LAN Airlines S.A. and its subsidiaries, (“LAN” or “the Company”) (NYSE: LFL / IPSA: LAN), one of the leading airlines in Latin America, today reported its preliminary monthly traffic statistics and punctuality indicators for June 2011. During June, system passenger traffic increased 12.1% as capacity rose 3.4%. As a result, the Company’s load factor for the month increased 6.1 points to 78.1%. International passenger traffic accounted for approximately 71% of total passenger traffic. Starting in January 2011, these figures include AIRES’ domestic and international operations. Domestic passenger traffic in Chile, Argentina, Peru, Ecuador and Colombia rose 13.0% as capacity increased 8.5%. As a consequence, the domestic passenger load factor in June increased 2.9 points to 74.5%. International passenger traffic grew 11.8%, while capacity increased 1.3%. Accordingly, the international passenger load factor for the month increased 7.5 points to 79.7%. During June, the passenger business’s capacity, and to a lesser extent traffic, was affected by the presence of volcanic ash, which affected air traffic in the Region. The event directly impacted domestic operations in Argentina, and to a lesser degree, domestic operations in Southern Chile. Regional routes and international long-haul routes to and from Argentina and Uruguay, as well as the route to Australia, were also affected in June. During June, cargo traffic rose 6.5% as capacity increased 6.8%. As a consequence, the cargo load factor decreased 0.2 points to 68.8%. Traffic and capacity grew due to the arrival of three new Boeing 767F freighters between November 2010 and January 2011. These aircraft have been assigned to boost growth in the Brazilian domestic, Latin American, United States West Coast and Mexican markets. During June, the cargo business was also affected by the volcanic ash cloud as available cargo capacity of passenger aircraft decreased due to flight cancellations in the passenger business. During June, 84.8% of the Company’s total flights left on time based on a fifteen-minute standard (all departures leaving within fifteen minutes of the scheduled departure time are considered as “on-time”). This represented a decrease of 1.3 points compared to June 2010.
About LANLAN Airlines is one of the leading passenger and cargo airlines in Latin America. The company and its affiliates serve over 76 destinations around the world through an extensive network that offers full connectivity within Latin America, while also linking the region with North America, Europe and the South Pacific, as well as 93 additional international destinations through its various code share agreements. LAN Airlines and its affiliates have a leading position in their respective domestic markets of Chile and Peru as well as an important presence in the Argentinean and Ecuadorian domestic markets. Furthermore, in November 2010, LAN acquired Colombian airline AIRES. Currently, LAN Airlines and its affiliates operate 122 passenger aircraft while LAN Cargo and its respective affiliates have a fleet of 14 dedicated freighters. The Company has one of the youngest fleets in the world which has meant greater efficiency and a significant reduction in CO2 emissions, reflecting its strong commitment to the protection of the environment. LAN is one of the few Investment Grade airlines in the world (BBB). The company’s world class quality standards enabled its membership in oneworld™, an alliance of leading global airlines of which LAN has been a member for 10 years. For more information please visit www.lan.com or www.oneworldalliance.com. PRELIMINARY JUNE OPERATING STATISTICS Note: Domestic passenger statistics include domestic operations in Chile, Peru, Argentina, Ecuador and Colombia (starting from January 2011).