LAN Airlines S.A. and its subsidiaries, (“LAN” or “the Company”) (NYSE: LFL / IPSA: LAN), one of the leading airlines in Latin America, today reported its preliminary monthly traffic statistics and punctuality indicators for July 2010.

System passenger traffic for July increased 14.5% as capacity rose 9.9%. As a result, the Company’s load factor increased 3.2 points to 79.2%. International passenger traffic accounted for approximately 70% of total passenger traffic.

Domestic passenger traffic in Chile, Argentina, Peru and Ecuador rose 17.6% as capacity increased 8.9%. As a consequence, the domestic load factor for the month increased 5.8 points to 78.9%.

International passenger traffic for July grew 13.3%, while capacity increased 10.3%. Accordingly, the international passenger load factor for the month increased 2.1 points to 79.4%. During July, international capacity was mainly driven by an increase in operations on routes to the United States, as well as certain Regional routes.

During July, cargo traffic increased 20.7%. This increase was mainly due to the recovery in imports to Latin America driven by Brazil and the increase in operations to Europe with the B777-200 freighter fleet. In-line with higher demand, capacity grew 19.7%. As a result, the cargo load factor rose 0.5 points to 67.9%.

During July, 74.0% of the Company’s total flights left on time based on a fifteen-minute standard (all departures leaving within fifteen minutes of the scheduled departure time are considered as “on-time”). This represented a decrease of 18.9 points compared to July 2009.

About LAN

LAN Airlines is one of the leading passenger and cargo airlines in Latin America. The company and its affiliates serve over 70 destinations around the world through an extensive network that offers full connectivity within Latin America, while also linking the region with North America, Europe and the South Pacific, as well as 70 additional international destinations through its various alliances. LAN Airlines and its affiliates have a leading position in their respective domestic markets of Chile and Peru as well as an important presence in the Argentinean domestic markets and having completed one year in the Ecuadorian domestic market.

Currently, LAN Airlines and its affiliates operate one of the most modern fleets in the world, with 87 passenger aircraft, and its cargo subsidiary, LAN CARGO and its respective cargo affiliates, have a fleet of 11 dedicated freighters. The Company has one of the youngest fleets in the world, which has meant greater efficiency and a significant reduction in CO2 emissions, reflecting its strong commitment to environmental protection.

LAN is one of the few Investment Grade airlines in the world (BBB). The company’s world class quality standards enabled its membership in oneworld™, the global alliance which LAN has been a member of for over 10 years that encompasses the best airlines in the world. For more information please visit www.lan.com or www.oneworldalliance.com

Note: Domestic passenger statistics include domestic operations in Chile, Peru, Argentina and Ecuador.

Copyright Business Wire 2010