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LAN Airlines Announces Proposed Capital Increase to Finance Fleet Expansion
Communiqué publié le 06/03/2007 à 23h50

LAN Airlines S.A. and its related companies, ("LAN" or "the Company") (NYSE:LFL / IPSA:LAN), one of the leading airline groups in Latin America, announced that its Board of Directors approved a proposed capital increase of 22,090,910 ordinary shares at an Extraordinary Session held today. This amount will replace the capital increase of 7,500,000 shares approved at the Extraordinary Shareholders Meeting held on January 26, 2007.

The proceeds of this increase will be used to finance LAN's fleet expansion program, resulting from the strong traffic growth in the markets where the Company operates. The new fleet expansion program includes the arrival of 5 long-haul passenger aircraft, 4 dedicated freighters and 15 Airbus A320 family aircraft. These aircraft will be delivered between 2008 and 2011, with list prices that total approximately US$1.8 billion. In addition, a portion of this capital increase will be allocated towards a stock option plan for Company employees.

This capital increase will be presented for approval at an Extraordinary Shareholders Meeting to be held April 5, 2007, in conjunction with LAN's Annual General Shareholders Meeting.

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. Through its own operations and code-share arrangements, the LAN Alliance serves 15 destinations in Chile, twelve destinations in Peru, nine destinations in Argentina, two in Ecuador, 30 destinations in other Latin American countries, 25 in North America, 13 destinations in Europe, four in the South Pacific and one in Asia. Currently, the LAN Alliance operates 70 passenger aircraft and 10 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, Mexicana, and TAM. For more information visit www.lan.com or www.oneworldalliance.com.

Business Wire

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