LAN Airlines S.A. reported net income of US$112.5m for the fourth quarter of 2011, a decrease of 31.6% compared to the US$164.6m reported in fourth quarter 2010. Results in the fourth quarter 2011 reflected costs related to the startup of LAN’s operations in Colombia and the ongoing effects of the volcanic ash cloud on domestic operations in Chile and Argentina, as well as the 28.8% increase in fuel prices, a portion of which was not recovered via the fuel surcharge mechanism.
For full year 2011, operating income reached US$539.7m, a 13.4% decrease compared to the US$622.9m in full year 2010. Operating margin reached 9.4% a decrease of 4.3 points compared to 13.8% in 2010.