LAN AIRLINESCorporate Update

May, 2011

2

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, 2010.

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

3

Contents

I. LAN’S BUSINESS MODEL

II. FINANCIAL RESULTS

III. AGREEMENT WITH TAM

Cueto Group34,0%

Eblen Group9,4%Bethia

Group8,0%

ADRs3,6%

Other Foreign

Investors4,2%

Chilean Pension Funds13,3%

Other27,5%

Free Float48.6%

4

LAN's Ownership

LAN’s Ownership(Apr 30, 2011)

LAN’s market capitalization (May 11, 2011) US$ 9.7 billion

Source: DCV and Bloomberg

5

Diversified Business Model

Revenue Breakdown(LTM 1Q 2011 % of operating revenues)

* Other Revenues includes Aircraft Leases, Logistic and Courier, Ground Services, Storage & Customs Brokerage, Duty Free, etc

Total operating revenues (LTM 1Q 2011) US$ 4,853 million

Intl. Passengers

44.0%

Domestic Passengers

25.0%

Cargo28.0%

Other *3.0%

6

Regional Strategy

LAN Airlines Santiago, 1929

LAN Peru Lima, 1999

LAN Ecuador Guayaquil, 2003

LAN Argentina Buenos Aires, 2005

Aires Bogotá, 2010

Sao Paulo, 2001

Bogotá, 2009

Mexico City, 2000

Miami Headquarters

7

Geographically Diversified Business

Market Growth(LAN ASK growth 1Q2011)

Ecuador

Peru

Chile

Argentina

Long Haul

LAN Passenger Capacity(by ASK)

1998

1Q2011

Regional

+86%

+5%

+28%

+27%

+6%

-4%Intl.(Long Haul)

43%

Dom. Chile16%

Regional23%

Dom. Peru7%

Dom. Argent.

6%

Dom. Colombia

4%

Dom. Ecuador

1%

Colombia

+100%

Bucaramanga

BogotáPereira

Cali

Florencia Mitú

PuertoInirida

Cúcuta

Arauca

PuertoCarreño

Medellín

Cartagena

Barranquilla

SantaMarta

Colombia: Second Largest Market in the Region

Colombia represents an attractive opportunity to strengthen our position in Latin America

Colombia is the second largest market in the region with 13 million domestic passengers and 6 million international passenger in 2010

Acquisition of a strong player with relevant position

Colombia has all the necessary conditions to apply our domestic, passenger and cargo models

Colombia: Turnaround of Colombian Airline AIRES

Acquisition of AIRES:

In November 2010, LAN acquired 98.9% of AIRES for US$12 million (excluding debt)

AIRES Fleet:

BOEING 737-700Aircraft: 9Seats: 148

DASH 8-Q400Aircraft: 4Seats: 78

DASH 8-200Aircraft: 11Seats: 37

Aspects of the turnaround process:

Implement LAN standards (IOSA Certification)

Improving flight offers and quality of service

Eliminate unprofitable routes

Apply revenue management

Integration of domestic cargo operations

Define the new organizational structure and infrastructure

Converting AIRES into LAN Colombia

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Leading Presence in the Region

* Sources: International market shares as of Dec 2010; domestic market shares as of Mar 2011** Sources: DGAC Chile, DGAC Peru, Undersecretary of Transportation Argentina, DGAC Ecuador, Aerocivil Colombia, ANAC Brazil, LAN estimates

Market Sizes(mm pax transported in 2010**)

LAN’s Market Share(passenger markets*)

EcuadorIntl:23% Dom: 20%

PeruIntl:44% Dom: 66%

ChileIntl:62% Dom: 77%

ArgentinaIntl:16% Dom: 30%

Colombia:Intl:9% Dom: 20%

2,8 5,1 5,09,1

6,2

15,9

3,76,0 5,5 6,8

13,2

71,9

0

15

30

45

60

75

Ecuador Chile Peru Argentina Colombia Brazil

International Domestic

6,1%6,5%

6,0%

4,5%4,1%

Chile Peru Argentina Colombia Brazil

2,36

2,25

0,66

0,44

0,44

0,44

0,38

0,35

0,0 0,5 1,0 1,5 2,0 2,5

United Kingdom

United States

Chile

Colombia

Brazil

Ecuador

Argentina

Peru

6,8%

3,4%

4,4%

7,1% 6,9%

5,5%

Asia-Pacif icN. America Europe Mid. East Latam Africa

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Region’s High Growth Potential

Source: Boeing, IMF, CIA, Bloomberg and LAN estimates

Trips per Capita(as of 2010)

Peru

Brazil

Argentina

Ecuador

Chile

USA

UK

Colombia

GDP Growth Projections(2011E)

World Average

4.0%

Boeing Growth Projections(Passenger RPK %CAGR up to 2029)

3%

3%

5%

6%

7%

8%

9%

10%

11%

13%

18%

28%

29%

33%

86%

86%

95%

80%

74%

87%

78%

90%

70%

74%

66%

69%

66%

55%

11%

11%

14%

19%

5%

13%

19%

13%

16%

3%

5%

12%

0% 25% 50% 75% 100%

Delta

American

Copa

Qantas

Iberia

British Airways

TAM

Gol

Lufthansa

Air France-KLM

Singapore

LAN

Cathay

Korean Air

Cargo Passenger Other

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Efficiencies of Passenger + Cargo Mix

Revenue Mix(selected companies FY 2010)

Source: Companies’ information for FY 2010

BELF Differential(long haul passenger + cargo routes Jul 2010, based on SCL – MIA route)

Passenger and cargo combination allows:• Lower break even load factors (BELFs)• Increased diversification

69% 18%51%

BELFw/o Cargo

CargoContribution

BELFw/ Cargo

Lo

ad

Fa

cto

r (%

)

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Cargo Business: Consolidation and Expansion

Growth Drivers:

Strong Brazilian import market driven by an appreciated local currency

3 additional Boeing 767F to add capacity to the growing northbound routes (recovery of the salmon industry)

Strengthening of new domestic routes within Brazil

Active capacity management and new revenue management tools have allowed more efficient growth

Lima

Santiago

Guayaquil

Frankfurt

Amsterdam

Bogota

Buenos Aires

Sao Paulo

Miami

Buenos Aires

Sao Paulo

Manaus Fortaleza

Recife

Bogota

Miami

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Cargo Business: Latin America Cargo Market

SouthboundNorthbound

Fish, flowers and vegetables dominate northbound flows

Consumer electronics, machinery, spare parts and automotive parts dominate southbound flows

Operational efficiencies must be obtained by managing unbalanced flows and seasonal fluctuations

Source: Boeing World Air Cargo 2008 - 2009

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Contents

I. LAN’S BUSINESS MODEL

II. FINANCIAL RESULTS

III. AGREEMENT WITH TAM

318 407600 694

972 1.0831.237

1.425 1.428 1.4541.639

2.093

2.506

3.034

3.525

4.283

3.656

4.523

0

1.000

2.000

3.000

4.000

5.000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

US$ mm

CAGR24%

CAGR1%

CAGR20%

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Revenue Growth

LAN’s Operating Revenues(1993 – 2010)

Note: 2008 – 2010 under IFRS; previous years under Chilean GAAP

1Q 2011Revenues +31.9%

CAGR3%

0 625

3864

3148 48

1131

84

164147

241

308

336

231

420

0

100

200

300

400

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

US$ mm

Financial crisis +salmon crisis +

swine flu

Increasing fuel prices

9/11 & Argentinian crisis

Recession

17

Consistent Profitability

LAN’s Net Income(1993 – 2010)

Note: 2008 – 2010 under IFRS; previous years under Chilean GAAP

1Q 2011Net Income +10.1%

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High Efficiency Levels

EBITDAR Margin(FY 2010 industry comparison)

Source: Companies’ information for FY 2010

8,9%10,3% 10,7%

11,9%12,9% 13,0%

14,3% 14,8% 15,4%

18,0%

19,8%

22,0%23,5% 23,6%

25,2% 25,7%

0%

5%

10%

15%

20%

25%

30%

EBITDAR Mg %

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Highlights 1Q 2011 Results

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

(US$ million) 1Q 2010 1Q 2011 % Change (YoY)

Total Revenues 1,035 1,365 31.9%

Passenger Revenues 741 978 32.0%

Cargo Revenues 266 346 30.2%

Total Operating Expenses -892 -1,212 35.8%

Operating Income 143 153 7.3%

Operating Margin 13.8% 11.2% -2.6 pp

Net Income 88 97 10.1%

EBITDAR * 249 293 17.6%

EBITDAR Margin 24.1% 21.5% -2.6 pp

1Q 2011 results reflect strong growth in both passenger and cargo businesses

EBITDAR margin decreased 2.6 point s for 1Q11, reaching 21.5%

1Q 2011 Results include a US$11 million negative impact generated in Aires.

79,3%80,9%

Pax Load Factor

8.118

9.786

Pax Traffic (million RPK)

7,2

8,1

Pax RASK (US$ cents)

9,110,0

Pax Yield (US$ cents)

10.232

12.094

Pax Capacity (million ASK)

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Passenger Business: Revenue Increases 32.0% in 1Q 2011

1Q 2010

1Q 2011

+18.2% +20.5% +1.6 pp.

+9.5% +11.7%

68,7%67,9%

Cargo Load Factor

731

852

Cargo Traffic (million RTK)

25,027,6

Cargo RATK (US$ cents)

36,4

40,7

Cargo Yield (US$ cents)

1.063

1.254

Cargo Capacity (million ATK)

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Cargo Business: Revenue Increases 30.2% in 1Q 2011

+18.0% +16.6% -0.8 pp.

+11.7% +10.4%

1Q 2010

1Q 2011

22

41,3

43,5

44.1

48.9

March 2011 Cash Balance: US$388 million, representing 8% of LTM revenues

US$ 160 million committed credit lines

Long term debt related to fleet financing

Low interest rates

LAN remains one of the few investment grade airlines in the

world

Solid Financial Position

4,4

4,13,9 3,8

3,9

3,4

3,6

3,8

4,0

4,2

4,4

4,6

Mar-10 Jun-10 Sep-10 dec-10 Mar-11

Adj. Debt / EBITDAR

3,5

3,8

4,1 4,24,1

3,2

3,4

3,6

3,8

4,0

4,2

4,4

Mar-10 Jun-10 Sep-10 dec-10 Mar-11

EBITDAR / Interest Expense

Current High Fuel Scenario

Fuel Surcharges: LAN applies fuel surcharges in line with practices in the industry in passenger and cargo businesses

Operations: LAN has adjusted the capacity on certain routes as part of tactical decisions

Efficiency Initiatives: LAN is constantly developing efficiency initiatives, which now become more attractive

Fuel Hedging: Active fuel hedging strategy

WTI Prices (US$)

US$ 108.9(4 May 2011)

B767-300 WingletsB767-300 Winglets

Efficiency Initiatives

Installation of winglets in all the B767 fleet

Between 4% and 5% additional efficiency in fuel consumption

“LEAN Fuel” Project

Reduction of 2% of the fuel consumption per flight

Reconfiguration of cabins in LAN Ecuador’s B767s

Reduction of 7% of costs per ASK by increasing the amount of Economy seats

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Fuel Hedge

Fuel Hedge(% of consumption)

WTI Swap:

WTI Collar 1:

WTI Collar 2:

WTI Call Option:

HO Call Option:

$78.5

$62 / $85

—

—

—

$79.0

$60 / $85

$70 / $105

—

—

$85.9

$60 / $90

—

$120

$144.9

$100.3

$60 / $90

—

$130

—

27%18% 16%

3%

27%

8% 9%

9%

48%

10%

10%

10%

0%

20%

40%

60%

80%

1Q11 2Q11 3Q11 4Q11

WTI Swap WTI Collar 1 WTI Collar 2 WTI Call Option HO Call Option

15 14 14 14 119 9 9 9 2

6176 84 94 109

28

3136

40 405

812

5

5

5

55

11

12

12

1212

2

2

4

44

0

40

80

120

160

200

2010 2011 2012 2013 2014

Boeing 777-200F Cargo

Boeing 767-300F Cargo

Airbus 340-300

Boeing 787

Boeing 767-300ER

Airbus A320 Fam

Boeing 737-700

Dash Q200 & Q400

26

LAN’s Fleet Plan: Growth and Flexibility

LAN’s Fleet Plan(2010 - 2014)

131

149

169

186

Total FleetCapex (US$ MM) 434 841 1,810 1,343 1,119

195

US$ 5.5 Bn

27

LAN’s Fleet Plan: Deliveries 2011 - 2014

Long Haul

Short Haul

Cargo

2013 15 15

2011 2012 2013 2014

A320 Fam

12

2011 2012 2013 2014

B777F

B767F

37

4

5

34

2011 2012 2013 2014

B787

B767

11,5% 10,2% 9,2%

-10%

-5%

0%

5%

10%

15%

20%

25%

2008 2009 2010 2011E

12,3%

-6,0%

20,5%

-10%

-5%

0%

5%

10%

15%

20%

25%

2008 2009 2010 2011E

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2011 Estimated Capacity Expansion

Cargo ATK GrowthPassenger ASK Growth

Expansion in regional markets

Strengthen Lima hub and increase connectivity within the region

Continue growth in domestic markets

3 additional B767 freighters (2010-2011)

Increased operations in Brazil and Europe

Increased capacity in bellies of passenger aircraft

16% -18% 16%-18%

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Contents

I. LAN’S BUSINESS MODEL

II. FINANCIAL RESULTS

III. AGREEMENT WITH TAM

30

LATAM Airlines Group: Status and Next Steps

January 18, 2011:

LAN and TAM signed binding agreements

August 13, 2010:

LAN and TAM announce their intentions to combine

March 1, 2011:

ANAC approved the proposed corporate structure

Approvals & Registrations:

CVM (Brazil), SVS (Chile), SEC (USA)

Antitrust authorities in Chile, Brazil, Spain, Germany, Italy and Argentina

Shareholder Meetings

Exchange Offer & Closing

May 26, 2011:

Public HearingLAN, TAM and interested parties will give their opinion about the transaction to the TDLC Court (May 10, 2011 is the deadline for delivering related information to the TDLC)

*Pending steps

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LATAM Airlines Group: Benefits for our Clients

Our clients will have access to a network of over 120 destinations in 23 countries

Opportunity to open new international destinations which couldn’t be possible with each airline operating separately

For cargo clients, the new airline group will provide more capacity, frequencies and destinations

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LATAM Airlines Group: Corporate Structure

LATAM AIRLINES GROUP(Currently LAN)

Chile

TAM S.A.Brazil

HoldCoChile

TEP Brazil13.5%

LAN Controlling shareholders

24.1%

Others LAN46.6%

100% ON Shares

Others TAM15.8%

100% PN Shares

80% Class A Shares(voting)

20% Class A Shares (voting)100% Class B Shares (non voting)

PantanalBrazil

TAM MilorBrazil

TLABrazil

100% 100%

100%

33

LATAM Airlines Group: LAN and TAM Today

Note: Most recent figures (as of Dec 2010)

34

LATAM Airlines Group: Unparalleled Service in the Region

SOURCE: Company 20-F filings, Airline Business, + IR presentation, company websites and LAN estimates

Estimated Synergies of US$400 Million

Revenues: Passenger US$170 MM ; Cargo US$110 MM

Costs: US$120 MM

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LATAM Airlines Group: Consolidation of Traffic = Growth

LAN AIRLINESCorporate Update