MercoPress. South Atlantic News Agency

Lan Chile profits surge in first quarter

Chile's flag air carrier Lan saw profits soar 72% in the first quarter of this year compared to the same period in 2005.

Lan's net benefits in January/March 2005 reached 46.3 million US dollars and this year jumped to 79.6 million US dollars according to the company's report to the Chilean Securities and Exchange Committee.

Sales in the first quarter of 2006 totalled 728 million US dollars, up 20% over 2005. Other assets also increased from 193 to 264.8 million US dollars, which represents a 36.9% growth.

In the report Lan claims that even when high fuel prices represented a significant 37.5 million US dollars increase in operational costs, a new fares and profits strategy helped absorb the negative impacts from the oil market.

Lan Chile which dominates the Chilean domestic and international passenger and freight markets also has profitable affiliates in Argentina, Peru, Ecuador and the Dominican Republic.

In related news international air traffic in Chile during the first quarter increased 9.3% (1.172.254 passengers) compared to the same period a year ago.

According to the Chilean Civil Aviation Agency, March marked a new historic record both for domestic and international flights with 366.412 and 282.643 passengers.

The international airlines which in the first quarter transported over 40.000 passengers are: Lan, American Airlines, Varig, Aerolineas Argentinas, Lufthansa, Iberia and Delta making up 74.9% of the market.

The destinations with most traffic are Buenos Aires, Sao Paulo, Madrid, Miami and Lima, Peru.

Regarding domestic flights the total number of passengers in the first quarter totalled 885.655, up 8.9%, said the Chilean Civil Aviation Agency.

Some interesting numbers for March show Sky Airline with 17.3% of the domestic market, up from 15.6% and Aerolineas del Sur with 7.5% (down from 8.6%).