LAN Airlines´ Latest Monthly Report Reveals Mixed Signals

LAN Airlines S.A. and its related companies, one of the leading airline groups in Latin America, reported its preliminary monthly, accumulated traffic statistics and punctuality indicators for October 2005.

System passenger traffic for October spiked 6.7 percent as capacity rose of 3.2 percent. As a result, the Company´s load factor soared 2.4 points to 72.9 percent.

International passenger traffic for October increased 8.4 percent as capacity hiked 5.4 percent. Accordingly, the international passenger load factor for the month jacked up 2.0 points to 73.0 percent.

Capacity growth slowed relative to previous months due to specific factors, such as adverse weather conditions in the United States and Chile. Load factors grew due to strong demand on routes to the United States, Europe, and the South Pacific as well as between Latin American markets.

Domestic passenger traffic in Chile decreased 2.3 percent as capacity contracted 7.9 percent. As a consequence, the domestic load factor for the month ramped up 4.2 points to 72.6 percent. Domestic capacity plunged mainly due to itinerary adjustments and weather conditions.

Cargo traffic dipped 1.3 percent as capacity was reduced 0.3 percent. As a consequence, load-factors dropped 0.7 points to 69.1 percent.

Capacity slumped due to adjustments in the Company´s freighter mix in order to improve efficiency, as well as the suspension of operations at the Miami airport caused by Hurricane Wilma. Load-factors plummeted as lower export traffic out of Latin America has been partially offset by higher import volumes into the region.