LAN Airlines Monthly Statistics Report for December 2006.

SANTIAGO, Chile -- 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 December 2006.

System passenger traffic for December increased 23.7% as capacity rose 18.7%. As a result, the Company's load factor increased 3.1 points to 75.8%. International passenger traffic accounted for approximately 86% of total passenger traffic.

International passenger traffic for December rose 24.9% as capacity increased 21.0%. Accordingly, the international passenger load factor for the month increased 2.4 points to 76.3%. Long-haul capacity grew due to an increase in operations to the South Pacific, Europe and the United States. This was partially offset by a reduction in operations to the Caribbean. Short-haul capacity grew mainly as a result of an expansion in regional operations, as well as expansions in the Argentine and Peruvian domestic markets.

Domestic passenger traffic in Chile rose 16.7% as capacity increased by 6.6%. As a consequence, the domestic load factor for the month increased 6.3 points to 72.9%. Growth in domestic traffic resulted primarily from the implementation in October 2006 of test programs for the Company's new business model aimed at increasing the efficiency of domestic and short haul operations.

Cargo traffic increased 7.3% as capacity rose 7.0%. As a consequence, the cargo load-factor increased 0.2 points to 69.3%. Cargo traffic grew mainly as a result of stronger imports into the region and exports from Peru, partially offset by the continued weakness of other exports out of Brazil and to a lesser extent out of Chile.

In December, 86.3% 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 a 1.7 point decrease compared to same month of 2005.

About LAN

LAN Airlines is one of the leading airlines in Latin America. "LAN" makes reference to the consolidated entity that includes LAN Airlines, LAN Express, LAN Peru, LAN Ecuador, and LAN Argentina, as well as LAN Cargo and its affiliates. Through its own operations and code-share arrangements, the LAN Alliance serves 15 destinations in Chile, eleven destinations in Peru, nine destinations in Argentina, two in Ecuador, 30 destinations in other Latin American countries, 25 in North America, 13 destinations in Europe, four in the South Pacific and one in Asia. Currently, the LAN Alliance operates 70 passenger aircraft and 10 dedicated freighters.

LAN Airlines is a member of oneworld (TM), the world's leading global airline alliance. It has bilateral commercial agreements with oneworld partners American Airlines, British Airways, Iberia and Qantas, as well as with Alaska Airlines, AeroMexico, Mexicana, and TAM. For more information visit www.lan.com or www.oneworldalliance.com.