LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES INTERIM CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2021 CONTENTS Interim Consolidated Statement of Financial Position Interim Consolidated Statement of Income by Function Interim Consolidated Statement of Comprehensive Income Interim Consolidated Statement of Changes in Equity Interim Consolidated Statement of Cash Flows - Direct Method Notes to the Interim Consolidated Financial Statements CLP - CHILEAN PESO ARS - ARGENTINE PESO US$ - UNITED STATES DOLLAR THUS$ - THOUSANDS OF UNITED STATES DOLLARS MUS$ - MILLIONS OF UNITED STATES DOLLARS COP - COLOMBIAN PESO BRL/R$ - BRAZILIAN REAL THR$ - THOUSANDS OF BRAZILIAN REAL REPORT OF INDEPENDENT AUDITORS (Free translation from the original in Spanish) Santiago, May 6, 2021 To the Board of Directors and Shareholders of Latam Airlines Group S.A. We have reviewed the accompanying interim consolidated statement of financial position of Latam Airlines Group S.A. and subsidiaries as of March 31, 2021, and the related interim consolidated statements of income by function, comprehensive income, cash flows and changes in equity for the three-month periods ended March 31, 2021 and 2020. Management’s responsibility for the consolidated interim financial statements Management is responsible for the preparation and fair presentation of the interim consolidated financial information in accordance with IAS 34 “Interim Financial Reporting” of the International Financial Reporting Standards (IFRS). This responsibility includes the design, implementation and maintenance of internal control sufficient to provide a reasonable basis for the preparation and fair presentation of the interim financial information in accordance with the applicable framework for the preparation and presentation of financial information. Auditor’s responsibilities Our responsibility is to perform our review in accordance with the Chilean auditing standards applicable for the review of interim financial information. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards in Chile, the objective of which is the expression of an opinion regarding the financial information taken as a whole. Accordingly, we do not express such an opinion. Conclusion Based on our review, we are not aware of any material modifications that should be made to the accompanying interim consolidated financial information, for them to be in conformity with IAS 34 “Interim Financial Reporting” of the International Financial Reporting Standards. Santiago, May 6, 2021 Latam Airlines Group S.A. 2 Emphasis of matter – Going Concern The accompanying interim consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As indicated in Note 2 to the interim consolidated financial statements, the Company’s operations have been impacted by the COVID-19 pandemic and has stated that substantial doubt exists about the Company's ability to continue as a going concern. Management's assessment of the conditions, including its plans regarding this matter are also described in Note 2. The interim consolidated financial statements do not include any adjustments that could result from the resolution of this uncertainty. Our conclusion is not modified as a result of this matter. Emphasis of matter – Voluntary reorganization and restructuring of their debt As indicated in Notes 2 to the consolidated financial statements, on May 26, 2020 and July 9,2020, the Parent Company and some of its subsidiaries availed themselves of voluntary protection under the financial reorganization process under Chapter 11 of the U.S. Bankruptcy Code. Our conclusion is not modified as a result of this matter. Other matters On March 9, 2021 we issued an unqualified opinion on the consolidated financial statements as of December 31, 2020 and 2019 of Latam Airlines Group S.A. and its subsidiaries, which includes the statement of financial position as of December 31, 2020 as presented in the accompanying consolidated interim financial statements, and corresponding notes. Contents of the Notes to the interim consolidated financial statements of LATAM Airlines Group S.A. and Subsidiaries. Notes Page 1 - General information ....................................................................................................................... 1 2 - Summary of significant accounting policies .................................................................................. 5 2.1. Basis of Preparation ................................................................................................................. 5 2.2. Basis of Consolidation ........................................................................................................... 15 2.3. Foreign currency transactions ................................................................................................ 16 2.4. Property, plant and equipment ............................................................................................... 17 2.5. Intangible assets other than goodwill ..................................................................................... 18 2.6. Goodwill ................................................................................................................................. 19 2.7. Borrowing costs ..................................................................................................................... 19 2.8. Losses for impairment of non-financial assets ....................................................................... 19 2.9. Financial assets ....................................................................................................................... 19 2.10. Derivative financial instruments and hedging activities ...................................................... 20 2.11. Inventories ............................................................................................................................ 21 2.12. Trade and other accounts receivable .................................................................................... 21 2.13. Cash and cash equivalents .................................................................................................... 22 2.14. Capital .................................................................................................................................. 22 2.15. Trade and other accounts payables ....................................................................................... 22 2.16. Interest-bearing loans ........................................................................................................... 22 2.17. Current and deferred taxes ................................................................................................... 22 2.18. Employee benefits ................................................................................................................ 23 2.19. Provisions ............................................................................................................................. 24 2.20. Revenue recognition ............................................................................................................. 24 2.21. Leases ................................................................................................................................... 26 2.22. Non-current assets (or disposal groups) classified as held for sale ...................................... 27 2.23. Maintenance ......................................................................................................................... 27 2.24. Environmental costs ............................................................................................................. 27 3 - Financial risk management .......................................................................................................... 28 3.1. Financial risk factors .............................................................................................................. 28 3.2. Capital risk management ........................................................................................................ 43 3.3. Estimates of fair value ............................................................................................................ 43 4 - Accounting estimates and judgments ........................................................................................... 46 5 - Segmental information ................................................................................................................. 50 6 - Cash and cash equivalents ........................................................................................................... 51 7 - Financial instruments ................................................................................................................... 52 8 - Trade and other accounts receivable current, and non-current accounts receivable .................... 54 9 - Accounts receivable from/payable to related entities .................................................................. 56 10 - Inventories ................................................................................................................................. 57 11 - Other financial assets ................................................................................................................