LAN Airlines Monthly Statistics Report for May 2011; System Passenger Traffic Increased 19.6%

LAN Airlines S.A. and its subsidiaries LFL today reported its preliminary monthly traffic statistics and punctuality indicators for May 2011. During May, system passenger traffic increased 19.6% as capacity rose 14.2%. As a result, the Company's load factor for the month increased 3.5 points to 77.7%. International passenger traffic accounted for approximately 70% 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 19.2% as capacity increased 20.9%. As a consequence, the domestic load factor for the month decreased 1.1 points to 74.2%. International passenger traffic grew 19.7%, while capacity increased 11.4%. Accordingly, the international passenger load factor for the month increased 5.5 points to 79.3%. During May, international capacity expansion was mainly driven by an increase in operations on certain regional routes, as well as routes to the United States. During May, cargo traffic increased 8.6%. This increase was mainly due to the growth of Latin American import markets, driven by Brazil, as well as the consolidation of domestic cargo operations in Brazil to Recife and Fortaleza, started in June 2010 through the affiliate ABSA. Capacity grew 11.8% due to the arrival of three new Boeing 767F freighters between November 2010 and January 2011. As a result, the cargo load factor decreased 2.0 points to 68.5%. During May, 87.0% 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 an increase of 1.9 points compared to May 2010.