LAN Airlines Reports Net Income of US$419.7 Million for Full Year 2010 and US$164.6 Million for Four

HIGHLIGHTS

• Full year 2010 results were marked by strong recovery and growth in both the cargo and passenger businesses. LAN reported net income of US$419.7 million for full year 2010, an increase of 81.6% compared to full year 2009. These solid results demonstrate the Company's ability to seize opportunities in the recovery of global markets following the challenges in 2009, despite the impact of the earthquake that affected Chile in February 2010.
• For full year 2010, operating income reached US$622.9 million, a 43.0% increase compared to the US$435.7 million in full year 2009. Operating margin reached 13.8%, an increase of 1.9 points compared to 11.9% in 2009.
• For fourth quarter 2010 LAN reported net income of US$164.6 million, an increase of 49.9% compared to the US$109.8 million reported in fourth quarter 2009.
• Operating income reached US$210.7 million in fourth quarter 2010, a 10.7% increase compared to US$190.3 million in fourth quarter 2009. Operating margin reached 16.2% compared to 17.8% in the same period 2009.
• Total revenues in fourth quarter 2010 reached US$1,302.5 million compared to US$1,070.7 million in fourth quarter 2009 due to a 17.3% increase in passenger revenues and a 31.2% increase in cargo revenues. Passenger and cargo revenues accounted for 68.2% and 28.4% of total revenues, respectively, during fourth quarter 2010.
• On January 19, 2011, LAN and TAM announced the signing of binding agreements containing the definitive terms and conditions of the proposed business combination between both companies, as initially announced in August 2010. This transaction remains subject to the approval by the Agência Nacional de Aviação Civil ("ANAC") in Brazil, other relevant government authorities and the companies' respective shareholders.
• On November 26, 2010, LAN acquired Colombian airline Aerovías de Integración Regional S.A. ("AIRES") for US$12 million in cash, in addition to assuming net liabilities of US$87 million. The Colombian market is the second largest market in South America with over 12 million annual domestic passengers. AIRES is currently the second largest operator in Colombia's domestic market with approximately 22% market share.
• In line with the Company's expansion, during fourth quarter 2010 LAN received a total of five Airbus A320 passenger aircraft, destined for domestic and regional markets. For the cargo business, the Company took delivery of two Boeing 767-300 freighters, destined for operations between Latin America and the United States.

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 code share agreements. 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. Furthermore, in November 2010, LAN acquired Colombian airline AIRES.

Currently, LAN Airlines and its affiliates operate 118 passenger aircraft while LAN Cargo and its respective 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 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™, an alliance of leading global airlines of which LAN has been a member for 10 years. For more information please visit www.lan.com or www.oneworldalliance.com.