LAN Airlines Monthly Statistics Report for July 2006

LAN Airlines S.A. and its related companies, ("LAN" or "the Company") (NYSE: LFL / IPSA: LAN), one of the leading airline groups in Latin America, reported its preliminary monthly and accumulated traffic statistics and punctuality indicators for July 2006.

System passenger traffic for July increased 4.7% as capacity rose 6.9%. As a result, the Company's load factor decreased 1.6 points to 77.5%. International passenger traffic accounted for approximately 88% of total passenger traffic.

International passenger traffic for July rose 5.8% as capacity increased 8.2%. Accordingly, the international passenger load factor for the month decreased 1.8 points to 79.1%. Long-haul capacity grew due to an increase in operations to the South Pacific and Europe, which was partially offset by a reduction in operations to the United States and the Caribbean. Short-haul capacity grew mainly as a result of an expansion in regional operations and in the Argentine domestic market.

Domestic passenger traffic in Chile declined 3.4% as capacity was reduced by 1.0%. As a consequence, the domestic load factor for the month decreased 1.7 points to 67.3%.

Cargo traffic increased 5.4% as capacity rose 1.7%. As a consequence, the cargo load-factor increased 2.4 points to 66.7%. Cargo traffic grew mainly as the expansion of imports into the region was partially offset by the continued weakness of other exports out of Chile and Brazil.

In July, 83.8% 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 6.1 point increase compared to same month of 2005.