Tag Archives: LAN Airlines (Chile)

LATAM Airlines Group reports 1Q net income of $42.7 million, down 48.9%

LATAM Airlines Group (LAN Airlines) (TAM Linhas Aereas) (Santiago and Sao Paulo) has reported its financial results through March 31, 2013 for the first quarter:

HIGHLIGHTS

LATAM Airlines Group reported operating income of $114.2 million (US) for first quarter 2013, a 149.8% increase compared to the $45.7 million pro forma operating income in first quarter 2012. Operating margin reached 3.4%, an increase of 2.0 points compared to 1.4% in 2012. This result reflects a steady recovery in business operations as we advance in the process of achieving the expected synergies from the merger between LAN and TAM.

Net income reached $42.7 million for first quarter 2013, compared to a pro forma consolidated net income of $83.7 million for the same period in 2012, which represents a decrease of 48.9% mainly due to a foreign exchange gain of $133.4 million recognized at TAM during the first quarter 2012.

TAM continues to make significant progress in the turnaround of the domestic Brazil passenger operations, maintaining capacity discipline with a 9.2% reduction in ASKs during the first quarter 2013 as compared to the first quarter 2012. Healthy traffic growth of 3.4%,as well as improved market segmentation and revenue management practices have resulted in strong load factor improvements of 9.5 percentage points as compared to the first quarter 2012,reaching 77.7%. This led to a significant increase in revenue per ASK,as measured in Brazilian reais. Results in U.S. dollars were affected by a 13% depreciation of the Brazilian currency during the quarter as compared to the first quarter 2012. We remain convinced that capacity discipline and an adequate segmentation of the market will provide the basis for continued healthy load factors and a significant improvement in operating results in 2013.

We remain confident in our synergy target of between $600 and $700 million, to be fully achieved by the fourth year after the merger (June 2016). Important progress was made in recent months with the code share agreement signed between TAM and American Airlines as well as with LATAM’s election of oneworld as its global alliance. We have begun to harmonize the airlines’ frequent flyer programs,as well as advanced on cost initiatives related to contract renegotiations and process standardization. Furthermore, important synergies have been achieved through the coordination of the LAN and TAM cargo operations. We expect merger synergies to be between $250 and $300 million during 2013. However,we expect to continue to incur certain costs related to the integration process.

Total revenues in the first quarter 2013 reached $3,409.0 million compared to pro forma revenues of $3,360.2 million in first quarter 2012. The increase of 1.5% is a result of a 1.5% increase in passenger revenues and a 38.6% increase in other revenues, partially offset by a 3.2% decrease in cargo revenues. The slight increase in revenues reflects capacity reductions in the domestic Brazil passenger operations and a more challenging environment for international passenger operations, as well as weak market demand in the cargo business. Passenger and cargo revenues accounted for 84.2% and 13.5% of total revenues, respectively, in first quarter 2013.

During the first quarter 2013, LATAM received a total of 5 Airbus A320 family aircraft and 1 Boeing 767-300 passenger aircraft. Furthermore, the Company returned 1 Airbus A320-200 and sold 2 Airbus A318 aircraft.

Top Copyright Photo: Alvaro Romero/ModoCharlie.com. LAN Airlines’ Airbus A318-121 CC-CVR (msn 3390) carries special Telethon 2011 logo at Santiago. The snow-capped Andes Mountains are in the background.

LAN Airlines:

TAM Linhas Aereas:

Bottom Copyright Photo: Bernardo Andrade. TAM’s Airbus A319-132 PT-TMD (msn 4192) in the retrojet color scheme climbs away from Santos Dumont Airport in downtown Rio de Janeiro. Please click on the photo for the full-size view.

LAN Airlines to resume Boeing 787 passenger flights on June 1

LAN Airlines (Chile) (Santiago) is planning to resume Boeing 787 passenger operations on June 1. The first route to be restored is the Santiago-Lima-Los Angeles route per Airline Route.

LAN Airlines:

LAN and TAM take delivery of the first Airbus A320s with Sharklets

LAN Airlines (Chile) (Santiago) and TAM Airlines (TAM Linhas Aereas) (Sao Paulo) (LATAM Airlines Group) each took delivery of their first Airbus A320s equipped with Sharklets. Powered by CFM, the LAN and TAM aircraft were delivered this week and will begin operating domestic routes within Chile and Brazil. The two airlines combined have ordered 380 aircraft and have more than 240 aircraft in operation. Their joint Airbus backlog totals nearly 180 aircraft.

Sharklets are made from light-weight composites and are 2.4 meters tall. They are an option on new-build A320 Family aircraft and allow Airbus’ airline customers to reduce fuel burn up to four percent over longer sectors and reduce approximately 1,000 tons of CO2 emissions per aircraft per year. Sharklets offer operators the flexibility of either adding an additional 100 nautical miles range or increased payload capability of up to 450 kilograms.

Top Copyright Photo: Airbus. A320-214 D-AXAW became CC-BFK (msn 5548) and was handed over to LAN on April 18 followed by CC-BFL (msn 5554) on the following day.

Meanwhile TAM received Airbus A320-214 PR-MYY (msn 5591) on April 23.

LAN Airlines:

The FAA grounds the Boeing 787 due to battery issues

The Federal Aviation Administration (FAA) (Washington) has grounded all N-numbered Boeing 787s (United Airlines is the only U.S. operator) due to the on-going problems with the batteries. The U.S. Federal Aviation Administration issued an emergency airworthiness directive that requires U.S. 787 operators to temporarily cease operations. According to this report by Reuters, “the FAA said airlines would have to demonstrate that the batteries involved were safe before they could resume flying, but gave no details on when that could occur.”

Read the full report: CLICK HERE

Boeing issued the following statement:

Boeing Chairman, President and CEO Jim McNerney issued the following statement after the U.S. Federal Aviation Administration (FAA) issued an emergency airworthiness directive that requires U.S. 787 operators to temporarily cease operations and recommends other regulatory agencies to follow suit:

“The safety of passengers and crew members who fly aboard Boeing airplanes is our highest priority.

“Boeing is committed to supporting the FAA and finding answers as quickly as possible. The company is working around the clock with its customers and the various regulatory and investigative authorities. We will make available the entire resources of The Boeing Company to assist.

“We are confident the 787 is safe and we stand behind its overall integrity. We will be taking every necessary step in the coming days to assure our customers and the traveling public of the 787’s safety and to return the airplanes to service.

“Boeing deeply regrets the impact that recent events have had on the operating schedules of our customers and the inconvenience to them and their passengers.”

This is the major issue for Boeing and its 787 customers. It also raises questions about the FAA certification process.

Here is a list of how other countries and operators are reacting:

EASA (Europe) will follow the FAA and ground the aircraft according to Reuters: CLICK HERE

Japan has grounded the 787s of ANA and JAL (who had already grounded their fleets): CLICK HERE. JAL is also canceling the new Tokyo-San Diego route.

LAN Airlines grounded its three 787-8s: CLICK HERE

Qatar Airways has grounded its five 787-8s. Read the report by Reuters: CLICK HERE

United Airlines grounded its 787-8s and substituted other aircraft for the 787 flights or rebooked its customers.

Meanwhile LOT Polish Airlines (Warsaw) wins the “worst timing award” for its press release and the Chicago O’Hare inaugural flight. Right before the FAA grounded the aircraft, the Polish airline issued the following announcement:

LOT Polish Airlines will inaugurate new 787 Dreamliner nonstop service from Chicago to Warsaw on Wednesday, January 16, and make aviation history as the first airline with scheduled Dreamliner service from Chicago’s O’Hare Airport.

LOT is the first European carrier to operate the Dreamliner with a total of eight aircraft to be in their fleet. LOT’s Dreamliner inaugural flight from Chicago to Warsaw is followed closely by Toronto on February 1 and New York’s JFK on February 3.

LOT’s inbound Dreamliner special flight from Warsaw is scheduled to touch down at Chicago’s O’Hare airport at 6:55 p.m. The Dreamliner trip from Chicago will depart at 9:55 p.m., and arrive the next day in Warsaw at 1:50 p.m. Typically the flight will depart Warsaw at 5:25 p.m. and arrives in Chicago at 9:20 a.m. the same day. The flights were previously operated with Boeing 767s.

LOT’s Dreamliner has 18 seats in Elite Club (business class), 21 in Premium Club (premium economy) plus 213 seats in economy class.

In preparation for the Dreamliner flights, LOT has implemented a new design inspired by traditional and famous symbols of Poland. This design is reflected in the new aircraft interiors, inflight menus with its new selection of beverages, on-board equipment, toys for children and other amenities. The quality of service offered is an additional asset with specially trained Elite Fleet cabin crews, new comfortable classes of service-Elite Club and Premium Club- as well as the unique product on board the aircraft.

January 16, 2013 will probably go down in history as the darkest day for the Boeing Aircraft Company. William E. Boeing is probably rolling in his grave.

LOT Polish Airlines:

LAN Airlines is planning to commence nonstop Rio de Janeiro-Miami service on January 22

LAN Airlines (Chile) (LANTAM Airlines Group) (Santiago) is planning to introduce nonstop Rio de Janeiro – Miami flights using Boeing 767-300 ER aircraft starting on January 22 according to Airline Route.

LAN Airlines:

LAN Airlines completes its first flight to Chiloe Island

LAN Airlines (Chile) (Santiago) yesterday (November 6) completed its first flight between Santiago and Mocopulli airfield on Chiloe Island in southern Chile, with a stop at Puerto Montt-El Tepual Airport. Airbus A320-233 CC-BAK operated the first charter flight. The flight from Santiago to Puerto Montt and Mocopulli was flight LA 1357, the return was flight LA 1356.

The Airbus A320 landed at Mocopulli on its second attempt due to weather at 15:15 local time. A water wall salute from the Oshkosh trucks of the airport’s resident fire and emergency service (Servicio de Salvamento y Extincion de Incendios, SSEI) greeted the first arrival.

The first revenue flight is today (November 7). LAN will operate four days a week (Wednesday/Friday/Saturday/Sunday).

According to Wikipedia, Isla Grande de Chiloé is the largest island in the Chiloé Archipelago off the coast of Chile, in the Pacific Ocean.

Report and copyright photo by Alvaro Romero. Airbus A320-233 CC-BAK is pictured on a rain-soaked Chiloe Island after the historic first flight.

LAN Airlines (Chile):

LAN Airlines orders 10 additional 767-300 ER/F Blended Winglet systems

Aviation Partners Boeing (Seattle) announced today that LAN Airlines (Santiago) has ordered 10 additional Blended Winglet Systems for Boeing 767-300 ER passenger and freighter aircraft. This order brings LAN’s order total to 57 Blended Winglet systems for the Boeing 767-300 ER/F fleet making it the largest APB customer for this model.

Blended Winglet technology installed on a Boeing 767-300 ER/F reduces fuel burn by up to 500,000 gallons per aircraft per year while reducing carbon dioxide emissions by over 5,000 tons per year. Blended Winglets can also extend the range of a Boeing 767-300E R/F by as much as 320 nautical miles, or increase the payload of the aircraft by as much as 16,000 pounds.

LAN has purchased 10 new Blended Winglet systems from APB and selected Delta Tech Ops and Mexicana MRO to perform these modifications promoting the growth of both MRO’s, especially Mexicana, which is now capable of carrying out winglet modifications. Mexicana also becomes the newest Maintenance Repair and Overhaul facility to accomplish the Boeing 767-300 ER/F Blended Winglet installation. Mexicana had hoped to restart scheduled passenger operations.

Nearly 5,000 Blended Winglet Systems are now in service on Boeing 737s, 757s and 767s with more than 200 airlines worldwide. Since certification in 2009, APB has taken orders (firm and options) for 389 Boeing 767-300 ER/F Blended Winglet systems. APB estimates that Blended Winglets have saved airlines worldwide more than 3.3 billion gallons of jet fuel to-date.

Copyright Photo: Bruce Drum. Brand new Boeing 767-316 ER CC-BDH (msn 41748) at Paine Field near Everett will soon be receiving its set of Aviation Partners Blended Winglets.

LAN Airlines (Chile):

LAN Airlines receives its first Boeing 787-8 Dreamliner

LAN Airlines (Santiago) and Boeing (Chicago) yesterday (August 31) celebrated the delivery of the first 787-8 Dreamliner (CC-BBA) to LAN making it the first airline in the Americas to receive the new airplane.

LAN is only the fourth customer in the world to include the Boeing 787 in its fleet with 32 of this new aircraft on order and lease.

LAN’s top executives, Boeing representatives and authorities celebrated the delivery at an event at the Future of Flight Aviation Center in Mukilteo, Washington, near Boeing’s 787 final assembly factory in Everett.

The 787 Dreamliner is composed of light-weight composites and features numerous systems, engine and aerodynamic advancements making it more efficient to operate compared with its competition. It is the first mid-sized airplane capable of flying long-range routes, enabling airlines to open new, non-stop routes preferred by passengers.

The first cities that LAN’s fleet of 787s will fly to are Santiago, Buenos Aires, Lima, Los Angeles, Madrid and Frankfurt. The aircraft will begin to fly commercially in the next few months, and these routes will be added gradually during its first year of operation.

Top Copyright Photo: Nick Dean. Boeing 787-8 CC-BBA (msn 38471) arrives back at Everett (Paine Field) after a test flight before the hand over.

Bottom Copyright Photo: Alvaro Romero. CC-BBA is pictured being tugged after arriving at its Santiago, Chile base on September 1 at 09:45 am (0945) (GMT-4) local time. The aircraft performed a flypast over Runway 17L, then landed at 10:00 am (1000). CC-BBA was received with a water cannon salute courtesy of SCL Airport fire and rescue service (Servicio de Salvamento y Extinción de Incendio, SSEI).

LAN Airlines:

LAN Airlines to introduce the Boeing 787-8 Dreamliner on November 1

LAN Airlines (Santiago) is planning to introduce its new Boeing 787-8 Dreamliner on November 1 on the Santiago-Buenos Aires (Ezeiza) per Airline Route. The Santiago-Lima route will follow on November 4.

Copyright Photo: Nick Dean. The first, the pictured Boeing 787-8 CC-BBA (msn 38471) is due to be handed over on August 31.

Hot New Photos:

LATAM reports its first quarterly statement, a net profit of $49.7 million in the second quarter

LATAM Airlines Group S.A. (LAN Airlines and TAM Linhas Aereas) (Santiago) has announced a second quarter net profit of $49.7 million. This is the first financial report for the group. Here is the full statement.

“LATAM Airlines Group has announced its consolidated financial results for the second quarter and for the six months ended June 30, 2012. “LATAM” 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, except for TAM S.A. (“TAM”) second quarter 2012 Income Statement figures, which are expressed in Brazilian reais.

HIGHLIGHTS

 LATAM Airlines Group S.A. today reported its first consolidated financial results for the second quarter and first half of 2012, following the successful completion of the exchange offer and mergers that combined the businesses of LAN Airlines S.A. and TAM S.A. (“TAM”). Because the transaction was completed on June 22, 2012, results for the period ended June 30, 2012 include the last eight days of TAM results, from June 23 to June 30, 2012.
 Net income of LATAM Airlines Group reached US$49.7 million in the second quarter 2012. Operating income reached US$23.2 million, resulting in a 1.5% operating margin for the second quarter 2012. Consolidated LATAM results include net income of US$46.3 million and an operating loss of US$13.9 million corresponding to the eight days of consolidation of TAM between June 23 and June 30, 2012. Non-operating results for this eight day period reflect a foreign exchange gain of US$57,4 million and a positive mark-to-market of fuel hedging derivatives in the amount of US$ 26,7 million, as a result of the appreciation of the Brazilian real and an increase in the price of fuel, respectively, during the last eight days of the quarter.
 The second quarter 2012 presented a challenging environment due to reduced cargo demand and the depreciation of local currencies, especially the Brazilian real. However, passenger demand in most of Latin America remains solid and the successful completion of the business combination between LAN and TAM provides the Company with a more diversified revenue base and significant growth and synergy opportunities. Furthermore, the domestic Brazil market has shown sustained capacity discipline, providing the basis for improved profitability.
 LATAM Airlines Group is advancing in the process of achieving the expected synergies from the business combination with TAM. Regarding its international passenger operations, the Company has established fare combinability between LAN and TAM, cross selling of LAN and TAM flights, and code shares on various international routes, such as Santiago – Orlando, Santiago – Madrid, and Santiago – London. Cross selling will assist the Company in capturing connectivity synergies by offering our customers a single network in a one- stop shop.
 In July 2012, the cargo divisions of LAN and TAM were integrated, taking advantage of the highly complementary nature of their operations.
 On September 4, 2012, LATAM Airlines Group will hold an Extraordinary Shareholders’ Meeting in order to reelect the Board of Directors of the Company, as well as to approve the placement, through a preemptive rights offering to LATAM shareholders, of the remaining 7,436,816 shares of the Company that were authorized for the TAM exchange offer, and that were not exchanged.

LATAM Airlines Group S.A. 2Q12

 During the remainder of 2012, LATAM expects to receive 12 Airbus A320 family aircraft to operate domestic and regional routes, as well as 8 Boeing 767-300, 4 Boeing 777-300 and the first 3 Boeing 787-8 Dreamliners for long- haul routes. The Company will also take delivery of 2 Boeing 777 freighter aircraft.
 LAN Airlines S.A. (renamed LATAM Airlines Group S.A.) – excluding the consolidation of TAM – reported net income of US$5.2 million for the second quarter of 2012, a decrease of 67.5% compared to the US$15.9 million reported in second quarter 2011. Operating income reached US$37.1 million, a 33.5% decrease compared to the US$55.8 million in second quarter 2011. Operating margin reached 2.6%, a decrease of 1.6 points compared to 4.2% in 2011. The Company continued to show strong passenger revenue growth, despite a seasonally low quarter, partially offsetting the impact of a more challenging environment in the cargo business, as well as the ongoing development of LAN Colombia’s operations. In addition, operating results include a one-time cost of US$7.1 million related to the successful completion of the collective bargaining process with certain unions, as well as US$9.2 million in transaction costs related to the business combination with TAM.
 TAM reported a net loss of R$928.1 million, compared to net income of R$60.3 million reported in second quarter 2011. For the second quarter 2012, TAM reported an operating loss of R$284.2 million, compared to the R$8.8 million gain in second quarter 2011. Operating results were mainly impacted by a 23.0% depreciation of the Brazilian real and decreased revenues from Multiplus, resulting from accounting changes in the recognition of such revenues implemented in the first quarter 2012. Non-operating results reflect a foreign exchange loss of R$845.9 million, and the negative mark-to-market of fuel hedging derivatives in the amount of R$93.6 million, resulting from the depreciation of the Brazilian real and the decrease in fuel prices, respectively, as compared to March 31, 2012.”
Copyright Photo: Michael B. Ing. Boeing 767-316 ER CC-CEB (msn 26327) climbs away from Los Angeles International Airport on a very clear day.

LAN Airlines (Chile):

TAM Linhas Aereas: