Lan Airlines's 2008 Income Shows 8.9% Improvement from 2007

| About: LATAM Airlines (LTM)
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The Chilean Airliner Lan Airlines (LFL) reported net income of US$117.1 mln for 4Q'08, and US$335.7 mln for the full year 2008, which translates to US$0.99 per share on an annual basis. Income for the full year is an 8.9% improvement from the US$308.3 mln achieved in 2007.

For the full year 2008, the company's operating income reached US$536.2. This is a 29.7% improvement from the 2007 operating income of US$413.4 mln. In addition, Lan's operating margin improved slightly, to 11.8%, from 11.7% in 2007.

Total revenues for the year arrived at US$1.179.3 mln. This is an improvement of 12.7% from the US$1.046.1 mln in total revenues achieved in 2007. By segment, passenger revenues, which accounted for 66% of total revenues, grew by 21.5% from last year. Cargo revenues, accounting for 31% of total revenues, increased by 4.1%.

Concerning the company's operation, six new passenger aircrafts were purchased during the fourth quarter 2008. These were two new Boeing 767-300 passenger aircrafts, two new Airbus A318 passenger aircrafts, and two new Airbus A319 passenger aircrafts. In addition, the company placed an order for four new Boeing 767-300ER to be delivered in the first half of 2012.

The following table shows LAN's estimated fleet plan associated with capital expenditures. As of December 31, 2008, 33 aircrafts were leased while 57 were owned.

The company's financial position, as of December 31, 2008, shows Total Current Liabilities at US$1.38 bln, Total Long-Term Liabilities at US$2.4 bln, and US$1.11 bln of Shareholders' Equity.

There was a negative variation in Cash and Cash equivalents over the period, from US$445 mln at the beginning of the period, to US$401 mln at the end of the period.

At the current share price of US$8.20 (ADR-ratio 1:1), the company's shares are traded at a P/E of 8.7, implying a Market Capitalization of US$2.78 bln, and a negative 12-month performance of -40.15%.

Net Asset Value is currently US$1.1 bln, implying a book value per share of US$3.31, and a Price/Book ratio of 2.48.

LAN's latest financial statements can be found here.