Chile´s LAN Airlines Continues to Put Hefty Numbers on the Board

LAN Airlines S.A. and its related companies, (“LAN” or “the Company”) one of the leading airline groups in Latin America, reported its preliminary monthly and accumulated traffic statistics and punctuality indicators for September 2005.

System passenger traffic for September increased 15.4 percent as capacity rose of 10.5 percent. As a result, the Company´s load factor increased 3.2 points to 74.4 percent.

International passenger traffic for September increased 18.0 percent while capacity increased 11.5 percent. Accordingly, the international passenger load factor for the month increased 4.2 points to 75.7 percent. Traffic increased mainly due to positive performance on routes to the United States, Europe and the South Pacific, advances on intra-Latin American markets, and growth in the Peruvian and Argentine markets.

In September, domestic passenger traffic in Chile increased 0.6 percent as capacity grew 4.8 percent. As a consequence, the domestic load factor for the month decreased 2.8 points to 66.5 percent as capacity constraints in 2004 led to record load-factors last year.

In September, 79.6 percent of the Company´s total flights left on time, based on a fifteen-minute standard (all departures leaving within fifteen minutes of scheduled departure time are considered as “on-time”). Punctuality, which decreased 7.0 points compared to same month of 2004, was impacted by weather-related factors at the Santiago airport.