LAN CARGO Announces Plans for New Cargo Operations in Colombia

Business Wire,  May 12, 2008  

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SANTIAGO, Chile -- LAN CARGO S.A. ("LAN Cargo"), cargo subsidiary of LAN Airlines S.A. ("LAN" or "the Company") (NYSE: LFL)(IPSA: LAN), today announced that on May 9, 2008 it presented to the Colombian aviation authorities a formal proposal for the creation of a new cargo airline in that country. LAN CARGO's proposal is subject to the approval of the Colombian and other governmental authorities and, if approved, LAN CARGO will have a period of 12 months to launch its subsidiary's operations.

Colombia is currently the largest air cargo market in Latin America in terms of exports to the United States, with an estimated volume of 200 thousand tons annually. Through the launch of an affiliate company in Colombia, LAN CARGO will be able to contribute significantly to the development of this important market. The establishment of a subsidiary in Colombia will allow LAN CARGO to integrate the country to its broad network of routes within the region, also providing connectivity to the United States and Europe with its modern fleet of Boeing 767-300F freighter aircraft.

LAN CARGO currently has cargo affiliates in Brazil and Mexico and operates a network that covers approximately 75 destinations worldwide. "The creation of this new subsidiary furthers the consolidation of our cargo network, effectively connecting the main productive centers and markets in the region, while reaffirming our objective of uniting Latin America with the rest of the world," stated Cristian Ureta, CEO of LAN CARGO.

About LAN

LAN Airlines is one of the leading airlines in Latin America. "LAN" makes reference to the consolidated entity that includes LAN Airlines, LAN Express, LAN Peru, LAN Ecuador, and LAN Argentina, as well as LAN Cargo and its affiliates. The LAN Alliance serves 14 destinations in Chile, 12 destinations in Peru, 10 destinations in Argentina, two destinations in Ecuador, 15 destinations in other Latin American countries and the Caribbean, three destinations in the United States, two destinations in Europe and four destinations in the South Pacific, as well as 58 additional international destinations through its various code-share agreements. Currently, the LAN Alliance operates 72 passenger aircraft and 9 dedicated freighters.

LAN Airlines is a member of oneworld (TM), the world's leading global airline alliance. It has bilateral commercial agreements with oneworld partners American Airlines, British Airways, Iberia and Qantas, as well as with Alaska Airlines, AeroMexico, TAM and Korean Air. For more information visit www.lan.com or www.oneworldalliance.com.

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