Chile’s LAN Airlines Income Rose in Third Quarter of 2006

LAN Airlines reported its consolidated financial results for the third quarter and nine-month period ended September 30, 2006. All figures were prepared in accordance with generally accepted accounting principles in Chile and are expressed in U.S dollars.

According to the financial report, LAN reported net income of $51.5 million for the third quarter of 2006, compared to net income of $23.8 million in the third quarter of last year.

The company reported operating income of $70.5 million, ramping up operating margins by 7.6 percentage points to 9.3 percent. This resulted from 22.6 percent revenue growth, which outpaced a 13.0 percent increase in operating costs. These strong operating results are despite $21.8 million in higher fuel costs during the quarter.

Total revenues for the quarter reached $762.3 million due to a 29.0 percent increase in passenger revenues and a 14.5 percent rise in cargo revenues. Passenger and cargo revenues accounted for 62 percent and 32 percent of total revenues, respectively.

During the quarter, LAN incorporated eight new Airbus 319 into its fleet, as well as one new Boeing 767-300ER passenger aircraft, which features LAN’s new Premium Business and Economy classes.

Cargo revenues rose 14.5 percent as capacity rose 3.0 percent and unit cargo revenues increased 11.2 percent. Higher revenues per ATK resulted from a 6.3 percent improvement in yield, as well as a 2.9 points rise in load factors.