LAN Airlines S.A. (LFL), a provider of passenger and cargo air transportation services, Monday reported a 37% decline in profit for the third quarter from last year, hurt by a 19% decline in revenues and one-time gains in the year-ago period. The latest quarter's results also include fuel hedging losses, compared to a fuel hedging gain in the same period last year. The Santiago, Chile-based company's net income for the third quarter declined to US$52.1 million from US$83.0 million in the previous-year quarter. Excluding non-operating one-time items recognized in the year-ago period, net income for the latest quarter decreased 58.3%.
On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.
Consolidated revenues for the quarter declined 19.1%, driven by lower yields in both the cargo and passenger businesses. This was partially offset by a 14% decline in operating expenses, driven mainly by lower fuel costs.
Operating income for the latest quarter decreased 46.1% to US$92.4 million from US$171.3 million in the year-ago quarter. Operating margin was 10.1% compared to 15.1% in the year-ago period.
Results for the quarter were impacted by fuel hedging losses, although to a much lesser extent than in previous quarters. Fuel hedging loss during the quarter amounted to US$14.4 million compared to fuel hedging gain of US$29.2 million in the previous-year quarter.
Excluding the impact of fuel hedging, LAN's operating margin for the quarter was 11.6% compared to 12.5% in the prior-year quarter.
LFL closed Monday's regular trading session at $13.76, up $0.06 or 0.44% on a volume of 0.72 million shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.