LAN Cargo (Santiago de Chile) and its sister cargo carriers will lease three B767-300Fs to FedEx Express (FX, Memphis International) on a three-year contract as demand for freight capacity in Latin America continues to remain weak.

"Cargo trends continue to be weak due to a slowdown in imports into Latin America and competitive pressures from regional and international cargo carriers persist," it said.

Parent LATAM Group said this week that in light of limited demand, it will continue to focus on maximising use of belly-hold capacity on LAN Airlines' passenger flights.

LATAM operates cargo carriers in Brazil (ABSA Cargo), Chile (LAN Cargo), Colombia (Linea Aérea Carguera de Colombia) and Mexico (Mas Air (1991)).