General Given the nature of its business, LATAM is exposed mainly to three types of market risk: •Fuel price fluctuations; •Foreign exchange fluctuations; and •Interest rate fluctuations. Management assesses the level of our exposure to these risks periodically to determine which one should be hedged and the most effective mechanisms to be implemented. LATAM purchases derivative instruments in foreign markets to offset market risk exposure, typically utilizing a mix of financial and commodity derivatives. LATAM does not enter into or hold derivative contracts for trading purposes. For more information on Market Risk, see Note 3 to our audited consolidated financial statements. Risk of Fluctuations in Fuel Prices Jet fuel price fluctuations are largely dependent on supply and demand for crude oil, OPEC decisions, refinery capacities, stock levels of crude oil, natural disasters, climatic risk and geopolitical factors. LATAM fuel consumption for 2025 was 1,444.0 million gallons. To manage its exposure to the cost of fuel, the Company maintains a Fuel Hedging Manual that defines its hedging strategy. Updates to the Manual and the overall hedging strategy are reported to the Board of Directors and the Finance Committee. Exceptions to the Fuel Hedging Manual require approval of the Executive Committee. Jet Fuel is not the only underlying asset that LATAM may use for hedging purposes. It may also consider derivative instruments in other underlying commodity assets such as ICE Brent, West Texas Intermediate (WTI) or NYMEX Heating Oil (HO). 143 LATAM has decided to use protective and non-speculative instruments to reduce the operating margin exposure. Also, LATAM will not use financial derivatives to speculate on financial markets and consequently obtain gains from these types of transactions, and will not receive premiums as cash from sold options (nevertheless LATAM could buy and sell options as a structured product). LATAM periodically reviews its exposure with each counterparty in order to monitor its credit concentration. For more information, see “Item 3. Key Information—D. Risk Factors—Risks Relating to our Business—Our operations are subject to fluctuations in the supply and cost of jet fuel, which could adversely impact our business.” During 2025, 2024, and 2023 we entered into a mix of swaps and option contracts on JET FUEL 54 USGC with investment grade rated banks. Details of the fuel hedging program are shown below: LATAM Fuel Hedging Year ended December 31, 2025 LATAM 2024 LATAM 2023 LATAM Gallons Purchased / Hedged (million) 743.3 614.2 499.6 % Total Annual Fuel Consumption 51.2 % 43.6 % 41.6 % Combined Result of Hedges (in millions of US$ net of premiums) (19.1) (18.0) 15.7 ______________________________________________________ As of December 31, 2025, the fair value of our outstanding fuel related derivative contracts was US$14.0 million (positive). Gains and losses on the hedging contracts outlined above are recognized as a cost of sales in the income statement when the fuel subject to the hedge is consumed. Premiums paid related to fuel derivative contracts are recorded as prepaid expenses (current assets) and recorded as an expense at the time the contract expires. Under IFRS Accounting Standards, the fair value of the hedging derivatives is booked as a non-current asset or liability if the remaining maturity of the item is hedged for more than 12 months, and as a current asset or liability if the remaining term of the item is hedged for less than 12 months. The fair value of the derivative contracts is deferred within an equity reserve account. See Note 2.9 to our audited consolidated financial statements. As the current positions do not represent changes in cash flows but a variation in the exposure to the market value, the Company’s current hedge positions have no impact on income; they are booked as cash flow hedge contracts, so a variation in fuel prices has an impact on the Company’s net equity. The following table shows the sensitivity analysis of our hedging contracts to reasonable changes in fuel prices and their effect on equity. The term used for the projection was December 31, 2026, the last maturity date of our current fuel hedge contracts. The calculations were made considering a parallel movement of US$5 per barrel in the curve of the JET futures benchmark price at the end of December 2025, 2024 and 2023. LATAM fuel price sensitivity position as of December 31, 2025 LATAM(effect on equity) 2024 LATAM (effect on equity) 2023 LATAM (effect on equity) (millions of US$ per barrel) HO or JET benchmark price +5 +17.6 +15.7 +10.8 -5 -15.1 -12.8 -10.7 During the periods presented, the Company has not recorded amounts for ineffectiveness in the consolidated income statement pursuant to IFRS Accounting Standards principles for recognizing and measuring financial instruments. Given the fuel hedge structure during the year 2025, which considers a portion free of hedge, a vertical drop of US$5 in the JET reference price (considered as the monthly daily average), would have had an approximate impact of 144 US$142.0 million lower fuel cost. For the same period, a vertical increase of US$5 dollars in the JET reference price (considered as the monthly daily average), would have had an approximate impact of US$131.5 million higher fuel costs. Risk of Variation in Foreign Exchange Rates The functional currency of the LATAM holding company is the U.S. dollar. Since LATAM conducts its business in local currencies in several countries, it faces the risk of variations in multiple foreign currency exchange rates. Depreciation of these currencies against the U.S. dollar could have adverse effects both transactional and translational, because part of our revenues and expenses are denominated in those currencies. At the same time, LATAM’s affiliates are exposed to foreign exchange risk, which could in turn impact the consolidated results of the Company. The greatest exposure to future cash flows is mainly presented by the subsidiary LATAM Airlines Brazil and volatility in the R$/US$ exchange rate. LATAM Airlines Brazil’s earnings are generated largely in Brazilian reais. We actively manage the R$/US$ exchange rate risk by entering into foreign exchange derivative contracts and carrying out internal operations for obtaining natural hedging. To a lesser extent, the company also faces foreign exchange risk relating to additional currencies such as: Euro, Chilean Peso, Australian Dollars, Argentine Peso, Peruvian Nuevo Sol, Colombian Peso and New Zealand Dollars. Those currencies could be hedged as long as they turn relevant (higher exposure and volatility) to the LATAM’s market risk management. As of December 31, 2025, LATAM has US$355.0 million in notional for Brazilian reais foreign exchange hedges. Because of changes in the values of existing foreign exchange derivative positions do not represent changes in cash flows, but a variation in the exposure of market value, the outstanding hedging positions do not impact results (they are registered as cash flow hedges under IFRS Accounting Standards, therefore, a change in the foreign exchange rate has an impact on the equity of the Company). Balance sheet exposure of LATAM to the Brazilian Real is related to the functional currency of LATAM Airlines Brazil and its balance sheet currency mismatch, as LATAM Airlines Brazil has a net active position in U.S dollars. When the balance sheet denominated in U.S. dollars is translated to Brazilian Real, the financial results of LATAM Airlines Brazil may fluctuate and therefore could impact LATAM’s financial results. The exposure to the Brazilian real on LATAM Airlines Brazil balance sheet has been reduced from over US$4 billion since the merger between LAN and TAM in June 2012 to around US$597 million as of December 31, 2025. The Company continues working to mitigate this exposure through financial and operational mechanisms. The following table shows the sensitivity of LATAM Airlines Brazil’s financial results to changes in the R$/US$ exchange rate: LATAM Airlines Brazil exchange rate sensitivity Position effect on pre-tax earnings as of December 31, 2025 LATAM 2024 LATAM 2023 LATAM (millions of US$) Appreciation (depreciation) of R$/US$ -10% -59.7 -54.7 -6.6 +10% +59.7 +54.7 +6.6 145 Our foreign currency exchange exposure as of December 31, 2025 was as follows: LATAM foreign currency exchange exposure U.S. Dollars MUS$ % of total Brazilian real MUS$ % of total Chilean pesos MUS$ % of total Other currencies MUS$ % of total Total MUS$ Current assets 1,821,833 41.6 % 1,710,228 39.0 % 413,805 9.4 % 437,346 10.0 % 4,383,212 Other assets 11,283,665 85.1 % 1,543,888 11.6 % 114,003 0.9 % 316,123 2.4 % 13,257,679 Total assets 13,105,498 74.3 % 3,254,116 18.4 % 527,808 3.0 % 753,469 4.3 % 17,640,891 Current liabilities 2,506,542 34.4 % 1,088,157 14.9 % 1,176,571 16.1 % 2,523,124 34.6 % 7,294,394 Long-term liabilities 7,675,888 85.2 % 730,631 8.1 % 362,312 4.0 % 240,464 2.7 % 9,009,295 Total liabilities 10,182,430 62.5 % 1,818,788 11.2 % 1,538,883 9.4 % 2,763,588 17.0 % 16,303,689 Total equity 1,337,202 100.0 % — — — 1,337,202 Total liabilities and equity 11,519,632 65.3 % 1,818,788 10.3 % 1,538,883 8.7 % 2,763,588 15.7 % 17,640,891 Risk of Fluctuations in Interest Rates As of December 31, 2025, LATAM had US$4.3 billion in outstanding interest-bearing loans. LATAM usually uses interest rate derivatives to reduce the impact of an increase of interest rates. Given this situation, approximately 66% of LATAM outstanding debt as of December 31, 2025, was effectively at a fixed rate. LATAM’s interest-bearing loans can be classified by: variable interest rate debt and fixed interest rate. LATAM’s variable interest rate debt amounts to US$1.4 billion, from which 100% is assigned to aircraft financing. The fixed interest rate debt amounts are US$2,847 million of which 17% is assigned to aircraft financing and 83% to non-aircraft financing. As of December 31, 2025, the Company did not maintain interest rate derivative positions in force. As of December 31, 2024, the value of interest rate derivative positions amounted to US$4.7 million (positive) corresponding to operating lease hedges in order to fix the rents upon delivery of the aircraft. As of December 31, 2025, the Company did not recognize any losses for premiums paid. As of December 31, 2024, the Company did not recognize any losses for premiums paid. As of December 31, 2025, the Company recognized a decrease in the right-of-use asset due to the expiration of derivatives for US$2.2 million (positive) associated with aircraft leases. As of December 31, 2024, the Company recognized an increase in the right-of-use asset due to the expiration of derivatives for US$82,000 associated with aircraft leases. As of December 31, 2025, a lower depreciation expense of the right-of-use asset for US$2.0 million (positive) was recognized. As of December 31, 2024, a lower depreciation expense of the right-of-use asset for US$1.9 million (positive) was recognized for this same concept. As of December 31, 2025, the average interest rate of our outstanding interest-bearing long-term debt rate was 6.6%. The following table summarizes our principal payment obligations on all of our interest-bearing debt as of December 31, 2025, and the related average interest rate for such debt. The average interest rate has been calculated based on the prevailing interest rate on December 31, 2025 for each loan. LATAM’s principal payment obligations by year of expected maturity(1) Averageinterest rate(2) 2026 2027 2028 2029 2030 2031 and thereafter (millions of US$) Interest-bearing liabilities 6.6% 250 239 516 222 1,545 1,523 ______________________________________________________ (1)At cost. (2)Average interest rate means the average prevailing interest rate on our debt on December 31, 2025. 146 The following table shows the sensitivity of changes in our long-term interest-bearing liabilities and capital leases that are not hedged against interest-rate variations. These changes are considered reasonably possible based on current market conditions. LATAM’s interest rate sensitivity (effect on pre-tax earnings) Position as of December 31, 2025 LATAM 2024 LATAM 2023 LATAM (millions of US$) Increase (decrease) of future curve SOFR rate +100 basis points -14.35 -9.28 -20.27 -100 basis points +14.35 +9.28 +20.27 Changes in market conditions produce a change in the valuation of current financial instruments hedging against fluctuations in interest rates, causing an effect on the Company’s equity (because they are booked as cash-flow hedges). These changes are considered reasonably possible based on current market conditions. The calculations were made by increasing (decreasing) 100 basis points of the interest rate curve. LATAM’s interest rate sensitivity (effect on equity) Position as of December 31, 2025 LATAM 2024 LATAM 2023 LATAM (millions of US$) Increase (decrease) interest rate curve Future Rates +100 basis points — +5.9 — -100 basis points — -6.3 — During the periods presented, the Company did not record any losses for ineffectiveness in the consolidated income statement for this type of coverage. There are market-related limitations in the method used for the sensitivity analysis. These limitations derive from the fact that the levels indicated by the futures curves may not be necessarily met and may change in each period.