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LAN Reports Q3 Profit  
User currently offlineOP3000 From United States of America, joined Jun 2009, 1784 posts, RR: 2
Posted (5 years 4 weeks 21 hours ago) and read 2279 times:

LAN reported a third quarter of $52 million, in line with analyst expectations. Regional competitors Gol and Copa report November 10 and 12, respectively. Below is the news link and highlights of the LAN results, which are good considering their heavy exposure (roughly 40% of sales) to the weak world cargo market:

http://online.wsj.com/article/BT-CO-20091026-717257.html

Chile's largest carrier, LAN Airlines (LFL, LAN.SN), posted a third-quarter net profit of $52 million, down 37% from the same period of 2008.

LAN's total operating revenue fell 19% to $918 million in the third quarter. Passenger revenue fell 9.9% to $668 million, and cargo revenue fell 40% to $216 million.

Revenue from passengers fell as a result of lower fares from promotions, while cargo traffic fell during the quarter because of the global economic downturn and declining salmon exports from Chile.

The net profit decline was in line with expectations, as lower fares and lower freight traffic hurt the company's business, said Felipe Mercado, a Santiago-based market analyst with Banchile.

He saw two positive facts, though. First, the company managed to maintain a stable percentage of seats occupied on its flights. Secondly, losses from fuel hedging declined from the previous quarter to $14 million.

During the quarter, LAN secured financing for three Boeing 767 jets to be delivered in 2009 and 2010. Additionally, the company has arranged financing for 15 Airbus A320 jets to be delivered in 2010 and 2011

[Edited 2009-10-28 16:26:01]

8 replies: All unread, jump to last
 
User currently offlineLipeGIG From Brazil, joined May 2005, 11458 posts, RR: 58
Reply 1, posted (5 years 4 weeks 21 hours ago) and read 2254 times:
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Quoting OP3000 (Thread starter):
LAN reported a third quarter of $52 million, in line with analyst expectations. Regional competitors Gol and Copa report November 10 and 12, respectively. Below is the news link and highlights of the LAN results, which are good considering their heavy exposure (roughly 40% of sales) to the weak world cargo market:

Thanks for the info, OP3000.
Also is good to remember that LA offers a premium product, the best in South America. And for sure they are facing the same problems as many airlines worldwide, but managing the situation very well, and continuing to show profits.
Well done, LA !



New York + Rio de Janeiro = One of the best combinations !
User currently offline797 From Venezuela, joined Aug 2005, 1901 posts, RR: 27
Reply 2, posted (5 years 4 weeks 21 hours ago) and read 2247 times:

Thanks for the info! Very good news indeed!

Do any of you guys know where can I find deeper info of LAN? I'm working on a project and I need some inside information from the airline, and impressively enough, there's a low amount of useful stuff online.

Thanks again,

797



Flying isn't dangerous. Crashing is what's dangerous!
User currently offlineOP3000 From United States of America, joined Jun 2009, 1784 posts, RR: 2
Reply 3, posted (5 years 4 weeks 19 hours ago) and read 2222 times:



Quoting LipeGIG (Reply 1):
Thanks for the info, OP3000. Also is good to remember that LA offers a premium product, the best in South America.



Quoting 797 (Reply 2):
Thanks for the info! Very good news indeed!

Do any of you guys know where can I find deeper info of LAN?

No problem. I expect the other regional airlines to report good numbers too, given they are not as exposed to cargo as LAN. And yes, the LAN product has continued to improve year over year, so its good to see an airline that can provide good service and be very profitable too.

797: the most complete review I've found online about them is this one prepared by LAN for an conference organized by a Chilean investment house (Larrain Vial):

http://www.lan.com/files/about_us/lanchile/larrainvial_march_2009.pdf

Hope that helps.


User currently offline797 From Venezuela, joined Aug 2005, 1901 posts, RR: 27
Reply 4, posted (5 years 4 weeks 9 hours ago) and read 2149 times:



Quoting OP3000 (Reply 3):
797: the most complete review I've found online about them is this one prepared by LAN for an conference organized by a Chilean investment house (Larrain Vial):

THANK YOU SO MUCH!

This is precisely what I was looking for. I really appreciate your help, welcome to my RR user list!

Have a great day!



Flying isn't dangerous. Crashing is what's dangerous!
User currently offlineOP3000 From United States of America, joined Jun 2009, 1784 posts, RR: 2
Reply 5, posted (5 years 3 weeks 6 days 16 hours ago) and read 2042 times:



Quoting 797 (Reply 4):
THANK YOU SO MUCH!

This is precisely what I was looking for. I really appreciate your help, welcome to my RR user list!

Glad it helped!

The good thing about that presentation is that it has a few slides with comparisons to competitors (in terms of EBITDAR, fleet age and a few others), plus a breakdown of how relevant each country they operate is to the overall company.


User currently offlineMD11junkie From Argentina, joined May 2005, 3148 posts, RR: 57
Reply 6, posted (5 years 3 weeks 6 days 15 hours ago) and read 2023 times:



Quoting LipeGIG (Reply 1):
Also is good to remember that LA offers a premium product, the best in South America. And for sure they are facing the same problems as many airlines worldwide, but managing the situation very well, and continuing to show profits.
Well done, LA !

Well, Lipe, the main problem LAN is now facing is over staffing and the horrible fuel hedging result. The drop in fuel prices really affected the results. Nontheless, we don't have to ignore the 9.9% decrease in number of passengers revenue network-wide. That's a HUGE slump.

But Cargo performance, LAN's "boost" to its network, was even worse. It tripped 40%! That's a lot.

I hope that LAN continues to be well managed as it is, they are dealing with the crisis very well and proactively.

Saludos,



There is no such thing as Boeing vs Airbus as the queen of the skies has three engines, winglets and the sweetest nose!
User currently offline797 From Venezuela, joined Aug 2005, 1901 posts, RR: 27
Reply 7, posted (5 years 3 weeks 6 days 5 hours ago) and read 1960 times:



Quoting OP3000 (Reply 5):
The good thing about that presentation is that it has a few slides with comparisons to competitors (in terms of EBITDAR, fleet age and a few others), plus a breakdown of how relevant each country they operate is to the overall company.

Yes, also they display very well the market share each one of their subsidiaries have, which is something that no other site displayed. Their fleet renewal flexibility process is also very impressive, so it really helps a lot. Thanks again.

LAN is doing very good, despite this small fluctuation in their revenues with regard to the previous operating year. However, I do think this is NOT a big deal, considering external factors (such as fuel) are bothering LAN and many other carriers in the world.

I expect LAN to keep growing healthy. Now with the Avianca/Taca/AeroSur merger, they'll be forced to perform even better. This should get very interesting for the LatAm Carrier environment.

Saludos,

797



Flying isn't dangerous. Crashing is what's dangerous!
User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 49
Reply 8, posted (5 years 3 weeks 6 days 4 hours ago) and read 1947 times:



Quoting MD11junkie (Reply 6):
Well, Lipe, the main problem LAN is now facing is over staffing and the horrible fuel hedging result. The drop in fuel prices really affected the results. Nontheless, we don't have to ignore the 9.9% decrease in number of passengers revenue network-wide. That's a HUGE slump

This is correct, LAN hedging did not factored in a possible fall in oil prices, and lets keep in mind that although with USD100 oil prices are still low as compared to previous years. On the other hand, due to rising copper prices, the Chilean Pesos continues its strong performance and the strong CLP could benefit LAN since the bulk's of its operational cost (ie leasing aircraft, etc) is denominated in USD. In fact, favourable exchange rate is also one of the main factor behind the strong performance of Brazilian carriers (TAM and GOL)

Rgs,


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