LAN Airlines reported a first-quarter net income of $76.1 million, down 21.8% from a $97.2 million profit in the year-ago period. The airline said the results were “impacted by a 14.7% increase in fuel prices and a more challenging environment in the cargo business, as well as by the ongoing development of LAN Colombia’s operations.”
Total revenues rose 12.6% to $1.5 billion while operating expenses increased 17.7% to $1.42 billion, producing an operating profit of $111.2 million, down 27.4% from $153.2 million in the prior-year quarter.
Traffic rose 14% to11.1 billion RPKs on a 11.3% increase in capacity to13.4 billion ASKs, producing a load factor of 82.9 %, up 1.9 percentage points.
Yield rose 2.2% to 10.2 cents as RASK increased 4.6%.
Chile-based LAN and Brazilian carrier TAM obtained authorizations in Brazil and the US to commence and complete an offer to exchange TAM shares for Holdco II shares and ultimately LAN shares. LAN and this newly formed entity, Holdco II, commenced the exchange offer May 10 and will keep it open until June 11, both in New York and São Paulo. Auction will be held at Bovespa (the São Paulo Stock Exchange) on June 12.
The company said LAN will start operating with TAM as a single company June 15, nearly two years after both carriers announced their merger plans. The newly created company, to be named LATAM Airlines Group SA, will be the “largest in Latin America and one of the 10 biggest in the world in terms of revenue,” LAN said.
Article Source : ATW Daily News
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