Another Record Year for LAN with Profits up 64 Percent in 2006

Chile’s flag carrier LAN Airlines announced on Wednesday net profits of $241 million in 2006, up 64.4 percent over the $147 million back in 2005. LAN also reported a net profit of $93.6 million in the fourth quarter, 88 percent above the same period in 2005.

LAN which is one of the biggest and most reliable airlines in Latin America with affiliates in Ecuador, Peru, Argentina and the Dominican Republic, said total revenues in 2006 grew 21.1 percent to $3.03 billion.

Revenue from passenger traffic rose 24.2 percent, and revenue from cargo transport climbed 17.8 percent. LAN said the increases were due to growth in its international business, the opening of new routes, an increase in its passenger-per-mile ratio and the consolidation of the airline in the Argentine market.

LAN carried 15.9 percent more passengers on international flights in 2006 than in 2005. The Chilean flag carrier also revealed that higher fuel costs represented an increase in operational costs of $71 million over 2005.