LAN Airlines reports 11% decline in net income for third quarter 2011
LAN Airlines reported net income of US$94.5m in third quarter 2011, a decrease of 11% compared to the US$106.2m reported in third quarter 2010. Strong revenue results were driven by solid traffic growth, reflected in strong yields and load factors in both the passenger and cargo businesses. However, 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 increased to US$1.5bn compared to US$1.2bn in third quarter 2010 due to a 32.6% increase in passenger revenues and a 22.5% increase in cargo revenues. Operating income was US$161.2m in third quarter 2011, a 2.9% increase compared to US$156.6m in third quarter 2010. Operating margin reached 10.8% compared to 13.6% in third quarter 2010.
During the third quarter, the company incurred costs associated with the launch of the LAN brand in Colombia, scheduled for December 2011. In line with the company’s expansion, the company received four Airbus A320 and one Boeing 767-300 passenger aircraft during third quarter 2011.
In addition, LAN Airlines and TAM obtained the approvals from Chile’s antitrust court (TDLC) and Spain’s antitrust authority to continue with their merger transaction. No further antitrust approvals are required in Europe. However, 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.
Quelle: eyefortransport
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