First Quarter 2009 Results Presentation

April 29, 2009

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

2

Contents

I. Transition to IFRS

II. 1Q09 Financial Results

III. Future Outlook

3

Transition to IFRSMain effects on LAN's Financial Statements

According to regulations issued by the Chilean Securities and Exchange Commission, as of 1Q09 LAN has adopted International Financial Reporting Standards (IFRS). The main differences vs. Chilean GAAP are:

�“Japanese Operating Leases” (JOL): 17 aircraft. These were accounted for as Operating Leases under Chilean GAAP; under IFRS, they will be accounted for as Assets and their corresponding debt will be recognized under Liabilities.

� Frequent Flier Program “LANPASS”: Miles will be accounted for at their economic value and will be recognized as revenue at the moment they are flown.

� Sales Discounts: Sales Discounts and Commissions previously recognized as a cost are now shown net of Revenues.

� Hedging: Realized gains/losses from fuel hedging are recognized as Operating Costs; mark to market value of outstanding contracts will be recognized in an Equity account.

� Maintenance Policy: Heavy maintenance of leased fleet is now capitalized and depreciated.

4

Transition to IFRSEffect on LAN's FY2008 Operating Margin

4

620

536

Op. Income 2008 Ch GAAP

35

Fuel Hedge

9

Lan Pass

46

JOL (Net effect)

15

Maintenance Policy (Net effect)

Others Op. Income 2008 IFRS

0

540

560

580

600

620

640

US$MM

14.5%11.8% 2.7 pp increase in Operating Margin

5

Transition to IFRSEffect on LAN's 2008 Balance Sheet

22

68

Assets 2008 Ch GAAP

579

JOL Revaluation

333

Hedging Others

5.197

Assets 2008 IFRS

0

5.000

5.200

5.400

5.600

US$MM

4.905

6 % Increase in Assets

2

3266

3.787

Liabilities 2008 Ch GAAP

628

JOL

109

Lan Pass Defered Taxes Financial Debt Others

0

3.800

4.000

4.200

Liabilities 2008 IFRS

4.400

4.6004.428

US$MM17 % Increase in Liabilities

6

Transition to IFRSEffect on LAN's 2008 Balance Sheet

31 % Decrease in Shareholders EquityUS$MM

7

762

154302

109

769

1,118

0

200

400

600

800

1,000

1,200

Total Equity CH

GAAP

LAN Pass Hedge (MTM) Property &

Equipment

Others Equity

(Controlling

Shareholders)

Minority Interest Total Equity

IFRS

7

Contents

I. Transition to IFRS

II. 1Q09 Financial Results

III. Future Outlook

8

US$ millions 1Q08 1Q09 % Chg

Total Revenues 1,032 882 (14.5%)

Total Operating Expenses (882) (764) (13.4%)

Operating Income 150 118 (21.0%)Operating Margin 14.5% 13.4% (1.1 pp)Operating Margin (ex fuel hedge) 14.4% 19.9% 5.6 pp

Net Income 100 65 (34.7%)

EBITDAR* 230 208 (9.3%)EBITDAR Margin 22.3% 23.6% 1.3 ppEBITDAR Margin (ex fuel hedge) 22.1% 30.2% 8.1 pp

1Q09 Highlights

• Total Revenue decline of 14.5% in 1Q09 more than offset by lower fuel costs.

• Margins affected by US$58 MM fuel hedge loss. Excluding fuel hedge, Operating Margin for 1Q09 reached 19.9% and EBITDAR Margin reached 30.2%.

* EBITDAR = Operating income + depreciation & amortization + aircraft rentals

9

1Q09 – Increase in EBITDAR Margin Driven by Lower Fuel Costs

EBITDAR [MMUS$]EBITDAR [MMUS$] 208208230230

EBITDAR Margin = Operating income + depreciation & amortization + aircraft rentals / RevenuesLAN fuel price includes fuel hedge

20%

15%

30%

Capacity

5,0 pp

23,6%22,3%

1Q08

15,0 pp

5%

Yield

4,5 pp

Load Factor

11,2 pp

Fuel Price

4,6 pp

Others 1Q090

10%

25%1,3 pp.

LAN Fuel Price [cUS$]LAN Fuel Price [cUS$]2.95 2.06 -30.4%-30.4%

-9.3%-9.3%

10

10,08,6

Pax Yield (US$ cents)

1Q08

1Q09 -14,1%

8.695 9.756

Pax Capacity (mill ASK)

12,2%

80,3% 78,0%

Pax Load Factor

-2,3 pp.

Passenger Business Revenue Decreases 6.4%

Traffic growth of 8.9% offset by 14.1% decrease in yields.

8,0

Pax RASK (US$ cents)

6,7

-16,6%

11

Important Growth in all Passenger OperationsDomestic operations were the main drivers of ASK growth in the passenger business

Int (LH);

45%Chile dom;

15%

Peru dom;

8%

Arg dom; 8%

Regional;

24%

Chile

dom;

14%

Peru

dom;

7%

Arg

dom;

5%

Regional

; 25%

Int.

(LH);

49%

Growth in ASK (1Q09 vs. 1Q08): +12%International (Long Haul) +2%Regional +8%Chile domestic +19%Peru domestic +38%Argentina domestic +77%

1Q08ASKs

1Q09ASKs

12

Chile (Pax MM)

2006

Perú (Pax MM)

Argentina (Pax MM)

2,53,5

40%

2nd Year Anniversary of “Low Cost” ModelDomestic markets positively impacted by “low cost” model implemented in 2007

2008 2006

1,7

3,0

76%

2008

0,6

1,5150%

2006 2008

13

LAN Ecuador: New Domestic Operation

� New operation started in April 6th with 2 A318 aircraft.

� LAN Ecuador will provide the best connectivity between domestic & international markets.

� Authorization granted to operate the following routes:

� Guayaquil-Quito-Guayaquil

� Guayaquil-Cuenca-Guayaquil

� Quito-Cuenca-Quito

� Quito/Guayaquil-Galapagos-Guayaquil/Quito

Lan Ecuador Destinations Highlights

Cuenca

Quito

Guayaquil

Galapagos

14

41,034,7

Cargo Yield (US$ cents)

1Q08

1Q09 -15,3%

979 870

Cargo Capacity (mill ATK)

-11,1%

Cargo Load Factor

65,1%72,4%

-7,3 pp.

29,722,6

Cargo RATK (US$ cents)

-23,8%

Cargo Business Revenue Decreases 32.3%

Capacity reduction of 11.1% in line with 20.1% decline in traffic.

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New Cargo Operations in South America

� New Colombian affiliate started operations in March 2009

� Colombia is the largest air cargo market in Latin America in terms of exports to USA (Estimated volume of 200 thousand tons annually)

� This new operation will increase connectivity between Colombia and the rest of the region, USA and Europe

� During March 2009, ABSA began domestic operations in Brazil

� Sao Paulo – Manaus is the first domestic route operated by ABSA

� Domestic operations in Brazil will consolidate LAN Cargo's network in the region

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1Q09 - Cost Analysis

0,1

1Q08

5,1

Fuel W&B

0,5

Commercial

0,7

Fleet Other Op. Costs

41,6

1Q09

0,0

41,0

42,0

43,0

44,0

0,2

47,0

CATK (US$ cent)

46,0

45,0

46,7

-11,0%

• Unit costs decreased 11.0% in 1Q09 driven by:

• Fuel costs decreased 30.1% driven by a 48.3% decline in fuel prices which was offset by a US$57.9 million fuel hedge loss.

• Wages & Benefits decreased 3.4%, driven mainly by the impact of the devaluation of domestic currencies in the region, partly offset by the increase in average headcount during the quarter.

• Commercial costs decreased in the quarter driven by a 19.5% reduction in commissions.

• Fleet Costs increased 11.3% mainly due to the incorporation of 20 new aircraft.

•Other Operating Costs decreased 8.3% driven by lower sales cost and onboard sales costs.

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Contents

I. Transition to IFRS

II. 1Q09 Financial Results

III. Future Outlook

18

Fleet Plan

50 53 5968 68

32

5 5

5

9 9

9

3

4

26 2628

28

32

59

9

0

30

60

90

120

150

2008 2009 2010 2011 2012-18

Boeing 777-200F Cargo

Boeing 767-300F Cargo

Airbus 340-300

Boeing 787

Boeing 767-300ER

Airbus A320/A319/A318

US$5.6 Billion2009-2018

145

9095

103113

Average Fleet Age (Dic 08): 5.2 years Cargo

Passenger Long Haul

Passenger Short Haul

CAPEX (US$MM) 2008 2009 2010 2011 2012-18

Aircraft 754 274 493 599 4.300

Non Aircraft 124 165 124 109

+19+6

+8+10

19

2009 Estimated Capacity Expansion

0%

5%

10%

15%

20%

25%

2006 2007 2008 2009E

19.5%

11.5%11.5%

-10%

-5%

0%

5%

10%

15%

20%

25%

2006 2007 2008 2009E

7.0% 6.9%

12.3%

Passenger ASK Growth Cargo ATK Growth

~10%

~ -5%

20

Solid Financial Position

� Fitch recently affirmed the company's rating at “BBB” with an outlook of “Stable”. LAN is one of the few investment grade airlines in the world.

�1Q09 Cash Balance: US$477 million, representing 11% of LTM revenues.

� LAN expects to raise approx. US$250 million in bilateral loans in the Chilean market during 2009 in order to enhance its liquidity position

21

Fuel Hedging

33%44%

19% 20%10%

20%28%

0%

10%

20%

30%

40%

50%

60%

1Q09 2Q09 3Q09 4Q09 1Q10% Total Consumption Hedged

ZCC Call Option

US$107 US$104 US$94 US$92 US$92ZCC Floor *

US$ 70 US$ 70

Average 2009 hedge: 39%

Call Option**

*ZCC corresponds to a price range with a ceiling of US$140/Bbl and an average floor of US$101/Bbl for FY2009

**Call Options have been taken for Q3 and Q409, with a strike price of US$ 70/Bbl

- - -

Fuel Hedging Program 2009-2010

Hedging position as of April 09

First Quarter 2009 Results Presentation

April 29, 2009