Most lung tissue is made up of tiny clusters of air “balloons” (called alveoli). Each balloon is lined by a thin layer of cells and surrounded by a network of very small blood vessels. When you breathe in, air fills the balloons. The cells in the lining and the small blood vessels exchange oxygen from the air for carbon dioxide, which you then breathe out. The main pathway from the lungs to the outside of the body consists of the trachea (the large airway that begins at the back of the throat and continues down into the lungs) and the nostrils.