LAN Airlines Statement.

MIAMI -- LAN Airlines, in conjunction with Argentine investors, has initiated negotiations to acquire an airline in Argentina - with an approved air operator certificate - in order to operate domestic and international passenger, mail and cargo services.

The airline will use the name of LAN ARGENTINA and will be part of the LAN airline alliance.

Upon the approval by local authorities of the required traffic rights, LAN ARGENTINA will propose to the government the incorporation of all of the LAFSA employees.

LAN is pleased to have the opportunity to further contribute to the aviation of Argentina and region, and reaffirms its commitment to excellence with the highest standards of safety and service.

The LAN service alliance participating airlines LAN Airlines (NYSE:LFL), LAN PERU and LAN ECUADOR offer a united spirit of reliability and charm that provides passengers the highest level of service and safety with the complete travel experience throughout the skies of the Americas.

The LAN alliance's vast route network reaches a large number of destinations throughout the world, including the Americas, Europe, Asia and the South Pacific. The alliance offers non-stop and direct flights from North America to Argentina, Chile, Colombia, Dominican Republic, Ecuador, Peru and Venezuela with service from 30 North American cities, including daily flights from its Miami, New York and Los Angeles gateways. Passengers traveling with any of the LAN service alliance participating airlines may accumulate frequent flier kilometers in LANPASS. Additionally, passengers traveling with LAN AIRLINES or LAN PERU may also accumulate frequent flier miles in American Airlines' AAdvantage or any of the oneworld(TM) member frequent flyer programs.

For additional information, contact LAN toll-free at 1 (866) I-FLY-LAN. Visit LAN's website at http://www.lan.com.