Leadership

Experienced Executive Team: CEO Roberto Alvo and CFO Ricardo Dourado have demonstrated strong industry expertise, guiding LATAM through a complex restructuring and post-bankruptcy recovery, which has restored operational and financial stability.

Credibility and Stakeholder Confidence: Management has consistently delivered on guidance, with recent earnings and operational metrics exceeding analyst expectations, reinforcing credibility with investors and analysts.

Vision for Sustainable Growth: Leadership has articulated a clear strategy focused on operational efficiency, network expansion, and disciplined financial management, positioning LATAM as a leading carrier in Latin America.

LATAM’s executive team has proven its ability to navigate industry disruptions and execute a credible turnaround, earning strong marks for experience, vision, and stakeholder trust.

Strategy Execution

Consistent Outperformance of Estimates: LATAM has exceeded revenue and EPS consensus estimates in recent quarters, with Q3 2025 revenue up 17.3% year-over-year and EPS surpassing expectations, reflecting effective execution.

Operational Efficiency Gains: Key passenger metrics such as load factor and revenue per ASK have outperformed, indicating successful capacity and pricing management in a competitive environment.

Resilient Recovery Post-Restructuring: Following its emergence from Chapter 11, LATAM has demonstrated robust growth and margin improvement, outperforming many regional and global peers in both financial and operational recovery.

LATAM’s management has delivered strong operational and financial results, validating its strategic priorities and execution capabilities in a challenging sector.

Capital Allocation

Improved Liquidity and Debt Reduction: LATAM has strengthened its balance sheet post-bankruptcy, reducing debt and maintaining solid liquidity, which supports operational flexibility.

Leverage Has Improved Further: Net debt to EBITDA has improved to 1.71x from the prior 2.26x reference, indicating continued deleveraging and a stronger balance sheet than previously reflected.

Disciplined Investment Focus: Management has prioritized operational investments and network optimization over aggressive buybacks or dividends, reflecting a cautious approach to capital deployment.

While LATAM has made significant progress in deleveraging and liquidity management, leverage has improved further, though capital allocation flexibility remains more constrained than best-in-class peers.

Governance

Board Independence and Oversight: LATAM’s board includes independent directors and has overseen the company’s restructuring and recovery, but the level of independence and diversity is less robust than some global peers.

Transparency and Reporting: The company provides regular, detailed financial disclosures and earnings calls, supporting transparency for investors.

Shareholder Alignment: Insider ownership stands at 7.8%, which is moderate and suggests some alignment, though institutional ownership is lower than some competitors, potentially limiting external oversight.

Governance practices are adequate and have supported the company’s turnaround, but there is room for improvement in board independence and shareholder alignment.

Succession Planning

Recent Leadership Stability: The current CEO and CFO have provided stability through the restructuring, but there is limited public disclosure on broader executive bench strength.

Continuity Post-Restructuring: Leadership continuity has been maintained since emergence from bankruptcy, supporting operational consistency.

Limited Depth Disclosure: There is insufficient evidence of a formalized succession plan or depth of leadership pipeline compared to global best practices.

LATAM’s top management has delivered stability, but succession planning depth and transparency are less developed than at leading global airlines.

Overall Score

LATAM’s management team has demonstrated strong leadership and execution through a challenging restructuring and recovery, with clear strategic vision and operational discipline. While capital allocation and governance are solid, leverage has improved further and high leverage remains a constraint. Relative to regional peers, management quality is strong, though some global leaders set a higher bar.