LATAM Airlines Group revises guidance for 2014

Santiago, Chile, July 18, 2014– LATAM Airlines Group S.A. and its subsidiaries, (“LATAM Airlines Group” or “the Company”) (NYSE: LFL / IPSA: LAN / Bovespa: LATM33), the leading airline group in Latin America, today published its revised guidance for 2014.

After thorough review of our operational projections for 2014, we have revised downward our operating margin estimates for full year 2014, to approximately between 4% and 5%, as compared to our previous guidance of between 6% and 8%. The main driver of this downward revision is the negative impact of the World Cup soccer tournament, which took place in Brazil during June and July 2014, affecting corporate and tourism demand on routes to, from and within Brazil during this period. We estimate the impact of the World Cup on LATAM’S operating margin to be between US$140 million and US$160 million, mainly as a result of decreased revenues.

This guidance revision also includes the negative effect of a weaker macroeconomic scenario in Latin America, including slower GDP growth trends and weaker currencies in various countries. LATAM Airlines Group has managed this challenging environment by reducing capacity growth in most markets, especially on domestic routes in LATAM’s Spanish Speaking countries.