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 December 2010.

During December, system passenger traffic increased 13.7% as capacity rose 8.8%. As a result, the Company’s load factor for the month increased 3.4 points to 80.1%. International passenger traffic accounted for approximately 71% of total passenger traffic.

Domestic passenger traffic in Chile, Argentina, Peru and Ecuador rose 10.7% as capacity increased 5.1%. As a consequence, the domestic load factor for the month increased 4.0 points to 78.8%.

International passenger traffic grew 15.0%, while capacity increased 10.5%. Accordingly, the international passenger load factor for the month increased 3.1 points to 80.6%. During December, international capacity expansion was mainly driven by an increase in operations on routes to the United States, as well as certain regional routes.

During December, cargo traffic increased 9.9%. This increase was mainly due to the growth of Latin American import markets, especially driven by Brazil, where in June 2010, LAN Cargo launched domestic cargo operations to Recife and Fortaleza through its affiliate ABSA. In line with higher demand, capacity grew 12.3%, driven by the delivery of one new B767 freighter in November 2010. As a result, the cargo load factor decreased 1.6 points to 72.0%. 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 12.3%. As a result, the cargo load factor decreased 1.6 point to 72.0%.

During December, 81.5% 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 4.7 points compared to December 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 and Ecuadorian domestic markets.

Currently, LAN Airlines and its affiliates operate one of the most modern fleets in the world, with 94 passenger aircraft, and its cargo subsidiary, LAN CARGO and its respective cargo affiliates, have a fleet of 13 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