LAN AIRLINES reports net income of US$308.3 Million for year 2007.

March 05th, 2007

Consolidated Full Year 2007 Results

Net income for the full-year 2007 amounted to US$308.3 million compared to net income of US$241.3 million in the same period of 2006, an increase of 27.8%. Excluding extraordinary items that amounted to US$28.3 million during the first half of 2006, net income rose 44.8% and net margin increased from 7.0% in 2006 to 8.7% in 2007.

Operating income amounted to US$413.4 million in 2007 compared to US$302.6 million in 2006.

Operating margin for the year increased from 10.0% to 11.7%.

Total operating revenues grew 16.2% compared to 2006, reaching US$3.5 billion. This reflected a:

• 21.2% increase in passenger revenues to US$2,197.2 million,
• 7.6% increase in cargo revenues to US$1,154.3 million, and a
• 17.3% increase in other revenues which amounted to US$173.4 million.

Passenger and cargo revenues accounted for 62% and 33% of total revenues for the period, respectively

Cargo revenues increased 7.6% mainly due to a 4.8% increase in traffic, coupled with a 2.7% increase in yields. Yields increased due to strong demand on southbound routes and to the implementation of certain revenue management initiatives as well as higher fuel surcharges. Traffic growth was exceeded by a 6.9% capacity increase. As a consequence, load factors decreased from 75.9% to 74.4%. Revenues per ATK marginally increased 0.7% compared to full-year 2006.

Consistent positive results and a solid balance sheet have enabled LAN to continue advancing on a number of long-term initiatives. These plans, which encompass all levels and business units, are aimed at improving LAN’s long-term strategic position by enabling the Company to address opportunities, strengthen its market position and increase competitiveness.