- LAN reported net income of US$94.5 million in third quarter 2011, a decrease of 11.0% compared to the US$106.2 million reported in third quarter 2010. Results this quarter were driven by solid traffic growth, reflected in strong yields and load factors in both the passenger and cargo businesses. This was partially offset by the continued impact of the startup of LAN’s operations in Colombia as well as, at a non-operating level, exchange rate differences resulting from the depreciation of local currencies.
- Total revenues in third quarter 2011 reached US$1,486.5 million compared to US$1,152.3 million in third quarter 2010 due to a 32.6% increase in passenger revenues and a 22.5% increase in cargo revenues. Revenue increases reflected the continued strong demand in both the passenger and cargo businesses. Passenger and cargo revenues accounted for 71.3% and 26.6% of total revenues, respectively, during third quarter 2011.
- Operating income reached US$161.2 million in third quarter 2011, a 2.9% increase compared to US$156.6 million in third quarter 2010. Operating margin reached 10.8% compared to 13.6% in third quarter 2010.
- During the quarter, LAN was able to offset a 42.8% increase in fuel prices through effective fuel surcharge mechanisms and strong passenger and cargo demand, reflected in solid yield growth and load factor increases.
- LAN continued to advance with the turnaround of its Colombian operations. During the third quarter, the Company incurred in costs associated with the launch of the LAN brand in Colombia, scheduled for December 2011. This included painting all aircraft with LAN livery, migrating AIRES to LAN’s IT systems and designing marketing initiatives aimed at integrating Colombia into LAN’s regional network.
- In line with the Company’s expansion, the Company received 4 Airbus A320 and 1 Boeing 767-300 passenger aircraft during third quarter 2011.
- LAN and TAM obtained the approvals from Chile’s antitrust court (TDLC) and Spain’s antitrust authority to continue with the merger transaction. No further antitrust approvals are required in Europe. LAN and TAM appealed before the Supreme Court of Chile, objecting three of the mitigation measures imposed by the TDLC, which the companies deem to be unconstitutional and disproportionately severe. The companies believe that the appeal process will not delay LAN and TAM’s plans to bring the transaction into effect. The companies believe the transaction can be concluded towards the end of the first quarter 2012.
LAN Airlines S.A. (NYSE: LFL), one of Latin America’s leading passenger and cargo airlines, announced today its consolidated financial results for third quarter ended September 30, 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