set as August 22nd (the original date set by the court was July 1, 2022). On July 25, 2022, Fast Air requested a reconsideration of this latter court decision and petitioned that the temporary scope of the exhibition be reduced. Fast Air’s petition was sustained and the scope of the documents to be revealed was limited even further. On August 12th, Fast Air petitioned that a new date and time be set for the exhibition hearing. The court granted this latter request on August 17th and set the exhibition date as August 31st. Fast Air appeared with 368 files and asked for confidentiality and/or secrecy of all of the information presented. The public versions have already been added to the case file as final versions. Aerosan began a separate, but related, non-contentious inquiry on April 20, 2023 before the Anti-Trust Court (abbreviated as TDLC in Spanish) petitioning that the TDLC decide whether the enforcement of Exempt Resolution #152 of the National Customs Bureau would violate Decree Law 211. Said Resolution #152 granted Agunsa permission to operate as a cargo warehouse at the North Warehouse facility. On January 10, 2024, the Public Hearing of the case was held, which was in state of agreement. For the time being, the amount is indeterminate.	-0-

F-114

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
LATAM Airlines Group S.A.	Tribunal de Defensa de la Libre Competencia	489-2023	A preliminary precautionary measure was filed by the Tourism Companies Trade Association of Chile seeking that LATAM’s NDC system cease to be implemented or, alternatively, that collection of the Distribution Cost Recovery Fee be suspended and that LATAM be forbidden to limit the inventory of tickets available through the indirect distribution channel.	On May 24, 2023 the preliminary measure was initially rejected. However, after accepting an appeal for reinstatement of ACHET, said resolution was annulled on June 8, 2023, providing instead that partially accepts the precautionary measure only in terms of suspending the Distribution Cost Recovery Fee and prohibiting any unjustified limitation of the inventory of tickets available for the indirect distribution channel. Currently awaiting a final ruling from the Court. The preliminary measure cannot be implemented until such a decision is rendered. For the time being, the amount is indeterminate.	-0-

LATAM Airlines Group S.A.	23° Juzgado Civil de Santiago	C-8156-2022	A class action filed by CONADECUS against LATAM Airlines Group S.A. for alleged violations of the Consumer Protection Law because of the cancellation of tickets for international flights purchased through travel agencies. It petitioned for fines and damage indemnities to be imposed in defense of the collective and/or diffuse interest of consumers. LATAM has retained specialized legal counsel to defend it.	We were served the claim on September 21, 2023. On September 30, 2023, we filed a remedy of reconsideration against the decision that declared the lawsuit filed by CONADECUS admissible, which was dismissed by the Court on November 11, 2023. On November 18, 2023, LATAM filed the statement of defense. For the time being, the amount is undetermined.	-0-

F-115

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
TAM Linhas Aéreas S.A	União Federal	10880.967587/2022-48	This is about the unaccredited compensation/reimbursement and redress regarding the improper payment of the monthly federal social assistance contribution (Cofins, as abbreviated in Portuguese) made in the third quarter of 2018.	The administrative defense has been presented and a decision is pending.	11,362

LATAM Airlines Group S.A.	Tribunal de Defensa de la Libre Competencia	NC-388-2011	On August 11, 2012, the Civil Aviation Administration (“JAC,” as abbreviated in Spanish) filed a petition for clarification with the Anti-Trust Court (“TDLC,” as abbreviated in Spanish) regarding Condition VIII.4 of Decision #37/2011 (“Condition VII.4”). The petition seeks to impose a temporary 5 years limitation on 23 frequencies assigned by the JAC to LATAM after Decision #37 was issued.	LATAM filed a brief with the TDLC on August 27, 2023, petitioning that the JAC petition for clarification be dismissed because it was an improper request to change Condition VIII.4. The TDLC dismissed the JAC’s petition for clarification on September 13, 2023. The JAC filed an appeal against the TDLC’s ruling dismissing its petition for clarification on September 23, 2023. LATAM petitioned that said appeal by the JAC be declared inadmissible on September 30, 2023. The TDLC declared it admissible (it admitted the appeal for processing) on October 2, 2023, and LATAM filed a remedy of reconsideration against that decision on October 7, 2023, accompanied by a legal opinion. The TDLC accepted LATAM’s remedy of reconsideration on October 17, 2023 and amended its previous ruling and dismissed the JAC’s petition for clarification. On October 23, 2023, the JAC presented an appeal to the Supreme Court requesting that the TDLC resolution be annulled and petitioned declared admissible the remedy of reconsideration. On November 3, 2023, LATAM became part of the de facto appeal and requested its rejection. On December 20, 2023, the TDLC sent a report to the Supreme Court. On January 6, 2024, the JAC presented a note in relation to the TDLC report. On January 9, 2024, LATAM presented a document in response to the JAC presentation in which it analyzed the TDLC report. The Supreme Court unanimously dismissed the appeal against judgment by the Civil Aviation Board on March 15, 2024. The Board filed a remedy of reconsideration on March 21, 2024 against the Supreme Court’s decision dismissing its appeal against judgment. LATAM filed a brief with the Supreme Court on March 26, 2024 petitioning the dismissal of that remedy of reconsideration. The Supreme Court dismissed the Board’s remedy of reconsideration on April 12, 2024. There are no appeals pending in this case.	-0-

				In a separate but related process, JetSmart filed a non-contentious inquiry on September 26, 2023, in relation to the terms of the future public tender of aviation frequencies on the Santiago-Lima route. JetSmart requested an injunction to suspend the tender and maintain the aviation frequency assignments as currently held until the inquiry has finalized. The TDLC declared the inquiry admissible on October 2, 2023, but only to begin a procedure to determine whether the rules in the terms of the public aviation frequency tender violate Decree Law 211, and dismissed the request for provisional measures. (Continues on the next page)

F-116

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
				(Continues from the previous page) The JAC became a party to such motions on October 6, 2023 and LATAM became a party to the process on October 10, 2023, and it requested that the motions filed by JetSmart be dismissed. On October 16, 2023, the TDLC took into account the considerations presented by LATAM and rejected the two motions for reconsideration filed by JetSmart. On October 19, 2023 CONADECUS requested to become part of this process and requested the same injuction previously rejected twice by the TDLC. On October 23, 2023 LATAM submitted a brief to the TDLC requesting the rejection of saidinjuction now requested by CONADECUS. On October 23, 2023, a public auction was held by JAC for thirteen international frequencies for the Santiago - Lima route, LATAM won ten of thirteen of these routes. On October 24, 2023, JetSmart once again requested that an injunction be issued regarding the public tender of aviation frequencies on the Santiago-Lima route. On November 2, 2023, the TDLC rejected the request for injunctions submitted by JetSmart and CONADECUS. On December 5, 2023, JetSmart complied with TDLC procedural order and published in the Chilean official newspaper a notice calling interested parties and stakeholders to submit information and opinions regarding JetSmart’s inquiry . On December 21, 2023 the FNE requested to be an intervening party in the process and requested to extend the deadline to provide background information. The TDLC accepted the postponement, leaving the deadline for providing information as February 5, 2024. On February 1, 2024, LATAM submitted a brief to TDLC advocating for its position and providing background information regarding JetSmart’s inquiry. The Office of the National Economic Prosecutor (FNE), the JAC, the National Consumer Service (SERNAC), Sky Airline and CONADECUS also provided information in January and February 2024. The Civil Aviation Board submitted a petition for clarification to the Antitrust Court on February 13, 2024, asking whether a tender could be convened of international frequencies on the Santiago-Lima Route that expire in 2024. LATAM filed a brief on February 15, 2024 stating that no matter needed to be clarified and that the petition should be dismissed. The Antitrust Court ruled against the Civil Aviation Board on February 15, 2024 because there were no obscure or doubtful aspects to clarify.

TAM Linhas Aéreas S.A.	União Federal	10880.967612/2022-93	This is a petition to recover a credit Cofins in the 1st quarter of 2019 (proportional)	The administrative defense has been presented and a decision is pending.	11,265

F-117

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
TAM Linhas S.A.	Superior Tribunal Aéreas de Justiça (STJ)	0042711- 61.2007.8.05.0001 (1449899)	Trial involving a commercial representation contract signed directly with the company Gm Serviços Auxiliares de Transporte Aéreo Ltda. alleging the irregular closing of the contract, requesting payment of compensation.	The procedure before the Court of Appeal is pending.	11,231

LATAM Airlines Group S.A. Sucursal Perú	Tribunal Fiscal	12511-2022	Appeal for $34MM, presented on October 11, 2022, against the Intendencia resolution No. 4070140000100, which declared unfounded the claim filed by the Company on September, 20, 2022, against the Determination Resolutions for alleged omissions of the Income Tax corresponding to the period 2014 and associated fines for the violation typified in numeral 1 of article 178 of the Tax Code. The main objections relate to SUNAT’s lack of knowledge of the application of article 8 of the CDI between Peru and Chile regarding: i) Income obtained from the exclusivity contract of the Latam Pass program with the Banco de Crédito del Perú, ii) Income from sale of miles to non-airline partners and associated cost (sale of miles from the Latam Pass program to legal companies).	The resolution is pending.	34,000

F-118

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
TAM Linhas Aéreas S.A	UNIÃO FEDERAL	1012674-80.2018.4.01.3400	Legal actions for members to have the right to collect contributions in the payroll collectible on the basis of gross sales.	This claim was filed in 2018. In January 2020, a decision favorable to the Company was rendered so that contributions would be collected on the basis of gross income. The company recently learned that the Superior Courts are rendering decisions unfavorable to contributors. They have ruled against the contributor in a recent decision. In December/2023 the position was withdrawn.	-0-

LATAM Airlines Perú S.A.	Tribunal Fiscal	Expediente de Apelación N° 2545-2023	Appeal against the resolution of the Intendencia No. 4070140000253 that declared the claim against Determination Resolutions No. 0120030126112 to 0120030126123 and RM No. 0120020037412 to 0120020037423 partially founded. The objections contested through the values indicated above correspond to the taxable base of the IGV for the national interline (domestic national sale).	On September 16, 2022, an appeal was filed against the determination and fine resolutions issued by SUNAT; being that, through Resolution of the Intendencia No. 4070140000253, the claim filed by the company was partially founded and, in addition, (i) it rectified Annexes No. 01, 04, 05 and 06 of RD No. 0120030126112 to No. 0120030126123. , (ii) the Annex to RM N° 0120020037412 to N° 0120020037423, (iii) the balance in favor of the IGV for the tax periods of January and July 2016 contained in RD N° 0120030126112 and 0120030126118; and, (iv) rectified and continued the collection of the tax debt contained in RD No. 0120030126113 to 0120030126117 and 0120030126119 to 0120030126123 and RM No. 0120020037412 to 0120020037423. On January 11, 2023, an appeal was filed against the this resolution which has been resolved and notified on April 10, 2024 through RTF 3149-9-2024, through which the Tax Court has decided to revoke RI No. 4070140000253 and proceed to reliquidate the Tax. Currently the file is held by SUNAT for reliquidation.	45,162

LATAM Airlines Perú S.A.	Superintendencia Nacional de Administración Tributaria (SUNAT)	Expediente de Reclamación N° 4070340000412.	Claim against Determination Resolution No. 0120030130232, Fine Resolution No. 0120020038314, notified on 12.22.2022 and Determination Resolution No. 0120030130245 for indirect disposal of income not susceptible to subsequent tax control linked to the objections made to determination of third category net income for fiscal year 2015.	On January 26, 2023, the Company filed an appeal against the determination and fine resolutions issued by SUNAT. Through Resolution of the Intendencia No. 4070340000928 dated December 19, 2023, SUNAT declared the appeal filed by the Company founded and, consequently, Determination Resolutions No. 012-003- 0130232, No. 012-003- 0130245 and Fine Resolution No. 012-002-0038314 are void. Currently, the Gerencia de Fiscalización I and the Gerencia de Fiscalización Internacional y de Precios de Transferencia de la Intendencia de Principales Contribuyentes Nacionales of the SUNAT are pending to issue the inspection requirements necessary to correct the invalidity defects declared by the Intendencia Nacional de Impugnaciones.	185,987

F-119

Company	Court	Case Number	Origin	Stage of trial	Amounts Committed (*)
					ThUS$
TAM Linhas Aéreas S.A	União Federal	10880-927.871/2023-62	This is a petition to recover Social Security Funding Contributions (Cofins in Portuguese) from the first semester of 2020 (proportionally).	The administrative defense has been presented and a decision is pending.	12,932

TAM Linhas Aéreas	União Federal	19613.720519/2024-11	On February 7, 2024, the Brazilian Federal Tax Service issued a tax assessment against TAM Linhas Aéreas (19613.720519/2024- 11) for the amount of ThUS$52,281 (MR$253,565) related to certain tax credits on “PIS COFINS” (Federal Social Contributions Taxed on Gross Income) during the 2019/2020 period.	The administrative defense has been presented and a decision is pending.	50,752

LATAM Airlines Group S.A Sucursal Perú.	Superintendencia Nacional de Administración Tributaria (SUNAT)	—	A claim will be filed against Cost Decisions #012-003-0137152 to #012-003-0137175 and Fines #012-002-0039543 to 012-002- 0039565 before the legal deadline, which is April 26, 2024.	The objections being challenged through the amounts indicated above pertain to the 2017 fiscal year. The main objections to Income Tax involve the National Customs and Tax Administration Commission of Peru’s disregard for the application of Article 8 of the Double-Taxation Treaty between Peru and Chile regarding: i) the income earned under the exclusivity contract between the LATAM Pass program and Banco de Credito del Peru; and ii) the income from the sale of miles to non-aviation partners and the associated cost (sale of LATAM Pass miles to legal entities). The main objections to the General Sales Tax deal with the tax credit for i) booking flights through the LATAM Pass system that were ticketed by LATAM Airlines Peru; ii) the General Agency Service issued by the Lan Cargo Branch (placing transportation services qualified as exports); iii) the General Agency Service provided by LATAM Airlines Peru (sale of tickets and interline flights); and iv) the service of exchanging LATAM Pass prizes issued by Promotick.	50,700

F-120

In order to deal with any financial obligations arising from legal proceedings in effect at March 31, 2024, whether civil, tax, or labor, LATAM Airlines Group S.A. and Subsidiaries, has made provisions, which are included in Other non-current provisions that are disclosed in Note 20.

The Company has not disclosed the individual probability of success for each contingency in order to not negatively affect its outcome.

(*)

The Company has reported the amounts involved only for the lawsuits for which a reliable estimation can be made of the financial impacts and of the possibility of any recovery, pursuant to Paragraph 86 of IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

II. Governmental Investigations.

On April 6, 2019, LATAM Airlines Group S.A. received the resolution issued by the National Economic Prosecutor’s Office (FNE), which begins an investigation Role No. 2530-19 into the LATAM Pass frequent passenger program. The last activity in this investigation corresponds to request for information received in May 2019.

On July 26, 2019, the National Consumer Service of Chile (SERNAC) issued the Ordinary Resolution No. 12,711 which proposed to initiate a collective voluntary mediation procedure on effectively informing passengers of their rights in cases of cancellation of flights or no show to boarding, as well as the obligation to return the respective boarding fees as provided by art. 133 C of the Aeronautical Code. The Company has voluntarily decided to participate in this proceeding, in which an agreement was reached on March 18, 2020, which implies the return of shipping fees from September 1, 2021, with an initial amount of ThUS$5,165, plus ThUS$565, as well as information to each passenger who has not flown since March 18, 2020, that their boarding fees are available. On January 18, 2021, the 14th Civil Court of Santiago approved the aforesaid agreement. LATAM published an abstract of the decision in nationwide newspapers in compliance with the law. LATAM began performance of the agreement on September 3, 2021. In April and October 2022, and in April and November 2023 the external auditors presented preliminary reports agreed upon with the National Consumer Service (SERNAC). The implementation of a voluntary class procedure concluded on September 3, 2023. In March 2024, the final report of the external auditors was presented.

On October 15, 2019, LATAM Airlines Group S.A. received the resolution issued by the National Economic Prosecuting Authority (“FNE”) which begins an investigation Role N°2585-19 into the agreement between LATAM Airlines Group S.A. and Delta Air Lines, Inc (“Delta”). On August 13, 2021 FNE, Delta and LATAM reached an out-of-court agreement that put an end to this investigation. On October 28, 2021, the Tribunal de Defensa de la Libre Competencia approved the out-of-court agreement reached by LATAM and Delta with the FNE.

LATAM Airlines Group S.A. received a resolution by the National Economic Prosecutor (FNE) on February 1, 2018 beginning Investigation 2484-18 on air cargo carriage. On August 29, 2023, the Office of the National Economic Prosecutor (FNE) decided to separate part of the information from such investigation and created a new Case #2729-23 relative to cargo carriage on charter flights from Santiago to Easter Island during the pandemic. The latest activity in the investigation of Case 2484-18 is an Official Ordinary Letter issued August 28, 2023 in which it requested additional information from LATAM. That letter was answered on September 27, 2023.

LATAM Airlines Group S.A. received a resolution by the National Economic Prosecutor (FNE) on August 12, 2021 beginning Investigation N° 2669-21 on compliance with condition VII Res. N° 37/2011 from TDLC related to restrictions as to certain codeshare agreements. On October 2, 2023, the FNE decided to separate part of the information in such investigation. Case #2737-23 will be about the code share agreements between LATAM and Delta that LATAM petitioned be amended; and Case #2669-21 will be about the remaining code share agreements. In relation to the investigation with Role No. 2737-23, dated November 06, 2023, the FNE and LATAM reached an extrajudicial agreement in order to allow certain codeshare agreements between LATAM and Delta to be modified. On December, 7, 2023, TDLC approved the extrajudicial agreement reached by LATAM and the FNE.

The competition authority sent an inquiry [or request] to TAM Linhas Aéreas S.A. (LATAM Airlines Brasil) with the objective of obtaining information regarding certain pricing issues, which was received by the company on November 27, 2023. LATAM Airlines Brasil is cooperating with the authority and remains committed to transparency and compliance with all applicable rules and regulations.

The competition authority sent an official letter [or request] to Tam Linhas Aereas S.A. (LATAM Airlines Brazil) seeking information on the acquisition of other types of aircraft. The company received it on March 22, 2024. LATAM Airlines Brazil is cooperating with the authority and maintains its commitment to transparency and compliance with all applicable laws and regulations.

F-121

NOTE 31 - COMMITMENTS

(a)

Commitments arising from loans

In relation to certain contracts committed by the Company for the financing of the Boeing 777 aircraft, which are guaranteed by the Export – Import Bank of the United States of America, limits have been established for some financial indicators of LATAM Airlines Group S.A. on a consolidated basis. Under no circumstance does non-compliance with these limits generate loan acceleration.

The Company and its subsidiaries do not have credit agreements that impose limits on financial indicators of the Company or its subsidiaries, with the exception of those detailed below:

On October 12, 2022, LATAM Airlines Group S.A., acting through its Florida branch, closed a new four year revolving credit facility (“Exit RCF”) of US$ 500 million with a consortium of five banks led by JP Morgan Chase Bank, N.A. As of March 31, 2024, this credit facility is undrawn and fully available. In addition, LATAM Airlines Group S.A., together with Professional Airline Services, Inc., a Florida corporation and a wholly owned subsidiary of LATAM Airlines Group S.A., issued (i) on October 12, 2022, as modified on November 3, 2022, a five-year term loan facility (“Term Loan B Facility”) of US$ 1,100 million (US$ 1,086 million outstanding as of March 31, 2024), (ii) on October 18, 2022, a 13.375% senior secured notes due 2027 (“2027 Notes”) for an aggregate principal amount of US$ 450 million and (iii) on October 18, 2022, a 13.375% senior secured notes due 2029 (“2029 Notes”, together with the 2027 Notes, the “Notes”) for and aggregate principal amount of MUS$ 700. The Exit RCF, the Term Loan B Facility and the Notes (together, the “Exit Financing”) share the same intangible collateral composed mainly of the FFP (LATAM Pass loyalty program) business receivables, Cargo business receivables, certain slots, gates and routes and LATAM’s intellectual property and brands. The Exit Financing contains certain covenants limiting us and our restricted subsidiaries’ ability to, among other things, make certain types of restricted payments, incur debt or liens, merge or consolidate with others, dispose of assets, enter into certain transactions with affiliates, engage in certain business activities or make certain investments. In addition, the agreements include a minimum liquidity restriction, requiring us to maintain a minimum liquidity, measured at the consolidated Company (LATAM Airlines Group S.A.) level, of US$ 750 million.

On November 3, 2022, LATAM Airlines Group S.A., acting through its Florida branch, amended and extended the 2016 revolving credit facility (“RCF”) with a consortium of thirteen financial institutions led by Citibank, N.A., guaranteed by aircraft, engines and spare parts for a total committed amount of US$ 600 million. The RCF includes restrictions of minimum liquidity measured at the consolidated Company level (with a minimum level of US$ 750 million) and measured individually for LATAM Airlines Group S.A. and TAM Linhas Aéreas S.A. (with a minimum level of US$ 400 million). Compliance with these restrictions is a prerequisite for drawing under the line; if the line is used, compliance with said restrictions must be reported periodically, and non-compliance with these restrictions may trigger an acceleration of the loan. As of March 31, 2024, this line of credit is undrawn and fully available.

On November 3, 2022, LATAM Airlines Group S.A., acting through its Florida branch, executed a five year credit facility (“Spare Engine Facility”) with, among others, Crédit Agricole Corporate and Investment Bank, acting through its New York branch, as facility agent and arranger and guaranteed by spare engines for a principal amount of US$ 275 million. As of March 31, 2024, the outstanding amount under the Spare Engine Facility is US $ 266.8 million. The facility includes restrictions of minimum liquidity measured at the consolidated Company level (with a minimum level of US$ 750 million) and measured individually for LATAM Airlines Group S.A. and TAM Linhas Aéreas S.A. (with a minimum level of US$ 400 million jointly).

As of March 31, 2024, the Company complies with the aforementioned minimum liquidity covenants.

F-122

Other commitments

As of March 31, 2024, the Company maintains valid letters of credit, guarantee notes and guarantee insurance policies, according to the following detail:

Creditor Guarantee

Debtor

Quantity

Type

Value ThUS$

Release Date

SUPERINTENDENCIA NACIONAL DE ADUANAS Y DE ADMINISTRACION TRIBUTARIA

LATAM Airlines Perú S.A.

Letter of Credit

205,849

Apr 14, 2024

SÉTIMA TURMA DO TRIBUNAL REGIONAL FEDERAL DA 1ª REGIÃO - PROCEDIMENTO COMUM CÍVEL - DECEA - 0012177-54.2016.4.01.3400

TAM Linhas Aereas S.A.

Guarantee Insurance

57,597

Apr 20, 2025

ISOCELES

LATAM Airlines Group S.A.

Letter of Credit

82,000

Oct 30, 2024

UNIÃO FEDERAL (FAZENDA NACIONAL)

TAM Linhas Aereas S.A.

Guarantee Insurance

33,071

Jul 30, 2024

UNIÃO FEDERAL - PGFN

ABSA Aerolinhas Brasileiras S.A.

Guarantee Insurance

38,901

Feb 22, 2025

UNIÃO FEDERAL - PGFN

TAM Linhas Aereas S.A.

Guarantee Insurance

21,148

Sep 28, 2024

UNIÃO FEDERAL - FAZENDA NACIONAL

ABSA Aerolinhas Brasileiras S.A.

Guarantee Insurance

2,381

Apr 14, 2025

UNIÃO FEDERAL

TAM Linhas Aereas S.A.

Guarantee Insurance

11,234

Feb 4, 2025

FUNDACAO DE PROTECAO E DEFESA DO CONSUMIDOR PROCON

TAM Linhas Aereas S.A.

Guarantee Insurance

18,499

Apr 2, 2024

VARA DAS EXECUÇÕES FISCAIS ESTADUAIS DE SÃO PAULO - FORO DAS EXECUÇÕES FISCAIS DE SÃO PAULO

TAM Linhas Aereas S.A.

Guarantee Insurance

9,759

Mar 4, 2025

AMERICAN ALTERNATIVE INS. CO. C/O ROANOKE INS. GROUP INC

LATAM Airlines Group S.A.

Letter of Credit

5,905

Apr 15, 2024

TRIBUNAL DE JUSTIÇA DO ESTADO DE SÃO PAULO

ABSA Aerolinhas Brasileiras S.A.

Guarantee Insurance

7,486

Dec 31, 2999

BBVA

LATAM Airlines Group S.A.

Letter of Credit

3,800

Jan 23, 2025

1° VARA DE EXECUÇÕES FISCAIS E DE CRIMES CONTRA A ORDEM TRIB DA COM DE FORTALEZA

TAM Linhas Aereas S.A.

Guarantee Insurance

3,203

Dec 31, 2999

ARQUITETURA DE PROTEÇÃO E DEFESA DO CONSUMIDOR DO ESTADO DO RJ

TAM Linhas Aereas S.A.

Guarantee Insurance

1,423

Dec 31, 2999

BOND SAFEGUARD INSURANCE COMPANY

TAM Linhas Aereas S.A.

Guarantee Insurance

2,700

Jul 20, 2024

COMISÓN EUROPEA

LATAM Airlines Group S.A.

Letter of Credit

2,598

Mar 29, 2025

UNIAO FEDERAL (FAZENDA NACIONAL)

TAM Linhas Aereas S.A.

Guarantee Insurance

2,806

Nov 16, 2025

17ª VARA CÍVEL DA COMARCA DA CAPITAL DE JOÃO PESSOA/PB

TAM Linhas Aereas S.A.

Guarantee Insurance

2,454

Jun 25, 2028

JFK INTERNATIONAL AIR TERMINAL LLC

LATAM Airlines Group S.A.

Letter of Credit

2,300

Jan 27, 2025

METROPOLITAN DADE CONTY (MIAMI - DADE AVIATION DEPARTMENT)

LATAM Airlines Group S.A.

Letter of Credit

2,989

Apr 9, 2024

F-123

Creditor Guarantee

Debtor

Quantity

Type

Value ThUS$

Release Date

SERVICIO NACIONAL DE ADUANA DEL ECUADOR

LATAM-Airlines Ecuador S.A.

Letter of Credit

2,130

May 8, 2024

VARA DE EXECUÇÕES FISCAIS ESTADUAIS DA COMARCA DE SÃO PAULO/SP - EXECUÇÃO FISCAL N.º 1507367- 03.2016.8.26.0014

TAM Linhas Aereas S.A.

Guarantee Insurance

1,966

Apr 24, 2025

SOCIEDAD CONCESIONARIA NUEVO PUDAHUEL S.A.

LATAM Airlines Group S.A.

Letter of Credit

1,040

Dec 31, 2024

14ª VARA FEDERAL DA SEÇÃO JUDICIÁRIA DO DISTRITO FEDERAL / TRIBUNAL: 7ª TURMA DO TRIBUNAL REGIONAL FEDERAL DA 1ª REGIÃO - ANULATÓRIA N.º 0007263-25.2008.4.01.3400

TAM Linhas Aereas S.A.

Guarantee Insurance

1,813

May 29, 2025

FIANÇA TAM LINHAS AÉREAS X JUIZ FEDERAL DE UMA DAS VARAS DA SEÇÃO JUDICIÁRIA DE BRASÍLIA/

TAM Linhas Aereas S.A.

Guarantee Insurance

2,207

Dec 31, 2999

LIMA AIRPORT PARTNERS S.R.L.

LATAM Airlines Group S.A.

Letter of Credit

2,867

Nov 30, 2024

TRIBUNAL DE JUSTIÇA DO ESTADO DE SÃO PAULO

TAM Linhas Aereas S.A.

Guarantee Insurance

1,165

Dec 31, 2999

UNIDAD ADMINISTRATIVA BOGOTÁ

LATAM Airlines Group S.A.

Letter of Credit

1,432

Apr 17, 2024

JUIZO DE DIREITO DA VARA DA FAZENDA PUBLICA ESTADUAL DA COMARCA DA CAPITAL DO ESTADO DO RIO DE JANEIRO

TAM Linhas Aereas S.A.

Guarantee Insurance

1,537

Dec 31, 2999

MUNICIPIO DO RIO DE JANEIRO

TAM Linhas Aereas S.A.

Guarantee Insurance

1,479

Dec 31, 2999

AENA AEROPUERTOS S.A

LATAM Airlines Group S.A.

Letter of Credit

2,370

Nov 15, 2024

CITY OF LOS ANGELES, DEPARTMENT OF AIRPORTS

LATAM Airlines Group S.A.

Letter of Credit

712

Apr 15, 2024

PARQUE DE MAETERIAL AERONAUTICO DO GALEAO - PAMA GL

TAM Linhas Aereas S.A.

Guarantee Insurance

1,054

Jun 18, 2024

CORPAC S.A.

LATAM Airlines Perú S.A.

Letter of Credit

2,784

Sep 28, 2024

Total

542,659

Letters of credit related to right-of-use assets are included in Note 16 Property, plant and equipment letter (d) Additional information Property, plant and equipment, in numeral (i) Property, plant and equipment delivered as collateral.

F-124

NOTE 32 - TRANSACTIONS WITH RELATED PARTIES

(a)

Details of transactions with related parties as follows:

		Nature of relationship with	Country		Nature of related parties			For the period ended At March 31,
Tax No.	Related party	related parties	of origin		transactions	Currency		2024			2023
								ThUS$			ThUS$
								Unaudited
96.810.370-9	Inversiones Costa Verde Ltda. y CPA.	Related director		Chile	Tickets sales		CLP		20			13

Foreign	Inversora Aeronáutica Argentina S.A.	Related director		Argentina	Real estate leases received		ARS		(5	)		(25	)
					Expense recovery		ARS		—			3
Foreign	Qatar Airways	Indirect shareholder		Qatar	Interlineal received service		US$		(7,702	)		(8,038	)
					Interlineal provided service		US$		11,446			13,719
					Services received of handling		US$		(5	)		—
					Services provided of handling		US$		206			—
					Services received miles		US$		(1,837	)		(231	)
					Services provided miles		US$		501			—
					Services provided / received others		US$		121			520
Foreign	Delta Air Lines, Inc.	Shareholder		U.S.A	Interlineal received service		US$		(73,152	)		(45,472	)
					Interlineal provided service		US$		65,450			47,908
					Services received miles		US$		(7,966	)		—
					Services provided miles		US$		2,011			—
					Services received of handling		US$		(786	)		(188	)
					Real estates leases provided		US$		19			—
					Services provided / received others		US$		524			319

The balances corresponding to Accounts receivable and accounts payable to related entities are disclosed in Note 9.

Transactions between related parties have been carried out under market conditions and duly informed.

F-125

(b)

Compensation of key management

The Company has defined for these purposes that key management personnel are the executives who define the Company’s policies and macro guidelines and who directly affect the results of the business, considering the levels of Vice-Presidents, Chief Executives and Senior Directors.

	For the period ended at March 31,
	2024		2023
	ThUS$		ThUS$
	Unaudited
Remuneration		3,399		3,911
Board compensation		244		152
Non-monetary benefits		163		163
Short-term benefits		3,187		3,402
Termination benefits (*)		521		13
Total		7,514		7,641

In accordance with current legislation, the Ordinary Shareholders’ Meeting held on April 20, 2023, determined the amount of the annual remuneration for the Board for the period from that date until the next Ordinary Shareholders’ Meeting scheduled to take place within the first quarter of 2024. In this context, in addition to the base remuneration, an additional remuneration was approved for each Board member, with an incremental amount based on the following criteria:

(a)

During the first year following their appointment, until November 15, 2023, provided that the Director serves continuously in their position, each Director will be entitled to receive an additional amount to the base remuneration, equivalent to 9,226,234 units of remuneration or “URAs.”

(b)

For the second year following their appointment, covering the period from the end of the first anniversary since their designation until November 15, 2024, under the same condition mentioned previously and approved by the Ordinary Shareholders’ Meeting in the first quarter of 2024, each Director will be entitled to receive another additional amount equivalent to 9,226,234 URAs.

(c)

Likewise, each Director who becomes part of the Board Committee will also receive, as additional compensation, a variable amount equivalent to an additional one-third (1/3) calculated on the incremental remuneration that the respective Committee member is entitled to as a Director, in accordance with the resolution of the Ordinary Shareholders’ Meeting.

For payment purposes, the value of each URA will be considered as referentially equivalent to the price of a company’s share. Consequently, URAs will be paid at the weighted average price of stock market transactions of the company’s shares during the 10 business days preceding the effective date (“Weighted Average Price”). For the calculation of the Weighted Average Price, transactions on national stock exchanges, as well as those on foreign exchanges recognized at the national level where LATAM’s American Depositary Shares may eventually be listed again, will be taken into account.

As of March 31, 2024 and March 31, 2023, there are no amounts paid for URAs.

F-126

NOTE 33 - SHARE-BASED PAYMENTS

(a)

LP3 compensation plans (2020-2023)

The Company implemented a program for a group of executives, which existed until March 2023, with a demand period between October 2020 and March 2023, where the collection percentage was annual and cumulative. The methodology is an estimate of the number of units, where a goal of the value of the action is set.

The benefit is vested if the target of the share price defined in each year is met. In case the benefit accumulates up to the last year the total benefit is doubled (in case the share price is achieved).

This Compensation Plan was finally not executed because the share price required for its collection is below the initial target.

(b) CIP (Corporate Incentive Plan)

As indicated in Note 22, in the context of the exit from Chapter 11 Proceedings, the Company implemented a talent retention program for the Company’s employees, which is divided into three categories. The first one (i.e., Non-Executive Employees) simply contemplates guaranteed payments in cash to the respective employees on certain dates depending on the country where the employee is hired. On the other hand, the remaining two categories (i.e., Non-GEM Executives and GEM Executives) contemplated the granting of synthetic units of remuneration (the “Units”) that, by reference, are considered as equivalent to the price of one share of LATAM Airlines Group S.A. and consequently, in case they become effective, grant the worker the right to receive the payment in cash that results from multiplying the number of Units that are pay for the value per share of LATAM Airlines Group S.A. that must be considered in accordance with the CIP.

Below are more details of these two categories.

Non-GEM Executives

The first subprogram applies to senior executives not part of the GEM (Global Executive Meeting - Senior Managers, Managers, Deputy Managers). In this context, this program contemplates two different bonuses: (1) a retention bonus, consisting of the amount in money resulting from Units that are assigned to the respective employee and these Units being paid 20% on month 15 and 80% at month 24, in each case, counted from Exit date from the Chapter 11 Procedure (i.e., November 3, 2022) (the “Exit Date”). This is consequently, a guaranteed payment for these employees; and (2) a bonus associated to the performance defined on based on the compliance of certain financial indicators of LATAM Airlines Group S.A. and its subsidiaries, which is reflected in Note 19(b), becoming effective 20% at month 15 and 80% at month 24, in each case, from the Exit Date. Consequently, this is a temporary payment that is only made if these indicators are met.

GEM Executives

Applies to senior executives of the Company who are part of the GEM (CEO and employees whose job description is “vice presidents” or “directors”). Employees that participating in this program are eligible to receive cash payments for Units. These Units are as follows:

1. “RSUs” (Retention Shares Units): That is, Units associated with the employee’s permanence in the Company, and consequently, are associated with the passage of time. In its totality, the CIP contemplates up to 3,107,603,293 RSUs which are made effective by partialities in the terms indicated below.

As a general rule, RSUs will be eligible to become effective at the rate of one third on each of the following dates: month 24, month 36 and month 42, in each case, counted from the Exit Date. The mentioned above, subject to the occurrence of a trigger event related to the volume of transactions of securities issued by LATAM Airlines Group S.A. in the terms contemplated in the CIP (hereinafter, a “VTE” – Volume Triggering Event). The number of RSUs actually paid will be determined based on the net resources accumulated as a result of a VTE on the respective determination date (hereinafter, this adjustment will be referred to as the “Pro Rata Factor”).

F-127

Notwithstanding the mentioned above, the CIP also contemplates a “Minimum Guaranteed Vesting” according to which, the percentage of RSUs indicated below will be effective on each date indicated, even if a VTE has not occurred. The foregoing, net of the RSUs that may eventually have become effective previously.

Minimum Guaranteed Vesting of RSUs
	Percentage of Units that become effective
Month 30 from Exit Date		20	%
Month 42 from Exit Date		30	%
Month 60 from Exit Date		50	%

2. “PSUs” (Performance Shares Units): That is, Units associated with both the employee’s permanence in the Company and the performance of LATAM Airlines Group S.A. measured according to the share price. Consequently, like RSUs, these Units are associated with the passage of time. However, PSUs also consider the market value of the share of LATAM Airlines Group S.A. considering a liquid market. However, as long as there is no such liquid market, the share price will be determined on the basis of representative transactions. In its totality, the CIP contemplates up to 4,251,780,158 PSUs which are made effective by partialities in the terms indicated below.

As a general rule, PSUs will be eligible to become effective at the rate of one third on each of the following dates: month 24, month 36 and month 42, in each case, counted from the Exit Date. The foregoing, subject to (i) a VTE having occurred; and (ii) that the quotient (hereinafter, the “Net Price/ERO (Equity Rights offering) Quotient”) between the net price of sales originating in a VTE, divided by the price of share at which the shares issued were placed under the capital increase agreed at the extraordinary shareholders’ meeting of LATAM Airlines Group S.A. dated July 5, 2022 (that is, US$ 0.01083865799), is greater than 150%. The number of PSUs that actually becomes effective will be determined according to the Factor Pro Rata and the Quotient Net Price/ERO Price).

From the above it flows that the PSUs constitute an eventual and not guaranteed payment.

In addition, some of the GEM Executives will also be entitled to receive a fixed and guaranteed payment in cash (“MPP” – Management Protection Plan) on certain dates under the Plan, at the rate of 33% in the month 18, 34% in the month 24 and 33% in the 30th month, all from the Exit Date. On the other hand, those employees who are eligible for this MPP will also be eligible for a limited number of additional RSUs (“MPP Based RSUs”). In its totality, the CIP includes 1,438,926,658 MPP based RSUs. As a general rule, MPP Based RSUs will be eligible to become effective on the same terms and conditions as RSUs; however, that they will be eligible to become effective at a rate of one third on each of the following dates: month 18, month 24 and month 30, in each case, from the Exit Date. The valuation of these Units will be equivalent to the value of the Company’s share less the ERO Price at the time they become effective.

In all cases, the respective employees must have remained as such in the Company at the corresponding accrual date to qualify for these benefits.

Given the characteristics of this program, it has been recorded in accordance with the provisions of IFRS 2 “Share-based payments” and has been considered as a “cash settlement award” and, therefore, recorded at fair value as a liability that is part of the items Trade and other accounts payables and Provisions for employee benefits, non-current, which is updated at the closing date of each financial statement with effect on profit or loss for the period and classified in the line “Administrative expenses” of the interim Consolidated Statement of Income by function.

F-128

The fair value has been determined on the basis of the current share price and the best estimate of the future value of the Company’s share, multiplied by the number of underlying units granted. This estimate was made based on the Company’s Business Plan and its main indicators such as EBITDAR, adjusted net debt.

The movement of units as of December 31, 2023 and March 31, 2024 , is as follows:

	Opening balance as of 01.01.2023		Granted during the period		Vested		Exercised during the period		Forfeited during the period			Closing balance as of December 31, 2023
RSU - Retention		—		3,107,603,293		—		—		(121,146,360	)		2,986,456,933
PSU - Performance		—		4,251,780,158		—		—		(242,192,091	)		4,009,588,067
MPPBASEDRSU - Protection		—		1,438,926,658		—		—		(192,047,245	)		1,246,879,413
Total		—		8,798,310,109		—		—		(555,385,696	)		8,242,924,413

	Opening balance as of 01.01.2024		Granted during the period		Vested		Exercised during the period			Forfeited during the period			Closing balance as of March 31, 2024
													Unaudited
RSU - Retention		2,986,456,933		—		—		(144,875,210	)		(34,817,892	)		2,806,763,831
PSU - Performance		4,009,588,067		—		—		—			(40,680,938	)		3,968,907,129
MPPBASEDRSU - Protection		1,246,879,413		—		—		—			(33,516,713	)		1,213,362,700
Total		8,242,924,413		—		—		(144,875,210	)		(109,015,543	)		7,989,033,660

F-129

NOTE 34 - STATEMENT OF CASH FLOWS

(a)

The Company has carried out the following transactions with non-monetary impact transactions mainly related to financial lease and lease liabilities, which are described in Note 19 Other financial liabilities.

(b)

Other inflows (outflows) of cash:

	For the period ended At March 31,
	2024			2023
	ThUS$			ThUS$
	Unaudited
Restricted Advances		—			7,582
Bank commissions, taxes paid and other		(900	)		(382	)
Taxes on financial transactions		(1,970	)		(1,078	)
Guarantees		8,220			(5,248	)
Payment for hedging instruments		18,262			5,464
Court deposits		(1,368	)		(5,951	)
Derivative margin guarantees		6,181			(17,322	)
Payment for derivatives premiums		(2,241	)		(13,798	)
Total Other inflows (outflows) Operation activities		35,972			(30,733	)

Guarantee deposit received from the sale of aircraft		7,000			—
Recoveries of credits received		20,589			20,111
Total Other inflows (outflows) Investment activities		27,589			20,111

Interest rate derivatives		1,538			—
Taxes on financial transactions		—			(2,946	)
Withholding tax		(819	)		—
Total Other inflows (outflows) Financing activities		719			(2,946	)

(c)

Dividends:

	For the period ended At March 31,
	2024			2023
	ThUS$			ThUS$
	Unaudited
Transportes Aéreos del Mercosur S.A. (*)		(289	)		—
Total dividends paid		(289	)		—

(*)

Dividends paid to minority shareholders

F-130

(d)

Reconciliation of liabilities arising from financing activities:

			Cash flows								Non cash-Flow Movements
	As of				Payment						Interest					As of
Obligations with financial institutions	December 31, 2023		Obtainment Capital (*)		Capital (**)			Interests			accrued and others			Reclassifications		March 31, 2024
	ThUS$		ThUS$		ThUS$			ThUS$			ThUS$			ThUS$		ThUS$
											Unaudited
Bank loans		1,029,434		—		(2,750	)		(42,046	)		47,671			—		1,032,309
Guaranteed obligations		303,922		—		(8,088	)		(5,201	)		5,281			—		295,914
Other guaranteed obligations		430,350		—		(11,767	)		(10,513	)		10,661			—		418,731
Obligation with the public		1,302,838		—		—			—			25,716			—		1,328,554
Financial leases		901,546		—		(28,745	)		(11,971	)		13,156			—		873,986
Other loans		104		—		—			—			(5	)		—		99
Lease liability		2,967,994		—		(86,035	)		(59,779	)		304,964			—		3,127,144
Total Obligations with financial institutions		6,936,188		—		(137,385	)		(129,510	)		407,444			—		7,076,737

			Cash flows								Non cash-Flow Movements
	As of				Payment						Interest						As of
Obligations with financial institutions	December 31, 2022		Obtainment Capital (*)		Capital (**)			Interests			accrued and others			Reclassifications			March 31, 2023
	ThUS$		ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
											Unaudited
Bank loans		1,385,995		—		(2,750	)		(29,925	)		55,672			—			1,408,992
Guaranteed obligations		325,061		—		(4,533	)		(4,771	)		4,824			(1,790	)		318,791
Other guaranteed obligations		474,304		—		(11,346	)		(10,230	)		9,813			11,811			474,352
Obligation with the public		1,289,799		—		—			—			56,529			—			1,346,328
Financial leases		1,088,239		—		(63,734	)		(11,685	)		15,150			(13,123	)		1,014,847
Other loans		2,028		—		—			—			(56	)		—			1,972
Lease liability		2,216,454		—		(56,687	)		(27,687	)		40,649			—			2,172,729
Total Obligations with financial institutions		6,781,880		—		(139,050	)		(84,298	)		182,581			(3,102	)		6,738,011

(*)	During the year 2024 and 2023, the Company did not obtain financing.

(**)	As of March 31, 2024, loan repayments ThUS$51,350 and payments of lease liabilities ThUS$86,035, disclosed in flows from financing activities and as of March 31, 2023, loan repayments ThUS$82,363 and liability payments for leases ThUS$56,687 disclosed in flows from financing activities.

F-131

Below are the details obtained (payments) of flows related to financing:

	For the period ended March 31
	2024								2023
	Capital		Payments						Capital		Payments
Flow of	raising		Capital			Interest			raising		Capital			Interest
	ThUS$		ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
	Unaudited
Aircraft financing		—		(48,600	)		(18,766	)		—		(79,613	)		(18,321	)
Lease liability		—		(86,035	)		(59,779	)		—		(56,687	)		(27,687	)
Non-aircraft financing		—		(2,750	)		(50,964	)		—		(2,750	)		(38,290	)
Total obligations with Financial institutions		—		(137,385	)		(129,509	)		—		(139,050	)		(84,298	)

(e)	Advances of aircraft

Corresponds to the cash flows associated with aircraft purchases, which are included in the statement of consolidated cash flows, within Purchases of property, plant and equipment. As of 03.31.2024 and 03.31.2023, the Company did not flows for this concept.

(f)	Additions of property, plant and equipment and Intangibles

	For the period ended At March 31,
	2024		2023
	ThUS$		ThUS$
	Unaudited
Net cash flows from
Purchases of property, plant and equipment		102,484		97,886
Additions associated with maintenance		48,372		47,523
Other additions		54,112		50,363
Purchases of intangible assets		13,297		13,593
Other additions		13,297		13,593

(g)	The net effect of the application of hyperinflation in the consolidated cash flow statement corresponds to:

	For the period ended At March 31,
	2024			2023
	ThUS$			ThUS$
	Unaudited
Net cash flows from (used in) operating activities		3,647			(6,724	)
Net cash flows from (used in) investment activities		—			879
Effects of variation in the exchange rate on cash and cash equivalents		(3,647	)		5,845
Net increase (decrease) in cash and cash equivalents		—			—

F-132

(h)

Payments of leased maintenance

Payments to suppliers for the supply of goods and services include the value paid associated with leased maintenance capitalizations for ThUS$66,906 (ThUS$28,602 as of March 31, 2023).

NOTE 35 - EVENTS SUBSEQUENT TO THE DATE OF THE FINANCIAL STATEMENTS

On March 1, 2024, S&P upgraded LATAM’s corporate rating to B+ from B, with a positive outlook. Additionally, on April 12, 2024, Moody’s upgraded LATAM’s corporate rating to Ba3 (BB-) from B1 (B+) with a stable outlook. Lastly, on April 30th, Feller Rate upgraded its local rating from BBB- with a stable outlook, to BBB with a positive outlook. The above reflects the recognition of the company’s consistently stronger credit metrics and its sustained performance.

In a meeting held on April 3, 2024 by the Company’s Board of Directors approved to begin the process to open and relist the Company’s ADRs on the New York Stock Exchange (“NYSE”) (the “Relisting of the ADR Program”). This process entails various procedures and requirements before the Securities and Exchange Commission of the United States of America and the NYSE.

Once the requirements referred to in the preceding paragraph have been met, and subject to the conditions set forth below, the Board of Directors will ultimately decide whether or not to approve and make effective the ADR Program Reliste. This decision will be taken: (i) once the consent is obtained from those who were the main creditors supporting the reorganization plan of the Company (the “Reorganization Plan”) that was approved and confirmed in its reorganization procedure under Chapter 11 of the Bankruptcy Code of the United States of America, and without which the Company would not have emerged from said reorganization procedure; and (ii) considering market conditions and the best interest of the Company. The Relisting of the ADR Program thus resolved will be opportunely informed by a new material fact, and the process to finalize the Relisting of the ADR Program is estimated at this date to take up to six months, starting on April 3, 2024.

Additionally, the Company’s Board of Directors, at the same meeting, took note of the resignation presented by Bouk Van Geloven from his position as Director of the Company, effective as of April 24, 2024. As a result of this resignation, in the Ordinary Shareholders’ Meeting held on April 25, 2024, the members of the Board of Directors of the Company were renewed,for a period of two years from that date, being also elected as Director William de Wulf.

At the same Ordinary Shareholders’ Meeting, it was approved the distribution of the final dividend proposed by the Board of Directors in the Ordinary Session of April 3, 2024, amounting to ThUS$174,549, which corresponds to 30% of the net income for the year 2023. The payment will be made on May 16, 2024.

After March 31, 2024 and up to the date of issuance of these financial statements, there is no knowledge of other events of a financial or other nature that significantly affect the balances or their interpretation.

The consolidated financial statements of LATAM Airlines Group S.A. and Subsidiaries as of March 31, 2024, have been approved in the Extraordinary Session of the Board of Directors on May 2, 2024.

F-133

Exhibit 99.2

SUMMARY FINANCIAL AND OTHER OPERATING INFORMATION

The summary consolidated interim financial information of LATAM Airlines Group S.A (which we refer to as “LATAM,” the “Company,” the “parent” or “we”) set forth below as of March 31, 2024, and for the periods ended March 31, 2024 and 2023, has been derived from our unaudited interim consolidated financial statements for the three-month periods ended March 31, 2024 and 2023 and as of March 31, 2024, included as Exhibit 99.1 to this Form 6-K (which we refer to as the “unaudited interim consolidated financial statements”). Our unaudited interim consolidated financial statements are prepared in accordance with International Accounting Standard 34 (IAS 34), Interim Financial Reporting, as issued by the International Accounting Standards Board.

The following discussion of the Company’s results of operations for the three-month periods ended March 31, 2024 and 2023 should be read in conjunction with our unaudited interim consolidated financial statements and our annual report on Form 20-F for the fiscal year ended December 31, 2023, as filed with the SEC on February 22, 2024 (which we refer to as the “Form 20-F”) and, in particular, “Business Overview” and “Financial Review” in the Form 20-F.

Management’s Discussion and Analysis of Financial Condition and Results of Operations as of and for the Three-Month Period Ended March 31, 2024

Net Income

For the three months ended March 31, 2024, we recorded a net profit of U.S.$260.0 million, of which U.S.$258.3 million is attributable to owners of the parent, which represents an increase in net income of U.S.$138.9 million and income attributable to owners of the parent of U.S.$136.5 million, respectively, compared to U.S.$121.1 million of net income and U.S.$121.8 million of net income attributable to owners of the parent, for the same period ended March 31, 2023. Our net income for the three months ended March 31, 2024 was mainly explained by our strong performance during the industry’s high season in South America.

Revenue

For the three months ended March 31, 2024, total revenue increased 17.9% relative to the same period of the prior year, reaching U.S.$3,321.3 million. This was due to an increase of 21.0% in passenger revenues, which was partially offset by a decrease of 2.1% in cargo revenues compared to the same period in 2023.

For the three months ended March 31, 2024, passenger revenue amounted to U.S.$2,897.8 million, a 21.0% increase compared to U.S.$2,394.4 million in passenger revenue recorded in the same period of the prior year. Our capacity increased by 17.5% compared to the same period in 2023, while RASK reached US$7.5 cents, reflecting an increase of 3.0% as compared with the first quarter of 2023. Such an increase was due in large part to general passenger demand, resilient corporate customer demand, and ongoing recovery of international air travel demand. Yields based on revenue passenger kilometers (“RPK”) decreased 1.1% for the three months ended March 31, 2024 compared to the same period of the prior year.

For the three months ended March 31, 2024, cargo revenue was U.S.$369.4 million, 2.1% lower than the cargo revenue recorded in the same period of the prior year. This decrease is mainly explained by a 12.8% decrease in yields based on revenue tons kilometers (“RTK”). This decrease was partially offset by a 13.4% increase in capacity (measured by available ton kilometers (“ATK”)) for the three months ended March 31, 2024, compared to the same period of the prior year.

Cost of Sales

For the three months ended March 31, 2024, our cost of sales increased by 10.4% compared to the same period of the prior year, to U.S.$2,393.9 million, mainly explained by the increase in passenger operations, and in particular by an increase in international operations, during the three-month period. The following table presents the breakdown by item, followed by the corresponding explanations below:

	Three months ended March 31,
	2024			2023			2024			2023			2024/2023 % change
	(in U.S.$ million)						(as a percentage of revenue)
Revenue		3,267.2			2,771.6			100.0	%		100.0	%		17.9	%
Cost of sales		(2,393.9	)		(2,169.1	)		(73.3	)%		(78.3	)%		10.4	%
Aircraft fuel		(1,024.4	)		(1,059.3	)		(31.4	)%		(38.2	)%		(3.3	)%
Other rentals and landing fees		(386.6	)		(295.8	)		(11.8	)%		(10.7	)%		30.7	%
Wages and benefits		(328.8	)		(279.0	)		(10.1	)%		(10.1	)%		17.8	%
Depreciation and amortization		(306.3	)		(253.0	)		(9.4	)%		(9.1	)%		21.1	%
Aircraft maintenance		(194.2	)		(137.6	)		(5.9	)%		(5.0	)%		41.1	%
Passenger service		(76.1	)		(63.1	)		(2.3	)%		(2.3	)%		20.6	%
Aircraft rentals expense^(a)		(1.2	)		(23.7	)		(0.0	)%		(0.9	)%		(94.9	)%
Other cost of sales		(76.3	)		(57.6	)		(2.3	)%		(2.1	)%		32.5	%

(a)

Aircraft rentals expense corresponds exclusively to LATAM group’s fleet PBH contracts. The aircraft rentals expense line item is used to account for the expenses associated with the group’s variable payments related to aircraft. During 2021, the Company amended its aircraft lease contracts to include lease payments based on PBH at the beginning of the contract and fixed-rent payments in future periods. For these contracts that contain an initial period based on PBH and then a fixed amount, a right of use asset and a lease liability were recognized at the date of modification of the contract. These amounts continue to be amortized over the contract term on a straight-line basis starting from the modification date of the contract. Therefore, as a result of the application of the lease accounting policy, the expenses for the year include both the lease expense for variable payments (Aircraft Rentals) as well as the expenses resulting from the amortization of the right of use assets (included in the Depreciation line) and interest from the lease liability (included in Lease Liabilities).

For the three months ended March 31, 2024, aircraft fuel expenses were U.S.$1,024.4 million, a 3.3%, or U.S.$34.9 million, decrease compared to U.S.$1,059.3 million in the same period in 2023. This decrease is mainly explained by a 15.1% decrease in average jet fuel price (excluding hedges), which was partially offset by a 17.5% growth in operations (as measured by ASKs). Additionally, during the three months ended March 31, 2024, we recorded a U.S.$19.1 million gain from fuel hedges compared to a U.S.$0.8 million gain recorded during the same period in 2023.

For the three months ended March 31, 2024, other rentals and landing fees totaled U.S.$386.6 million, a 30.7%, or U.S.$90.8 million, increase compared to U.S.$295.8 million in the same period in 2023, mainly due to an increase in passenger operations.

For the three months ended March 31, 2024, wages and benefits expense totaled U.S.$328.8 million, a 17.8%, or U.S.$49.8 million, increase compared to US.$279.0 million for the same period in 2023. This increase is mainly explained by higher costs of crews and airport personnel, along with a 10.1% rise in the average headcount of the group.

For the three months ended March 31, 2024, depreciation and amortization reached U.S.$306.3 million, a 21.1%, or U.S.$53.3 million, increase compared to U.S.$253.0 million in the same period in 2023, mainly explained by an increase in the number of aircraft in our fleet during this period, including newer aircraft.

For the three months ended March 31, 2024, aircraft maintenance totaled U.S.$194.2 million, a 41.1%, or U.S.$56.6 million, increase compared to U.S.$137.6 million in the same period in 2023. This increase is mainly explained by an increase in the number of aircraft in our fleet and the 17.5% growth in operations (as measured by ASKs).

For the three months ended March 31, 2024, passenger service totaled U.S.$76.1 million, a 20.6%, or U.S.$13.0 million, increase compared to U.S.$63.1 million in the same period in 2023, which is primarily explained by a 19.4% increase in the number of passengers carried during the period, mainly on international flights.

For the three months ended March 31, 2024, aircraft rentals reached U.S.$1.2 million, a 94.9%, or U.S.$22.5 million, decrease compared to U.S.$23.7 million in the same period in 2023. This decrease is mainly explained by the expiration of almost all power-by-the-hour (“PBH”) contracts for aircraft, with only a few wide-body aircraft remaining under PBH. The aircraft rentals expense line item includes costs associated with lease payments based on PBH for contracts that have been modified to that structure. The aircraft rentals expense line item is used to account for the expenses associated with the group’s variable payments related to aircraft.

For the three months ended March 31, 2024, other cost of sales reached U.S.$76.3 million, a 32.5%, or U.S.$18.7 million, increase compared to U.S.$57.6 million in the same period in 2023, principally due to higher variable costs of crew, reservation systems and sales and advertising, due to an increase in operations in the period.

As a result of the above, gross margin (defined as total revenue minus cost of sales) as of March 31, 2024, totaled a gain of US$873.3 million, compared to a gain of US$602.6 million as of March 31, 2023.

Other Consolidated Results

For the three months ended March 31, 2024, other income totaled US$54.0 million, a 60.1% increase compared to the same period in 2023. This year-over-year growth is primarily attributed to the reclassification of the income from non-airline redemptions of the LATAM Pass program, an impact of approximately US$8.0 million, and the increase in sales of ancillary services related to the LATAM Travel business.

For the three months ended March 31, 2024, distribution costs totaled U.S.$158.3 million, a 30.4%, or U.S.$36.9 million, increase compared to the same period in 2023, mainly explained by the increase in passenger traffic and sales commissions.

For the three months ended March 31, 2024, administrative expenses totaled U.S.$187.4 million, a 28.8%, or U.S.$41.9 million, increase compared to the same period in 2023, mainly due to the increase in headcount plus an increase in marketing expenses.

For the three months ended March 31, 2024, other expenses totaled U.S.$141.0 million, a 32.4%, or U.S.$34.5 million, increase compared to the same period in 2023, mainly as a result of an increase in IT maintenance expenses and higher costs related to contingencies.

For the three months ended March 31, 2024, interest income totaled U.S.$31.4 million, a 75.5%, or U.S.$13.5 million, increase compared to the same period in 2023, mainly as a result of a higher level of cash and cash equivalents that were invested in fixed-term bank deposits and higher interest rates compared to the same period of 2023.

For the three months ended March 31, 2024, interest expense totaled U.S.$191.4 million, a 16.6%, or U.S.$27.2 million, increase compared to the same period in 2023, mainly as a result of higher interest rates and the increase in the number of aircraft leases.

For the three months ended March 31, 2024, foreign exchange gains totaled U.S.$39.6 million, a 127.6%, or U.S.$22.2 million, increase compared to the same period in 2023, mainly as a result of the appreciation of local currencies in the countries where we operate during the period.

For the three months ended March 31, 2024, other losses amounted to U.S.$46.4 million, compared to a loss of U.S.$19.7 million in 2023, principally explained by increases in provisions relating to ongoing labor proceedings in Argentina during the period.

For the three months ended March 31, 2024, income tax cost totaled U.S.$15.1 million, a 320.1%, or U.S.$8.2 million, increase compared to the same period in 2023, mainly as a result of higher income in the quarter and the limitation on the use of tax losses in some countries where we operate.

Liquidity and Cash Flow from Operating Activities

Additionally, by the end of the first quarter of 2024, we reported U.S.$1,851.4 million in cash and cash equivalents. In addition, as of March 31, 2024, we had U.S.$1.1 billion in available and undrawn revolving credit facilities.

During the three months ended March 31, 2024, we also registered positive net cash flow from operating activities of U.S.$458.1 million, compared to an inflow of U.S.$441.9 million during the same period of 2023.

As of March 31, 2024, we had consolidated fleet debt (operational leases and finance leases) of US$4.5 billion, as well as non-fleet financial debt of US$2.6 billion, resulting in total gross debt of US$7.1 billion.

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements may include words such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “believe” or other similar expressions. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. These statements are based on LATAM’s current plans, estimates and projections and, therefore, you should not place undue reliance on them. Forward-looking statements involve inherent known and unknown risks, uncertainties and other factors, many of which are outside of LATAM’s control and difficult to predict. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors and uncertainties include in particular those described in the documents we have filed with the SEC. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them, whether in light of new information, future events or otherwise.