Latam Airlines Group S.A. (NYSE: LTM)

LATAM Airlines Group S. A. is a Chile based airline holding company engaged in the transportation of passengers and cargo across South America and to international destinations. The group operates a unified network of airlines that provides domestic flights in Brazil, Chile, Peru, Colombia, and Ecuador as well as regional and long haul services to North America, Europe, Oceania, and Africa. As of December 31 2025 LATAM maintained a fleet of 371 aircraft including 20 dedicated freighters and employed approximately 41,125 personnel. Its primary hubs are located in Santiago, Lima, and Sao Paulo which enable efficient connections within the continent and to intercontinental markets.

The company generates revenue primarily from passenger ticket sales, ancillary services, and cargo transportation. Passenger revenue includes domestic and international fares, baggage fees, seat selection, and loyalty program activity while cargo revenue comes from belly space on passenger aircraft and dedicated freighter flights. Additional income is derived from maintenance services, ground handling, and other aviation related activities. In 2025 passenger cargo and other income accounted for 87.0%, 11.4%, and 1.6% of total revenues respectively.

The company operates through the following segments.

• Passenger: Provides domestic and international air transportation for travelers including ticket sales, ancillary services, and loyalty program benefits.

• Cargo: Transports freight using belly capacity on passenger jets, and a dedicated freighter fleet serving domestic and international routes.

• Other: Includes maintenance repair and overhaul services, ground handling, cargo warehousing, and ancillary aviation activities that generate supplementary income.

LATAM Airlines Group S. A. holds the leading position in South America measured by available seat kilometres and ranks as the 13th largest airline group worldwide. In its main domestic markets the company competes with carriers such as Azul, Gol, Avianca, and Copa while internationally it faces rivals including Delta, American Airlines, United, and Lufthansa. Key advantages stem from a geographically diversified network, a modern fuel efficient fleet, the joint venture with Delta Air Lines, and a strong loyalty program. The integration of belly cargo with passenger flights improves asset utilization and reduces break even load factors while the cargo only fleet provides flexibility for specialized freight. These factors together support resilient revenue streams and enhance profitability across varying market conditions.

The customer base consists of individual leisure and business travelers, corporate travel departments, freight forwarders, logistics providers, ecommerce companies, and participants in the LATAM Loyalty program who earn and redeem points across a broad range of partners. Corporate clients rely on LATAM for employee travel, cargo shipment, and travel management services. The loyalty program encompasses tens of millions of members who accrue points through flights and partner spending and redeem them for awards, upgrades, and other benefits. These diverse groups contribute to stable demand and provide opportunities for cross selling ancillary products.