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OTHER FINANCIAL LIABILITIES

12 Months Ended

Dec. 31, 2021

OTHER FINANCIAL LIABILITIES [Abstract]

NOTE 19 - OTHER FINANCIAL LIABILITIES

The composition of other financial liabilities is as follows:

	As of		As of
	December 31,		December 31,
	2021		2020
	ThUS$		ThUS$
Current
(a) Interest bearing loans		3,869,040		2,243,776
(b) Lease Liability		578,740		806,283
(c) Hedge derivatives		2,734		2,734
(d) Derivative non classified as hedge accounting		2,937		2,937
Total current		4,453,451		3,055,730

Non-current
(a) Interest bearing loans		3,566,804		5,489,078
(b) Lease Liability		2,381,898		2,314,723
Total non-current		5,948,702		7,803,801

(a) Interest bearing loans

Obligations with credit institutions and debt instruments:

	As of		As of
	December 31,		December 31,
	2021		2020
	ThUS$		ThUS$
Current
Loans to exporters		159,161		151,701
Bank loans		415,087		385,490
Guaranteed obligations (3)(4)(7)(8)(10)		75,593		388,492
Other guaranteed obligations (1)(5)		2,546,461		435,413
Subtotal bank loans		3,196,302		1,361,096

Obligation with the public		396,345		108,301
Financial leases (3)(4)(6)(7)(8)(9)		199,885		774,379
Other loans		76,508		-
Total current		3,869,040		2,243,776

Non-current
Bank loans		106,751		139,783
Guaranteed obligations (3)(4)(7)(8)(10)		434,942		930,364
Other guaranteed obligations (1)(5)		178,961		1,503,703

Subtotal bank loans		720,654		2,573,850

Obligation with the public		1,856,853		2,075,106
Financial leases (3)(4)(6)(7)(8)(9)		989,297		840,122
Total non-current		3,566,804		5,489,078
Total obligations with financial institutions		7,435,844		7,732,854

(1)	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.

(2)

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 9, 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 period, 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 September 30, 2021, 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. For those agreements that have already been modified or extinguished, the financial information has been properly presented according to the new contracts’ terms and conditions.

(3)

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.

(4)	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.

(5)

On September 29, 2020, LATAM Airlines Group S.A. entered into a MUS$ 2,450 Debtor-in-Possession financing (the “DIP Financing”), consisting of a MUS$ 1,300 Tranche A Facility and a MUS$ 1,150 Tranche C Facility, of which MUS$ 750 are committed by related parties. The obligations under the DIP Financing are secured by collateral consisting of certain assets of LATAM and certain of its subsidiaries, including, but not limited to, equity, certain engines and spare parts.

On October 8, 2020, LATAM made a partial withdrawal for MUS$ 1,150 from Tranche A and Tranche C, and then, on or around June 22, 2021, LATAM made an additional withdrawal for MUS$ 500 from Tranche A and Tranche C.

On October 18, 2021, LATAM Airlines Group S.A. obtained court approval for a Tranche B (“Tranche B”) of the Debtor-in-Possession (“DIP”) Financing for up to a total of US$ 750 million. The obligations of this Tranche B, like the previous tranches, are guaranteed with the same guarantees granted by LATAM and its subsidiaries subject to the Chapter 11 Procedure, without limitation, pledges on shares, certain engines and spare parts. The following turns of the DIP must be made to Tranche B until the proportion turned of the latter is equal to that of the previous tranches. Once this ratio is equal, spins are pro-rata.

On November 10, 2021, the company made a partial transfer for MUS$ 200 from Tranche B and later on December 28, 2021, LATAM made a new transfer for MUS$ 100. After these transfers, LATAM still It has MUS$1,250 of line available for future transfers.

The DIP has an expiration date of April 8, 2022, subject to a potential extension, at LATAM’s decision, for an additional 60 days in the event that LATAM’s reorganization plan has been confirmed by a United States Court order for the Southern District of New York, but the plan is not yet effective.

(6)	On March 31, 2021, the United States Court for the Southern District of New York approved and, subsequently, on April 13, 2021, issued an order approving the motion presented by the Company to extend certain leases of 3 aircraft.

(7)	On June 17, 2021, the United States Court for the Southern District of New York approved the motion presented by the Company to reject the lease of an aircraft financed under a financial lease in the amount of MUS $ 130.7.

(8)	On June 30, 2021, the United States Court for the Southern District of New York approved the motion filed by the Company to reject the lease contract for 3 aircraft financed under a financial lease in the amount of MUS $307.4.

(9)	On November 1, 2021, the United States Court for the Southern District of New York approved the motion filed by the Company to reject the lease contract for 1 engine financed under a financial lease in the amount of ThUS$19.5.

(10)

In the year ended December 31, 2021, the Company transferred its ownership in 5 special purpose vehicles and ceased to control 6 Special Purpose entities. As a result of the foregoing, the classification of the financial liabilities associated with 18 aircraft was changed from guaranteed obligations; 10 to financial leases and 8 to lease liabilities.

Balances by currency of interest bearing loans are as follows:

	As of		As of
	December 31,		December 31,
	2021		2020
	ThUS$		ThUS$
Currency
Brazilian real		338,953		300,659
Chilean peso (U.F.)		639,710		679,983
US Dollar		6,457,181		6,752,212
Total		7,435,844		7,732,854

Interest-bearing loans due in installments to December 31, 2021

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
0-E		CITIBANK	U.S.A.	US$		114,000		-		-		-		-		114,000		123,366		-		-		-		-		123,366	At Expiration		2.96		2.96
76.645.030-K		ITAU	Chile	US$		20,000		-		-		-		-		20,000		22,742		-		-		-		-		22,742	At Expiration		4.20		4.20
0-E		HSBC	England	US$		12,000		-		-		-		-		12,000		13,053		-		-		-		-		13,053	At Expiration		4.15		4.15

Bank loans
97.023.000-9		CORPBANCA	Chile	UF		10,106		-		-		-		-		10,106		11,040		-		-		-		-		11,040	Quarterly		3.35		3.35
0-E		SANTANDER	Spain	US$		-		-		106,427		-		-		106,427		135		-		106,427		-		-		106,562	Quarterly		2.80		2.80
0-E		CITIBANK	U.S.A.	UF		60,935		-		-		-		-		60,935		64,293		-		-		-		-		64,293	At Expiration		3.10		3.10

Obligations with the public
97.030.000-7		BANCOESTADO	Chile	UF		-		159,679		-		-		343,218		502,897		49,584		159,679		-		-		355,114		564,377	At Expiration		4.81		4.81
0-E		BANK OF NEW YORK	U.S.A.	US$		-		-		700,000		800,000		-		1,500,000		187,082		-		698,450		803,289		-		1,688,821	At Expiration		7.16		6.94

Guaranteed obligations
0-E		BNP PARIBAS	U.S.A.	US$		16,079		12,412		34,958		37,891		97,135		198,475		17,926		12,412		34,044		37,466		96,379		198,227	Quarterly		1.48		1.48
0-E		MUFG	U.S.A.	US$		29,054		11,661		32,639		34,970		58,388		166,712		31,375		11,661		32,188		34,733		57,983		167,940	Quarterly		1.64		1.64
0-E		WILMINGTON TRUST COMPANY	U.S.A.	US$		-		2,209		24,703		32,327		85,119		144,358		-		2,209		24,703		32,327		85,119		144,358	Quarterly/Monthly		3.17		1.60
	-	SWAP Received aircraft	-	US$		10		-		-		-		-		10		10		-		-		-		-		10	Quarterly		-		-

Other guaranteed obligations
0-E		CREDIT AGRICOLE	France	US$		273,199		-		-		-		-		273,199		274,403		-		-		-		-		274,403	At Expiration		1.82		1.82
0-E		MUFG	U.S.A.	US$		7,551		33,131		91,435		24,816		-		156,933		8,259		33,131		91,255		24,816		-		157,461	Quarterly		1.72		1.72
0-E		CITIBANK	U.S.A.	US$		-		600,000		-		-		-		600,000		95		600,000		-		-		-		600,095	At Expiration		2.00		2.00
0-E		BANK OF UTAH	U.S.A.	US$		-		1,644,876		-		-		-		1,644,876		-		1,630,390		-		-		-		1,630,390	At Expiration		22.71		12.97
0-E		EXIM BANK	U.S.A.	US$		-		-		-		25,876		37,014		62,890		183		-		-		25,876		37,014		63,073	Quarterly		1.84		1.84

Financial leases
0-E		CREDIT AGRICOLE	France	US$		682		1,370		-		-		-		2,052		694		1,370		-		-		-		2,064	Quarterly		3.68		3.23
0-E		CITIBANK	U.S.A.	US$		19,101		52,371		12,513		-		-		83,985		19,198		52,371		12,359		-		-		83,928	Quarterly		1.37		0.79
0-E		BNP PARIBAS	U.S.A.	US$		7,216		19,537		28,165		-		-		54,918		7,313		19,537		27,905		-		-		54,755	Quarterly		1.56		0.96
0-E		NATIXIS	France	US$		1,335		15,612		52,010		54,443		138,058		261,458		4,472		15,612		51,647		54,064		137,430		263,225	Quarterly		2.09		2.09
0-E		US BANK	U.S.A.	US$		16,601		50,373		135,201		17,492		-		219,667		17,755		50,373		127,721		17,188		-		213,037	Quarterly		4.03		2.84
0-E		PK AIRFINANCE	U.S.A.	US$		800		3,842		11,562		647		-		16,851		903		3,842		11,562		647		-		16,954	Quarterly		1.88		1.88
0-E		EXIM BANK	U.S.A.	US$		-		-		-		248,354		284,773		533,127		1,771		-		-		244,490		280,341		526,602	Quarterly		2.88		2.03

Others loans
0-E		Various (**)		US$		55,819		-		-		-		-		55,819		55,819		-		-		-		-		55,819	At Expiration		-		-
		Total				644,488		2,607,073		1,229,613		1,276,816		1,043,705		6,801,695		911,471		2,592,587		1,218,261		1,274,896		1,049,380		7,046,595

(*)	Note that the obligations are due to expire and contractual obligations, for not presenting any resolution of chapter 11.

(**)	Obligation to creditors for executed letters of creditresolution.

Interest -bearing loans due in installments to December 31, 2021

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

				Nominal values												Accounting values
				Up to		More than 90 days		More than one to		More than three to		More than		Total		Up to		More than 90 days		More than one to		More than 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	NCM	Netherlands	US$		619		-		324		-		-		943		666		-		324		-		-		990	Monthly		6.01		6.01
0-E	BANCO BRADESCO	Brazil	BRL		74,661		-		-		-		-		74,661		98,864		-		-		-		-		98,864	Monthly		4.33		4.33
0-E	Merril Lynch Credit Products LLC	U.S.A.	BRL		185,833		-		-		-		-		185,833		240,089		-		-		-		-		240,089	Monthly		3.95		3.95

Financial lease

0-E	NATIXIS	France	US$		433		2,482		2,872		11,539		-		17,326		637		2,481		2,872		11,539		-		17,529	Quarterly		2.74		2.74
0-E	GA Telessis LLC	U.S.A.	US$		320		1,147		2,695		2,850		3,987		10,999		409		1,147		2,695		2,850		3,987		11,088	Monthly		14.72		14.72

Others loans

0-E	DEUTCHEBANK (*)	Brazil	US$		20,689		-		-		-		-		20,689		20,689		-		-		-		-		20,689	At Expiration		-		-


	Total				282,555		3,629		5,891		14,389		3,987		310,451		361,354		3,628		5,891		14,389		3,987		389,249

	Total consolidated				927,043		2,610,702		1,235,504		1,291,205		1,047,692		7,112,146		1,272,825		2,596,215		1,224,152		1,289,285		1,053,367		7,435,844

(*)	Obligation to creditors for executed letters of credit

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
				Up to		More than 90 days		More than one to		More than three to		More than		Total		Up to		More than 90 days		More than one to		More than 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$		14,834		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				815,121		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
					Up to		More than 90 days		More than one to		More than three to		More than		Total		Up to		More than 90 days		More than one to		More than 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	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				1,272,463		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

(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, 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
Lease termination		(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
Opening balance as January 1, 2021		3,026,573			94,433			3,121,006
New contracts		518,478			875			519,353
Lease termination		(724,193	)		(5,300	)		(729,493	)
Renegotiations		101,486			5,717			107,203
Payments		(95,831	)		(24,192	)		(120,023	)
Accrued interest		88,245			8,334			96,579
Exchange differences		-			3,356			3,356
Cumulative translation adjustment		-			(2,332	)		(2,332	)
Other increases (decreases)		(31,097	)		(3,914	)		(35,011	)
Changes		(142,912	)		(17,456	)		(160,368	)
Closing balance as of December 31, 2021		2,883,661			76,977			2,960,638

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 December 31,		As of December 31,		As of December 31,		As of December 31,		As of December 31,		As of December 31,
	2021		2020		2021		2020		2021		2020
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Fair value of interest rate derivatives		2,734		2,734		-		-		2,734		2,734
Total hedge derivatives		2,734		2,734		-		-		2,734		2,734

(d) Derivatives that do not qualify for hedge accounting

									Total derivatives of
	Current liabilities				Non-current liabilities				no coverage
	As of December 31,		As of December 31,		As of December 31,		As of December 31,		As of December 31,		As of December 31,
	2021		2020		2021		2020		2021		2020
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Derivative of foreign currency not registered as hedge		2,937		2,937		-		-		2,937		2,937
Total derived not qualify as hedge accounting		2,937		2,937		-		-		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 December 31,			As of December 31,
	2021			2020
	ThUS$			ThUS$
Interest rate swaps (2)		(2,734	)		(2,734	)
Fuel options (3)		17,641			1,296

(1)

Hedge 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.

(2)

Hedge 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.

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,
	2021		2020			2019
	ThUS$		ThUS$			ThUS$
Debit (credit) recognized in comprehensive income during the year		38,870		(105,776	)		95,954
Debit (credit) transferred from net equity to income during the year		16,641		(13,016	)		(30,074	)

See note 25 (f) a) for reclassification to profit or loss for each hedging operation and Note 18 b) for deferred taxes related.