LAN Airlines reports net income of $320.2 million for 2011 and $112.5 Million for 4Q

LAN Airlines (Santiago) has reported net income of $320.2 million for full year 2011. Results in 2011 were driven by solid demand, strong yields and high load factors in both passenger and cargo operations.

According to the airline, net income decreased 23.7% compared to the $419.7 million reported in full year 2010, mainly due to the impact of the startup of LAN’s operations in Colombia and the volcanic ash cloud that disrupted air traffic throughout the region, as well as higher fuel prices, a portion of which was not recovered via the fuel surcharge mechanism.

For full year 2011, operating income reached $539.7 million, a 13.4% decrease compared to the $622.9 million in full year 2010.

Operating margin reached 9.4% a decrease of 4.3 points compared to 13.8% in 2010.

For fourth quarter 2011, LAN reported net income of $112.5 million, a decrease of 31.6% compared to the $164.6 million reported in fourth quarter 2010. Results in the fourth quarter 2011 reflected costs related to the startup of LAN’s operations in Colombia and the ongoing effects of the volcanic ash cloud on domestic operations in Chile and Argentina, as well as the 28.8% increase in fuel prices, a portion of which was not recovered via the fuel surcharge mechanism. Nevertheless, LAN continued to show solid traffic growth and yield increases in both passenger and cargo operations.

Operating income reached $169.5 million in fourth quarter 2011, a 19.6% decrease compared to $210.7 million in fourth quarter 2010. Operating margin reached 11.0% compared to 16.2% in fourth quarter 2010.

Copyright Photo: Alvaro Romero.

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