LATAM Airlines Group S.A. (LTM) Earnings Call Transcript & Summary

Good morning, everyone, and welcome. It's a pleasure to have you here with us on this Investor Day 2025. It's a moment of a lot of momentum for us here at LATAM, one in which LATAM is achieving new heights across our network, in our operation, in our financial performance. As you can see by the numbers, we've been consistently reporting. Today is an opportunity really for us to share how we are building upon this trajectory and how we envision the next stage of sustainable continued profitable growth for LATAM. We're delighted to see many of these spaces here, they are familiar faces to us and also have those joining with us on the webcast. Today's Investor Day will take you through the pillars of LATAM'S integrated value proposition in which we want to combine people, product, premium revenues, cost efficiency, financial strength and digitalization. And this enables us to have profitable sustained growth and the creation ultimately of long-term value for our shareholders, employees and customers. I just want to make a reference that on -- there are some table [ tents ] on the different tables here in person, there's a QR code if you want to scan and have access to the presentation directly, you can do so. Otherwise, we will be projecting it here. And that will take you to the direct link. And before we begin, I do need to remind you all that there are certain statements that we will be making during today's presentations and the Q&A section that may constitute forward-looking statements. These relate to future events and expectations and are based on the assumptions that LATAM believes to be reasonable. However, they are subject to risks and uncertainties detailed in our 20-F, earnings releases, financial statements and CMF and SEC filings. Actual results may differ materially from those that are projected. In terms of today's presentations, we have a great lineup of speakers. We're happy to have with us 5 of our senior executives, each reflecting on the different areas of their specialization within the organization that are contributing to LATAM Group's ability to reach new heights. In terms, we have Roberto Alvo with us today that will kick us off by sharing how LATAM is building the airline of the future, digital, efficient and scalable, setting the foundation for how we expect to continue achieving new heights. Then we will have Paulo Miranda with us, who is our Chief Customer and Experience Officer, who will discuss how the customer-driven growth initiatives are fueling preference, increased loyalty and sustainable returns. Following him, Ramiro Alfonsin, now our Chief Commercial Officer, you may have seen them last year as Chief Financial Officer, who will share how we're unlocking South America's potential through a disciplined network growth as well as expansion of high-margin revenues. Then following him, we will have Juliana Rios, who is our Chief Digital and IT Officer, and will present on how digital and data is really accelerating value creation across the group and transforming how LATAM is operating. And then finally, Ricardo Bottas, our CFO, will discuss our financial strength, discipline and capital allocation strategy and how those are enabling LATAM to continue, again, growing and building this future going forward. We will conclude with an interactive Q&A session, and we look forward to your questions both in person and on the webcast. And so if -- for those webcast participants, just to note that you can submit your questions using the Ask a Question text box below the broadcast screen at any time during the presentation starting now. And in case that text box is not displayed, please click on the question mark icon located next to it to display it. The materials that are also available under the Resources tab on your webcast stream include the presentation that we are referring to today. And finally, I'd like to take a moment to thank our very dedicated Investor Relations team. We have Joaquin Mena and Matilde Maturana here with me today, in addition to all those that made this work -- hard work possible for the event that we're hosting today. There were many other areas within LATAM that help support this. Your work made this gathering possible, so thank you. And lastly, thank you for the stock exchange for hosting us today. Now without further ado, let's dive into the first presentation. So please join me in welcoming Roberto Alvo.

Thank you, Tori, and good morning, everyone. How are you? Thanks for being here, for spending time with us this morning. So I'm going to try to make a very simple presentation, because I think that the statements around the situation of LATAM, what we have built are not complicated. They're unique, but they're not complicated to grasp. But if you see on the upper right, hand corner of the slide, it says welcoming new heights. That's our new pipeline. And I want here to welcome you to the new LATAM heights, which is what I will try to show you in very few slides. You've probably seen many of these figures over the years, largest group of airlines in the region, very diversified, largest frequent flyer program in the world, most awarded airline in Latin America by far. But this although it looks very the same as you have seen over the years, I'm going to show you, it's probably coming from a very different buildup of the operation that we're trying to make in LATAM. These are our last 12-months figures or guidance to the year, double-digit revenue growth or close to double digit or single digit, high single-digit capacity growth. So even though we're growing very, very hard, and very fast, we're able to do this with increased unit revenues at the same time, over $4 billion of EBITDA, close to 30% EBITDA margins and one of the best operating margins in the whole industry at this point in time above we expect 16%, significantly bigger, whether in cargo or in passengers vis-a-vis 2019 with a much broader network, much more diversified stream of revenues and with significantly higher unit revenues vis-a-vis what we had in 2019. So very strong numbers. Very strong figures and a very good evolution of the figures over the last 3 years. This is the third year, 2026, as we have guided, where we will be able to grow very close to 10%, and that's pretty unheard of in our region, even though it's the highest growing region in the world. And this comes from a very simple set of things that we are doing, I'd like to call it an ecosystem that we need to make them happen at the same time. And one thing after the other, will be, as you will see self-reinforcing. We have a very clear customer value proposition based on only 3 things. Very simple choice. We are the only airline group of airlines that can allow you to do pretty much whatever you want to do in South America. You want to go from A to B. We can do that with the best product. You can choose from a premium product all the way to a basic product. We can define and tailor your needs to what you want to fly within the region. We do that in a very dependable way. And this is an obsession. Day in and day out, we need to execute every day better. And this is from every single point of contact with the customer. Many airlines try to focus in the onboard experience, and they show you these very nice pictures with people sleeping and the mats and so on, great. But you know what the experience of the passenger is much more than that, it starts when you want to fly, when you decide you want to take a plane. It ends when you get your miles in your card, in your balance. So in every single point of interaction we are striving to become extremely good at executing. And care because, yes, our people are the most important asset of LATAM and they have in the DNA, something that I don't think anybody else in this industry has and making sure that each one of them more than the 20,000 people that go in front of the passenger every day, care and really think about how to please and make sure that the customer feels safe and feels it has its dignity, whether it's in the good times or whether there is a disruption and we have to change and improve the things we're doing. This all comes around a very different way of attacking or implementing technology within the organization. I'm going to talk about that in a minute, but we are not thinking about technology as many companies do, which is just something that you put on top of your organization, we are transforming the organization itself. This is very common today in tech companies, in digital companies. It's not very common in our industry, which is 100 years old. And what we're trying to do is make a very significant change in the way we work to take the advantage of technology, not simply stating that we have implemented a new AI system. On top of that, 5 things. And this is a flywheel that works really, really well. It all starts with our people. Our people are the most important asset of LATAM. LATAM before anything, it's a social organization. And these are the people that make things happen right. My most important responsibility as a CEO of the company, to make sure that when my team works every day -- wakes up every day in the morning, they want to come to work here and not only because LATAM can be a good place to develop professionally because I need for those people for them to feel that it makes sense to work in LATAM from a personal perspective because if you can get an emotional attachment to the place where you work, those people are willing to do much more when they would want to do otherwise. And we are a service organization before anything. So if we can think really on how to engage our people to serve with passion, then we can expect to execute well. A little bit more than 40,000 people are the family of LATAM today. And I just want to leave you with one data point of people, which is what is what's on the right. Question, the typical NPS question would you ask or recommend your family member or a close friend to work in LATAM? Almost 9 out of 10 people in the company today would say that they would recommend a family member or a friend to work in LATAM. So this is a starting point. This is what makes the wheel spinning in the right direction, making sure that our team is very engaged emotionally in what we do and that we LATAM does a company and as a group, makes sense to them. Numbers. Normally, you end up looking at the numbers as a consequence of the work we've done. We look at our financial strength in a little bit of a different way. It's an enabler. Actually, our financial strength is what allows us to define and optimize the way we allocate and source capital. It's what allows us to take opportunities by growing fast if necessary, if we find those places to invest in technology, to invest in product. It is also what provides optionality. This is a cyclical industry, we know it. And I think this is very much talked about, but often forgotten, important thing about this industry. A financial structure, a solid finance structure is a key strategic advantage. Everybody talks about it. Most people actually forget about it while we go. For LATAM, this is in a way a hedge. I'd like to think about LATAM as having absolute strength and relative strength. Absolute strength is actually the numbers we have, the figures, our debt, our cost, our cash flow, which allows us to take opportunities if things go well. Relative strength because as my financial strength is better than my competitors in the moment of the cycle, that will allow me to take advantage of that situation and improve my position. So financial strength is key and it's an enabler, an important enabler of how we develop the business. And of course, having a good financial balance sheet and numbers allows us also to look for strategic opportunities and capitalize upon them if we find. You have some of the most important figures on the right-hand side of the page, very low leverage company today, $1.5 billion free cash flow this year and liquidity, which is close to 30% of our last 12-month revenue. So a key enabler to our strategy. People, financial strength, product. By product, -- when I mean product, I'm not talking about the hard product, I'm not talking about the seat or the plane. I'm talking about the experience in every single point of contact. And this starts with obsession on execution. What you have on the left hand side is a very interesting graph that Paulo created a few years ago, which is we call them perfect flights. So this is [ standard 0 ] departure flights. And by the way, we measure standards here. We don't measure [ standard 15 ]. There's no reason why we should give our operation at 15 minutes lack, why so? I mean you go to Japan, train departs on time. Why can't planes depart on time? So we take those flights, and we look at all the NPS answers, and this is where everything is rated 10. So all the passengers that answered that survey in that aircraft, in that plan, in that flight that also left at Standard 0, ranked it perfectly. 13,000 in the first half of 2026, 15x, 16x more than what we used to have in the past. Still a very low figure. So I probably flew 350,000 flights within that semester. So you can say that there's a ton of improvement potential here, but it's a very telling way of making sure that in every single point of contact, we are great. So obsession on execution. Even though we have a very complicated network, we operate in very congested airports where infrastructure is not necessarily great in our part of the world. We're still one of the most [ punchlines ] in the world for the fifth year top 5 in the whole world. And what you have on the lower right-hand side, it's an indicator that we also like very much, which is claims. And probably the word is misleading because this is any interaction that didn't go well. You go to the web page, you do not find what you wanted, you went on the chat and ask for a question, that's a claim for us. So that's a claim, okay? So decreasing the claims per passenger with almost 10% growth at the same time by more than middle single digits every year. So this is the beginning. One of the things we think about very much is why would our customers pick us back? Why would they become loyal? Will it be because it sit is great, because the food is great, because the champagne is going? Yes, of course. But most importantly, because in every single step of the way they feel dignified on what we do and that they understand that our team cares for them in every interaction. And this, in a way, leads to that. So what we have, and this is -- if you take the whole South America, domestic, international within South America and long haul. So the whole aviation in South America we are today, 30% of the market. We're more than 40% when you look at international within South America. In some countries, we're over 50%, as you will see in Ramiro's presentation, but almost one of every the passengers that fly within 2 and out of the region fly with us. And we proved that from 27% to 30%. But the important message here is that this is not a goal in itself. We don't chase market share. This is a function of the decisions we make and where we believe and find we can win. So as long as you will see that number improving is because we're finding opportunities where when we're looking at the flows, we can win. We are most relevant than any airline in the region. And if you see the right-hand side of the slide, those are the most relevant airlines in other parts of the world, LATAM is by far the only company that can claim that have a significant presence in the region altogether, and this is counting markets where we operate in markets where we don't operate domestically today. And of course, hard product as well, making significant changes to the experience on board and in our lounges with the customer. We have today cars that take you if you're a black signature from the remote position in the plane to the gate, new lounge in Lima just inaugurated a couple of months ago. We're starting a Premium Comfort, we call Premium Comfort, which is the long-haul premium economy class in a couple -- in a year's time and where we're revamping all of our fleet with new seats, with new amenities and so on. So making sure that as well that on top of the execution, the hard product is also there for our customers. And capping it up, the largest frequent flyer by far in South America, the eighth largest in the world, 53 million members. Today, 60% of our revenues today come from LATAM Pass members. This used to be 35% a few years ago. Now what I want you to follow in my presentation is that each one of these elements on top of the other contributes. It's not that we have the hard product only. It's not that we have the FFP only. It starts with the people. It goes with the execution. It takes the financial strength as a lever to move this forward. It goes to a hard product and make sure that the people who want to fly with LATAM become loyal and they want to keep on flying with us. And this is the result. What you have on the left side, it's the NPS. We have today mid-50s NPS for our total customers, 59 points for our premium traveler customers and the unique premium travelers in the last 6 years have increased by 3x. So from 1 million unique souls that we consider premium travelers to 3 million is our expectation for 2025. So this is the result of having a seamless execution with the best network in the region, with a group of people dedicated to making sure that we take care in every step of the way of what our customers want. So when you take all this together, I'm going to tell you why LATAM is doing how it's doing. So what you have on the left side is what you already read or heard the things that we do right -- on the right-hand side of the slide, you have the evolution of premium revenues within the group. So we've grown our revenues for almost 40% in the last 6 years. We have almost doubled as a percentage of our premium revenues with respect to that. And this is creating a gap, an important gap where we have found willingness to pay and loyalty that to be totally honest with you, we have not seen in the past. And we probably missed this a few years ago. The thing is that we're finding it now. And as we just keep improving the execution of our product, we believe that this trend can continue going forward. None of that would be possible if we weren't able to keep our focus in cost. And let me tell you how we think about cost here. So this is not a company that all of a sudden realizes that they have to downsize and let go 1,000 people or go into a cost-cutting program. We do this day in day out, for us, a way of working, a way of living in a way is making sure that in every place we can find how to decrease our cost. What you have on the left side is our comparison with the most important full-service carriers as of the middle of the year, 68% lower cost ex -- fuel per ASK than the most important competitors we have in Europe and the U.S. And this is done with a relatively simple fleet today with only 4 types of aircraft, where we're driving everyday places where we can find cost opportunity improvements. We run a program that has between 500 and 1,000 initiatives open permanently all the time. And we put ourselves the task of trying to take out all the inflation effect of our operation every single year. Just 2 highlights of that. We have increased our utilization for almost 10% in the last 6 years. And we have improved our productivity by almost 20% per ASK also in the last 6 years. And this is a mixture of several hundred small, sometimes medium, small initiatives where we try to really find how we can squeeze those last few drops on the lemon. Now that ecosystem today is powered by technology. But as I said before, the way we think about technology is not simply stacking the tools on top of what we do today. AI, what is AI? AI is an extremely powerful tool. Actually, it's something that we have learned individually to use to our own improvement. The hard question is how you make that work for our organization, not for a person, for a group of people. So we have not made ourselves content by simply saying we're going to adopt the technology. We have asked -- the hard question is how do we have to change the organization to take full advantage of the technology. And we have done this by changing the way we think. We don't think on silos anymore. We don't think on functions. We think on journeys. Data actually travels horizontally. What we're trying to do is basically to horizontalize if that's a word in English, the organization to follow the information, not to simply define on how our organizational rules and rights of decision work. So we have or are in the process of transforming the journey of the passenger, the journey of the aircraft. And this is where we have found incredible value in how we can use technology to improve the operation of the company. The loyalty journey, the loyalty of the member that wants to go through our FFP ecosystem, the cargo journey, which we are transforming from the beginning to the end. And very soon, we will start with probably the most difficult transformation, which is those 72 hours before the flight, the operational window where you have to mix airports and ground handling and passengers and everything into a single place, execution actually of the operation of the -- and Juliana will explain a little bit more how we're doing that. But I just want to highlight the difference with one example. What you have on the left side is what you normally see a company sale. All right. We have adopted AI. This is actually our own data on customer service, on call centers. So we have a fully automated AI voice response. Today, it's 31% of the calls are fully taken by an AI. And you can see below, we have improved our NPS and actually the cost per passenger are better. But this is a very simple organizational transformation. It's just the adaptation of the technology. So we're not thinking about that only. This is the traditional example. Let me give you what I think is a much more interesting example. So this is within the transformation of our maintenance organization. What we do see here is very simple. We take what we call the business intelligence, that's the know-how of the people that are in the maintenance, how to do maintenance with information technology, business technology, information technology, we put them together. And we let the guys that run maintenance, understand how the digital teams work. And we allow the digital ties work, understand what are the complicated issues that the business needs to solve. And this example I like it very much. This is work over 2 years, okay? So this is not a product that you deliver. As we put a team of very small teams, only 12 people working over 2 years, looking at the -- this is only the long-term maintenance process. They have found almost 1,200 days of aircraft availability, which were basically idle time of the aircraft. By planning this differently. By bringing actually an optimization to science, we have a PHD working here, trying to understand how a very simple thing, which is conceptually, which is tasks and relationships with the task can be optimized. If you take the opportunity cost of the fleet of LATAM, today, it's probably $100 million, $150 million. So this is a $4 million investment. This is a 40x return, $4 million invested in this team plus the licenses, plus the tools. 1% of the increase of capacity of this year of LATAM is coming by this project, a group of 12 people, just using technology, changing the way they work, day in, day out. So what we're trying to do here is actually transforming the way we operate. taking the technology but understanding that the technology is only a tool. And focusing on the hard question is how do you change the structure of an organization that has worked the same way for 96 years, that's the age of LATAM and making sure that we can take full advantage of technology. So that's our flight very simple, very simple. And this for me summarizes everything. We have, on the lower part of the slide is our cost per ASK, ex-fuel, ex-cargo; by the way, since 2019 and 2025, stable, 1% increase. If you take the basket of our costs, look at inflation of the basket of our cost and adjusted by FX, it would have been 17%. So we have been able to take out 16 points of CASK ex-fuel to the operation over these 6 years. But at the same time, we've done that and improved our NPS by 22 points. And our premium revenue, the outcome of what you saw there by 135%. So you don't need to overinvest, actually to deliver a better product. LATAM is decommoditizing itself, but it's doing it not necessarily by investing in assets. We're investing what I call software, in the people, in the processes, in the experience, of course, as well a little bit in the product and doing it in a very disciplined way. The improvement of the margins of LATAM is summarized in this slide. So very simple. I hope it was simple. This is LATAM. The ecosystem that is working today that starts with people, make sure that he uses the advantaged financial policy, execute seamlessly across with a good product, making sure that what we have created in the region is self-sustainable and improving every day a little bit more. All right. Thank you guys for the time. be happy to see you a little bit later on the Q&A. Thank you.

Hello, everyone. Good morning I'm Paulo Miranda, the Chief Customer and Experience Officer for LATAM, and thank you so much for being here today with us, and thank you for the people that are following through the webcast as well. LATAM's customers' focus is a foundation for everything we do. And today, I want to take you through how that focus, especially on our most discerning travelers shows up in performance that's durable and resilient. Everything you see connects back to one idea. When you win with the customer and especially with the premium traveler, you win consistent preference. So here, I just want to start with a continent-sized opportunity. Roberto mentioned that already, but South America's population is about 436 million people, larger than the U.S. yet when you look at trips per capita, we're talking about 0.5%, comparing to the U.S., it's about 4x that; and with the highest projected GDP growth and highest growth in terms of capita for the region comparing to North America, Europe and Africa, the long-term prospects are pretty decent, pretty good and very strong. But also, this is aligned with our strategy of capturing quality share, not just volume. Today, 1 in every 3 customers flying to, from and within South America, they choose LATAM. And that's a very, very powerful start. Here, I want to show something else. APEX is an award that's an independent. It's based on audits and customer reviews. And when we look at that, we received a 5-star global airline for 2026. Next, to our logo, you see also some of the other carriers that have also received that recognition. This is very important because those awards, independent awards, they consistently place LATAM among the world's top full-service airlines. For premium travelers, that matters a lot and very deeply. They want reliability that they can trust every single time. And this consistency has strengthened our premium positioning through quality and preference. This was already referenced as well. It's our customer value proposition. It's 3 pillars: dependability; care; and choice. And when you think about that, we want to make sure that customers fuel that as well in the interaction. Otherwise, it's very tactical, very cold. So when we combine that with our people, they are the reasons that ultimately people come back fly with LATAM again and again, even in highly competitive markets. And I'll go through and show some examples for every one of those in the next slides. So here's some data, customer data. We measure customer feedback through the NPS survey and NPS system. And for those that might not be familiar, it's the famous scale from 0 to 10 where we ask, if you recommend LATAM to a family member or to a friend. And that part is important because you're not going to recommend something bad to a your family member or friend because they'll see you again. So you want to make sure that you're actually giving your honest answer on that one. And we collect over 0.5 million responses per month from our customers. That gives us clarity on what travelers value the most and particularly the premium travelers. And what we hear from them is they want comfort. They want consistency and they also want personalized attention. And when we look at the data, we then make sure that our investments, everything we do, they're tailored towards solutions that people obviously value in the feedback that they gave to us. And when we also see the same data, 70% of those 500,000 responses per month are promoters. Those are people that gave us either a 9 or a 10 on the NPS survey. But if you think about premium travelers particularly, reliability isn't just nice to have. It is a baseline expectation of your experience when flying with an airline. And for LATAM, we have delivered that consistently over the last 5 years as a top global On-Time performer for our operations. Just to put that into a scale, we're talking about a flight about every minute, we have 160 people going through the process for what we have. And for the last 5 years, we've achieved top 5 on-time performance. Also, when you look at luggage rates or complaint rates, we also have improved this significantly over time. That at the end, generates trust. You can trust a brand, you can trust what we're doing. And trust when the premium segment traveler is very sticky. People don't change very often once you got them to trust in you. And the last -- on the lower left, we have recently the S&P Global Award for Sustainability. We're very proud of the many initiatives that we've had in there. One of the most visible ones for our customers is removing the single-use plastic on board. So if you fly the time, you're going to notice, it's a very different cabin experience. But more than that, this is aligned with another layer of preference. More and more, this is very relevant for consumers of all segments. And being the customer person in here, I could not do this presentation without thinking and highlighting our staff. They're absolutely the best. There are the shining stars out there. Over the last 4 years, we have received an award for the Best Airline Staff in South America. And that's one of the key reasons that people stay and they fly with us. Staff kindness, as we measure it, is about 65 points, 27 points up comparing to 2019, and that places us in the top of South America. In addition to that, we have some exclusive services that we offer to our top-tier customers. We call them our Black Signature in our LATAM Pass program. They have exclusive boarding services, both a finger and also remote, and a group that we call Special Services that accompanies them through their journey, making that they feel recognized and valued in ways that truly matter for them. As another example of our value proposition, we think that the premium journey starts well before the flight. So here, we have signature check-ins that we've implemented in our hubs of Lima, Santiago and Sao Paulo. The customer satisfaction in there is over 10 points higher than a regular premium checking experience. But what you've got to think that we went through in here, and sometimes it's not adding more, it's also taking things away. People are telling us that the check-in process for them doesn't add value. It adds for the process that we have to have for safety for everything else. So we changed it and modified for the customers that we know the most. We know when you're arriving at the airport. And people tell us ahead of time if they're going to have luggage or not. So we coordinate that ahead of time. So that your experience going through that is literally a few minutes versus the typical process to do a check-in for an airline. So here we simplified processes and flows. We coordinate better between the customer and ourselves. And that gives us the reaction and the scores that we get for the NPS and also allows them to spend more time at the lounge. And when you talk about lounges, today, we have the location marked on the graph. But I would say the Lima and Santiago, we have segmentation. Besides just the lounge, we have different offerings depending on the tier of the customers. And the Lima one, which recently opened in 2000 -- in August 2025 has already been getting rave reviews from customers. So we are, of course, taking advantage of the gastronomy in Peru, which was one of the best in the regions to make sure that we make it special for the customers. We're working on a new Sao Paulo lounge. That one is about 4,500 square meters or 48,000 square feet, and we're targeting that for 2027. Ongoing on the journey. When we talk about the onboard product, we also have an offer that's very different in the region. We are the only 1 that has WiFi across the continent, and that's on our narrow-body fleet. We'll start installing it on our wide-body fleet in 2026. Our business class product already has the accolade of being the best one in South America, and that's with the prior version. The new version that we launched in 2025, I'm sure will take us even higher. And all of those are very optimized investments. We want to make sure that when we do those, we align the downtime of the aircraft with the time that we touch the cabin to make sure that we do it in a more efficient way. For premium comfort, Roberto also mentioned this one. It's a new cabin that we're going to introduce starting 2027. It's an in-between premium business and economy, different configuration. We'll have additional living space for customers and additional services. And if you look at, for example, on the 787-9, our premium seats will go from about 10% to 18% of the cabin. This is a segmentation that strengthens the economics of every flight while improving choice, which is one of our core pillars of the value proposition. We also have the Embraer aircraft coming into the fleet. This will come with a 2-2 configuration in the cabin, where we'll have a premium economy. We also will have WiFi offered for our customers. And this platform will allow us to take the LATAM service to more destinations and expand our network. I mentioned before that we listen to customer feedback very, very seriously. So here's just an example. We launched on December 1, a new service in our premium business cabins with all new dishware and soft goods. And so far, the reviews are pretty good. But I just want to highlight a couple of things. For example, we have 2 different sized coffee mugs. Why? Because our Brazilian customers like [indiscernible] in a small coffee. Well, the other ones like a bigger coffee. We have a blanket that has 2 colors. One is cooler. The other one is warmer. So then if you were a hot person, cold person, you can pick the size you want. And you guys received one of the new amenity kits as a gift today for being here with us. We added a simple cable tie. Everybody travels now with a multitude of cables and devices that will help you guys get organized in your bag. So -- our Net Promoter Score or NPS continues to go up. But more than anything, what I want to say is if you look at LATAM in general, premium travelers, frequent flyers for LATAM Pass cargo. And all of those, we see sustainable improvements. But it's very important to think that the customer is the same. The customer has different touch points but it's the same person interacting with different sides of the business. So we want to make sure that we keep pushing up that consistency. We want to keep pushing up that experiences because it's the sum of all of them, not just one point that makes the difference. And when we look at people that choose based on experience and loyalty for the last -- for 2025. They continue to tell us that they have a higher preference for LATAM versus the competitive set by varying degrees in here of 1.5 and 2.3 for local South American competitors. Why is that important? Because that lowers risk, it also helps us increase loyalty and repurchase and they gave us a 10% more yield. The data also shows that a nonaffiliated traveler. And one that is part of our LATAM Pass program and travels in our premium cabins, they give us 6x more profitability comparing to a base customer. That's very important for the strategy for the business. And customers with 8 trips in the last 6 months have grown 2x, our seat offer since 2019. Here's First Choice. First Choice is a question typically in marketing surveys where we ask people when you're thinking about traveling, what airline comes up in your mind? That's before people have looked at anything. They haven't searched. They haven't anything. And we are #1 in 4 markets: Brazil, Chile, Ecuador and Peru, and we're making very good progress in Colombia. But again, this is highly important because you have to think that this is before people choose, before people start searching for a trip. It's aspirational. It's something that people want to. They want to choose you later on. So that's very good because it stabilizes share. It helps us reduce competitive churn. And at the end of the day, it strengthens the overall business. So just closing on my side, we're unlocking the full potential of South America by delivering an experience that customers believe in and return to. Our disciplined strategy keeps reinforcing preference which drives at the end of the day, durable performance and long-term value creation. So thank you, everyone.

Hello, everyone. It's great to be here. So many familiar faces and investors. Thank you for joining us. Roberto walk us through the unique ecosystem that LATAM has built, and just Paulo went through our outstanding product. Now I'm going to take you on our commercial journey and to show you how we leverage on both of those and win customer preference and unlock South America's potential. LATAM is generating record revenues. If you look at the center graph, in 2025, we are forecasting $14.5 billion of revenues. We are outpacing from the revenue perspective, our capacity growth that is 8%, testament of how we are improving the quality of our revenues. And that is reflected on the right-hand side graph, which accounts for our revenue per ASK, that is increasing 2% over the period of 2025. This performance is driven by 3 important factors: The first one is being network strategy; the second, our premium revenue growth; and the third, our loyalty program. And I'm going to touch on all of those during the presentation. But first, let me spend just a second on our region and it's growing demand. South America is a massive population of 430 million, 100 million more than the U.S. We are currently underserved in our industry with only 0.6 trips per capita. That is only 25% of the trip per capita that you have currently in the U.S. And we're starting to see this potential unlock. Latin America's international demand grew 14% during 2024 being the second fastest region in terms of growth. And Brazil, as an example, is the fastest-growing domestic market in 2025. But it's not just about volume, it's about the value of that traffic. We are finding and witnessing a shift in behavior from our customers. We are seeing consumers increasingly valuing travel experiences more, very similar to what you're experiencing in Europe or in the U.S. We have a more discerning customer base, where customers are more sophisticated, both on the corporate and on the high-end leisure, very much aligned with our value proposition that Paolo and Roberto just spoke about. In terms of the commercial strategy, we are anchored in 2 -- in a combination of 2 important assets. One is our network advantages and the second being our expanding high-margin revenue engines. On the network side, we are accelerating our leadership in the different markets that we operate in. We're balancing it with disciplined growth. It is not just about adding routes, it's about strengthening our position in our key hubs and our key airports. The 5 largest airports in South America concentrate 60% of the traffic. Only 5 airports concentrate 60% of the traffic. And LATAM leads in 4 out of 5 of those airports. We are #2 in the fifth one. And we continue to improve our presence in those airports, improving our premium revenue slot share. We have increased 3 percentage points, our premium slot share in Guarulhos, in Congonhas, in Lima, in Santiago, in Brasilia and many more airports. So we're improving the frequencies on the premium slots where our corporate customers are more interested in. In parallel, we are expanding high-margin revenues. We are leveraging on the full service product that Paulo just presented and our loyalty program that is the largest in South America. Our premium revenues grew in 2025, 14%. They're growing faster than our total revenues. And our loyalty program just is currently practically as large as the next 3 largest airline loyalty programs in South America combined. So the 3 largest combined are as large as our loyalty program. Let's turn a little bit to our network. Our domestic network is unparalleled today in the region. There is no other airline that serves their home markets the way the LATAM does. LATAM leads in 4 out of our domestic markets. We hold 66% market share in Chile, 67% market share in Peru, 51% in Ecuador, 41% in Brazil, the fifth largest domestic market, which holds 41%. We -- with this presence, we are ensuring a coverage of more than 80% of the -- of South America's GDP and more than 90% of the total traffic in the region. As I mentioned before, it's not about just coverage or adding routes. It's about where we're present. If we take the largest airports in the region, let's take Sao Paulo, Guarulhos. Guarulhos today concentrates 70% of the international traffic in Brazil and 1/3 of the domestic traffic in Brazil. We have a relative frequency share today in Guarulhos of 2.1. We have been increasing year-after-year disposition. This means that we are 2x larger in the key airports in Brazil than our next competitor. We are 4x larger in Lima. We are 3x larger in Santiago. So if you go through the important airports, the presence today that LATAM has is unparalleled. And having this frequency share, this relative frequency share allows us to serve better again, the corporate segment and the high-end leisure passenger. Our strategy through the continent is clear. In Chile and Peru, we continue to maintain our competitiveness, adding frequencies on a specific and selected corporate traffic. In Brazil, our focus is Guarulhos. It continues to be as the most important airport but we have -- we are going to continue improving our presence and our connectivity in Brasilia and Fortaleza and also starting to focus on some secondary focused cities. And Colombia and Ecuador, we continue to consolidate our position as a strong player, and you're going to see us in 2026, expanding a little bit our international network. With the size of our network and being presence in different markets, it enables us to reallocate capacity in different demand scenarios. As you have seen us doing in 2025 were reallocated from certain markets into Brazil. Our domestic network provides a scale where our international network drives a global reach. And this allows our passengers and our loyalty program members, a unique value proposition that LATAM can offer. No one connects South America to the world as LATAM does. We're #1 in all traffic from South America to North America with 24% capacity share on our [ metal ]. But if we combine it with the JV with Delta, we have 32% capacity share between North America and South America, a unique value proposition for our customers. To Oceania, we're the undisputed year with 80% capacity share connecting Australia and New Zealand to South America and to Europe, we're a formidable contender, only 2 percentage points away from the leader, and we're adding frequencies now in 2026, and we just announced covering 2 additional destinations, Amsterdam and Brussels from Sao Paulo. We are adding new routes, these 2 that I mentioned in Europe, we're also adding from Sao Paulo, Cape Town. We have recently started operations now in December of the Ezeiza, Miami route, and we also have added now in December, the Guayaquil in Ecuador to JFK route. To support this expansion in our international network, we are receiving 3 787 new wide-bodies in 2026. And this would allow us to cover 160 destination, again, with more frequencies being established to Europe. Pablo touched a lot on product and how we are investing in preference, working together with them with direct capital to where we think it makes the most difference and differentiate our product from a value proposition perspective. And being the -- practically the only full service carrier in the region allows us to set a little bit the standard of what a full service carrier actually is in the region without overinvesting, being selective on the investments. And these investments are paying out. Our NPS doubled from pre-pandemic, high satisfaction correlates directly to high share of wallet in the key customers. And we're seeing our corporate market share increase. Just a few weeks ago, ABRACORP, which is the Brazil Travel Association showed that LATAM is leading in corporate market with a 44% share. In synthesis, through our network and our superior product, we believe we have a value proposition that is very, very difficult to replicate. And we are successfully harvesting higher revenues and stronger returns. I think numbers speak for themselves. Our premium revenues more than doubled since pre-pandemic in 2019. And we're not slowing down. We're seeing our premium revenue growing 14% in 2025. I'm sure this audience noticed that our premium revenues are growing more and our total revenues, growing 14% instead of 11%. A key driver in this growth is our premium economy and the growth that we're seeing in ancillaries. Our ancillary revenues grew 20% in 2025, very much anchored on experimentation, on personalization, on better marketing. As you see, our revenue improvement is very much enabled by technology initiatives such as total revenue optimization, continuous pricing and different layers of personalization and different touch points where we are more effective in obtaining conversions are producing big results for LATAM. And as Roberto mentioned, they are embedded in our culture and in our way of working. It is true that we have grown premium capacity, but we have grown our premium revenues twice as fast as the growth in premium capacity, twice as fast. On loyalty, LATAM Pass is engaging customers and driving profitability like never before. We currently have 53 million members, largest program by far in the region. And we added in 2025, 4 million new members. But more importantly than adding new members for me is the engagement that we're obtaining from those members. Miles redeemed and transactions in 2025 increased 24% with 35% of active users. Our lead member base, which is very important to our profitability, grew 22%. And it's important because these members spend more in LATAM than 6x more, as Paulo mentioned, than nonmembers. Our loyalty program is supported by 8 co-branded credit cards with leading banks in the region and over 100 commercial alliances. To give you a sense of scale, every single day, approximately 30,000 seats are redeemed in our aircraft, 30,000 seats, that is equivalent to filling up every day 1.5 Madison square Gardens. That's how powerful our program is. To support this commercial momentum, we have a robust order book of 140 aircraft. We are receiving 26 narrow-bodies in '26. We are receiving Embraer E2s, we are receiving 3 wide-bodies in 2026. And despite the supply challenges that the industry continues to suffer, this deliveries, this 41 aircraft have been confirmed to date. This fleet will drive approximately a growth of 9% on a blended basis in 2026 driven mainly by our international growth of approximately 12% during 2026. In 2027, we are going to be receiving the first Airbus 321XLRs. We're going to be connecting secondary cities in the U.S. and maybe in Europe with that aircraft. We believe it efficiently allows us to expand our international footprint. And to give you an idea from Lima, you can reach Chicago, Toronto or San Francisco with that aircraft. Before I conclude the fleet segment, just a quick note on the Embraers. We have reached an agreement with Embraer for the E2s. This aircraft will allow us to unlock new markets, providing a little bit more capillarity to our network and also to strengthen our position in our key airports, given -- providing our corporate customers a little bit more frequencies on certain airports. So it's improving our network and also providing a little bit more capillarity. We're moving fast on this delivery. We have 24 firm deliveries and half of them, we're going to be receiving in 2026. With as aircraft, we're going to cover 8 new destinations and 16 new routes, 4 of those routes are going to be exclusive routes. And to conclude, LATAM's commercial strategy has been delivering consistent results that match the potential of our region. In the last 5 years, LATAM has been growing profitably, adding ASKs and improving our margins. And I think that's a testament of how we have been improving the quality of our traffic. We have built a unparalleled network and continue to strengthen it, improving the position that we have in the key airports in the region. And the demand is there, propelled by a rising affluent and middle class and by a robust premium segment. And we have the unique position to capture it and we have the necessary lift to capture it. LATAM is truly more than the sum of its parts. It's is the most expansive network. It is a superior product on the premium offering. We're going to be adding 7% more seats every year for the next 4 years. And we are invested in digital from everything from dynamic pricing to more layers of personalization. With this combination, we are convinced that we're going to be delivering great results in 2026 and onwards. Thank you.

Hello, everyone. I'm Julianna Rios. I'm the Chief Information and Digital Officer for LATAM Airlines. I'm very excited to be here today and tell you a little bit about what we have been doing from the digital agenda. We -- in LATAM, digital is not a department. That's not how you see. It's the way that we are learning to operate. I want to share with you today how we are reshaping the way we drive growth, we deliver efficiency and also deepen our customer loyalty. Digital LATAM is becoming the competitive -- the driving force. And we believe it's going to be a very important part of the way that we're going to compute in the future. Our new operating model brings new speeds, make results achievable that simply wasn't possible before. And finally, scale and data are our great differentiator. Our size, our relevance in the region allow us to collect tons of high-quality data that amplify our precision, learning and impact across our operations. We have built the latter way to approach the transformation, an integrated digital-enabled organization that we have been using to embrace the change. As most traditional companies, we come from a long history of working well in silos. That meant some internal focus, limited collaboration sometimes and in some cases, duplicated processes and tools. But since a few years ago, we've been moving away from siloed functional based to focus on the process behind the customer experience. We have been inspired by digital native companies and embedding digital into the way we do business every day. We are placing together multifunctional teams that now own outcomes, end to end. These things are supported by shared platforms that avoid duplication of work. And as we usually say, we can build ones and use it everywhere. A lot of it, it's already enabled by AI. Technology is no longer a central function as we have been placing it across the organization. This is how we are making digital execution possible in a group of the size of LATAM. And it's how we scale work for agility, not against it. Thanks to our assets, LATAM transforming data volume into intelligence at scale. We operate the largest beta ecosystem in the region. Every day, we collect 90,000 minutes of flight data. And every month, 100 million web and net visitors generates massive amount of data. But what makes this powerful isn't the volume, it's the speed. Our data to action cycle is 10x faster than our peers in the industry, which allow us to get marginal gains from 0.1% to 1%, that can compound into millions in measurable value. This is how it works in practice. For instance, we leverage data science at scale, optimizing the journey of the aircraft from preparation to take off to lending. In our fleets, we have more than 14,000 different types of sensors. Just to give you an idea, every aircraft has from 2,000 to 4,000 sensors. So this collect information and data all the time. Having access to that data, that's -- the amount of data. It makes us collect -- this is normal data set. It's 4.5 petabytes. 4.5 petabytes. It's like getting all the data from the U.S. Library of Congress and digitize like 200x, just to give you some idea. More than 5,000 people at LATAM have somehow access to that data today. And they can take a better decision in real time, improve reliability, efficiency even before the flight takes off. Predictive operations are already changing the game, historically in the airline industry, only about 0.1% of all this data is used for operational improvements. But then it's occurred to the team that maybe we can learn more if you would have access and the capability to access all the data that is available. And now we are putting all this data in our data lake, and we have the condition to analyze 100% of the data. These models combined with weather data, for example, can send real-time information to our pilots when conditions change on the way of the flight to somewhere. They can even predict unexpected turbulence before crossing the Andes mountains in which we have 90 flights every day. The foundation of all this data. It's now available to everyone in the organization. And that data from the aircraft, combined with all the other data. It's giving us plenty of insights on how to improve our operation. In LATAM, we have like a lab that we can really experiment in real time. And that is extremely powerful. We can best validate and scale improvements, much faster than others. These are some of the impacts. Any spend by crew optimization, we have been able to reduce 10% of the cost of the crew that we have to have in standby, but also reduce the number of incidents related to crew. On predictive maintenance, as Roberto mentioned already, we have been able to avoid failures and simply by better managing the supply chain process. And in fuel efficiency, which is my personal favorite, we have been using advanced analytics, and we can save 10 to 20 kilos less few pre flights. But if you multiply that for 1,600 flights per day, it's extremely powerful. Each one of these initiatives and others proves how data science can translate into performance at scale. Enterprise transformation takes time, but technology is here today. So we are putting it in everyone's hands. So together with our efforts to redesign the organization and co-locate teams, we are pushing for high digital adoption and enabled across the organization. People now can use digital tools and AI, AI assistance to automate their work, enabling decentralized innovation when teams can solve their challenge by themselves. This combination of enterprise redesign in technology, decentralization accelerates change from both top down and bottom up. When you think about the passenger and the passenger journey, we want digital to mean simplicity and autonomy at every step of their journey. Our platform drives a 52% digital revenue share and our app is every month used for more than 4.3 million users. Our customers are empowered with self-service, 94% of the voluntary exchange are made by the passengers in that application. The way we like to think about it is that we want to put the airline in our passenger pockets. We are also now playing with the installation, right? The moment before you know where to go or you are even ready to buy the tickets. So we have a new AI concierge that it's now been receiving 1,700 daily visits of people that it's looking for places to go, ideas of what to do when they get there and things like that. On loyalty transformation, we are connecting our LATAM Pass customers beyond the flight. We're strengthening engagement, seeing a 44% growth in active members, a 30% increase in [ third party ] sales. Our focus on servicing has allowed us to reduce the complaints in 16% per members. We are turning the program into a complete ecosystem. We want it to be part of our customers' everyday life, not just the travel. The daily relationship that we can build here is key -- is a key growth for our premium revenue. By redesigning these experiences, passenger and loyalty now can operate as one ecosystem. This is a connected unified flywheel that means sharing platforms that is supported by platforms that are enterprise, customer identity, customer data, payments, personalization and soon to come and even better mobile experience. Today, we are creating this self-reinforcing flywheel. But also, we're also taking the technology to our cargo business. LATAM Cargo is that it's a -- it's our $1.4 billion revenue business. And we are now starting a data-driven transformation that is going to redefine air logistics. We are deploying network optimization analytics, AI-driven sales and servicing processes, digital documental and AI validation prototypes. All of that in its whole significant potential. For example, we have a 3D digital pallets model that are being tested right now and already indicates potential to add more or less 10 tons of [indiscernible] per flight leaving our Miami hub. Great results in cargo are expected to come really soon. We like to think that our transformation will never be done, a never-ending journey, as we say, of continuous evolution. Since 2019, we started with the passenger experience, putting the airline in our passenger hands followed by the maintenance transformation in 2022, loyalty in 2024 and cargo this year. What is going to come next? We're going to keep transforming the way we operate the journeys, but also, we also have been working a lot to redefine the internal functions in the organization like finance, HR, legal, for them to become a real business accelerators. And here are some of the results of those journeys. When you start from the customer and you redefine experience, the impact is visible. Our digital NPS went from 30 to 68 and we have captured more than $135 million in maintenance savings already. And we have achieved a 24% increase in transactions in our LATAM Pass program. As Roberto mentioned, we have also added 1,100 days of flights to our network planning. This is without adding any new aircraft. So we like to believe that digital is not just any strategic promise, right, it's delivering measurable business value today. Our future with digital is taking shape and gaining speed. We are using data and personalization to deepen customer connection and AI integration, transform our scale into speed, precision and efficiency. Digital is also helping us to maintain our cost advantage. And next, as Roberto mentioned, we are going to redesign and transform both passenger and aircraft processes in the 72 hours before each flight take off, which is called the operational window. We are going to take it to the next frontier of agility and real-time performance. With the foundation that we have built, we believe we are able to leverage our scale, customer trust and loyalty platforms to go after opportunities in new adjacent businesses, where our digital foundation gives us a clear competitive edge. We are positioned to create value not only within but ultimately, beyond aviation. Thank you very much.

Good morning, everyone. I'm Ricardo Bottas, CFO of LATAM Group. Today, I'm pleased to conclude this presentation session with our results. But beyond presented results and the consistent results that we have delivered so far, I think I have prepared this presentation to also have a look to the future. So we will discuss our guidance for 2026, we will also give a deep dive on the capital allocation structure and strategy that we have. And also, we will introduce for the first time, an aspiration for 2027. I think we are confident that LATAM holds all the necessary elements to keep creating sustainable value. So consistent with the results we have delivered so far, I think Roberto and Romero have mentioned about the revenues, but I think the overall outcome from these figures is that we are growing consistently from the top line to the bottom line. I think it's a consistent kind of delivery that we are delivering so far. Here, we have the figures from the last 3 years, including the guidance that we updated for 2025 on late November, strong growing. The only guidance that we are not providing here because we don't provide guidance for net income, we add these -- here the consensus from Bloomberg that -- which also is aligned with this top from the bottom growth. I think this -- another relevant part of the presentation, it's related with the way that we are growing profitably. I think LATAM Group leads the global food service carrier sector in capacity growth and also in margin generation. So we have here some data that's proving that we could deliver in a profitable growth way and manner in comparison with the peers that we have. We grow from the last 12 months ended by the Q3, we added growth capacity more than 9%, together with the adjusted operating margin also growing 15%. So we understand that the ability to deliver both capacity growth and margin expansion sets the group apart. Here's just a sections of slides that will outline the group combination in the way that we have grow financial discipline and execution. I think I will provide some additional color on the fleet levers delivers, the CapEx plan, also a deep look in the way that we manage our unit costs, how we can measure, how strong is our balance sheet and also an important figure is in the way that we are having the return on invested capital and the comparison with the average cost of capital. But most importantly here on the bottom, I think it's a very good recall our fundamental pillar based on our financial policy. The financial policy that was updated late last year, we disclosed to the market, but it's based on the liquidity -- to hold the liquidity range between 21% and 25% of the total revenues, to hold the level of net leverage below 2x and holding an aspiration to have BB+ rating. Here is the -- Ramiro presented the fleet plan. Here is the plan of deliveries. Some of the deliveries here, Ramiro already mentioned. But like just to point out, the wide-body deliveries that are expected to have next year, we will have one delivered still this month and 3 787s delivered for next year, planned for next year. It's an important delivery for support the growth plan and the network and all the information that Ramiro have presented, but also 38 narrow-bodies expected for next year. Actually, it's important to see the 2025 figures where we are close to conclude these 26 deliveries this year. Next year, 41 deliveries expected for next year, including the first 12 Embraers expected for the last quarter of next year. And for 2027, we have the remaining 12 from Embraer and also the first XLRs from Airbus. This -- the total fleet deliveries that we are expecting for next years. Romero already presented the size of the fleet plan. So you can get the information the way that we are having a combination of renewing new ads in terms of aircraft and seats. It's more than 12,000 seats up to the end of 2027. And also through these deliveries in terms of new generation aircraft. Actually, we are improving the penetration of the new generation aircraft in our fleet, total fleets from 30% to 43%, 13 percentage points by the end of 2027. And after all, as we presented last year, our strategy to also hold with this fleet plan, the average age of the fleet at/or below 12 years. Together with these deliveries, we have our CapEx plan. So the CapEx plan, we are close to conclude this $1.5 billion CapEx plan for this year, and we are projecting for the next 2 years to have a flat CapEx plan at $1.7 billion. It's important to remember that we also have the fleet deliveries inside this CapEx, but because we have an assumption to finance close to 85% and 100% of the fleet deliveries, the net part of this remaining part of these -- the fleet deliveries are included in the growth CapEx part. So we have the CapEx split between maintenance CapEx, which includes maintenance, engine, spare parts and et cetera. And also, we have the growth CapEx net of financing, which includes the small part of the fleet, net of financing, the cabin retrofits, the lounge investments and all digital initiatives included in this plan. And again, Including this plan, we also have and take a deep look in the limits and the commitments that we have from the financial policy that I have presented to you before -- on the slide before. It's a common question that we get from analysts and from investors regarding the way that we could and Roberto presented the combination of the way that we are improving the NPS and also the way that we are improving the premium revenues holding the stable level of the CASK, the unit costs that we have. And here, it's kind of based on the 2025 guidance and 2026 guidance, almost flat level of unit cost that we are projecting. Yes, the way that we see the pressures, the external factors that could put pressure on the unit cost, but also as presented by also Roberto, Ramiro, Juliana, the way that we could have internal efficiency and operational scale to compensate and to add a lot of improvements in the way that we could scale up this unit cost to hold this level and to have a real operational leverage to grow the company, to improve the size of the company, while concentrating in the way that we are improving our assets, but holding the unit cost as a non-negotiable driver for us. We have a lot of levers. We are adding here some key levers like suppliers, partnerships and negotiations. The digital initiatives, I think we got here some important examples. But see, remember the numbers that are included in the Roberto's presentation, more than 700 initiatives internally in the company working on this direction. The fleet efficiency for sure. I just mentioned the number of improvement the way that we have the penetration of the new generation in our fleet and our operational agility and scale as a relevant part. So just to give you more color that yes, we have pressure from inflation, we have pressure from escalations. Yes, we have volatility from FX, but also we have our internal ways to manage that potential impact. To give you some figures in terms of the way that we see our financial foundation strength, I think on these next 2 slides, I will give you some important figures, but I think some comparison also with the benchmarks. So in terms of net leverage, we have -- or we ended this quarter and expect to end this year, actually a little bit lower than 1.5x. These are the figures from the Q3 at 1.4x. This is the lowest for wide-body operating in the Americas. Also, we have the $1.5 billion revolving credit facility that we have fully undrawn represent close to 11% of our revenues. This is, on average, 2x higher than the level of the revolving facilities that our peers are having today. Important figures also. I think it's a common and regular figure that we provide to the market. The size of the fleet that we have unencumbered, 30% today. It's more than triple than LATAM's 2019 level. And the combination of the revolving credit facilities and the cash position that we have delivered so far 26% level of liquidity in a combination figures from revolving and also the cash position. We'll take a deep look on this liquidity figures, but -- for the future, but take this 26% as a reference. And this is the figures from Q3. Another important part of this strength from the balance sheet the way that we are working very hard to reduce the cost of capital of the company, we deliver from the last 18 months, 2 strong refinancing transactions concluding the fully -- the full transactions and the renegotiation of the 2 remaining bonds that's still holding a high level of costs. So we reduce on average the cost of debt in more than 400 basis points from the last 2 years. These represent more in terms of interest savings on a run rate basis, more than $150 million annually. Also, an important balance sheet strength is the maturity and the profile of our bonds. So there is no short and term -- midterm relevant materials. But yes, we still have 2 call options expected for next year and also for 2027, where we could take opportunities from the market and understand if we have an additional opportunity to extend the tenor of the debt that we have, in some way, evaluate if it makes sense to split these columns in terms of maturities for the long term, but also put those maturities in a more smoothly way and also trying to find ways to reduce even more the cost of debt. Here, it's another common question and I think it's also an absolute and a relative advantage that we see for LATAM's Group. The way that we have and manage common risks in our industry. FX risks, most common in our region, but also the full volatility and the full exposure in terms of the price. I think we are showing here an important figures in terms of how relevant is the penetration and the relevance of the hard currency in our total revenues, 63% of our revenues are in hard currency coming from mainly the international passenger business and cargo for sure. But I think it's important to let you all know that this is relevant and consider as a natural hedge for us. with this position, combined with the hedging instruments that we have planned for the next 12 months, but with a strong position more concentrated on the next 6 months. We have today close to $500 million in terms of forward instruments to protect ourselves against mainly about the risks related with the Brazilian real exposure with the size of the business that we have in Brazil. In terms of fuel, we also have an important combination the way that we see our booking curves and also we manage the risks concentrated also looking for the booking curves and also the expectations for the next 12 months consumption. We have more than 40% of the consumption expected for the next 6 months already covered by this kind of structure that could protect us to the way that the price could rise, but also we have alternatives through these haulers to also take advantage if the price goes down. I think all these elements support our ambition to achieve the aspiration to have a BB+ rating in terms of the financial strength. And here, it's an important comparison in the way that we are seeing and deliver the return on invested capital and the comparison with the return on invested capital with the average cost of capital from LATAM's Group. I think we are improving the spread on this return, and this outcome, a relevant outcome in the way that we are delivering profitable growth. Here, it's the capital allocation framework. It's the same that we have presented last year. So it's consistent with the framework that we have presented last year, we have presented last year, actually Ramiro presented last year. And I would like just to give you more color in the way that we see in the way that we use this capital allocation framework when we take our decisions. First, fund profitable growth. It's important to see the way that we are funding first the profitable growth through investments with good levels, return on invested capital to be accretive with the way that we are having these deliveries in terms of the profitable growth including fleet, ground, digital and other product enhancements to support customer experience. And again, as Roberto mentioned, no negotiable agreement to have and hold this cost efficiency and the cost containment discipline in the company, in the group. Second, maintaining a strong balance sheet. I think I gave you some examples in the way that we are having a high level of liquidity, low level of leverage. The size of the unencumbered assets. I just mentioned the fleet, but we have other unencumbered assets that are available. and also the hedge policy commitment that manage the risks and also provide the cash flow stability to the group. Also, in addition to this strong balance sheet strength, I think it's important to emphasize the way that we are working hard to reduce even more the cost of capital of the company. And finally, find the ways to enhance shareholder return. Here, I give you some examples. I'll provide additional examples, but the minimum of 30% dividends and also the possibility to have interim dividends and constantly evaluating ways to enhance shareholders' return. 2025, just to illustrate the way that we have used it and take decisions. We're using this capital allocation framework. After execute the CapEx plan that I have presented to you, $1.5 billion this year, we also delivered shareholder return, considering the minimum dividend payment in the second quarter and also this recent last week decision from the Board about the minimum -- sorry, the interim dividends that we disclosed to the market to $400 million to shareholders till this year. Also this year, in a separate way, we have and took different capital allocation decisions regarding our capital and we execute, approved by the Board and recommended from the Board to shareholders and approved by the shareholders, we execute to share buyback programs. This -- from our perspective, a recognition from the market in terms of the way that we are growing, recognition about our execution and the way that we are delivering consistent results to the market. A lot of events this year. It was a busy year in terms of capital markets, but I think the main message here is the share price evolution and the volumes evolution, the ADTV figures, I think it's a strong recognition in the way that we are delivering the combination of growth with consistency in our execution capacity. Here is the guidance that we have disclosed to the market last week for 2026. Just to highlight capacity growth between 8% and 10% from the guidance for 2025 that we just updated also later in November from 8% to 8.5%. The adjusted operating margin between 15% and 17%, and the cash generation to be above $1.7 billion. Also, the liquidity that we have disclosed to be above $5 billion from $4 billion this year. This $4 billion was before the interim dividends that we approved. But anyway, no change for the $5 million that we have disclosed for next year. And the net leverage to be at or below 1.4x, relatively stable with the level that we are forecasting to conclude this year. And here, it's an exercise when we take the numbers from the guidance on the left and the conditions and the restrictions and the commitments that we have with the financial policy on the -- in the middle to make an exercise just to understand from the figures that we disclosed, the way that we see after investing $1.7 billion in CapEx to fund a profitable growth strategy. Also after the minimum dividends that we are forecasting and also after the interest payments expected for next year, after all, between the range that we have in the financial policy between 21% and 25% to have a range of funds available for additional capital allocation between $1 billion and $1.6 billion. And finally, the aspirations that we are delivering for the first time, as I have mentioned before, for 2027 to have capacity growth mid- to high single digits, to have the return on invested capital above 20%, a profitable growth in terms of adjusted EBITDA, stable or expanding the level of margins and a cash generation above $1.5 billion. Just to conclude that part of my presentation, I want to summarize why we believe LATAM is uniquely positioned to welcome new heights. I think our investment thesis is built on key elements that we have all demonstrated today, consistent -- and first, consistent improved track record, top-tier profitable growth, expanded value creation, widening the spread between the returns and the cost of capital. Fourth, disciplined capital allocation, every dollar that we deploy is analyzed against our capital allocation framework, ensuring we never compromise our strategy and support our growth and our balance sheet strength. And finally, enhance shareholder return. Our goal is to translate this operational excellence into tangible returns to investors. We are committed to return the value we create to our shareholders. Thank you very much for your time and your confidence in LATAM. Thank you.

A big thank you to all of our presenters. We will now turn over to the Q&A segment. So I will invite our speakers up here to the front, and we'll just take a moment while we arrange the chairs. While we're doing that, just a reminder for those you that are via the webcast, for our webcast participants, you can submit questions at anytime via the Ask a Question text box below the broadcast screen. And in case that text box is not displayed, please click on Question Mark icon located in side bar to the left of your screen to display it. Perfect. For those of you that are in person, happy to take your questions. Please do raise your hand and we'd ask you to introduce yourself, name and where you're from, company. We'd appreciate that as well. Perfect. We are situated. So Joaquin will manage first question then.

I'm Pablo Monsivais from Barclays. My first question is a little bit more to understand the evolution of the premium revenues because you have said that -- just recently, you have a renewed focus in this segment, that has been very profitable. But I wanted to understand that this trajectory is more a function of your efforts to capture premium revenues or that the market in the region has become more discerning, as you have said. And also, if we should expect that to continue to be the case, if there's -- I see that the numbers that there's a still an untapped opportunity. But to understand a little bit more the dynamics of -- we finally saw this opportunity that we weren't covering properly in the past or perhaps just LATAM market has been coming a little bit more demanding and decommoditizing than in the past.

I think, Pablo, it's a combination of both. I think we have a more discerning market. But it is true that we have put a lot of efforts on communicating the characteristics and the attributes of our premium service much better. We have put more -- much more focus on that. In fact, we have worked with both the direct and indirect channel on how they're presenting the attributes of the premium cabins. And we're seeing a lot of traction. We're seeing load factors improving month after month. So I think it's a combination of having a good product, having a good service being on time. Everything that the ecosystem that Roberto presented, unfolding and the customer is seeing the different perception. If we're growing -- as I showed, we're growing 7% our premium cabins, it's because we believe that the demand is there. And this differentiation of the attributes continues to be appealing for, again, a rising affluent and middle class in South America.

if I can add, I think that there's untapped willingness to pay that we not necessarily have understood so well. And the question for me is, not only that is how do you keep it? How do you grow it? And what are the differentiators? And it's not 1 thing. It's not the network. It's not the FSP. It's a whole combination of things that we're doing at the same time that the data shows is evidence that people want to come back and travel with us. So I think -- I mean it's a rich industry. It's rich part of the world, even though it's relatively poor for that segment, and it's also much less viable in terms of the economic cycle. I think that there's still a large untapped pool of revenues that we have not captured. And what I like about what we are doing is that I think it is the combination of these factors that make it happen, which I think is very hard to replicate, because it's not only about the network or the multi-brand system, it's about the people, it's about the use of the technology. It's about putting all those things together. So for the third year in a row, we're seeing, as Ramiro was saying, very strong premium revenue coming in. And we are learning how to tap it even further because I think that there are still people that we haven't reached that we could. There is no reason why the behaviors we've seen in the group of people that are traveling with us cannot be achieved with other groups that probably we haven't penetrated yet.

Perfect. And a follow-up, if I may, in that same sense, you said that you have a 35% active members in LATAM Pass. What is your strategy to increase that to 45%? And what is the benchmark that probably you aspire to because I think that is also related to those premium passengers, the members, and they want to be Elite, Diamond whatever, and then they spend more and so on?

Yes, it's a very good combination, right? We're seeing our members increasing, and we're seeing them more engaged, and that number of transaction is increasing. So we're very focused on continuing developing the tools that we have invested on. We tried to think a little bit about how the retailer is doing, right, and how they engage their customers more frequency. We like to think about all members all day, right? How do we engage them more in the program. We have increased the number of commercial alliances but we're starting to be more selective on those that generate a little bit more traction on that engagement. We don't have a specific number. 35% of active users is already a very healthy number in the industry. We don't have a specific target. I'm more concerned on increasing the transactions and the miles redeem and getting the customer closer to the ecosystem that they feel LATAM closer. We don't have the frequencies in terms of contact points that the retailers have with our customers. We are more -- a little bit more sporadic on their contract. So we need to try to reduce that and to have more engagement, more frequent with our customers, and that's what we're focused on. And we level a lot with Juliana's team in terms of technology. There's a lot we're learning from experimentation and personalization and trying to trigger those engagements at different touch points through our membership. We have an advantage vis-a-vis our competitors that our loyalty program is so large that although we're not a retailer, we have a lot of information about those passengers and those members and what they do. And through the co-branded that we have with 8 different banks, we get a lot of information and we're capitalizing on both the information from the memberships, the information from the airline itself and the co-branded trying to generate more engagement with our customers.

I have a new target for you.

Thank you, Paulo. I appreciate it.

It's important. When you saw that I presented at 60% of the revenues come from frequent fliers, the target is 100%. I mean just as much as 0 claims that you see there, the target is 0. That doesn't mean it's easy to achieve or we'll achieve it in the short term, but that's the idea. What I'm trying to point out is the way we're approaching the business is, trying not to limit ourselves in the things that we can -- we talk about limitlessess -- Limitlessness, I think that's right where English as we think about how improving our operations. So 35% today, we'll see what we can do in 2026. But we approach the problem saying, let's aim for perfection. Let's not bound ourselves to things that apparently cannot be achieved. We have learned way too many times that you can break those mental barriers.

The challenge here, if I complement the discussions internally, we're having this, we want to engage the customer with something that generates value to the customer. We simply don't want to push things to the customer that do not impact their value. So we're trying -- recently, we provided our Black Signatures with the Essentialist membership. And we managed to do that, and that generates a lot of trigger for our travel business. That sort of thing generates value and links the brand closer to the member itself. Those are the sort of things we're trying to develop.

Michael Linenberg, Deutsche Bank. Two questions. Just I want to go back on premium. Why hasn't any other carrier really taken like the lead with premium in your region, maybe notwithstanding Aeromexico and its -- their markets are very different. You even had one big carrier in the region kind of remove premium and go to sort of bare bones, and I think they're now reversing. Is it -- is it a resource issue? Is it the fact that you're just so much better capitalized? I mean that you're able to do this? Because it just seems like you're the only one who's really doing that throughout the region. And that's for someone who's flown extensively through the region.

I don't know what our customers -- our competitors, we don't necessarily focus on them. We focus on what we can do. I think to be honest with you, Michael, is, as I said before, we were not necessarily as focused as we are. And it's been just a learning process and understanding that there's untapped potential. But if you want to talk about competition or competitiveness, the key now is, yes, people will probably try to imitate us, so how do we go one step further? And things like digitalization, technology, the people themselves. Those are the things that we believe are going to allow us to be always one step ahead. So we don't -- of course, we mind what they do, but we're focused on our strategy. We're seeing the results. We know, I think that we have found a way of making a very interesting case of almost double-digit growth and profit expansion at the same time in the industry that is not accustomed to that. And as we do this, we're strengthening our own levers and our own resource if you want. So more data, more passengers, more access to people, network is better. So the self-enforcement mechanism is very interesting. And what we need to do is just to keep the momentum, speed it up where we can, particularly with the use of technology, making sure that our people are fully engage in what they do. So yes, I think it's -- we found a very interesting way, I think, of developing this business in our part of the world. We see with not necessarily clear limits in the future.

Just one comment, just to add. There's -- when we talk -- the customer value proposition has 3 pillars, right? The choice, the dependability and care. The consistency in your key as well. Because with LATAM, you can choose a premium seat anywhere you want to fly with us. It's not limited to just a portion of the network or a type of aircraft is like you decide how you want to fly and there are customers that are willing to pay for that.

And my second question, I guess, that's to Ricardo. Why an aspiration for BB+, you're so close to greatness, but maybe that's next year's presentation. But the fact is, if you were investment grade, not only would it help your cost of debt, I think it would probably bring down your cost of equity even more because there are a lot of investors who would look at your company, but won't even make the investment unless at a minimum, it's investment grade. So again, maybe I'm setting you up and -- March notice to Roberto for what you're supposed to do next year, but I'm just curious why the double BB+.

I'm not mentioning that, that's the goal that I get from Ramiro and [indiscernible] I think it's -- first, it's not only feasible, but I think it's well aligned in the way that we see our capital allocation framework, the way that we are having funds for profitable growth and the combination of everything. We almost have our bonds investment grade. So that's the way that we see ourselves for the next step, will depend on the way that we are allocating then and cover assets in the structure. The potential real reduction in terms of the cost of that potential outcome to be investment grade or not and to understand the benefits that we could get from that situation. So I think that's my perception.

Okay. But you see our figures, very investment grade already. Yes. I mean there's some companies that are investment grade that have worse financial metrics than we are. We're just -- in the region where we are, which always is a little bit of a penalty, but we are managing ourselves as that. Now the question is, is it the track record that will take there, not necessarily changing anything that is there. And I think that is very well the possible case, but our metrics are there.

Filipe Nielsen from Citi. Thanks for the great event you're hosting. Just curious 2 topics about the fleet plan, being a little more specific on this topic. You mentioned a lot of deliveries, your plan, you're expecting in the coming years, very big plan for -- after 2027. Just wondering how are you positioned in terms of giving back some of the older aircraft? How is this fleet plan evolving in that side of the fence? So just trying to understand how this equates in terms of new incremental aircraft or only like receiving aircraft to reduce increase the efficiency, increase the experience new product, et cetera. And a second point, just regarding the XLR, you mentioned that those are coming in 2027. Curious how are you planning to deploy them in terms of new opportunities. So it's a very different product in terms of range, in terms of potential. Just trying to understand if you're planning to use them in the same routes that you're flying today to increase the frequencies or you're planning to expand to new routes to new markets with this product?

Let me take the first and you take the second. Fleet, interesting one and one we're thinking about a lot. First, do remember that we have the dynamics of the engine manufacturers or the airframer that sits around. Actually, we're going to phase out a significant number of our 319s a couple of years ago, and then the issues with the engines came in and we decided to keep them. So -- but I think that what we have learned over the years is that what's important about fleet is optionality and flexibility. So today, we're not necessarily bound ourselves to say we're going to renew the whole fleet very quickly because it's more efficient and so on. Actually, that's a very good case to make that the best ROIC possible is a combination of those things. And when you look at our efficiency drivers here and what we're thinking, that actually makes our fleet more -- or old better in terms of return on capital. So we don't need to hurry in terms of renewing our fleet so quickly if we keep our cost down because that is the best way of making sure that our assets are ultimately deployed. Lastly and very important, it's one of the mantras of industry is like you need to improve your cost by renewing the fleet. Of course, you can do the math, and it's very obvious that, yes, you can, but it's a very expensive way of doing that. So things like bringing digitalization into the business. I mean the example I gave you about maintenance. The best way actually of deployed capital today is not on the hardware, it's on the software. This industry, we won't see -- I don't think that we will see in the next 15 years, the next generation of narrow bodies. I think -- I mean just the issues with the engines today, and I hope the engine manufacturers realize that they need to fix the problem they have today before really embarking in a new risky venture. What this industry will be shaking from is going to be the inception of technology. You can probably do 5 or 10x better return on investment if you focus on how to take the technology and change the way that you are organized, this industry has not done it in the past. You see the examples of all the digital companies, companies that were born 10, 20, 30 years, they work very differently. And there is no reason why we can't aspire to do that. So of course, we have a fleet plan we want to grow. We want to, yes, change our oldest planes, but we retain the flexibility, and we're trying to be very clever in terms of really where we deploy the capital.

And maybe before I go on the routes, you care to comment a little bit on the product itself because I think it's interesting for you.

So the XLR we've worked to deploy it for longer flights. So comparing to the 321s that we have in the fleet day, it is an aircraft that will have a premium business cabin. We will have an economy cabin that's set for longer flights as well. So that means in seat screens for our customers. We know that, that's very relevant for our flights that are over 6, 7 hours. And it will absolutely be a winner for customers that are choosing that type of markets that we're going to be able to access. Down the road, we'll have more details as we get closer to it, but I can guarantee you that it will be very, very pleasing for our customers.

Having that in mind, you can very much did use that we're going to be using it for longer flights. Not the same destinations. We're thinking more about secondary cities in the U.S. and maybe Europe that we kept up on. We think it's an efficient aircraft, and we think that the premium business is going to be a game changer on that type of a graph.

Savi Syth from Raymond James. You talked about your partnerships and how they kind of help you become kind of a bigger network. I'm kind of curious, it's kind of clear what your kind of U.S. or North America partnership is. What's the Europe strategy there? You do have a combination and I was curious what the partnership situation I guess.

So first, we're extremely happy with our partners here in the U.S. We have opened new markets. They're selling a lot in our aircraft. We're seeing more traffic to the to Intercontinental U.S. than before. We have over 200 joint procurement contracts signed with customers. So we think that is going really well. In terms of Europe, we have bilateral agreements with the major players there. I think that the possibility that LATAM has of distributing traffic for them in South America, it's very unique. A one-stop shop that you can deliver to the 150 destinations we fly into South America. So I think that's very unique, and we are happy at this moment with those bilateral agreements.

That's helpful. And just -- again, I was wondering if you could talk a little bit about corporate and how that's changed and what role it plays in network because it seems like premium on the leisure side has been really kind of gaining traction. But curious how corporate looks today versus kind of pre-pandemic and the share and everything else? And maybe even how digital is playing in addressing the corporate side of things?

I'm happy to take a first stab at it, and then I'll let my colleagues complement. We're seeing increased market shares in all the domestic markets that we operate and in international. Depending on the market, it's an increase in 2025 from 2 percentage points to 3 percentage points on market share itself. We think that the value proposition. And again, it's a little bit holistic. It's the loyalty program that is very strong. It's a product that is very differential. It's the network that provides the necessary [ fix ]. It's the premium slot in the specific airports that the corporate customer wants to fly. It's not easy to replicate all of this, right? It's the digital service that Julian is going to comment about. So we're seeing corporate growing, and we're very happy with how we're presenting our product to the corporate segment, and we're seeing the traction.

Maybe to complement. And traditionally in our industry, the channel that sells the ticket owns the reservation somehow. And one thing that we have been investing since the beginning when we talked about 2019, 2020, it is the ability to give control back to the passenger at any regardless on where the tickets and how the ticket was issued. And this was one of the most relevant challenge that we took with the team to break down some sort of the old core systems, legacy system conditions that are there to really empower the passenger. And I think this has been paying off as an advantage because you can really do more, the passenger can do more with their reservation than before. And that is very important for the corporate passenger.

Perfect. We received 2 questions from the webcast that I will merge into one. But essentially, we have received a question regarding, could we please outline capital allocation priorities with regard to investments, M&A, returns to shareholders? And for example, what we expect in terms of the dividend policy, given recent tax changes in Brazil and the available funds?

Okay. So the idea here today was to present after investment, the investment that we are planning for next year, which is, again, $1.7 billion for next year, including the deliveries for the 41 aircraft that we are projecting for next year to have that range available for future decisions. We have to take a look on that capital allocation framework to understand in the way that we are improving and funding in the profitable way, the investments for growth, still holding the strength of the balance sheet and then take together with the Board some recommendations in the way that we could, study and evaluate all alternatives for capital allocation. Remember also that under the Chilean law, we have the minimum 30% dividend established. So at least the 30% dividend should be included in these capital allocation decisions. Future decisions should be taken in the future.

But probably just to complement on Ricardo. At the end of the day, a high-level view of LATAM, I think, is very simple. We have been able to fund growth that is close to 10%. And on top of that has -- have levered free cash flow that is on top of 10% of revenues of the company. So we're financing at a very accelerated pace of growth and having funds available that will either be reinvested in the business or redistributed to shareholders. But the priorities are clear. First, we invest in the business. Anything on top of that will be used as distribution to shareholders or rebalancing of the capital if we believe that we should pay debt or anything like that. But the financial policy is very clear, it's stable, and that is what guides at the end of the day, the decisions we're making.

Jens from Morgan Stanley. Quick question on Brazil. Obviously, things have been very good. Demand has been very high, exceeding capacity growth in the market. But looking ahead, how worried are you about your competition increasing capacity and maybe mitigating those risks? And secondly, on the -- like the fleet plan, just wondering, I think you have wide bodies at 60 in 2027, which would be a reduction versus 2026. You probably have a few like aircraft returning or giving them back. So -- but demand has been also very good for long range, right, and wide-body travel. So what options do you have there to mitigate that reduction versus 2026?

So regarding Brazil, I personally feel very confident on our value proposition in Brazil. We have been able to again, gain corporate market share. I think our value proposition is very distinct to Michael's earlier point than our competitors. I think our work with indirect channel gets us really closer than what we were before. I think that the loyalty program is as strong as ever. We've just been awarded the most recognized program even ahead of the banks today in Brazil. So I feel very confident on what we're doing in Brazil and the position we have gained in key airports in Brazil is a position we never had before. I mean the position we have in Guarulhos, in Congonhas, in Brasilia, how we're focusing on certain select cities in order to improve our presence there. It's a position of strength of the network that we didn't have before. So we'll see what the competitors do. I cannot get ahead of myself. but I think that having the right cost structure, with the right value proposition with the right network, with the premium slots at the key airports, it's a value proposition that is very, very strong and very difficult to replicate. Regarding your second question, I don't recall us reducing wide-bodies throughout the '26 and '27.

And we have 2 wide leases today that we took because of the issue with the Rolls engines. So we're keeping those for now. But in the plan, they are being returned in 2027. So it's not our own fleet, it's just toward leases that were...

And those if needed?

We could eventually, we could eventually. but it's not our own fleet.

We have another question coming in from the webcast with regard to cargo. So it's as you expect a higher growth from cargo in 2026 in the guidance than you did for 2025. What is driving that growth? And what are your expectations for cargo performance and yields in 2026?

Yes. So cargo capacity is growing on the back of wide-body belly capacity. So we're not adding freighters to the network. We're stable at the number of -- we have 20 today. But the important expansion that Ramiro talked about in terms of international brings back on the belly side, the growth in cargo. So that's the driver of growth. We have seen a good 2025, it's been a good year. The end of 2024 was really strong after a relatively weak first part of 2024, 2025 has been more stable and a stronger level than throughout the year prior. A little bit of weakness in certain markets just now, Fruit out of Chile, a little bit -- the season has not been great, but that doesn't impair the strength of the business. And we see a stable 2026, in terms of cargo in terms of unit revenues with this 6% approximately incremental capacity coming mostly, as I said, of the back of the wide-bodies.

I'll take another one from the webcast then. This 1 is from Julian Cook from ATCA Capital. When COVID hit, you were one of the first airlines in the world to file for Chapter 11. If COVID were to happen again now, would you also file for Chapter 11 very quickly? If not, what has changed that will enable you to avoid this outcome?

Oh my God. Do I need to answer?

Sorry to traumatize.

No, I think -- I mean, we've run stress tests on our performance going forward, understand how our policy and the numbers stack to not a pandemic because we'll hopefully never get to see that again. But we believe that the structure we have put in front of us is extremely strong and able to withstand significant impacts going forward. Having said that, one of the things I said in the beginning of my presentation, do remember about relative strength. So let's say you have a crisis. Let's say we have a crisis. It could be anything. It could be fuel goes to $150, many things. Question is what are we going to do and what our competitors going to do? And how do we take advantage of the relative financial strength that we have. So it is a little bit odd to say, but in a way, I always see an opportunity today in what we can do if there is a crisis in front us. I think that LATAM has positioned itself to take advantage of a good run, if you want, but also take advantage of a difficult moment in the industry. And that's key and it's front and center. We learned a ton through these 5 or 6 years of -- the thing that we did not do well and the things that we do well. And I think we're very equipped to very well equipped as an organization to withstand a cycle, if that comes and of course, with an eye in the opportunity that, that can bring.

Somewhat tied to this. Can I ask you on the margin front? I remember kind of pre-COVID, 10% was aspirational and it's significantly higher. I'd be kind of curious to understand just -- you have to kind of break down what components of that is driven by like premium kind of that you've driven digital costs? Like what's driving that margin strength? And like what's structural versus cyclical?

Honestly, I mean, I don't think that you can break down revenues and costs so easily here because, I mean, just by keeping our costs stable, you could eventually argue for margin improvement. But at the same time, we are improving our revenue mix, which adds to the question. For me, it's not one thing. For me, it's just paying attention to all of these things that at the end of the day impact what we do on a day-to-day basis. As I said before, it's funny because when you go through a restructuring and you have the opportunity to look at everything. And we did that. We use the -- the moment when the operation wasn't happening, hibernation, what we used to call it, just to look at ourselves from scratch. So we did zero-based budgeting in all the operational areas, we actually found that a lot of efficiencies, many paradigms were thrown out of the window. And then you would say, okay, after that, how do you continue you just achieved that much? And year after year, we have been able to find ways of decreasing our cost base and finding improvements that we hadn't expected to find a couple of years ago. And we believe, honestly, that with the use of technology, we have a new tool. And we have learned in the last 4, 5 years, we did not talk about this so much last year. And we did not on purpose because we didn't think necessarily that we were prepared to talk about it as we're talking today. I think that we have matured. Today, we're moving from partial to if you want advanced. Advanced is probably a little bit of an overstatement still. It's a large organization, but on the way to advance in terms of how do we adapt to technology. And I'm surprised to see the teams every day coming with things that you would have never dreamed with the old setting and with the old rules. So I don't think that there is a reason why you don't -- you need to think about stopping in terms of the efficiency. Again, I think this is going to be the disruptor. I mean, we used to talk about digitalization of our technology on the customer front. And here we talked about and find, and we found a huge amount of value there. There's a very untapped potential in terms of optimizing the operation. The operation, ex-fuel, we spent more than $10 million every year. How much of it is there that we can do better, a ton for sure. So that's why I come back to this ecosystem, if you want, because I don't think that there is one key. It's a combination of them. We just have to put them in the right sequence, if you want. And I think that we have achieved that and with focus and obsession in a way in execution, making sure that our customers feel that they are being taken care of, that the organization is in the right mental place. That's our framework. It's relatively simple at the end of the day. It takes a lot of work to make it happen, and that's our job. But we're very happy with what we have in front of us. So boundless, again, let's see where all these things can take us.

Another question here from the webcast. Could you please give us some color on the RASK and yield assumptions that are implied in your 2026 guidance?

I don't know how much I can say, but you stop me whenever you want. I think that...

Just a little bit.

So we're -- for the past years, we mentioned it before, right? We have been growing the company and improving our revenue per ASKs. When we think about growth at these levels that we presented to you, 8% to 10% on a blended basis. We tend to think about RASK being flattish. It is true that we have been outperforming that in the past years, and we see a strong position, strong competitive environment for us, and we see our business is performing really well, but the assumption is RASK tending to be flattish in the guidance that we presented to the market.

With almost 10% growth.

With 10% growth. So that's the balance we need to think about.

I will take one other one from the webcast. It says, could you provide us some color on regulatory issues that may have a negative impact on air travel demand in LATAM Airlines key markets? How is LATAM Airlines prepared to deal with those eventual risks compared to its competitors?

That's a good question. To be honest, I think that the regulatory front has been active forever and probably here in the U.S. as well. So this is something that we, of course, manage and live with all along. I would say that the most important places where we are focusing today is, some countries would like to rebundle the unbundling of the product. So basically not allowing you to charge for the bag or charge for the seat. There's a number of projects going out there. It's been for years as well. And -- but we don't see today that as something like in our face. To be honest, as well, I mean, this would probably impact more ULCCs and low-cost carriers on a relative basis more than us. And there's a lot of there's a lot of public policy creativeness, if you want, in Brazil. There is a law that was passed by the lower chamber a couple of months ago with respect to not allowing to unbundle again the bag and the seat for domestic and eventually for international, that sits today in the Senate. I think that the country has understood and the regulators are actually the President of ANAC came out and said that he believed that this was bad for the industry. So I guess, the challenge we have is just to explain why this is better for the customer altogether because it allows the customer to choose and peak and not necessarily pay for what the customer doesn't want. I think we have the challenge to explain it well. And we do that a lot of time. But of course, not everybody understands it or we haven't been able to reach everyone. But the regulatory framework is dynamic everywhere. I think that the geopolitical landscape is dynamic everywhere and as an organization, the question is how prepared are we to face these challenges. And one of the things we talk about a lot is agility. It's just the ability to adapt do anything that changes, whether it's fuel or the geopolitical challenges or tariffs or everything. And so far, I think we've done a good job. So we spend a lot of time just making sure that we behave in a way that allows to keep our options open most of the time.

Perfect. I have another one here from the webcast with regards to market development. So how do we see the market developments occurring now in Argentina and how the approval of the joint venture with Delta has been working in Argentina.

So I'll take the first part. You take the JV. So it's an interesting country, Argentina. I lived there for 3 years. I was there to open in Argentina way back in 2005, a difficult country to do business, to be honest. Argentina is the most important market south of our hubs. So as a feeder, it will always be an important market. And we are -- today, we compete to be the first or the second in terms of passengers internationally carried out of Argentina. And that's been our focus and will continue to be our focus. We're inaugurating a number of routes internationally from Argentina over the last months and now into 2026, and we will continue to do that. And we see, honestly, I see particularly Argentina with a mix of optimism and caution. It's a country that changes a lot all the time. I think that the set of policies that have been put together probably will allow the country to go into a different phase than in the previous governments. But I think we -- at least I need a little bit more evidence on how this will go through. We have a potential reelection of the present in 2 years. So there's still many things that will be in front of us in the upcoming years. But the rest assured that Argentina becomes -- is an important market for us just because of the size and the location of it.

Yes. Absolutely. Regarding the JV, I think I think we're working really well with Delta. As I mentioned before, I think that the value proposition of us flying say, Miami, then fly into JFK, the flying to Atlanta is very powerful. It was a piece of the puzzle that we were missing. The JV has been growing, right? We added Ecuador A few years ago, we added cargo. Now we're adding Argentina, which will be the last significant part of the puzzle that we were missing, and it's performing really well. So far, we are in the first week of our flights, and it's really performing well. So we're very happy with that inclusion of Argentina into the JV.

Perfect. Another question from the webcast. What do you think is the main explanation for the stock price still reflecting -- not reflecting maybe all of the value of the company, which undoubtedly shows impressive numbers in cash flow generation.

I guess that's a question we have to ask you guys. Listen, I mean I think our job is to demonstrate performance. And I think that we have done that and we do understand that confidence and trust comes out from continuous delivery, an open and honest message to our community, to our customers. And that's we're here for. We're confident of what we've done. 2026 will be the third year with almost in a row with almost double-digit growth and enhancing our very stable high margins. And we are here to show you that what we have done is enduring, and that's our focus to make it sure that we just show the investor community in the world that we have been able to build a model and ecosystem that is self-sustaining and that can prove to be reliable over time. The rest is for the market to judge. But we will do and we, I think, are doing our part.

And manage, if I may add, managing the capital and allocate the capital in the way that we showed to you, I think it's a relevant part of this outcome.

I like to open it up if there's any 1 or 2 more questions on the audience here. Otherwise, I have one on probably closing questions from the webcast, but I do want to give priority to those that are here. Okay. Then the last question that we have is with regard to, the incorporation of a new kind of aircraft can naturally and in this case, referring to Embraer, can naturally create cost pressures and CASK is slightly rising in next year's guidance. How do you plan to mitigate those pressures?

I -- it's interesting in the perspective of adding an additional fleet to be directly related to cost increases. Of course, you have another fleet, you have another group of pilots. It's not -- of course, it adds a layer of additional work. But -- I mean, we have relatively low fleets, 9 767s, 10 777s. We know how to operate relatively small fleets with the level of efficiency you have seen here. The E2 is a great aircraft. We're very proud to have it in our colors. And even though in the first stage, we're not expecting to use it as a replacement aircraft to our current fleet. We already operate an aircraft of the same size of the E2, which is the 319 [indiscernible] by the way. So that can even be a potential lever with the options we have to act as a replacement of that fleet that will enable to do things that we cannot do today with the 319 just because of the operational efficiency of it. So I think that we have made focused plans in terms of bringing this fleet without significant complications to our operation. I think that we have learned to do that. Of course, there's always a limit or where you can increase complexity where we believe we're very well into those bonds. We have learned to simplify the way we work this company when LAN merged LATAM, it was a very complicated structure. And today, it's very simple. It's run as a single -- even though it's a group of earnings as a single network, a very simple fashion, but that allows us to be in 5 markets, at the same time, capturing 30% of the traffic with an organization that works very quickly, very fast and very agile.

Wonderful. Well, thank you then. That wraps up our Q&A for the day. And I would just like to turn it over once more to Roberto for a few closing remarks.

[indiscernible] no, thank you very much for attending and for spending almost 3 hours with us. I hope this was a good discussion, and we were able to convey our messages and the strength of what we have created for me. If I can leave you with 2 concepts, very simple concepts. One is profitable growth, which is not necessarily something you normally see in this industry. We see that we have the ability to keep on doing that into '26 and with the goal of expanding that further in the year. And obsession in terms of making sure that we can execute for our customers and having our people front end and center in our minds. The recipe is not complex in terms of the things we want to do. It's difficult to replicate, we believe, and we will work in making sure that it becomes more solid. But we're very pleased with the results so far, very happy and very proud of the 40,000 strong, 40,000 people strong. I think you say in English that on a day-to-day basis, make this happen. So thank you again for your time. It's been a pleasure.

Thank you, all.