MercoPress. South Atlantic News Agency

LAN Chile's profits up 7.4% in spite of rising cost of fuel

Compared with this time last year, Chile-based LAN Airlines has seen a 7.4% increase in profits – despite the rising cost of gas, which accounts for 36% of the company's overall costs.

So far this year, the company has made 138 million US dollars in profits, compared to the 128 million that it had made by midyear 2007. The company said that LAN's profits, which are the highest they have ever been, have grown because of a greater demand in the different markets that LAN serves. The airlines said the positive results have been balanced by a 77.8% increase in gas costs since last year. Gas has cost the company more than 314 million in the first half of the year because of "the increase in the international gas prices, which has generated additional operational costs of 271 million said LAN. LAN said that its increased profit is thanks to an increase in international and domestic traveling. The expansion of routes and the development of operations in Peru, Argentina and Colombia have increased international travel by 15.8%, the equivalent of 597,000 passengers. In the second quarter of this year, LAN's income had risen to a little more than one billion US dollars compared to last year's 772.9 million. "The income from passengers and cargo represented 58% of our total income in the second quarter of 2008," said a representative of LAN. During this quarter, LAN has announced three new routes: Lima-Timbes, Peru; Buenos Aires-Neuquén, Argentina; and Lima, Perú-Medellín, Colombia. Toronto will also be a new destination by September 2, 2008. The Santiago Times