Release Date:
Release ID: 657

LAN Airlines Monthly Statistics Report for July 2006

LAN Airlines S.A. and its related companies, ("LAN" or "the Company") (NYSE: LFL / IPSA: LAN), one of the leading airline groups in Latin America, reported its preliminary monthly and accumulated traffic statistics and punctuality indicators for July 2006.

Press Release

System passenger traffic for July increased 4.7% as capacity rose 6.9%. As a result, the Company's load factor decreased 1.6 points to 77.5%. International passenger traffic accounted for approximately 88% of total passenger traffic.

International passenger traffic for July rose 5.8% as capacity increased 8.2%. Accordingly, the international passenger load factor for the month decreased 1.8 points to 79.1%. Long-haul capacity grew due to an increase in operations to the South Pacific and Europe, which was partially offset by a reduction in operations to the United States and the Caribbean. Short-haul capacity grew mainly as a result of an expansion in regional operations and in the Argentine domestic market.

Domestic passenger traffic in Chile declined 3.4% as capacity was reduced by 1.0%. As a consequence, the domestic load factor for the month decreased 1.7 points to 67.3%.

Cargo traffic increased 5.4% as capacity rose 1.7%. As a consequence, the cargo load-factor increased 2.4 points to 66.7%. Cargo traffic grew mainly as the expansion of imports into the region was partially offset by the continued weakness of other exports out of Chile and Brazil.

In July, 83.8% 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 6.1 point increase compared to same month of 2005.


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