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Growing through ConsolidationAndres del Valle, LAN Airlines

1

This presentation may include forward-looking comments regarding the Company’s business outlook and

anticipated financial and operating results. These expectations are highly dependent on the

economy, the airline industry, commodity prices, international markets and external events.

Therefore, they are subject to change and we undertake no obligation to publicly update or revise

any forward looking statements to reflect events or circumstances that may arise after the date of

this presentation. More information on the risk factors that could affect our results are contained on

our Form 20-F for the year ended December 31, 2007.

Information, tables and logos contained in this presentation may not be used without consent from LAN

Contents

I. LAN’S DIVERSIFIED BUSINESS MODEL

II. FUEL STRATEGY

III. FLEET PLANNING

IV. GROWTH OPPORTUNITIES

2

Strong Revenue Growth

Operating Revenues 1993 – LTM June08

3.525

4.071

318407

600 694972 1.083 1.237

1.425 1.428 1.454 1.639

2.093

2.506

3.034

0

400

800

1.200

1.600

2.000

2.400

2.800

3.200

3.600

4.000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 LTMJun08

US$ Million

CAGR24%

CAGR1%

CAGR20%

US$ Millions

3

Consistent Profitability Despite Multiple Market Shocks

$11 $15$34

$44

$83$62

$112

$172

$303

$413$399

$6

$38

$308$318

$51$46 $50

$80

$142

$48

$164

$241

$0

$64

$31$25

$147

$84

$31$11

$48

$0$25$50$75

$100$125$150$175$200$225$250$275$300$325$350$375$400$425

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 LTMJun08

Operating Income and Net Income 1993 – LTM June08

Operating Income Net Income

(US$ millions)

Recession

9/11 & Argentine CrisisIncreasing Fuel Prices

LAN Airlines has been consistently profitable under the current management 4

LAN Operates with High Efficiency Levels

EBITDAR Margin Industry comparison (LTM Jun08)

6,3% 6,7% 7,3%

11,0%

12,9% 13,4%14,2% 14,3%

17,9%

22,3%

23,9%

0%

5%

10%

15%

20%

25%

30%

GOL

United

Amer

ican

Cont

inen

tal

TAM

AirF

ranc

e

Iber

ia

Briti

sh

LAN

COPA

Ryan

air

Ebitd

arM

g. (%

)

5Source: Companies Annual Reports (Last full year reported).

1H08 Highlights

• LAN achieved a strong operating performance with a 34.0% increase in revenues.• Despite high fuel prices, LAN reported a 7.4% increase in net income demonstrating

the resiliency of its business model and its ability to operate in a high fuel price environment.

• EBITDAR Margin for 1H08 reached 15.4%. However, EBITDAR margin adjusted for the fuel hedging gain reached 16.8%.

6

US$ millions 1H07 1H08 % Chg

Revenues 1,604 2,150 34.0%Passenger 996 1,317 32.3%Cargo 533 751 41.0%Other 76 82 8.0%

Total Operating Expenses (1,421) (1,982) 39.5%

Operating Income 183 168 -8.1%Operating Margin 11.4% 7.8% -3.6 pp

Net Income 129 138 7.4%

EBITDAR* 331 332 3.0%EBITDAR Margin 20.6% 15.4% -5.2 pp

* EBITDAR = Operating income + depreciation & amortization + aircraft rentals (does not include fuel hedging gains/losses)

LAN’s Diversified Business Model: Passenger + Cargo Operations

Passenger

Cargo

Others

Diversified Business Model(% Operating Revenues)

4%

61%

35%

1H08

67%

33%

LAN’s business model is diversified between the passenger and cargo businesses

This allows LAN the flexibility to better withstand unfavorable economic conditions

7

LAN’s Passenger Operations are Geographically Diversified

50%

International(Long Haul)

24%

Regional

14%

Dom. Chile 8%

Dom. Perú4%

Dom. Argentina

39%

3%

Diversified Passenger Capacity(% ASKs)

1H081998

Dom. Chile

International

28%

72%

20%

18% 59%

3%

2003

Regional

International(Long Haul)

Dom. Perú

Dom. Chile

LAN’s business model is diversified geographically throughout Latin America and the rest of the world

This allows LAN the flexibility to better withstand unfavorable economic conditions

Approximately 50% of ASKs are currently originated in Chile

8

LAN’s Cargo Operations are Geographically Diversified

Diversified Cargo Capacity(% ATKs by routes 1H08)

9

11%43%

13%

Argentina, Uruguay 14%

Others

Miami-Mexico

5%3%

Mexico-South America

2%

Miami-BrazilChile

LAX - Brasil

LAX - México

9%

87%

LAN: A Passenger + Cargo Airline

10

Passenger Business: Capacity Breakdown by Route Type (ASK)

Chile (Dom)14%

International74%

Peru (Dom)8%

Arg. (Dom)4%

Cargo Business: Capacity Breakdown by Route Type

(ATK)Chile (Dom)

3%

Intl97%

Cargo Operations• Sales (LTM Jun08): US$1.4 billion• Tons (LTM Jun08): 634 thousand• Fleet: 9 dedicated freighters• Companies: Chile, Brazil, Mexico & Colombia*

Passenger Operations• Sales (LTM Jun08): US$2.5 billion• Passengers (LTM Jun08): 12.0 million• Fleet: 72 aircraft• Companies: Chile, Argentina, Peru & Ecuador

* In process of setting up a new cargo subsidiary

LAN Business Model: Distinct blend enhances returns and reduces risk

Revenue Mix, Selected Companies, 2007Passenger and Cargo Combination

– Lower Break-Even Load Factors– Increased diversification

7%

12%

19%

33%

41%

21%

16%

7%

8%

11%

6%

88%

90%

73%

79%

86%

80%

70%

60%

59%

62%

53%

22%

29%

4%

3%

6%

6%

19%

12%

9%

6%

5%

Delta

American

Iberia

Qantas

BA

Air France-KLM

Singapore

Cathay

Korean Air

LAN

EVA

Cargo Others Passenger

Source: Companies - Last Full Year reported.

BELF Differential for passenger + cargo routes (2Q08)

11%

63%74%

Load

Fac

tor

BELF w/o Cargo

CargoContribution

BELF w/ Cargo

Note: BELF = Break-even load factor

11

12

Guayaquil 2003

Buenos Aires 2005

Santiago 1929

Lima 1999

LAN’s Regional Strategy – Passenger Operations

Multi-hub/Multi-airline model– Interlocking hubs protect and

complement each other– Higher asset utilization

1.500 KM

TAM Commercial Agreement– Implemented in December 2007– Main Routes: Santiago, Lima,

Buenos Aires to Sao Paulo– Domestic Markets

• Brazil• Peru• Chile• Argentina

TAM / LAN Agreement 2008

Leading Presence in South American Markets

LAN Market Share in Passenger Markets (July 2008)

Market Size: Passengers Transported 2007(millions)

13Sources: DGAC Chile, DGAC Peru, Undersecretary of Transportation Argentina, DAC Ecuador, LAN Estimates.

2,8

4,93,9

7,5

2,2

4,13,6

5,6

012345678

Ecuador Chile Peru Argentina

International Domestic

Millions ofPassengers

PeruInternational: 30%

Domestic: 86%

ArgentinaInternational: 16%

Domestic: 27%

ChileInternational 52%Domestic: 70%

EcuadorInternational: 24%

Buenos AiresSantiago

Guayaquil

Lima

Diversified Passenger & Cargo Network

Madrid

Easter Island

Auckland

Papeete

Sydney

FrankfurtLos Angeles

Mexico City

Caracas

Sao Paulo

Buenos AiresMontevideo

Cancun

Bariloche

Pta. Arenas

Arica

La Paz

Pto. Montt

Cuzco

Lima

Bogotá

Santiago

Rosario

Quito

Pta. Cana

Guayaquil

Ushuaia

Salta

Rio Gallegos

Com. Rivadavia

Cordoba

Iguazú

IquiqueAntofagasta

CalamaCopiapo

La Serena

Mendoza

Concepcion

Balmaceda

TemucoValdiviaOsorno

TacnaArequipa

Puerto Maldonado

Iquitos

Piura

TarapatoPucalpa

ChiclayoTrujillo

Houston

San JosePanama

Merida

Rio de Janeiro

Porto Alegre

VitoriaBelo HorizonteSalvador

Manaos

Passenger + Cargo NetworkFreighter Network

Curitiba

Asunción

Amsterdam

Miami

LAN is one the leading passenger and cargo operators in Latin America

Nueva York

Medellin

Toronto

LAN

Codeshare

693 destinationsworldwide

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Evolution of Passenger Business in 1H08

10.3

8.8

6

7

8

9

10

11

12

1H07 1H08

Yield (US$ cents)

+ 17.1%76.3

74.6

50,0%

55,0%

60,0%

65,0%

70,0%

75,0%

80,0%

1H07 1H08

Load factor (%)+ 1.7p.p.

1,317

996

0

1500

1H07 1H08

Revenues (US$ mill)+ 32.3%

15,245

12,426

13000

14000

15000

16000

17000

18000

1H07 1H08

+ 10.4%

Passenger ASK (millions)Revenues / ASK (US$ cents)

7.8

6.5

3,5

4,5

5,5

6,5

7,5

8,5

1H07 1H08

+ 19.8%

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Evolution of Cargo Business in 1H08

72.1%74.%

50,0%

55,0%

60,0%

65,0%

70,0%

75,0%

80,0%

1H07 1H08

Load factor (%)-1.9 p.p.

51.7

40.7

20

30

40

50

60

1H07 1H08

Yield (US$ cents)+ 26.8%

533

751

0

150

300

450

600

750

900

1H07 1H08

+ 41.0%Revenues (US$ mill)

1,7662,015

0

400

800

1200

1600

2000

2400

1H07 1H08

+ 14.1%Cargo ATK (millions)Revenue / ATK (US$ cents)

30,2

37.3

10

15

20

25

30

35

40

1H07 1H08

+ 23.6%

16

67%77%

67%69%

49%

38%

67%

Dec-06

Mar-07

Jun-07

Sep-07

Dec-07

Mar-08

Jun-08

New Short Haul Business Model: Improvement in Main Indicators

34%

17%

25%

39%45% 46% 52%

Dec-06

Mar-07

Jun-07

Sep-07

Dec-07

Mar-08

Jun-08

% Internet Sales % Check in Web/ATM

17

Chile Domestic Traffic Growth(RPKs millions) and Load Factor

78,0%

68,0%

0

200

400

600

800

1000

1200

1400

1600

1800

2006 2007

Peru Domestic Traffic Growth(RPKs millions) and Load Factor

+32%72,5%

64,9%

0

500

1000

1500

2000

2500

3000

3500

2006 2007

+24%

Contents

I. LAN’S DIVERSIFIED BUSINESS MODEL

II. FUEL STRATEGY

III. FLEET PLANNING

IV. GROWTH OPPORTUNITIES

18

High Fuel Price Environment

20

40

60

80

100

120

140

US$

/Bar

rel

WTI Price (2004 – 11 Sept. 2008)

Var. 2005

+45%

Var. 2006

-3%

Var. 2007

+65%

Var. 2004

+29%

1H08

+46%

Price effect forLAN:

US$79MM

Price effect forLAN:

US$187MM

Price effect forLAN:

US$71MM

Avg. price 2004

US$41.5

Avg. price 2005

US$56.6

Avg. price 2006

US$66.1

Avg. price 2007

US$72.2

Avg. price Aug 08

US$116.6

Price effect

forLAN:

US$272MM

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Fuel pass-through in cargo businesses

Change in passenger fuel pass-through table in September 2008

Fuel Strategy: Fuel Cost Pass-Through Mechanism

International US$ 1.70 / Kg (1)

(1) Euro 1.20 / Kg from Europe.

2008

2007

WTI Regional Long Haul Long Haul(US$) (US$) (US$) (EUR+SYD) (US$)<40 0 0 0

40-45 15 30 5545-50 18 40 6550-55 20 50 7555-60 23 60 8560-65 25 70 9565-70 28 80 10570-75 30 90 11575-80 33 100 12580-85 35 110 13585-90 38 120 14590-95 40 130 15595-100 43 140 165100-105 45 150 175105-110 48 160 185110-115 50 170 195115-120 53 180 205120-125 55 190 215125-130 58 200 225130-135 60 210 235135-140 63 220 245140-145 65 230 255

WTI(US$) 400-1000 kms >1000 kms< 40 0 040-50 0 050-60 1.500 2.50060-70 3.000 5.00070-80 4.500 7.50080-90 6.000 10.00090-100 7.500 12.500100-110 9.000 15.000110-120 10.500 17.500120-130 12.000 20.000130-140 13.500 22.500140-150 15.000 25.000

Domestic Chile (CL$)

Note: Fuel surcharges are per segment (ie.one way).

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Fuel Strategy: Fuel Hedging

Fuel Hedging Program 2008-2009 (*)

53% 55%

30%

10% 10% 10%0%

10%

20%

30%

40%

50%

60%

3Q08 4Q08 1Q09 2Q09 3Q09 4Q090

20

40

60

80

100

120

140

160

% Hedged Price

% Hedged oftotal

consumption

Price

WTI (US$ / bbl)

(*) Hedging as of August 2008 21

Contents

I. LAN’S DIVERSIFIED BUSINESS MODEL

II. FUEL STRATEGY

III. FLEET PLANNING

IV. GROWTH OPPORTUNITIES

22

LAN Continues Modernizing its Fleet

Arrival of 19 passenger aircraft during 2008

Fleet YE08: 90 Aircraft

5 Boeing 767-300

10 Airbus A318

2 Airbus A319

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2 Airbus A320

Boeing 737-200 Fleet: Phasing out finished in May 2008

Aircraft orders for B787 Dreamliner (Passenger) and B777 (Freighter)

• Orders for 32 Boeing B787 Dreamliner

• 25% more efficient in fuel

• “Environment friendly”aircraft

• Orders for 4 Boeing 777 Freighter

• Almost double the capacity of the B767

• Longer range, which enables LAN to open new routes

24

25

7,57,4

7,15,6

3,83,7

10.96.5

15.214.1

11.47.4

19.415.7

13.89.7

9.0

LAN’s Fleet is among the Youngest in the World

Average Fleet Age for Selected Airlines (Years as of June 2008)

As of December 2007(*)

(*)

(*)

(*)

(*)

REGIONAL

EUROPE

NORTH AMERICA

ASIA

Source: Airlines reports, public information

/

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US$6.0 Billion2008-2018

A340

B767

A320

A318

A319

B767F

2008 2009 2010 2011 2012-18

515172250

152627280

329 9

B777F

2007 2018B737 10 0

0 4

B787

x 10

x 10

x 2 x 6

x 2 x 6 x 3

x 5 x 3

x 5

x 32

x 2 x 1 x 1

x 1

x 1 x 1

x 3

83 141+ 70 %

Current Fleet Plan

CAPEX ’07-’18(USD MM) 471 839 364 249 521 4.000

Short Haul

Long Haul

Cargo

Fleet Plan: LAN Maintains the Flexibility to Adjust its Fleet Size

0

10

20

30

40

50

60

70

Num

ber o

f Lon

g H

aul P

asse

nger

Airc

raft

MIN MAX PLAN

-36%-31%

-24%

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Contents

I. LAN’S DIVERSIFIED BUSINESS MODEL

II. FUEL STRATEGY

III. FLEET PLANNING

IV. GROWTH OPPORTUNITIES

28

Opportunities in Argentine Domestic Market

Lan Argentina Destinations Highlights – Recent Events

Mendoza

Córdoba

Salta

Bariloche

Calafate

Ushuaia

Río Gallegos

Iguazú

Neuquén

C. Rivadavia

Buenos Aires

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• Lan Argentina is currently serving 11 domestic destinations, which comprise 75% of domestic traffic.

• Current fleet: 8 Airbus A320

• Current market share: +/- 27%

• Fleet YE08: 10 Airbus A320

• New destinations: 2 additional in 2H08

• New Developments:

Two consecutive 18% increases of the fare band in April and May 2008.

State subsidy for fuel cost for the entire Argentine domestic industry.

Nationalization of AerolineasArgentinas / Austral

LAN Ecuador: New Domestic Operation

New operation expected to start in 1Q09.

Destinations 1st phase: Quito, Guayaquil, Cuenca and Galápagos Islands

Destinations 2nd phase: Machala, Loja, Coca, Lago Agrio, Esmeraldas

Lan Ecuador Destinations Highlights

Cuenca

Loja

Quito

Guayaquil

Machala

Esmeraldas

Galapagos

Coca

Lago Agrio

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New Cargo Operation in Colombia

Colombia Highlights

MIAMI

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Expected to start in 1Q09

Colombia is the largest air cargo market in Latin America in terms of exports to the United States.

Estimated volume for the Colombian cargo market is about 200,000 tons annually

This operation will provide LAN Cargo with connectivity between Colombia and the rest of the region, US and Europe

In Conclusion…LAN Continues to Grow in a Challenging Environment

Diversified business model

Strong footprint in Latin America

Modern and fuel efficient fleet

Effective fuel strategy

Successful implementation of “low cost” model

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