LAN and TAM Announce New Flights in Preparation for the World's Greatest Soccer Tournament

February 20, 2014 – LAN Airlines and its affiliates and TAM Airlines, part of LATAM Airlines Group, South America’s largest airline group, announce the addition of new flights to provide the best service to passengers during one of the biggest sporting events in the world that will take place in Brazil in June and July 2014. While both companies will add more than 300 international flights, TAM Airlines has altered 31% of its domestic flight network from June 10, 2014 to July 15, 2014 by adding more than 750 new flights within Brazil.

TAM estimates an investment of more than US$ 21 million to implement the changes to the existing network. The decision to add flights came after TAM evaluated all the approvals granted by Brazil’s National Civil Aviation Agency (ANAC).

With these modifications, TAM will operate approximately 22,000 flights within Brazil during the soccer tournament and maintain the current daily average of 800 flights, with 640 being domestic flights.

TAM started laying the ground work for the new flight network last year by submitting a comprehensive proposal to Brazil’s ANAC. With TAM’s new network in place for June and July, Brazil will be able to better connect to the world.

During June and July 2014, the industry predicts a sharp decrease in business travel and a demand for leisure travel, specifically with peaks during certain times, dates and routes.

Our operation will be highly focused on the logistical challenge of crisscrossing a continent-sized country day and night, operating flights that are synchronized with the World Cup match schedule. We will offer connectivity and transport a large share of the fans from around the world and that is why we are fully committed to the success of the event”, says Claudia Sender, CEO of TAM Airlines. “The new network is necessary and we started planning it last year. It is not the result of a general increase in demand for flights during the tournament; rather it reflects our tremendous capacity to adapt airline operations to a completely different and specific travel scenario.

With these changes, 81% of TAM’s domestic flights will be operated from airports in the host cities during the championship, with an average of 43 domestic flights departing from these cities every day. In June and July 2014, the company’s passenger capacity all around Brazil will be 7 million.

Below are the changes to the number of TAM domestic flights in the host cities on days expected to experience heavier passenger traffic. Please note that the numbers are subjected to changes.

• Belo Horizonte (Confins): 26 to 30 daily flights

• Brasília: 83 to 92 daily flights

• Cuiabá: 6 to 12 daily flights

• Curitiba: 29 to 32 daily flights

• Fortaleza: 28 to 33 daily flights

• Manaus: 13 to 15 daily flights

• Natal: 9 to 14 daily flights

• Porto Alegre: 26 to 31 daily flights

• Recife: 24 to 26 daily flights

• Rio de Janeiro (Galeão and Santos Dumont): 94 to 108 daily flights

• São Paulo (Congonhas, Guarulhos and Viracopos): 211 to 225 daily flights

• Salvador: 27 to 33 daily flights.

Tickets for TAM’s new domestic flights are already available for purchase through all of the company’s sales channels. All tickets for flights during the championship will be competitively priced. The fares can be found at www.tamairlines.com

80% of the domestic flights sold by TAM for the event were priced below US$ 250. Currently, 50% of the domestic tickets still available for sale are being offered below this price and 30% are being sold for less than US$ 100.

Customers who already purchased tickets for June and July 2014 through TAM’s sales channels (website, call center) and whose flight has been canceled or rerouted are being contacted by the Company to inform them of all the available options, whether it is to accommodate passengers on other flights or offer a full refund on their purchase. TAM has also contacted travel agencies so they can to inform their customers of the changes; they will also be exempt from rebooking fees.

International flights

The LATAM Airlines Group companies – LAN Airlines and its affiliates and TAM Airlines - will jointly operate more than 300 new international flights to and from Brazil in June and July 2014. The countries with the highest increase in extra flights to Brazil during the period are Argentina, Chile and England.

Together, LAN and TAM will connect Brazil to one-third of the countries that have qualified for the World Cup. Through alliances and agreements with other airlines, they will connect Brazil to all the nations participating in the event.

Future flight changes and chartered flights

For the coming months, TAM is working on fine tuning details and getting approval for the small portion of flight requests still pending final approval. The Company plans to submit additional requests during the event, once the second phase of the tournament matches is defined.

LAN and TAM have requested authorization from Brazil’s ANAC to operate up to 201 international chartered flights during the event.

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