LAN Airlines monthly statistics report for december 2010

Santiago, Chile, January 10, 2011

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%.