(RTTNews) -  LAN Airlines S.A. (LFL: News ), 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.

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by RTT Staff Writer

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