LAN A340 flying

Chilean carrier, LAN Airlines reported a net income loss of up to 23.7 percent for the full year last year compared to 2010 citing travel disruption caused by Chile’s Puyehue-Cordon Caulle volcano for impacting its profits.

In a report released earlier this month, the carrier announced the fall from US$419.7 million in 2010 to US$320.2 million last year was driven by volcanic ash, higher fuel prices as well as its startup of operations in Colombia.  

For the full year last year, the airline said its operating income fell by up to 13.4 percent from US$622.9 million in 2010 to US$539.7 million while its operating margin fell 4.3 points to 9.4 percent.

Despite the fall, the carrier noted its passenger revenues climbed for the year by 28.9 percent to US$4,008.9 million, mostly driven by traffic growth of up to 15.9 percent.

Making up 68.1 percent of the carrier’s operations, international traffic shot up for the year by up to 12.6 percent compared to 2010 while its domestic passenger count increased by 23.7 percent.

Earlier this month the carrier released plans to co-operate with American Airlines out of Terminal 8 at New York’s JKF Airport.

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