LAN Airlines Monthly Statistics Report for June 2011

SANTIAGO, Chile—(BUSINESS WIRE)—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.