Santiago, Chile, May 12, 2008
LAN CARGO S.A. (“LAN Cargo”), cargo subsidiary of LAN Airlines S.A. (“LAN” or “the Company”) (NYSE: LFL / IPSA: LAN), today announced that on May 9, 2008 it presented to the Colombian aviation authorities a formal proposal for the creation of a new cargo airline in that country. LAN CARGO’s proposal is subject to the approval of the Colombian and other governmental authorities and, if approved, LAN CARGO will have a period of 12 months to launch its subsidiary’s operations.
Colombia is currently the largest air cargo market in Latin America in terms of exports to the United States, with an estimated volume of 200 thousand tons annually. Through the launch of an affiliate company in Colombia, LAN CARGO will be able to contribute significantly to the development of this important market. The establishment of a subsidiary in Colombia will allow LAN CARGO to integrate the country to its broad network of routes within the region, also providing connectivity to the United States and Europe with its modern fleet of Boeing 767-300F freighter aircraft.
LAN CARGO currently has cargo affiliates in Brazil and Mexico and operates a network that covers approximately 75 destinations worldwide. “The creation of this new subsidiary furthers the consolidation of our cargo network, effectively connecting the main productive centers and markets in the region, while reaffirming our objective of uniting Latin America with the rest of the world,” stated Cristian Ureta, CEO of LAN CARGO.
Cargo traffic increased 10.3% as capacity rose 12.4%. As a consequence, the cargo load factor decreased 1.4 points to 73.5%, affected mainly by higher capacity on regional routes. Cargo traffic grew mainly as a result of the continued strength in the Brazilian import markets while export traffic remains stable.
In March, 86.3% 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 2.9 points compared to the same month of 2007.