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Version USA
Santiago, March 17th, 2006
LAN Airlines S.A.'s ("LAN") (NYSE:LFL) Board of Directors, following
a recommendation from management, which was analyzed and ratified by the Company's
external auditors, has decided to modify the accounting policy governing LAN's
aircraft maintenance expenses.
This change is driven by the growth LAN's fleet and operations have experienced
in recent years. It aligns the Company's accounting policy related to aircraft
maintenance with that of other major international carriers.
The new policy will be effective retroactively from January 1, 2006. The change
will generate a US$40.3 million non-operating, non-recurrent pre-tax benefit
during the first quarter of 2006, due to the elimination in provisions constituted
using the previous method. The change in accounting policy is expected to
generate a US$2 million positive impact in operating results for the full
year 2006.
