Second Quarter 2009 Results Presentation

July 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, 2008.

Information, tables and logos contained in this presentation may not be used without consent from LAN

2

Contents

I. 2Q09 Financial Results

II. Future Outlook

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US$ millions 2Q08 2Q09 % Chg

Total Revenues 1,003 785 (21.7%)

Total Operating Expenses (918) (750) (18.2%)

Operating Income 85 35 (59.1%)Operating Margin 8.5% 4.4% (4.1 pp)

Operating Income (ex fuel hedge) 56 88 5.6 ppOperating Margin (ex fuel hedge) 5.6% 11.2% 56.2%

Net Income 60 4 (93.0%)

EBITDAR* 166 127 (23.1%)EBITDAR Margin 16.5% 16.2% (0.3 pp)

EBITDAR (ex fuel hedge) 137 180 31.9%EBITDAR Margin (ex fuel hedge) 13.6% 22.9% 9.3 pp

2Q09 Highlights

• Total Revenue decline of 21.7% in 2Q09 offset by lower fuel costs.

• Margins affected by US$52.6 million fuel hedge loss. Excluding this, Operating Margin for 2Q09 reached 11.2% and Ebitdar Margin reached 22.9%.

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

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2Q09 – Lower yields offset by lower fuel costs

EBITDAR [MMUS$]EBITDAR [MMUS$] 127127166166

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

-15

-10

-5

0

5

10

15

20

16,5%

2Q08

2,9 pp

Capacity

28,0 pp

Yield

4,3 pp

Load Factor

24,5 pp

Fuel Price (excluding hedge)

4,6 pp

Others

16,2%

2Q09

0,3 pp.

LAN Fuel Price [cUS$]LAN Fuel Price [cUS$]3.65 1.63 -55.3%-55.3%

-23.1%-23.1%

5

10,58,2

Pax Yield (US$ cents)

2Q08

2Q09 -21,5%

8.138 9.028

Pax Capacity (mill ASK)

10,9%

71,9% 73,6%

Pax Load Factor

1,7 pp.

Passenger Business Revenue Decreases 10.9%

Traffic growth of 13.5% offset by 21.5% decrease in yields.

7,5

Pax RASK (US$ cents)

6,1

-19,7%

6

LAN has greater passenger traffic growth rates than the industryLAN showed 11% traffic growth in the first half 2009

Passenger Traffic Growth (%RPKs)

13%

2%

0%

3%3%3%3%

6%

9%

5%4%

9%

5%

11%11%10%

Lan International

4%

15%

Jan 08

9%

16%

Feb 08

6%

14%

Mar 08

3%

8%

Apr 08

6%

14%

May 08

4%

10%

Jun 08

2%

11%

Jul 08

-5%

10%

Nov 08

-5%

11%

Dec 08

-6%

11%

Jan 09

1%

16%

Aug 08

-3%

12%

5%

-1%

11%

Oct 08

-10%

8%

Feb 09

-11%

8%

Sep 08

-3%

20%

Apr 09

-9%

12%

May 09

Industry

Lan Total

Mar 09

Note: Industry figures as published by IATA

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Important Growth in all Passenger OperationsDomestic operations continue to be the main drivers of ASK growth in the passenger business

Int (LH);

46%Chile dom;

13%

Peru dom;

9%

Arg dom; 8%

Ecuador

Dom; 0,4%

Regional;

24%

Chile

dom;

14%

Peru

dom;

8%

Arg

dom;

4%

Regional

; 24%

Int.

(LH);

50%

Growth in ASK (2Q09 vs. 2Q08): +11%International (Long Haul) +2%Regional +8%Chile domestic +3%Peru domestic +29%Argentina domestic +104%

2Q08ASKs

2Q09ASKs

8

47,633,7

Cargo Yield (US$ cents)

2Q08

2Q09-29,3%

1.036 904

Cargo Capacity (mill ATK)

-12,7%

Cargo Load Factor

65,9%71,9%

-5,9 pp.

34,2

22,2

Cargo RATK (US$ cents)

-35,2%

Cargo Business Revenue Decreases 43.4%

Capacity reduction of 12.7% and 19.9% decline in traffic.

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Cargo Traffic StatisticsLAN Cargo declines in line with the Industry

-22%

-24%-21%

-20%

-22%

-16%

-23%

-16%

-23%

-2%

-14%

9%

-8%

9%

-8%

14%

-3%

16%

-2%

14%

-1%

May 09Apr 09Mar 09Feb 09Jan 09Jul 08 Aug 08Jun 08 Dec 08Oct 08 Nov 08Sep 08

-17%-17%

5%

12%

Jan 08

-25%

11%

Feb 08

3%

10%

Mar 08

4%6%

Apr 08

1%

9%

May 08

Industry

Lan

12%

Cargo Traffic Growth (%RTKs)

Note: Industry figures as published by IATA

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2Q09 - Cost AnalysisUnit costs ex-fuel decreased 3% in the quarter

7,1

Fuel

0,1

W&B

0,4

Commercial

1,3

Fleet

1,7

Other Op. Costs

40,9

2Q09

0,0

42,0

49,0

2Q08

44,0

46,0

48,0

50,0

CATK (US$ cent)

-16,4%

• Unit costs decreased 16.4% in 2Q09 driven by:

• Fuel costs decreased 37.6% driven by a 55.3% decline in fuel prices which was offset by a US$52.6 million fuel hedge loss.

• Wages & Benefits decreased 3.1%, 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 28.3% reduction in commissions.

• Fleet Costs increased mainly due to the incorporation of 14 new aircraft.

•Other Operating Costs decreased 16.2% driven by lower sales costs and lower onboard sales costs.

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Fuel HedgingFuel hedging loss of US$52.6 million in 2Q09

33% 44%28%

11%20%19%10%

19%

0%

20%

40%

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: 41%

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

- - US$80

Fuel Hedging Program 2009-2010

Hedging position as of July 09

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Contents

I. 2Q09 Financial Results

II. Future Outlook

13

50 53 59 68 68 68

26 2728

30 33 345 5

5

99

9

10 10

10

2 3

3

32

5

5

0

30

60

90

120

150

2008 2009 2010 2011 2012 2013-2019

Boeing 777-200FCargo

Boeing 767-300FCargo

Airbus 340-300

Boeing 787

Boeing 767-300ER

AirbusA320/A319/A318

Fleet Plan

Average Fleet Age (Jun 09): 5.4 years

US$5.3 Billion

2009-2019

CAPEX 2009 2010 2011 2012 2013-19

Aircraft 351 408 705 433 3.380

Non Aircraft 165 124 109 84

+7

+7+12

9096

103

115 119

+4

147

Cargo

Passenger

Long Haul

Passenger

Short Haul

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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%

~ -7% / -8%

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Solid Financial Position

� 2Q09 Cash Balance: US$700 million, representing 18% of LTM revenues.

� The Company raised US$250 million in bilateral loans in the Chilean market during first half of 2009.

�LAN is one of the few investment grade airlines in the world. Fitch has recently affirmed the company's rating at “BBB”. 350

400

450

500

550

600

650

700

9%

472

Dec 08

11%

477

Mar 09

18%

700

Jun 090

10%

15%

20%

5%

Liquidity

US$MM Cash/Sales

Second Quarter 2009 Results Presentation

July 29, 2009