Lan Chile S.A. Monthly Traffic Report for August 2003

SANTIAGO, Chile--(BUSINESS WIRE)--Sept. 15, 2003--LanChile S.A., ("LanChile" or "the Company") (NYSE:LFL) Chile's largest domestic and international airline, reported its preliminary monthly and accumulated traffic statistics and punctuality indicators for August 2003.

The Company reported that system passenger traffic for August increased 18.6%, while capacity increased 7.8%. As a result, the Company's load factor increased 6.8 points to 75.1%.

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International passenger traffic for August increased 24.7% while capacity increased 10.2%. Accordingly, the international passenger load factor for the month increased 9.1 points to 78.0%. These results reflect increased traffic to and from several markets, especially Chile, United States, Europe, Mexico, Ecuador and Argentina.

Domestic passenger traffic for August decreased 5.4% as capacity decreased 1.0%. As a consequence, the domestic load factor for the month decreased 2.9 points to 62.7%. Soft demand and increased competition affected the domestic passenger business.

Cargo traffic, as measured in RTKs, decreased 4.1% while capacity declined 3.3%. As a consequence, the cargo load factor decreased 0.5 points to 66.3%. These results reflect decreased capacity in passenger aircraft due to high passenger load factors, and weak southbound traffic.

In August, 84.8% of the Company's total flights left on-time, based on a fifteen-minute standard (all departures leaving within fifteen minutes of scheduled departure time are considered as "on-time"). This represented a 1.5 point increase compared to August 2002.

Lan Chile S.A. is the largest domestic and international passenger/cargo air carrier in Chile and one of the leading airlines in Latin America. Together with its code-share arrangements and affiliated airlines, the Company serves 15 destinations in Chile, seven destinations in Peru, 18 destinations in Latin America, 25 in North America, eight destinations in Europe and four in the South Pacific. Currently, the Company operates 46 passenger aircraft and 9 cargo freighters.

LanChile is a member of oneworld (TM), the most international of the global airline alliances. It has bilateral commercial agreements with oneworld partners American Airlines, British Airways, Iberia and Qantas and also with Alaska Airlines, AeroMexico, TAM and Lufthansa Cargo. For more information visit www.lanchile.com or www.oneworldalliance.com.