MercoPress. South Atlantic News Agency

Fuel prices force Lan Chile to cut flights to US cities

Lan Chile one of the leading air carriers in South America said it expects slower growth in 2008 because of rising fuel prices and lower than expected passenger volume, which will force it to scale down international flights.

Lan with operations in Chile, Argentina, Ecuador and Peru had estimated a traffic expansion between 16 and 18% this year "but we'll probably grow much less than planned", said vice president Enrique Cueto. International travel makes up 87% of Chile's flag air carrier total traffic with 60% of flights to United States. Lan plans to fly less frequently to cities like Miami and Los Angeles but traffic to European cities will not be affected since flights are daily. "We have to wait and see if those fuel prices are temporary or permanent" said Enrique Cueto said. "We have eight or 10 flights to Los Angeles a week. If we can have seven, then we're okay". Last year Lan total revenues reached a record 3.5 billion US dollars and profits 308 million US dollars.