MercoPress. South Atlantic News Agency

Lan raises international air fares 15%.

Lan raised international air fares 15% and plans to raise domestic fares 7% because of the increase in fuel costs.

Lan with main offices in Chile but with operations also in Ecuador, Peru and Dominican Republic indicated that international oil prices have significantly increased costs forcing higher fares in line with the international air industry.

"In spite of efforts oil has reached unexpected levels forcing us to increase 15% international air tickets", said a Lan source.

Fuel represents approximately 20% of Lan operational costs.

In the second quarter of this year Lan fuel bill reached 86,4 million US dollars, a 52,5% increase over the same period in 2003.

Regarding domestic fares, increases will be announced in November.

In spite of the strong rise in fuel costs Lan during the first semester managed a profit of 79,6 million US dollars, similar to the first six months of 2003. A considerable increase in passenger and cargo this year helped compensate higher costs.

Lan forecasts sales of 1,88 billion US dollars in 2004, a 15% increase over 2003.