LAN Airlines reports net income of US$106.2 million for the third quarter of 2010
LAN Airlines S.A. (NYSE: LFL), one of Latin America’s leading passenger and cargo airlines, announced today its consolidated financial results for the third quarter ended September 30, 2010.
"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 net income of US$106.2 million in the third quarter 2010, an increase of 103.9% compared to the third quarter 2009, marked by a strong recovery and growth in both the cargo and passenger businesses.
* Operating income reached US$156.6 million in the third quarter 2010, which represents a 69.5% increase compared to US$92.4 million in the third quarter 2009. Operating margin reached 13.6%, an increase of 3.5 points compared to 10.1% in the same period of 2009.
* Total revenues in the third quarter 2010 reached US$1,152.3 million compared to US$917.5 million in the third quarter 2009 due to a 19.7% increase in passenger revenues and a 49.4% increase in cargo revenues. Passenger and cargo revenues accounted for 69.4% and 28.0% of total revenues, respectively, during the third quarter 2010.
* On August 13, 2010, LAN and TAM announced that they entered into a non-binding MOU, outlining their intentions to combine their holdings under a single parent entity to be known as LATAM Airlines Group. On October 20, 2010, LAN and TAM announced that TAM's subsidiaries submitted the final transaction structure for the approval of the Brazilian National Civil Aviation Agency (ANAC).
* On October 18, 2010, a ceremony was held to celebrate the one hundredth aircraft incorporated into LAN's fleet. During the third quarter 2010, the Company received a total of 5 Airbus A320 passenger aircraft.
* The expansion of LAN's passenger operations during the third quarter 2010 was driven by the launch of various regional and long-haul routes. LAN and its affiliates successfully started operating the following routes: Lima - San Francisco, Santiago - Paris (via Madrid), Lima - Brasilia and Guayaquil - Galapagos.