Chile-based LAN Airlines S.A. (LFL: Quote), 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
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