LAN Airlines Monthly Statistics Report for July 2009

SANTIAGO, Chile, Aug. 7 /PRNewswire-FirstCall/ -- 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 2009.

System passenger traffic for July increased 6.7% as capacity rose 10.6%.  As a result, the Company’s load factor decreased 2.8 points to 76.0%. International passenger traffic accounted for approximately 71% of total passenger traffic.

Domestic passenger traffic in Chile, Argentina, Peru and Ecuador rose 19.5% as capacity increased 29.3%.  As a consequence, the domestic load factor for the month decreased 6.0 points to 73.1%.

International passenger traffic for July rose 2.1% as capacity increased 4.0%. Accordingly, the international passenger load factor for the month decreased 1.4 points to 77.3%. International capacity was mainly driven by an increase in operations on routes to the United States and Europe as well as on certain regional routes.

During the month of July cargo traffic decreased 10.2%. This decrease was mainly due to a slowdown in import and export markets in Latin America witch was partially offset by an increase in exports from Peru to the United States.  In line with the decrease in demand, capacity fell 5.5%, mainly through the reduction of ACMI leases, generating a 3.5 point decrease in the load factor to 67.4%.

During July, 93.2% 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 an increase of 7.7 points compared to July 2008.

About LAN

LAN Airlines is one of the leading passenger and cargo airlines in Latin America. The company and its affiliates serve over 65 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 63 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 market and has begun operations in the domestic market of Ecuador.

Currently, LAN Airlines and its affiliates operate one of the most modern fleets in the world, with 84 passenger aircraft, and its cargo subsidiary, LAN CARGO and its respective cargo affiliates, have a fleet of 11 dedicated freighters. The company recently completed its short haul fleet renovation process by acquiring new aircraft from the Airbus A320 family, enabling LAN to improve its efficiency and to reduce significantly its CO2 emissions. The fleet renovation is part of the company’s commitment to the protection of the environment.

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 that encompasses the best airlines in the world. For more information please visit www.lan.com or www.oneworldalliance.com