LAN--- TAM

LATAM AIRLINES GROlJP

TAM BEGINS NEGOTIATIONS WITH LABOR UNION REGARDING ADJUSTMENTS IN AIRCREW PERSONNEL

Sao PauloJ ju/y 30J 203 - TAM Lin has Aéreas ("TAM") announces that today it began negotiations with Brazil's National Air Workers Union regarding adjustments in its labor force. This initiative relates only to crew members {pilots, first officers and flight attendants) and will not affect other areas of the company. In total, the adjustment is expected to amount to fewer than 1,000 jobs.
The objective of this adjustment is to ensure the sustainability of the company's business, which has faced significant cast pressures resulting from the devaluation of the Brazilian currency and increasing fuel costs, as well as a 12% reduction in passenger capacity in the domestic market in Brazil since 2011. Du ring
the capacity adjustment process, the company has already an nou nc ed the main
changes in its network.
This measure, therefore, is aimed at adjusting its labor force to the current operational scenario.
TAM emphasizes that it will carry out the personnel reductions in full compliance with the law and with the collective bargain ing agreement,as w eli as with utmost respect toward its crew and passengers. The company also maintains its commitment to Brazil. None of the scheduled flights will be affected by these measu res.
TAM will continue to invest systematically andina socially responsible manner to increase efficiency and create value for em ployees, investors, customers and society as a whole.

About LATAM Airlines Group S.A.

LATAM Airlines Group SA is the ne w name given to LAN Airlines SA as a result of its association with TAM SA LATAM Airl ines Group S.A. now includes LAN Airlines and its affiliates in Peru, Argentina, Colombia and Ecuador, and LAN Cargo and its affiliates,as well as TAM SA an d its subsidiaries TAM Linhas Aereas SA, including its business units TAM Transportes Aereos del Mercosur SA,TAM Airlines (Paraguay) and Multiplus SA This association creates o ne of the largest airline groups in the world in terms of network connections, providing passenger transport services to about 135 destinations in 22 countries and cargo services to about 144 destinations in 27 countries, with a fleet of 316 aircraft. In total, LATAM Airlines Group SA has more than 53,000 employees and its shares are traded in Santiago,as well as o n the New York Stock Exchange, in the form of ADRs,and Sao Paulo Stock Exchange, in the form of BDRs.

Each airline will continue to operate under their current brands and identities. For any inquiry of LAN or TAM,please visit www.lan.com or www.tam.com.br,respectively. Further information a t www.latamairlinesgrou p.net

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