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STATEMENT OF CASH FLOWS

12 Months Ended

Dec. 31, 2022

NOTE 34 - STATEMENT OF CASH FLOWS

(a) The Company has carried out the following non-monetary transactions mainly related for:

a.1.) Proceeds from the issuance of shares:

Detail	THUS$
Issuance of shares		800,000
Issuance costs		(80,000	)
DIP Junior offset		(170,962	)
Total cash flow		549,038

From the total capital increase for ThUS$800,000, ThUS$549,038 were cash Inflows presented in Financing Activities. ThUS$170,962 were offset against a portion of the Junior DIP maintained with the shareholder Inversiones Costa Verde Ltda. y CPA Additionally, there were ThUS$80,000 deducted related to equity issuance cost, that are presented within Other sundry reserves of equity.

a.2.) Amount from the issuance of other equity instruments:

	Convertible			Convertible
Detail	Notes H			Notes I			Total
	ThUS$			ThUS$			ThUS$
Fair Value (see note 24)		1,372,837			4,097,788			5,470,625
Use for settement of claim		-			(828,581	)		(828,581	)
Issuance costs		(24,812	)		(705,467	)		(730,279	)
DIP Junior offset		(327,957	)		(381,018	)		(708,975	)
Cash inflow		1,020,068			2,182,722			3,202,790

The payment of DIP Junior offset is related to payment of the Junior Dip through the issues of the Convertible Notes subscribed for the shareholders Delta Air Lines, Inc and QA Investment Ltd. ThUS$327,957 and of the other creditor for Th$381.018.

a.3.) As a result of the exit from Chapter 11, in relation to trade accounts payable and other accounts payable, the conversion into shares for Bonds G and I was carried out, for a total of ThUS$3,610,470 and a decrease in said item with effect in result which is included in Earning (Loss) from restructuring activities for ThUS$ 2,550,306 (see note 26d) and with effect in results in financial income for ThUS$ 420,436 (see note 26e).

a.4.) As a result of the exit from Chapter 11, the Other financial liabilities item decreased its balance by ThUS$ 2,673,256, which is detailed in letter, d). The break down of this decrease corresponds mainly to ThUS$ 491,326 (see note 26e), ThUS$ 354,249 (decrease with effect in Property, plant and equipment, mainly related to the effect of rate change), ThUS$ 381,018 related to the compensation of the debt with the effect of increasing Capital, ThUS$1,443,066 associated with the conversion of debt into shares and other minor effects of ThUS$3,596.

(b) Other inflows (outflows) of cash:

	For the year ended
	December 31,
	2022			2021			2020
		ThUS$			ThUS$			ThUS$
Fuel hedge		35,857			14,269			(46,579	)
Hedging margin guarantees		(40,207	)		(4,900	)		14,962
Tax paid on bank transactions		(2,134	)		(2,530	)		(1,261	)
Fuel derivatives premiums		(23,372	)		(17,077	)		(3,949	)
Bank commissions, taxes paid and other		(5,441	)		(21,287	)		(5,828	)
Guarantees		(47,384	)		(39,728	)		(44,280	)
Court deposits		(20,661	)		(16,323	)		38,528
Delta Air Lines Inc. Compensation		-			-			62,000
Funds delivered as restricted advances		(26,918	)		-			-
Total Other inflows (outflows) Operation flow		(130,260	)		(87,576	)		13,593
Tax paid on bank transactions		-			(425	)		(2,192	)
Guarantee deposit received from the sale of aircraft		6,300			18,900			-
Total Other inflows (outflows) Investment flow		6,300			18,475			(2,192	)
Settlement of derivative contracts		-			-			(107,788	)
Funds delivered as restricted advances		(313,090	)		-			-
Payments of claims associated with the debt		(21,924	)		-			-
RCF guarantee placement		(7,500	)		-			-
Debt-related legal advice		(87,993	)		(11,034	)		-
Debt Issuance Cost - Stamp Tax		(33,259	)		-			-
Total Other inflows (outflows) Financing flow		(463,766	)		(11,034	)		(107,788	)

As of December 31, 2022 and 2021, there were no disbursements associated with this concept.

(d) Reconciliation of liabilities arising from financing activities:

			Cash flows											Non cash-Flow Movements
	As of		Obtainment		Payment									Extinguishment			Interest					As of
	December 31, 2021		Capital (*)		Capital (**)			Interests			Transaction cost			of debt under Chapter 11			accrued and others		Reclassifications			December 31, 2022
	ThUS$		ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
Obligations with financial institutions
Loans to exporters		159,161		-		-			-			-			(161,975	)		2,814		-			-
Bank loans		521,838		982,425		(36,466	)		(10,420	)		-			(196,619	)		128,077		(2,840	)		1,385,995
Guaranteed obligations		510,535		-		(18,136	)		(13,253	)		(25	)		-			13,882		(167,942	)		325,061
Other guaranteed obligations		2,725,422		3,658,690		(5,408,540	)		(391,639	)		(91,247	)		(381,018	)		339,475		23,161			474,304
Obligation with the public		2,253,198		1,109,750		(1,501,739	)		(17,499	)		-			(843,950	)		148,703		141,336			1,289,799
Financial leases		1,189,182		-		(270,734	)		(34,201	)		-			(37,630	)		37,211		204,411			1,088,239
Other loans		76,508		1,467,035		(1,523,798	)		(5,628	)		3,281			(56,176	)		40,806		-			2,028
Lease liability		2,960,638		-		(131,917	)		(49,075	)		(2	)		(995,888	)		492,592		(59,893	)		2,216,454
Total Obligations with financial institutions		10,396,482		7,217,900		(8,891,330	)		(521,715	)		(87,993	)		(2,673,256	)		1,203,560		138,233			6,781,880

			Cash flows										Non cash-Flow Movements
	As of		Obtainment		Payment								Interest						As of
	December 31, 2020		Capital (*)		Capital (**)			Interests			Transaction cost		accrued and others			Reclassifications			December 31, 2021
	ThUS$		ThUS$		ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$
Obligations with financial institutions
Loans to exporters		151,701		-		-			-			-		7,460			-			159,161
Bank loans		525,273		-		-			(546	)		-		(2,889	)		-			521,838
Guaranteed obligations		1,318,856		-		(14,605	)		(17,405	)		-		(513,276	)(***)		(263,035	)		510,535
Other guaranteed obligations		1,939,116		661,609		(26,991	)		(28,510	)		-		135,405			44,793			2,725,422
Obligation with the public		2,183,407		-		-			-			-		69,791			-			2,253,198
Financial leases		1,614,501		-		(421,452	)		(40,392	)		-		(181,717	)		218,242			1,189,182
Other loans		-		-		-			-			-		76,508			-			76,508
Lease liability		3,121,006		-		(103,366	)		(17,768	)		-		(39,234	)		-			2,960,638
Total Obligations with financial institutions		10,853,860		661,609		(566,414	)		(104,621	)		-		(447,952	)		-			10,396,482

			Cash flows										Non cash-Flow Movements
	As of		Obtainment		Payment								Interest						As of
	December 31, 2019		Capital		Capital			Interests			Transaction cost		accrued and others			Reclassifications			December 31, 2020
	ThUS$		ThUS$		ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$
Obligations with financial institutions
Loans to exporters		341,475		165,000		(359,000	)		(4,140	)		-		8,366			-			151,701
Bank loans		217,255		265,627		(4,870	)		(2,397	)		-		49,658			-			525,273
Guaranteed obligations		2,157,327		192,972		(48,576	)		(21,163	)		-		(823,984	)(***)		(137,720	)		1,318,856
Other guaranteed obligations		580,432		1,361,881		(42,721	)		(27,744	)		-		67,268			-			1,939,116
Obligation with the public		2,064,934		-		(774	)		(55,613	)		-		174,860			-			2,183,407
Financial leases		1,730,843		-		(236,744	)		(52,155	)		-		34,837			137,720			1,614,501
Other loans		101,261		-		(101,026	)		(1,151	)		-		916			-			-
Lease liability		3,172,157		-		(122,063	)		(46,055	)		-		116,967			-			3,121,006
Total Obligations with financial institutions		10,365,684		1,985,480		(915,774	)		(210,418	)		-		(371,112	)		-			10,853,860

During 2022, at the time of the subscription of Note H, the fair value of the liability component amounted to ThUS$102,031. As of December 31, 2022, the liability component was converted into equity (see note 24(e.2)).

(*)

As of December 31, 2022, the Company obtained ThUS$2,361,875 amounts from long-term loans and ThUS$4,856,025 (ThUS$661,609 in 2021) amounts from short-term loans, totaling ThUS$7,217,900.

(**)

As of December 31, 2022, loan repayments ThUS$8,759,413 and payments of lease liabilities ThUS$131,917 disclosed in flows from financing activities and as of December 31, 2021, loan repayments ThUS$463,048 and liability payments for leases ThUS$103,366 disclosed in flows from financing activities.

(***)

As of December 31, 2021, Accrued interest and others, includes ThUS$458,642 (ThUS$ 891,407 as of December 31, 2020), associated with the rejection of fleet contracts.

Below are the details obtained (payments) of flows related to financing:

	For the exercises of December 31
	2022								2021
	Capital		Payments						Capital		Payments
Flow of	raising		Capital			Interest			raising		Capital			Interest
	ThUS$		ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
Aircraft financing		-		(331,292	)		(52,088	)		-		(463,048	)		(63,763	)
Lease liability		-		(131,917	)		(49,075	)		-		(103,366	)		(17,768	)
Non-aircraft financing		7,217,900		(8,428,121	)		(420,553	)		661,609		-			(23,090	)
Total obligations with Financial institutions		7,217,900		(8,891,330	)		(521,716	)		661,609		(566,414	)		(104,621	)

(e) Advances of aircraft

Corresponds to the cash flows associated with aircraft purchases, which are included in the statement of consolidated cash flows, within Purchases of property, plant and equipment.

	For the year ended
	December 31,
	2022			2021			2020
	ThUS$			ThUS$			ThUS$
Increases (payments)		(23,118	)		(9,858	)		(31,803	)
Recoveries		43,902			-			8,157
Total cash flows		20,784			(9,858	)		(23,646	)

The Company has revised its consolidated statement of cash flows for the year ended December 31, 2021 to correct the classification of cash flows related to property, plant and equipment additions. This correction resulted in an increase in net cash used in investing activities of ThUS$9,858 and a decrease in cash used in operating activities in the same amount.

(f) Additions of property, plant and equipment and Intangibles

	For the period ended
	At December 31,
	2022		2021		2020
	ThUS$		ThUS$		ThUS$
Net cash flows from
Purchases of property, plant and equiment		780,538		597,103		324,264
Additions associated with maintenance		486,231		302,858		173,740
Other additions		294,307		294,245		150,524
Purchases of intangible assets		50,116		88,518		75,433
Other additions		50,116		88,518		75,433

(g) The net effect of the application of hyperinflation in the consolidated cash flow statement corresponds to:

	For the period ended
	December 31,
	2022			2021
	ThUS$			ThUS$
Net cash flows from (used in) operating activities		(36,701	)		(65,901	)
Net cash flows from (used in) investment activities		(146	)		17,223
Net cash flows from (used in) financing activities		7,703			-
Effects of variation in the exchange rate on cash and cash equivalents		29,144			48,678
Net increase (decrease) in cash and cash equivalents		-			-

(h) Payments of leased maintenance

Payments to suppliers for the supply of goods and services include the value paid associated with leased maintenance capitalizations for ThUS$149,142 (ThUS$163,717 as of December 31, 2021 and ThUS$65,960 as of December 31, 2020).

(i) Payments of loans to related entities

	For the period ended
	December 31,
	2022
	ThUS$
Delta Air Lines, Inc.		(78,947	)
Qatar Airways		(78,947	)
Costa Verde Aeronautica S.A.		(257,533	)
Lozuy S.A.		(107,122	)
QA Invesments Ltd		(242,967	)
QA Invesments 2 Ltd		(242,967	)
Payments of loans to related entities		(1,008,483	)