Earlier this month, LAN Airlines S.A. (LFL) of Chile released its passenger traffic data for July 2010. Total passenger traffic grew significantly by 14.5% year over year, with domestic traffic increasing 17.6% and international traffic rising 13.3%. International passenger traffic accounted for approximately 71% of the total passenger traffic.
Cargo traffic increased 20.7% year over year based on higher imports into Latin America, and increased operations to Europe with the Boeing 777-200 freighter fleet.
LAN recorded a 9.7% year-over-year increase in total passenger traffic in the second quarter of fiscal 2010 with domestic traffic increasing 12.5% and international traffic 8.4%. Thus, passenger revenues grew 24.5%.
Cargo traffic increased 37.9% year over year based on the recovery in the global cargo market and hence cargo revenues went up by 30.6%.
The primary reasons for this increase were the World Cup 2010 and new routes to Europe, Mexico and the Caribbean together with improving economic conditions. However, passenger traffic in April and May decreased due to the earthquake in February 2010.
We expect a considerable increase in passenger traffic both domestically and internationally during the third quarter of 2010 based on market recovery. Moreover, LAN’s continuous fleet expansion and renewal program are expected to fetch profitable returns in future.
Recently, LAN signed a memorandum of understanding to buy 50 modern Airbus A320 family aircraft to be delivered between 2012 and 2016. It has also signed an agreement with the Boeing Co. (BA) for five 787-8 Dreamliner aircraft in 2012 in addition to ten Boeing 787-8 Dreamliners announced in March 2010.
Moreover, LAN is well positioned to benefit from the global economic recovery, particularly from the emerging economies in Latin America. The economic growth in emerging markets will be higher than the developed markets.
Thus, Latin American airliners such as LAN, GOL Linhas Aereas Inteligentes S.A. (GOL) and TAM S.A. (TAM) are expected to grow, powered by the regional economy.
Cargo traffic increased 20.7% year over year based on higher imports into Latin America, and increased operations to Europe with the Boeing 777-200 freighter fleet.
LAN recorded a 9.7% year-over-year increase in total passenger traffic in the second quarter of fiscal 2010 with domestic traffic increasing 12.5% and international traffic 8.4%. Thus, passenger revenues grew 24.5%.
Cargo traffic increased 37.9% year over year based on the recovery in the global cargo market and hence cargo revenues went up by 30.6%.
The primary reasons for this increase were the World Cup 2010 and new routes to Europe, Mexico and the Caribbean together with improving economic conditions. However, passenger traffic in April and May decreased due to the earthquake in February 2010.
We expect a considerable increase in passenger traffic both domestically and internationally during the third quarter of 2010 based on market recovery. Moreover, LAN’s continuous fleet expansion and renewal program are expected to fetch profitable returns in future.
Recently, LAN signed a memorandum of understanding to buy 50 modern Airbus A320 family aircraft to be delivered between 2012 and 2016. It has also signed an agreement with the Boeing Co. (BA) for five 787-8 Dreamliner aircraft in 2012 in addition to ten Boeing 787-8 Dreamliners announced in March 2010.
Moreover, LAN is well positioned to benefit from the global economic recovery, particularly from the emerging economies in Latin America. The economic growth in emerging markets will be higher than the developed markets.
Thus, Latin American airliners such as LAN, GOL Linhas Aereas Inteligentes S.A. (GOL) and TAM S.A. (TAM) are expected to grow, powered by the regional economy.
BOEING CO (BA): Free Stock Analysis Report
GOL LINHAS-ADR (GOL): Free Stock Analysis Report
LAN CHILE-ADR (LFL): Free Stock Analysis Report
TAM SA-ADR (TAM): Free Stock Analysis Report
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