logo
Share SHARE
FONT-SIZE Plus   Neg

LAN Airlines Q4 Profit Declines - Quick Facts

Chile-based LAN Airlines S.A. (LFL), Tuesday reported a 32 percent decline in profit for the fourth quarter, hurt by higher fuel prices and startup costs related to Colombia operations.

The Santiago, Chile-based company's net income dropped to $112.5 million, compared to $164.6 million last year.

Profit was hurt mainly by the costs related to startup of LAN's operations in Colombia as well as the ongoing effects of the volcanic ash cloud on domestic operations in Chile and Argentina. The 28.8 percent rise in fuel prices also negatively impacted the bottom line.

Meanwhile, LAN continued to generate traffic growth and yield increases in both passenger and cargo operations, as reflects revenue growth.

Total revenues for the quarter grew to $1.54 billion from $1.30 billion last year, helped by a 20.8 percent increase in passenger revenues and a 15.8 percent improvement in cargo revenues.

Analysts polled by Thomson Reuters expected earnings of $0.40 per share on revenues of $1.54 billion for the quarter. Analysts' estimates typically exclude special items.

Operating margin was dragged down to 11.0 percent from 16.2 percent last year.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Computer and printer maker Hewlett-Packard Co. said Thursday after the markets closed that its second quarter profit fell 21% from last year, hurt by lower revenue and costs related to the planned separation of the company. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations, but its quarterly revenue fell short of analysts' forecast. Accounting software maker Intuit reported a plunge in third-quarter profit, hurt by impairment charges, even as results topped Wall Street estimates, driven by growth in small business segment amid a strong tax season. Struggling teen-apparel retailer Aeropostale Inc. (ARO), Thursday said its first-quarter loss narrowed from a year ago, driven largely by stronger margins even as revenues continued to plunge dropped. Nevertheless, the company lost almost one-fifth of its market value in after-hours trade, with the...
comments powered by Disqus
Follow RTT