XML 40 R25.htm IDEA: XBRL DOCUMENT

OTHER FINANCIAL LIABILITIES

12 Months Ended

Dec. 31, 2020

Disclosure of other liabilities [text block] [Abstract]

NOTE 19 - OTHER FINANCIAL LIABILITIES

The composition of other financial liabilities is as follows:

	As of		As of
	December 31,		December 31,
	2020		2019
	ThUS$		ThUS$
Current
(a) Interest bearing loans		2,243,776		1,421,261
(b) Lease Liability		806,283		414,027
(c) Hedge derivatives		2,734		50,372
(d) Derivative non classified as hedge accounting		2,937		-
Total current		3,055,730		1,885,660

Non-current
(a) Interest bearing loans		5,489,078		5,772,266
(b) Lease Liability		2,314,723		2,758,130
(c) Hedge derivatives		-		22
Total non-current		7,803,801		8,530,418

(a) Interest bearing loans

Obligations with credit institutions and debt instruments:

	As of		As of
	December 31,		December 31,
	2020		2019
	ThUS$		ThUS$
Current
Loans to exporters		151,701		341,475
Bank loans		385,490		16,534
Guaranteed obligations (7)(8)(10)		388,492		237,951
Other guaranteed obligations		435,413		97,730
Subtotal bank loans		1,361,096		693,690
Obligation with the public		108,301		32,061
Financial leases (7)(8)(10)		774,379		594,249
Other loans (4)		-		101,261
Total current		2,243,776		1,421,261
Non-current
Bank loans		139,783		200,721
Guaranteed obligations (7)(8)(10)		930,364		1,919,376
Other guaranteed obligations (5)(9)		1,503,703		482,702
Subtotal bank loans		2,573,850		2,602,799
Obligation with the public (1)(2)(3)		2,075,106		2,032,873
Financial leases (7)(8)(10)		840,122		1,136,594
Total non-current		5,489,078		5,772,266
Total obligations with financial institutions		7,732,854		7,193,527

(1)

On February 11, 2019, LATAM Finance Limited, a company incorporated in the Cayman Islands with limited liability and exclusively owned by LATAM Airlines Group S.A., has issued on the international market, pursuant to Rule 144-A and Regulation S of the securities laws of the United States of America, unsecured long-term bonds for a nominal amount of US $ 600,000,000 at an annual interest rate of 7.00%. The bonds were placed at an issue price of 99.309% with respect to its even value. The bonds have semiannual interest payments and amortization of all capital at maturity and maturity date on March 1, 2026, unless they will be redeemed early according to their terms. As reported to the market, the issuance and placement was intended to finance general corporate purposes.

(2)

On June 6, 2019, LATAM Airlines Group S.A. has issued in the local market (Santiago Stock Exchange) long-term unsecured bonds called Series E (BLATM-E), which correspond to the first series of bonds charged to the line registered in the Registro de Comisión para el Mercado Financiero (“CMF”) under the number Nº 921 dated November 26, 2018 for a total of UF 9,000,000.

The total amount issued was UF 5,000,000 with an expiration date on April 15, 2029 and a 3.60% annual coupon rate with semiannual interest payments. The placement rate was 2.73%, equivalent to an amount of ThUS$ 215,093.

The funds from the issuance were allocated 50% to the refinancing of liabilities, 30% for the financing of investments and 20% for general corporate purposes.

(3)

On July 11, 2019, LATAM Finance Limited, a company incorporated in the Cayman Islands with limited liability and exclusive property of LATAM Airlines Group SA, issued a re-opening of the LATAM 2026 bond, issued on February 11 of 2019, for US $ 200,000,000. This re-opening had a placement rate of 5.979%.

Simultaneously, dated July 11, 2019, LATAM Airlines Group S.A. announced an offer for the repurchase of up to US $ 300 million of the unsecured LATAM 2020 bond, which was issued on June 9, 2015 for an amount of US $ 500 million at a coupon rate of 7.25% and due in June 2020. Offer repurchase price was 103.8 cents per dollar of nominal amount for the bonds offered until July 24, 2019, after this date and until August 7, 2019, the offered repurchase price was reduced to 100.8 cents for dollar at the expiration of the offer, a total of US $ 238,412,000 of the bonds were redeemed, of which US $ 238,162,000 arrived on or before July 24, 2019 and US $ 250,000 after that date. The net proceeds obtained from the re-opening of the LATAM 2026 bond was used to pay a portion of the public offer of the LATAM 2020 bond. The remainder of the public offer was paid in cash.

On December 17, 2019, LATAM Airlines Group S.A. The repurchase of the remainder (US $ 262 million) of the unsecured bond LATAM2020 ended, which, added to the repurchase of July 11, 2019, ends the entire balance of the bond. The repurchase was carried out through the buy-back mechanism called “Make-Whole,” which is a right of the bond issuer to repurchase the entire outstanding balance of debt based on a price that is calculated using government treasury bonds. of the United States with maturity close to that of the bond and adding a spread. The repurchase price was 102.45 cents per dollar of nominal bond amount.

(4)

On March 16, 2020, the obligations contained in the contract called “Indenture” signed between Guanay Finance Limited (see Note 1), LATAM Airlines Group S.A. expired. and Citibank, N.A. dated November 7, 2013. The bonds securitized with the future flows of credit card sales in the United States and Canada were issued in 2013 for a total of US $ 450 million.

(5)

During March and April 2020, LATAM Airlines Group S.A. it drew down the entire (US $600 million) of the committed credit line “Revolving Credit Facility (RCF)”. The financing expires on March 29, 2022. The line is guaranteed with collateral consisting of airplanes, engines and spare parts. The first withdrawal was on March 27, 2020 with an amount of US $ 504.7 million, the second withdrawal was on April 7, 2020 for US $ 72 million, the third withdrawal was on April 14, 2020 for US $ 11.2 million and the fourth and last withdrawal was on April 21, 2020 of US $ 12.1 million.

(6)

On May 26, 2020, LATAM Airlines Group S.A. and its subsidiaries in Chile, Peru, Colombia and Ecuador availed themselves, in court for the southern district of New York, to the protection of Chapter 11 of the bankruptcy law of the United States. Under Section 362 of the Bankruptcy Code. The same happened for TAM LINHAS AÉREAS S.A and certain subsidiaries (all LATAM subsidiary in Brazil), on July 8, 2020. Having filed for Chapter 11 automatically suspends most actions against LATAM and its subsidiaries, including most actions to collect financial obligations incurred before the date of receipt of Chapter 11 or to exercise control over the property of LATAM and its subsidiaries. Consequently, although the bankruptcy filing may have led to breaches of some of the obligations of LATAM and its subsidiaries, the counterparties cannot take any action as a result of said breaches.

At the end of the year, Chapter 11 retains most of the actions on the debtors so the repayment of the debt is not accelerated. The Group continues to present its financial information as of December 31, 2020, including its interest bearing loan and leases, in accordance with the originally agreed conditions, pending future agreements that it may reach with its creditors under Chapter 11.

(7)

On June 24, 2020, the United States Court for the Southern District of New York approved the motion filed by the Company to reject certain aircraft lease contracts. Rejected contracts include, 17 aircraft financed under the EETC structure with an amount of MUS $ 844.1 and an aircraft financed with a financial lease with an amount of MUS $ 4.5.

(8)

On October 20, 2020, the United States Court for the Southern District of New York approved the motion presented by the Company to reject an aircraft lease contract financed as financial lease in the amount of MUS $ 34.3.

(9)

On October 10, 2020, LATAM Airlines Group S.A. partially drew down (MUS $ 1,150) of the committed credit line of the “DIP” financing. The financing expires on April 10, 2022. The line is guaranteed with collateral consisting of routes, slots, engines and spare parts. After this, transfer, the company still has MUS $ 1,300 available. This line is committed for a total of US $ 2,450 million, of which US $ 750 million are committed by related parties.

(10)

In the year ended December 31, 2020, the Company transferred its interest in 7 special purpose entities. As a result of the above, the classification of financial liabilities associated with 3 aircraft within guaranteed obligations was modified, and classified as financial leases.

Balances by currency of interest bearing loans are as follows:

	As of		As of
	December 31,		December 31,
	2020		2019
Currency	ThUS$		ThUS$
Brazilian real		300,659		-
Chilean peso (U.F.)		679,983		611,542
US Dollar		6,752,212		6,581,985
Total		7,732,854		7,193,527

Interest-bearing loans due in installments to December 31, 2020

Debtor: LATAM Airlines Group S.A. and Subsidiaries, Tax No. 89.862.200-2, Chile.

				Nominal values												Accounting values

						More than		More than		More than								More than		More than		More than
				Up to		90 days		one to		three to		More than		Total		Up to		90 days		one to		three to		More than		Total			Annual
		Creditor		90		to one		three		five		five		nominal		90		to one		three		five		five		accounting			Effective		Nominal
Tax No.	Creditor	country	Currency	days		year		years		years		years		value		days		year		years		years		years		value		Amortization	rate		rate
				ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			%		%

Loans to exporters
97.032.000-8	BBVA	Chile	US$		74,000		-		-		-		-		74,000		76,929		-		-		-		-		76,929	At Expiration		3.08		3.08
97.030.000-7	ESTADO	Chile	US$		40,000		-		-		-		-		40,000		41,542		-		-		-		-		41,542	At Expiration		3.49		3.49
76.645.030-K	ITAU	Chile	US$		20,000		-		-		-		-		20,000		20,685		-		-		-		-		20,685	At Expiration		4.20		4.20
97.951.000-4	HSBC	Chile	US$		12,000		-		-		-		-		12,000		12,545		-		-		-		-		12,545	At Expiration		4.15		4.15
Bank loans
97.023.000-9	CORPBANCA	Chile	UF		11,255		-		-		-		-		11,255		11,665		-		-		-		-		11,665	Quarterly		3.35		3.35
0-E	SANTANDER	Spain	US$		-		-		139,459		-		-		139,459		3,300		-		139,459		-		-		142,759	Quarterly		2.80		2.80
76.362.099-9	BTG PACTUAL CHILE	Chile	UF		-		67,868		-		-		-		67,868		1,985		67,237		-		-		-		69,222	At Expiration		3.10		3.10
Obligations with the public
97.030.000-7	ESTADO	Chile	UF		-		-		177,846		-		382,267		560,113		25,729		-		177,715		-		395,652		599,096	At Expiration		4.81		4.81
0-E	BANK OF NEW YORK	U.S.A.	US$		-		-		-		700,000		800,000		1,500,000		82,572		-		-		698,450		803,289		1,584,311	At Expiration		7.16		6.94
Guaranteed obligations
0-E	BNP PARIBAS	U.S.A.	US$		31,039		43,655		91,002		97,621		210,956		474,273		40,931		47,668		87,767		96,513		209,612		482,491	Quarterly / Semiannual		2.95		2.95
0-E	NATIXIS	France	US$		42,740		34,150		77,693		81,244		35,302		271,129		50,001		34,150		75,808		80,316		34,969		275,244	Quarterly		3.11		3.11
0-E	INVESTEC	England	US$		6,329		11,606		19,935		-		-		37,870		7,952		12,522		19,588		-		-		40,062	Semiannual		6.21		6.21
0-E	MUFG	U.S.A.	US$		30,590		24,080		67,730		72,881		187,132		382,413		39,516		24,080		67,014		72,494		186,283		389,387	Quarterly		2.88		2.88
0-E	SMBC	U.S.A.	US$		130,000		-		-		-		-		130,000		131,662		-		-		-		-		131,662	At Expiration		1.73		1.73
-	SWAP Received aircraft	-	US$		10		-		-		-		-		10		10		-		-		-		-		10	Quarterly		-		-
Other guaranteed obligations
0-E	CREDIT AGRICOLE	France	US$		-		273,199		-		-		-		273,199		1,395		272,794		-		-		-		274,189	At Expiration		1.92		1.92
0-E	MUFG	U.S.A.	US$		82,498		72,206		117,084		19,731		-		291,519		88,880		72,206		114,589		19,499		-		295,174	Quarterly		2.67		2.67
0-E	CITIBANK	U.S.A.	US$		-		-		600,000		-		-		600,000		138		-		600,000		-		-		600,138	At Expiration		2.27		2.27
0-E	BANK OF UTAH	U.S.A.	US$		-		-		793,003		-		-		793,003		-		-		769,615		-		-		769,615	At Expiration		18.95		12.26
Financial leases
0-E	ING	U.S.A.	US$		5,965		-		-		-		-		5,965		6,017		-		-		-		-		6,017	Quarterly		5.71		5.01
0-E	CREDIT AGRICOLE	France	US$		13,875		2,034		2,052		-		-		17,961		13,922		2,034		2,052		-		-		18,008	Quarterly		1.99		1.54
0-E	CITIBANK	U.S.A.	US$		77,994		58,993		113,186		43,778		18,841		312,792		78,860		58,993		109,086		42,558		18,619		308,116	Quarterly		2.58		1.77
0-E	PEFCO	U.S.A.	US$		1,926		-		-		-		-		1,926		1,938		-		-		-		-		1,938	Quarterly		5.65		5.03
0-E	BNP PARIBAS	U.S.A.	US$		14,934		2,326		791		-		-		17,951		14,909		2,326		788		-		-		18,023	Quarterly		1.81		1.41
0-E	WELLS FARGO	U.S.A.	US$		112,987		99,975		230,416		98,028		-		541,406		114,994		99,975		219,624		96,556		-		531,149	Quarterly		2.43		1.74
97.036.000-K	SANTANDER	Chile	US$		21,456		17,626		26,165		-		-		65,247		21,550		17,626		25,840		-		-		65,016	Quarterly		1.30		0.76
0-E	RRPF ENGINE	England	US$		2,058		3,644		7,752		5,035		-		18,489		2,602		3,644		7,752		5,035		-		19,033	Monthly		4.01		4.01
0-E	APPLE BANK	U.S.A.	US$		4,538		4,631		12,808		753		-		22,730		4,599		4,632		12,608		752		-		22,591	Quarterly		1.61		1.01
0-E	BTMU	U.S.A.	US$		11,519		9,385		25,937		768		-		47,609		11,595		9,386		25,563		767		-		47,311	Quarterly		1.63		1.03
0-E	US BANK	U.S.A.	US$		58,512		49,240		135,489		84,178		-		327,419		60,094		49,240		125,274		82,149		-		316,757	Quarterly		4.00		2.82
0-E	PK AIRFINANCE	U.S.A.	US$		8,996		9,062		1,464		-		-		19,522		9,319		9,009		1,435		-		-		19,763	Monthly		1.98		1.98

	Total				815,221		783,680		2,639,812		1,204,017		1,634,498		7,077,128		977,836		787,522		2,581,577		1,195,089		1,648,424		7,190,448

Interest-bearing loans due in installments to December 31, 2020

Debtor: LATAM Airlines Group S.A. and Subsidiaries, Tax No. 89.862.200-2, Chile.

				Nominal values												Accounting values
						More than		More than		More than								More than		More than		More than
				Up to		90 days		one to		three to		More than		Total		Up to		90 days		one to		three to		More than		Total			Annual
		Creditor		90		to one		three		five		five		nominal		90		to one		three		five		five		accounting			Effective		Nominal
Tax No.		Country	Currency	days		year		years		years		years		value		days		year		years		years		years		value		Amortization	rate		rate
				ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			%		%
Bank loans

0-E	NEDERLANDSCHE CREDIETVERZEKERING MAATSCHAPPIJ	Netherlands	US$		409		318		216		-		-		943		333		311		324		-		-		968	Monthly		6.01		6.01
0-E	BANCO BRADESCO	Brazil	BRL		80,175		-		-		-		-		80,175		91,672		-		-		-		-		91,672	Monthly		4.34		4.34
0-E	BANCO DO BRASIL	Brazil	BRL		199,557		-		-		-		-		199,557		208,987		-		-		-		-		208,987	Monthly		3.95		3.95

Financial lease

0-E	NATIXIS	France	US$		30,253		-		51,007		-		-		81,260		31,308		-		51,007		-		-		82,315	Quarterly / Semiannual		4.09		4.09
0-E	WACAPOU LEASING S.A.	Luxembourg	US$		2,342		797		1,620		-		-		4,759		2,439		797		1,620		-		-		4,856	Quarterly		2.00		2.00
0-E	SOCIÉTÉ GÉNÉRALE MILAN BRANCH	Italy	US$		144,120		-		-		-		-		144,120		141,094		-		-		-		-		141,094	Quarterly		3.07		3.01
0-E	GA Telessis LLC	U.S.A.	US$		486		950		2,623		2,772		5,430		12,261		486		991		2,623		2,772		5,642		12,514	Monthly		14.72		14.72

	Total				457,342		2,065		55,466		2,772		5,430		523,075		476,319		2,099		55,574		2,772		5,642		542,406

	Total consolidated				1,272,563		785,745		2,695,278		1,206,789		1,639,928		7,600,203		1,454,155		789,621		2,637,151		1,197,861		1,654,066		7,732,854

Interest-bearing loans due in installments to December 31, 2019

Debtor: LATAM Airlines Group S.A. and Subsidiaries, Tax No. 89.862.200-2, Chile.

				Nominal values												Accounting values
						More than		More than		More than								More than		More than		More than
				Up to		90 days		one to		three to		More than		Total		Up to		90 days		one to		three to		More than		Total			Annual
		Creditor		90		to one		three		five		five		nominal		90		to one		three		five		five		accounting			Effective		Nominal
Tax No.	Creditor	country	Currency	days		year		years		years		years		value		days		year		years		years		years		value		Amortization	rate		rate
				ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			%		%

Loans to exporters

97.032.000-8	BBVA	Chile	US$		24,000		75,000		-		-		-		99,000		24,910		75,000		-		-		-		99,910	At Expiration		3.29		3.29
97.003.000-K	BANCO DO BRASIL	Chile	UF		150,000		50,000		-		-		-		200,000		150,257		50,283		-		-		-		200,540	At Expiration		2.93		2.93
97.951.000-4	HSBC	Chile	US$		12,000		-		-		-		-		12,000		12,016		-		-		-		-		12,016	At Expiration		3.25		3.25
76.100.458-1	BLADEX	Chile	US$		-		29,000		-		-		-		29,000		-		29,009		-		-		-		29,009	At Expiration		2.82		2.82
Bank loans
97.023.000-9	CORP BANCA	Chile	UF		5,205		10,410		-		-		-		15,615		5,192		10,369		-		-		-		15,561	Quarterly		3.35		3.35
0-E	SANTANDER	Spain	US$		-		-		137,860		-		-		137,860		255		-		137,860		-		-		138,115	Quarterly		3.62		4.61
76.362.099-9	BTG PACTUAL CHILE	Chile	UF		-		-		62,769		-		-		62,769		113		-		62,172		-		-		62,285	At Expiration		3.10		3.10
Obligations with the public
0-E	ESTADO	Chile	UF		-		-		164,485		-		353,547		518,032		-		2,642		164,398		-366,656				533,696	At Expiration		4.81		4.81
97.030.000-7	BANK OF NEW YORK	U.S.A.	US$		-		-		-		700,000		800,000		1,500,000		18,640		10,779		-		698,256		803,563		1,531,238	At Expiration		7.16		6.94
Guaranteed obligations
0-E	BNP PARIBAS	U.S.A.	US$		8,115		36,282		93,788		100,622		275,134		513,941		10,058		36,855		91,224		99,297		273,038		510,472	Quarterly		3.81		3.81
0-E	WILMINGTON TRUST	U.S.A.	US$		22,090		66,710		183,332		196,452		397,639		866,223		27,229		66,710		178,784		194,741		395,983		863,447	Quarterly		4.45		4.45
0-E	CITIBANK	U.S.A.	US$		4,805		14,608		40,414		42,626		41,022		143,475		5,461		14,608		36,178		40,932		40,310		137,489	Quarterly		3.76		2.68
0-E	NATIXIS	France	US$		10,675		32,708		84,674		78,123		76,726		282,906		11,410		32,708		83,072		77,195		75,928		280,313	Quarterly		3.82		3.82
0-E	INVESTEC	England	US$		1,538		8,976		22,977		10,596		-		44,087		1,867		9,112		22,597		10,565		-		44,141	Semiannual		6.35		6.35
0-E	MUFG	U.S.A.	US$		2,973		18,593		53,816		57,993		189,285		322,660		3,182		18,593		53,367		57,694		188,471		321,307	Quarterly		3.43		3.43
-	SWAP Received Aircraft	-	US$		80		78		-		-		-		158		80		78		-		-		-		158	Quarterly		-		-
Other guaranteed obligations
0-E	CREDIT AGRICOLE	France	US$		-		-		253,692		-		-		253,692		2,370		-		252,747		-		-		255,117	At Expiration		3.74		3.74
0-E	MUFG	U.S.A.	US$		23,669		71,432		188,440		44,482		-		328,023		23,929		71,431		185,938		44,017		-		325,315	Quarterly		3.54		3.54
Financial leases
0-E	ING	U.S.A.	US$		3,875		7,931		-		-		-		11,806		3,952		7,931		-		-		-		11,883	Quarterly		5.71		5.01
0-E	CREDIT AGRICOLE	France	US$		4,831		14,723		6,537		-		-		26,091		4,943		14,723		6,537		-		-		26,203	Quarterly		3.15		2.52
0-E	CITIBANK	U.S.A.	US$		17,972		52,790		113,746		16,399		-		200,907		18,633		52,790		112,712		16,368		-		200,503	Quarterly		3.39		2.80
0-E	PEFCO	U.S.A.	US$		1,901		1,926		-		-		-		3,827		1,918		1,926		-		-		-		3,844	Quarterly		5.65		5.03
0-E	BNP PARIBAS	U.S.A.	US$		8,523		23,197		25,182		20,717		10,110		87,729		9,042		23,197		24,675		20,424		9,975		87,313	Quarterly		3.85		3.72
0-E	WELLS FARGO	U.S.A.	US$		32,321		97,956		248,086		199,037		14,284		591,684		34,868		97,956		233,822		195,209		14,138		575,993	Quarterly		2.67		1.98
97.036.000-K	SANTANDER	Chile	US$		5,690		17,255		46,472		3,134		-		72,551		5,959		17,255		45,805		3,128		-		72,147	Quarterly		3.00		2.46
0-E	RRPF ENGINE	England	US$		864		2,348		7,441		8,075		915		19,643		908		2,348		7,441		8,075		915		19,687	Monthly		4.01		4.01
0-E	APPLE BANK	U.S.A.	US$		1,483		4,509		12,474		7,242		-		25,708		1,632		4,509		12,162		7,212		-		25,515	Quarterly		3.33		2.73
0-E	BTMU	U.S.A.	US$		3,010		9,148		25,278		13,904		-		51,340		3,191		9,148		24,661		13,849		-		50,849	Quarterly		3.33		2.73
0-E	NATIXIS	France	US$		702		2,173		2,279		-		-		5,154		723		2,173		2,279		-		-		5,175	Quarterly		4.41		4.41
0-E	KFW IP EX-BANK	Germany	US$		1,760		3,568		-		-		-		5,328		1,769		3,568		-		-		-		5,337	Quarterly		3.55		3.55
0-E	AIRBUS FINANCIAL	U.S.A.	US$		1,977		5,687		-		-		-		7,664		1,992		5,687		-		-		-		7,679	Monthly		3.31		3.31
0-E	US BANK	U.S.A.	US$		15,862		48,132		132,441		135,200		17,492		349,127		17,610		48,132		119,881		130,865		17,188		333,676	Quarterly		4.01		2.82
0-E	PK AIRFINANCE	U.S.A.	US$		2,487		7,729		17,871		-		-		28,087		2,530		7,729		17,871		-		-		28,130	Monthly		3.45		3.45
Other loans
0-E	CITIBANK (*)	U.S.A.	US$		24,595		76,431		-		-		-		101,026		24,830		76,431		-		-		-		101,261	Quarterly		6.00		6.00

	Total				393,003		789,300		1,924,054		1,634,602		2,176,154		6,917,113		431,469		803,680		1,876,183		1,617,827		2,186,165		6,915,324

(*)

Securitized bond with the future flows from the sales with credit card in United States and Canada, through the company Guanay Finance Limited.

Interest-bearing loans due in installments to December 31, 2019

Debtor: TAM S.A. and Subsidiaries, Tax No. 02.012.862/0001-60, Brazil.

				Nominal values												Accounting values
						More than		More than		More than								More than		More than		More than
				Up to		90 days		one to		three to		More than		Total		Up to		90 days		one to		three to		More than		Total			Annual
		Creditor		90		to one		three		five		five		nominal		90		to one		three		five		five		accounting			Effective		Nominal
Tax No.	Creditor	country	Currency	days		year		years		years		years		value		days		year		years		years		years		value		Amortization	rate		rate
				ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			%		%
Bank loans

0-E	NEDERLANDSCHE CREDIETVERZEKERING MAATSCHAPPIJ	Netherland	US$		148		452		689		-		-		1,289		153		452		689		-		-		1,294	Monthly		6.01		6.01

Financial leases

0-E	NATIXIS	France	US$		3,243		6,906		76,107		-		-		86,256		3,723		6,906		76,107		-		-		86,736	Quarterly/Semiannual		6.29		6.29
0-E	WACAPOULEASING S.A.	Luxemburg	US$		757		2,317		3,206		-		-		6,280		777		2,317		3,206		-		-		6,300	Quarterly		4.32		4.32
0-E	SOCIÉTÉ GÉNÉRALE MILAN BRANCH	Italy	US$		9,855		160,076		-		-		-		169,931		10,409		159,876		-		-		-		170,285	Quarterly		5.39		5.39
0-E	GA Telessis LLC	U.S.A	US$		306		1,100		2,385		2,694		7,010		13,495		399		1,100		2,385		2,694		7,010		13,588	Monthly		14.72		14.72

	Total				14,309		170,851		82,387		2,694		7,010		277,251		15,461		170,651		82,387		2,694		7,010		278,203

	Total consolidated				407,312		960,151		2,006,441		1,637,296		2,183,164		7,194,364		446,930		974,331		1,958,570		1,620,521		2,193,175		7,193,527

(b)

Lease Liability:

The movement of the lease liabilities corresponding to the years reported are as follow:

							Lease
							Liability
	Aircraft			Others			total
	ThUS$			ThUS$			ThUS$

Opening balance as January 1, 2018		3,037,585			109,387			3,146,972
New contracts		283,620			36,191			319,811
Renegotiations		(240,047	)		1,397			(238,650	)
Payments		(526,071	)		(30,316	)		(556,387	)
Accrued interest		174,327			8,623			182,950
Exchange differences		-			(5,667	)		(5,667	)
Other increases (decreases)		8,395			625			9,020

Changes		(299,776	)		10,853			(288,923	)

Closing balance as of December 31, 2018		2,737,809			120,240			2,858,049

Opening balance as January 1, 2019		2,737,809			120,240			2,858,049

New contracts		719,525			23,878			743,403
Renegotiations		(41,535	)		12,208			(29,327	)
Payments		(539,549	)		(37,391	)		(576,940	)
Accrued interest		165,981			11,968			177,949
Exchange differences		-			1,614			1,614
Cumulative translation adjustment		-			(467	)		(467	)
Other increases (decreases)		-			(2,124	)		(2,124	)

Changes		304,422			9,686			314,108

Closing balance as of December 31, 2019		3,042,231			129,926			3,172,157

Opening balance as January 1, 2020		3,042,231			129,926			3,172,157

New contracts		-			543			543
Write off		(7,435	)		(285	)		(7,720	)
Renegotiations		(35,049	)		4,919			(30,130	)
Payments		(131,427	)		(36,689	)		(168,116	)
Accrued interest		158,253			9,348			167,601
Exchange differences		-			(7,967	)		(7,967	)
Cumulative translation adjustment		-			(38	)		(38	)
Other increases (decreases)		-			(5,324	)		(5,324	)

Changes		(15,658	)		(35,493	)		(51,151	)

Closing balance as of December 31, 2020		3,026,573			94,433			3,121,006

The company recognizes the interest payments related to the lease liabilities in the consolidated result under Financial expenses (See Note 27 (d)).

(c)	Hedge derivatives

	Current liabilities				Non-current liabilities				Total hedge derivatives
	As of		As of		As of		As of		As of		As of
	December 31,		December 31,		December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019		2020		2019
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Accrued interest from the last date of interest rate swap		-		1,723		-		-		-		1,723
Fair value of interest rate derivatives		2,734		302		-		22		2,734		324
Fair value of fuel derivatives		-		-		-		-		-		-
Fair value of foreign currency derivatives		-		48,347		-		-		-		48,347
Total hedge derivatives		2,734		50,372		-		22		2,734		50,394

(d)

Derivatives that do not qualify for hedge accounting

									Total derivatives of
	Current liabilities				Non-current liabilities				no coverage
	As of		As of		As of		As of		As of		As of
	December		December		December		December		December		December
	2020		2019		2020		2019		2020		2019
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$

Derivative of foreign currency not registered as hedge		2,937		-		-		-		2,937		-
Total derived not qualify - as hedge accounting		2,937		-		-		-		2,937		-

The foreign currency derivatives correspond to options, forwards and swaps.

Hedging operation

The fair values of net assets/ (liabilities), by type of derivative, of the contracts held as hedging instruments are presented below:

	As of			As of
	December 31,			December 31,
	2020			2019
	ThUS$			ThUS$
Cross currency swaps (CCS) (1)		-			(22,662	)
Interest rate swaps (2)		(2,734	)		2,618
Fuel options (3)		1,296			48,542
Currency options R$/US$ (4)		-			(41	)

(1)	Covers the significant variations in cash flows associated with market risk implicit in the changes in the 3-month LIBOR interest rate and the exchange rate US$/UF of bank loans. These contracts are recorded as cash flow hedges and fair value.

(2)	Covers the significant variations in cash flows associated with market risk implicit in the increases in the 3 months LIBOR interest rates for long-term loans incurred in the acquisition of aircraft and bank loans. These contracts are recorded as cash flow hedges.

(3)	Covers significant variations in cash flows associated with market risk implicit in the changes in the price of future fuel purchases. These contracts are recorded as cash flow hedges.

(4)

They cover the exposure to foreign exchange risk of operating cash flows, mainly caused by the fluctuation of the CLP/US$, R$/US$, US$/EUR and US$/GBP exchange rate. These contracts are registered as cash flow hedge contracts.

The Company only has cash flow and fair value hedges (in the case of CCS). In the case of fuel hedges, the cash flows subject to such hedges will occur and will impact results in the next 12 months from the date of the consolidated statement of financial position, while in the case of hedges of interest rates, these they will occur and will impact results throughout the life of the associated loans, up to their maturity. In the case of currency hedges through a CCS, there is a group of hedging relationships, in which two types of hedge accounting are generated, one of cash flow for the US $ / UF component; and another of fair value, for the floating rate component US $. The other group of hedging relationships only generates cash flow hedge accounting for the US $ / UF component.

All hedging operations have been performed for highly probable transactions, except for fuel hedge. See Note 3.

Since none of the hedges resulted in the recognition of a non-financial asset, no portion of the result of derivatives recognized in equity was transferred to the initial value of that type of asset.

The amounts recognized in comprehensive income during the period and transferred from net equity to income are as follows:

	For the year ended
	December 31,
	2020			2019			2018
	ThUS$			ThUS$			ThUS$
Debit (credit) recognized in comprehensive income during the period		(119,970	)		66,856			(27,797	)
Debit (credit) transferred from net equity to income during the period		(13,016	)		(30,074	)		39,915

See note 3.1 a) for reclassification to profit or loss for each hedging operation and Note 18 b) for deferred taxes related.