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, today reported its preliminary monthly traffic statistics and punctuality indicators for October 2008.

System passenger traffic for October increased 10.8% as capacity rose 11.2%. As a result, the Company's load factor decreased 0.3 points to 76.3%. International passenger traffic accounted for approximately 69% of total passenger traffic.

International passenger traffic for October rose 2.8% as capacity increased 2.0%. Accordingly, the international passenger load factor for the month increased 0.6 points to 76.8%. International capacity grew due to an increase in operations to Mexico, the Caribbean, the South Pacific and the United States.

Domestic passenger traffic in Chile, Argentina and Peru rose 33.9% as capacity increased 38.3%. As a consequence, the domestic load factor for the month decreased 2.5 points to 75.3%. Growth in domestic capacity was driven mainly by an expansion of operations in Argentina and Peru.

Cargo traffic increased 8.7% as capacity rose 11.8%. As a consequence, the cargo load factor decreased 2.0 points to 71.7%, affected mainly by higher capacity on regional routes. Cargo traffic increased as a result of the continued strength of import markets, especially in Brazil, an increase in wet lease capacity (ACMI-aircraft, crew, maintenance and insurance) in preparation for the arrival of the Boeing 777 cargo fleet, and the initiation of cargo operations in Central America during September.

During September, 89.3% 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 4.6 points compared to the same month of 2007.

About LAN

LAN Airlines is one of the leading passenger airlines in Latin America. The company serves more than 60 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 58 additional international destinations through its various codeshare 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 domestic market.

Currently, LAN Airlines operates one of the most modern fleets in the world, with 75 passenger aircraft and its cargo affiliate, LAN CARGO, operates 9 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: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

Note: Domestic passenger statistics include domestic operations in Chile, Peru and Argentina.