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 August 2010.

System passenger traffic for August increased 13.7% as capacity rose 11.7%. As a result, the Company’s load factor increased 1.3 points to 77.8%. International passenger traffic accounted for approximately 70% of total passenger traffic.

Domestic passenger traffic in Chile, Argentina, Peru and Ecuador rose 15.1% as capacity increased 10.0%. As a consequence, the domestic load factor for the month increased 3.4 points to 76.8%.

International passenger traffic for August grew 13.1%, while capacity increased 12.5%. Accordingly, the international passenger load factor for the month increased 0.4 points to 78.2%. During August, international capacity expansion was mainly driven by an increase in operations on routes to the United States, as well as certain regional routes.

During August, cargo traffic increased 16.0%. 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 freighter fleet. In addition, in June 2010, LAN Cargo launched domestic cargo operations in Brazil to Recife and Fortaleza through its affiliate ABSA. In-line with higher demand, capacity grew 17.0%. As a result, the cargo load factor dropped 0.6 points to 68.4%.

During August, 85.6% 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 6.8 points compared to August 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 88 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

Copyright Business Wire 2010