The implicit lower-upper symmetric Gauss-Seidel (LU-SGS) method of Yoon and Jameson is modified for use on massively parallel computers. The method has been implemented on the Thinking Machines CM-5 and the MasPar MP-1 and MP-2, where large percentages of the theoretical peak floating point performance are obtained. It is shown that the new data-parallel LU relaxation method has better convergence properties than the original method for two different inviscid compressible flow simulations. The convergence is also improved for five-species reacting air computations. The performance of the method on various partitions of the CM-5 and on the MasPar computers is discussed. The new method shows promise for the efficient simulation of very large perfect gas and reacting flows.