Corporate UpdateDeutsche Bank Global Emerging Markets ConferenceSeptember 2006

The following statements regarding the Company’s business outlook and anticipated financial and operating

results constitute forward-looking comments. These expectations are highly dependent on the

economy, the airline industry and international markets. Therefore, they are subject to change.

Contents

• Strategic Overview

• Financial Overview

• Fuel Strategy & Fleet Plan

• Outlook

2

LAN in a Nutshell

Passenger Business: Breakdown by Route Type

Chile (Dom)19%

Internt.71%

Peru (Dom)7%

Arg. (Dom)3%

Cargo Business: Breakdown by Route Type

Dom.4%

Internat.96%

Cargo Operations•LTM June 2006: US$1.0 billion•Tons: 543,000•Dedicated Freighters: 9•Companies: Chile, Brazil, Mexico

Passenger Operations•LTM June 2006: US$1.6 billion•Passengers: 8.3 Million•Fleet: 68 Aircraft•Companies: Chile, Argentina, Peru & Ecuador

3

BUSINESS MODEL: Distinct blend enhances returns and reduces risk

4

36,3%

25%

23%

15%

6%

6%

6%

3%

3%

14%

12%

8%

16%

10%

15%

6%

5%

58,3%

61%

66%

77%

78%

84%

79%

91%

92%

5,4%

0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% 80,0% 90,0% 100,0%

LAN

Cathay

Singapore

Air France

Qantas

BA

Iberia

American

Delta

Cargo Others Passenger

% of Total Revenues

Revenue Mix, Selected Companies (1)

20%

57%77%

Load

Fac

tor

BELF w/o Cargo

CargoContribution

BELF w/ Cargo

(2) BELF: Break-even load-factor

BELF Differential (2)

Passenger and Cargo Combination– Lower Break-Even Load Factors– Increased diversification

(1) December 2005 Source: IATA

Unique Business Model

EfficiencyEfficiency

¿Can it be easily replicated?¿Can it be easily replicated?

NetworkNetwork TeamTeam

5

• Optimal fleet solutionfor the size-efficiencytrade-off

• High aircraftutilization

• Extensive regional network

• Alliances with keypartners

• Two equallyimportant businessunits

• Integratedapproach to everydecision

NetworkPassenger

LAN

Madrid

Easter Island

Auckland

Papeete

Sydney

Frankfurt

New York

MiamiLos Angeles

Mexico City

Caracas

Sao Paulo

Buenos AiresMontevideo

Cancun

Bariloche

Pta. Arenas

Arica

La Paz

Pto. Montt

Cuzco

Lima

Bogotá

Santiago

Rio de Janeiro

Rosario

Quito

Pta. Cana

Guayaquil

6

Alliances

TAM

599 destinationsworldwide

Ushuaia

Salta

Rio Gallegos

Com. Rivadavia

Cordoba

Iguazú

IquiqueAntofagasta

CalamaCopiapo

La Serena

Mendoza

Concepcion

Balmaceda

TemucoValdiviaOsorno

TacnaArequipa

Puerto Maldonado

Iquitos

Piura

TarapatoPucalpa

ChiclayoTrujillo

LAN

Codeshare

NetworkCargo

LAN

7

Madrid

Easter Island

Auckland

Papeete

Sydney

Frankfurt

New York

MiamiLos Angeles

Mexico City

Caracas

Sao Paulo

Buenos AiresMontevideo

Cancun

Bariloche

Pta. Arenas

Arica

La Paz

Pto. Montt

Cuzco

Lima

Bogotá

Santiago

Rosario

Quito

Pta. Cana

Guayaquil

Ushuaia

Salta

Rio Gallegos

Com. Rivadavia

Cordoba

Iguazú

IquiqueAntofagasta

CalamaCopiapo

La Serena

Mendoza

Concepcion

Balmaceda

TemucoValdiviaOsorno

TacnaArequipa

Puerto Maldonado

Iquitos

Piura

TarapatoPucalpa

ChiclayoTrujillo

Chicago

Houston

San JosePanama

Merida

Rio de Janeiro

Porto Alegre

VitoriaBelo HorizonteSalvador

Manaos

Paris

Alliances

Efficiency: Maximizing Aircraft UtilizationMaximizing Long Haul Aircraft Utilization:

LAN utilization of 15 hours/day as compared to a typical itinerary of 8 hours/day

Boeing 767 Rotation

LanPeru

LanEcuadorLan Airlines (Chile)

Lima

Santiago

Quito/Guayaquil

New York

Miami

1. Night, Day 1

2. Morning, Day 2

3. Afternoon, Day 2

4. Night, Day 2

5. Morning, Day 3

Schedule

6. Afternoon, Day 3

7. Night, Day 3

8. Morning, Day 4

9. Afternoon, Day 4

10. Night, Day 4

8

Team

9

• Management team– Experienced senior management, with 10-20 years of experience in the industry– Highly qualified unit managers– Executive development program

• Positive labor relations– Stable, long-term contracts– Company growth allows for advancement opportunities– Profitability & performance-linked incentive programs

• 25 Labor Unions:- Administrative personnel 3 Maintenance 3- Cabin crew 5 Pilots 5- Airport services 3 Others 6

Timetable of expiration of main labor agreements:

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10ADMINISTRATIVECABIN CREWPILOTSMAINTENANCE

Differentsubsidiaries

Market Leadership based on Customer PreferencePassenger

Who is thebest

choice?

• Service to main long-haul gateways• Regional hub provides unparalleled regional coverage

• Excellent safety record• High quality operations and maintenance; multiple certifications• World class training programs for flight and ground crews• Fleet renewal program• Multiple safety audits by various authorities (i.e. FAA/JAA) and partners

• Reliable operations: high completion and punctuality statistics• Customer-focused itineraries• Professional and friendly service• Leading in-flight product: seats, IFE, catering• Streamlined airport procedures for short-haul flights• Valuable frequent flyer program• Alliances with key partners

• Competitive pricing• New, simplified fare structure

Who issafe?

Product

Pricing

Who flieswhere I’m

going?

10

Contents

• Strategic Overview

• Financial Overview

• Fuel Strategy & Fleet Plan

• Outlook

11

Consistent Profitability despite Multiple ShocksUnique Business Model

Operating and Net Income, 1993 – LTM 2006

12

163170

142

172

112

62

11 15

34

46

80

4451

83

50

147

164

84

31

11

48

31

0 6

25

38

64

48

0

30

60

90

120

150

180

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 LTM06

US

$ M

illion

Operating Income Net Income

Recession9/11 &

Argentine Crisis Fuel Prices

Strong Revenue GrowthUnique Business Model

Operating Revenues, 1993 – LTM 2006

2.7472.506

2.093

1.6391.4541.4281.425

1.2371.083

972

694600407

318

0

400

800

1.200

1.600

2.000

2.400

2.80019

93

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

LTM

JU

N06

US$

Mill

ion

CAGR24%

CAGR1%

CAGR23%

13

First Semester Results – Net Income

Net Income, First Half 2005 vs First Half 2006

74

9673

11

8

81

3231

18

0

50

100

150

200

250

1H2005 Capacity Yield Pax Yield Carg LoadFactor

CostEfficiency

Others Fuel Price 1H2006

14

First Semester Results - Revenue

Passenger

823

684

47-13 105

400

450

500

550

600

650

700

750

800

850

1H05 Capacit y Load Fact or Yield 1H06

• Strong demand in key markets

• Expansion in intercontinental routes toUS and Asia-Pacific

• Consolidation of regional routes

• Improved segmentation

• Fuel cost pass through

15

Cargo

435

523

52-1

37

420

440

460

480

500

520

540

2004 Capacity Load Factor Yield 2005

US$

Mill

ion

1H05 1H06

• Southbound demand continues togrow

• Northbound demand weakenedmainly due to weaker exports fromBrazil and Chile

• Fuel cost pass through

First Semester Results – Operating Costs

Total Cost per ATK, 1H05 vs 1H06

37.0

41.6

1.0 0.1 0.2

0.9

2.4

30

32

34

36

38

40

42

44

1H2005 Wages &Benef

Sales & Dist Dep &AircraftMaint

Other Fuel 1H2006

US

Cen

ts /

ATK

16

Liquidity Position

Cash & Cash Equivalents Evolution 2000-1H06

• Investment Grade Credit Rating

• Strong Balance Sheet– High liquidity

• B767 Predelivery payments funded internally

– Long-term debt finances only aircraft• Low interest rates• Long repayment profiles• Minimum refinancing risk

– US$150 million in available credit lines

• Active Risk Control– Fuel

• Hedging• Fuel Cost Pass Through

– Interest rates• Over 90% of interest bearing

debt is hedged

0

50

100

150

200

250

300

350

400

450

500

2000 2001 2002 2003 2004 2005 1H06

US$ M

illi

on

Cash PDP Boeing PDP Airbus

17

Contents

• Strategic Overview

• Financial Overview

• Fuel Strategy & Fleet Plan

• Outlook

18

Fuel Oil Strategy: LAN’s Response to actual price scenario

Fuel Hedging Fuel Cost Fuel EfficiencyPass-Through

19

Fuel Oil Strategy: LAN’s Response to actual price scenario

Fuel PricesHigh Crude Prices + Higher Crack Spreads

Fuel PricesHigh Crude Prices + Higher Crack Spreads

Fuel Hedging Cost Pass-Through

Passenger• Before: Follower of fares increases by international competitors• Now: New transparent passenger fuel surcharge system on all routes

Cargo• Continued implementation of cargo fuel surcharges although caps on certainroutes, esp northbound

Sho

rt Te

rm

0%2%4%6%8%

10%12%14%16%18%20%

3Q06 4Q06

% T

otal

Con

sum

ptio

n

00,20,40,60,811,21,41,61,8

US$

/ G

allo

n

% Hedged Hedged Price

Long

Ter

m

• Strong Financial Position• High liquidity• Positive cash flow

• Fuel Efficient Fleet• Highly efficient long-haul passenger fleet• Extremely efficient freighter fleet

20

Fleet Plan

Fleet Plan, 2006-2008

• Competitive prices on both Boeing 767 and Airbus A320-family order

• Backlog adjusted to new price

• Benefits from launch-customer status for P&W’s A318 engine

• Options for additional aircraft

• Attractive financing terms

Passenger 1H06 2006 2007 2008Boeing 737-200 24 25 20 10 Airbus A318 / A319 / A320 22 30 42 54 Boeing 767-300ER 18 21 24 29 Airbus A340-300 4 4 5 7 Total 68 80 91 100

Cargo 1H06 2006 2007 2008Boeing 737-200F 1 1 1 1 Boeing 767-300F 8 9 9 9 Total 9 10 10 10

Grand Total 77 90 101 110

32 new short-haulAirbus aircraft

11 new Boeing 767-300 aircraft

21

Current financing needs have already been covered

502

89

656

553

97

116

0

100

200

300

400

500

600

700

800

900

1.000

2006 2008

US

$ M

illio

n .

Debt Cash

CAPEX (Aircraft only) and Financing Structure, 2006 - 2008

2007

22

Contents

• Strategic Overview

• Financial Overview

• Fuel Strategy & Fleet Plan

• Outlook

23

South American Air Transport Market

• LAN has domestic operations in Chile, Argentina and Peru• Of these, Argentina is the largest market in terms of both domestic andinternational traffic

0,2 0,6

0,3 0,9

0,4 1,5

0 0,5 1 1,5 2

US$ Million

Peru

Chile

Argentina

Domestic International

Revenues per Market

2,2 2,1

2,9 3,0

5,1 5,1

0 2 4 6 8 10 12

Passenger (Million)

Peru

Chile

Argentina

Domestic International

Passengers per Market

US$ Billion

24

Opportunities: LAN Argentina

• Accelerated growth plans given positive results and current opportunities

• First international flight (Miami) launched August 06

• Replacement of B737 fleet for new A320

• Load Factors over 70%

• Slightly lower-than-expected yields

• Accelerated growth plans given positive results and current opportunities

• First international flight (Miami) launched August 06

• Replacement of B737 fleet for new A320

• Load Factors over 70%

• Slightly lower-than-expected yields

Buenos Aires

IguazúCordoba

Mendoza

Rio Gallegos

Bariloche

Miami

LAN Argentina

Destinations

LAN Argentina

Destinations

Com. Rivadavia

Sao Paulo

Domestic market share 9%Domestic market share 9%

Current Routes

25

Projected Routes

26

Consolidation: LAN Peru

• Consolidation of Peruvianoperations

• 11 domestic destinations

• Increasing frequencies ofinternational flights

• Change A320 fleet for newA319 – more efficient for thePeruvian market

• Consolidation of Peruvianoperations

• 11 domestic destinations

• Increasing frequencies ofinternational flights

• Change A320 fleet for newA319 – more efficient for thePeruvian market

LAN Peru DestinationsLAN Peru Destinations

Lima

Santiago

Miami

QuitoGuayaquil

Buenos Aires

Sao Paulo

Caracas

Bogotá

México

Los Angeles

Chiclayo

Trujillo

Piura

Arequipa

Tacna

Iquitos

Tarapoto

Cuzco

Puerto Maldonado

Juliaca

DomesticInternational

New York

Santa cruz

La Paz

Santiago

Projected

Domestic market share 63%

International market share 29%

Domestic market share 63%

International market share 29%

New Regional Model

• New model will be applied to domestic operations in Chile, Argentina and Peru as well as narrow-bodyregional operations• Implementation will begin during 2006 - 2007 to be fully completed by early 2008

Aircraft utilization• 11.5 hours

• Increased average flight leg, more point-to-point

• Longer days, less peaks

• Overnight flights

• Faster turnarounds

Aircraft utilization• 11.5 hours

• Increased average flight leg, more point-to-point

• Longer days, less peaks

• Overnight flights

• Faster turnarounds

Sales & Distribution• Internet penetration 60%Sales & Distribution• Internet penetration 60%

Product/Service level• Light Service On Board

• 70% self check-in at airport

Product/Service level• Light Service On Board

• 70% self check-in at airport

Fleet• Single family fleetA320 family

• Densification ofaircraft

Fleet• Single family fleetA320 family

• Densification ofaircraft

DemandStimulation

• Reduce / simplify fares to increase demand by approx 40%

DemandStimulation

• Reduce / simplify fares to increase demand by approx 40%

Costs• 1% base comissions

• 30% reduction in overheadcosts

Costs• 1% base comissions

• 30% reduction in overheadcosts

27

28