The lungs are a pair of spongy, air-filled organs located on either side of the chest (thorax). The trachea (windpipe) conducts inhaled air into the lungs through its tubular branches, called bronchi.The bronchi then divide into smaller and smaller branches (bronchioles), finally becoming microscopic. The bronchioles eventually end in clusters of microscopic air sacs called alveoli.he trachea (windpipe) conducts inhaled air into the lungs through its tubular branches, called bronchi. The bronchi then divide into smaller and smaller branches (bronchioles), finally becoming microscopic. The bronchioles eventually end in clusters of microscopic air sacs called alveoli.