LAN Airlines S.A. (NYSE: LFL), one of Latin America’s leading passenger and cargo airlines, announced today its consolidated financial results for first quarter ended March 31, 2011. “LAN” or “the Company” makes reference to the consolidated entity, which includes passenger and cargo airlines in Latin America. All figures were prepared in accordance with International Financial Reporting Standards (IFRS) and are expressed in U.S. Dollars. HIGHLIGHTS
- LAN reported a net income of US$97.2 million for first quarter 2011, an increase of 10.1% compared to the US$88.3 million reported in first quarter 2010. This result is despite the consolidation of US$11 million losses generated in the Colombian operations of AIRES, and also reflects LAN’s successful management under the current scenario of increased fuel prices.
- Operating income reached US$153.3 million in first quarter 2011, a 7.3% increase compared to US$142.9 million in first quarter 2010. Operating margin reached 11.2% compared to 13.8% in first quarter 2010.
- Total revenues in first quarter 2011 reached US$1,364.9 million compared to US$1,034.9 million in first quarter 2010 due to a 32.0% increase in passenger revenues and a 30.2% increase in cargo revenues. Passenger and cargo revenues accounted for 71.6% and 25.4% of total revenues, respectively, during first quarter 2011.
- During the quarter, LAN has successfully implemented measures in order to mitigate the impact of higher fuel prices on its operations. For the Company, higher fuel prices during the quarter, which increased 32.2% compared to first quarter 2010, generated US$100.3 million in increased fuel costs.
- Regarding the approval process for the transaction with TAM, on April 20, 2011, the TDLC announced that a public hearing will take place on May 26, 2011 in which the interested parties, including LAN and TAM, may provide their opinion regarding the business combination.
- In line with the Company’s expansion, during first quarter 2011, the Company received a total of 3 Airbus A319 and 6 Airbus A320 passenger aircraft, destined for domestic and regional markets, and 1 Boeing 767-300F freighter, mainly destined for growth on northbound routes.
Currently, LAN Airlines and its affiliates operate 127 passenger aircraft while LAN Cargo and its respective affiliates have a fleet of 14 dedicated freighters. The Company has one of the youngest fleets in the world which has meant greater efficiency and a significant reduction in CO2 emissions, reflecting its strong commitment to the protection of the environment.LAN is one of the few Investment Grade airlines in the world (BBB). The company’s world class quality standards enabled its membership in oneworld™, an alliance of leading global airlines of which LAN has been a member for 10 years. For more information please visit www.lan.com or www.oneworldalliance.com Note on Forward-Looking Statements This report contains forward-looking statements. Such statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” or other similar expressions. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. These statements are based on current plans, estimates and projections, and, therefore, you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors and uncertainties include in particular those described in the documents we have filed with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them, whether in light of new information, future events or otherwise. This press release relates to a proposed business combination between Lan Airlines S.A. (“LAN”) and TAM S.A. (“TAM”), which will become the subject of a registration statement and prospectus to be filed with the SEC by LAN and a new entity to be formed in connection with the combination. This press release is not a substitute for the registration statement, prospectus and offering materials that LAN and the new entity will file with the SEC or any other documents that they may file with the SEC or send to shareholders in connection with the proposed combination. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, PROSPECTUS, EXCHANGE OFFER DOCUMENTS AND ALL OTHER RELEVANT DOCUMENTS FILED OR THAT WILL BE FILED WITH THE SEC AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED BUSINESS COMBINATION. All such documents, if filed, would be available free of charge at the SEC’s website ( www.sec.gov) or by directing a request to LAN Investor Relations, at 56-2-565-8785 or by e-mail at email@example.com, or to TAM Investor Relations, at 55-11-5582-9715 or by e-mail at firstname.lastname@example.org.