Second Quarter 2010 Results Presentation

July 28, 2010

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, 2009.

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

1

Contents

I. Second Quarter 2010 Financial Results

II. Strategic Initiatives & Future Outlook

2

2Q10 Highlights

• 2Q10 results reflect strong recovery in both passenger and cargo businesses.• Total revenue increased 31.6% in 2Q10, driven by strong growth of 60.3% in cargo revenues and 24.5% in passenger revenues.• Operating income for the second quarter 2009 included a US$52.6 million fuel hedging loss• EBITDAR margin increased 5.1 points reaching 21.3% in 2Q10.

US$ millions 2Q09 2Q10 % Chg

Total Revenues 785 1,033 31.6% Passenger Revenues 547 681 24.5%

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

NOTE = Figures for 2Q09 and 2Q10 under IFRS.

Passenger Revenues 547 681 24.5%

Cargo Revenues 201 322 60.3%

Total Operating Expenses (750) (921) 22.8%

Operating Income 35 113 222.5%Operating Margin 4.4% 10.9% 6.4 pp

Net Income 4 61 1,332%

EBITDAR* 128 220 72.6%EBITDAR Margin 16.2% 21.3% 5.1 pp

2Q10 – EBITDAR Margin Improvement

EBITDAR Mg. (%)

3.3pp

8.3pp

10

15

20

25

30

35

21,3%1,2%8,3%

3,3%

11,3%

16,2%

EBITDAR** [MMUS$]EBITDAR** [MMUS$] 220128

*Fuel price excludes fuel hedge **EBITDAR Margin = (Operating income + depreciation & amortization + aircraft rentals) / Revenues

Fuel Price* [US$]Fuel Price* [US$]1.63 2.31

4

+41.7%

+72.6%

0

5

OthersFuel (excl. Hedge)F.OYield2Q09´ 2Q10´

2Q10

2Q09

Pax Capacity (mill ASK)

10.0299.028

11,1%

Pax Load Factor

72,6%73,6%

-0,9 pp.

Strong Recovery in Passenger Business with Revenue Increases of 24.5%

Pax Traffic (mill RPK)

7.2846.641

9,7%

8,6

Pax Yield (US$ cents)

9,4

13,5%

6,7 6,8

Pax RASK (US$ cents)

12,1%

5

Diversified Passenger Capacity Expansion

Int (LH)

Chile dom

13%

Peru dom 9%

Arg dom

7%

Ecuador Dom

1%

Int. (LH)

46%Chile dom

Peru dom

9%

Arg dom 8%

Ecuador dom

0%

2Q09ASKs

2Q10ASKs

Int (LH)

48%

Regional

22%

13%46%

Regional 24%

dom

13%

Growth in ASK (2Q10 vs. 2Q09): +11%International (Long Haul) + 16%Regional + 4%Chile domestic + 15%Peru domestic + 8%Argentina domestic + 0%Ecuador domestic + 31%

6

2Q10

2Q09

Cargo Capacity (mill ATK)

1.159904

28,2%

70,9%65.9%

Cargo Load Factor

+5.0 pp.

Strong Recovery in Cargo Business with Revenue Increases of 60.3%

Cargo Traffic (mill RTK)

822596

37,9%

39,1

Cargo Yield (US$ cents)

33,7

16,3%

Cargo RATK (US$ cents)

27,822,2

25,1%

7

2Q10 - Cost Analysis

Appreciation of local currencies; increased headcount.

Higher fuel costs offset by fuel hedge gain

Increase in passenger and cargo revenues.

Incorporation of 3 B767-300.

Expansion in operations

MAIN IMPACTSCosts (US$ millions) 2Q10 2Q09 Variation (%)

Wages & Benefits 185 149 23,9%

Fuel Costs 277 225 23,2%

Commissions to Agents 38 31 23,1%

Depreciation & Amortization 83 72 15,5%

Other Rental & Landing Fees 135 119 13,8%

8

Expansion in operations

More passengers transported and higher compensations.

Incorporation of 2 B777 Freighters in 2Q09.

Larger fleet.

Higher advertising and marketing expenses and higher sales costs

Other Rental & Landing Fees 135 119 13,8%

Passenger Service 25 21 21,0%

Aircraft Rentals 24 20 18,0%

Maintenance Expenses 31 30 3,4%

Other Operating Expenses 122 83 47,1%

Total Costs 921 750 22,8%

Solid Financial Position

� June 2010 Cash Balance: US$648million, representing 16% of LTM revenues.

� Completed EX-IM supported financing for one Boeing B767s and accessed capital markets with the new “EX-IM –Bond” product.

� Fitch affirms LAN´s BBB rating with

400

600

800

1.000

792

22%16%

648

18%

Liquidity

US$MM Cash/Revs

� Fitch affirms LAN´s BBB rating with stable outlook.

0

200

Jun 2009

700

Dec 2009

648

Jun 2010

9

LAN remains one of the few investment

grade airlines in the world

Fuel Hedging

10% 9%27%

9% 8% 8%

36% 37%17%

8%

0%10%20%30%40%50%

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

% T

ota

l Co

ns

um

pti

on

H

ed

ge

d

Swap Collar

19%46%

Note: Hedging position as of June 31, 2010 10

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

Swaps 79.0 US$/bbl 36% - - - - -

Swaps 79.4 US$/bbl - - 17% - - -

Swaps 79.7 US$/bbl - - - 8% - -

Swaps 81.4 US$/bbl - 37% - - - -

Collar 80 @ 55 10% - - - - -

Collar 85 @ 55 - 9% - - - -

Collar 85 @ 60 - - 17% 8% - -

Collar 85@ 65 - - 10% - - -

Collar 90@ 60 -- - 8% 8%

46% 46% 44% 16% 8% 8%

Contents

I. Second Quarter 2010 Financial Results

II. Strategic Initiatives & Future Outlook

11

Agreement with Aeroasis in Colombia

� Agreement with Aeroasis to providetechnical support and serviceconsultancy in the process of obtainingan operating permit from the ColombianCivil Aviation Authority.

� February 2011 deadline to obtain

233 kms

9 hrs bus

655 kms

18 hrs bus

400 kms

16 hrs bus

� February 2011 deadline to obtainpermission from the authorities

�LAN’s interest is that Aeroasis becomepart of the LAN group

�Second largest domestic market in theregion, with 10 million passengers a year(0.22 trips/pers.)

9 hrs bus

280 kms

12 hrs bus

12

Incorporation of 50 Airbus A320 Family Aircraft Delivery Schedule for 2012-2016

13

Total Airbus 320 Delivery Schedule

8 12 8 10 15 15 12

1

2

4

8

16

2010 2011 2012 2013 2014 2015 2016

Includes previous orders of A 320´s plus effect of disposal of 15 A 318´s in 2011-2013

73 81 91

1332728

31

3131

31

2 712

32

55

5

5

5

5

99

99

11

12

22

23

3

3

50

100

150

200

250

Boeing 777-200F Cargo

Boeing 767-300F Cargo

Airbus 340-300

Boeing 787

Boeing 767-300ER

Airbus A320 Fam

Fleet Plan

Average Fleet Age (Jun 10) :6.1 years

96 105122

136153

216

53 6173 81

0

2009 2010 2011 2012 2013 2018

14

7.639

2010

412

2011

1,108

2012

1,139

2013

1,317

2014 - 2018

3,663

CAPEX

(US$ million)

Total

40

50

60

70

80

100

120

140

Fleet Plan Flexibility

-22%

Fleet Size

-32%

Fleet Size

Narrowbody Fleet Widebody Fleet

20

30

2010 2011 2012 2013 2014 2015 2016 2017 2018

Long Haul Fleet Flexibility

40

60

2010 2011 2012 2013 2014 2015 2016 2017 2018

Short Haul Fleet Flexibility

15

2011 Estimated Capacity Expansion

Passenger ASK Growth Cargo ATK Growth

5%

10%

15%

20%

25%19.5%

11.5%11.5% 10.2% ~10%

~15-17%

-5%

0%

5%

10%

15%

20%

7.0% 6.9%

12.3%

~20%

~11-13%

16

0%

5%

2006 2007 2008 2009 2010E 2011E-10%

-5%

2006 2007 2008 2009 2010E 2011E

-6.0%

� Expansion in international markets

� Strengthen our Lima hub and increase connectivity within the region.

� Continue growth in domestic markets.

� Increased operations in Brazil and Europe.

� Higher cargo fleet utilization.

� Increased capacity in bellies of passenger aircraft.

Second Quarter 2010 Results Presentation

July 28, 2010