MercoPress. South Atlantic News Agency

Fuel prices make LAN profits drop 10.3% in 2005

High fuel prices had a direct impact in Chile's flag carrier Lan profits in 2005 which reached 146 million US dollars, a 10.3% drop compared to 2004.

However, Lan Chile considered one of Latinamerican leading airlines with operations in Peru, Argentina, Ecuador and Dominican Republic in the last quarter of 2005 managed profits of 49,9 million US dollars, 4.8% above the same period in 2004.

"The price of petroleum meant additional operational costs of 187 million US dollars in 2005", said the company in a release. But in spite of higher fuel prices Lan has managed to ensure efficiency levels and its international expansion strategy has enabled the company to obtain positive results, added Lan.

Market analysts in Santiago said that another positive factor for Lan was the strong appreciation of the Chilean peso, which favoured international traffic with many Chileans flying overseas.

LAN sales in 2005 totalled 1.776 billion US dollars, 12% increase over 2004. In the last quarter of 2005 revenue reached 706 million US dollars, with a 15.9% growth over the same period in 2004.

The Chilean flag carrier has plans to invest two billion US dollars in the purchase of 42 new aircrafts during the next three years.