Fuel Costs Hit LAN Profits Despite More Intensive Activity

LAN net profits in the third quarter of 2005 reached $23.8 million, a 35 percent drop compared to the same period in 2004, according to the Chilean flag carrier latest release.

In the first nine months of this year, profits totaled $96.7 million, compared to $116 million in the same period last year. LAN blames the contraction on higher international fuel costs.

“Profits suffered the impact of $54 million in additional costs as a consequence of higher fuel prices and costs associated to the launching of the LAN operation in Argentina”, said the company.

However overall sales increased 17.6 percent, reaching $622 million in the third quarter, mostly spurred up by a greater passenger and cargo traffic.

According to the latest report from the Chilean Civil Aviation Agency, international air traffic in Chile during the first nine months of the year increased 10.3 percent, reaching 2,990,219 passengers. September was particularly active with a 17 percent expansion.