LAN Airlines has reported a net income of US$76.1 million in quarter one of 2012, a decrease of 21.8 per cent compared to the same period of 2011.

Operating income in the quarter decreased 27.4 per cent, reaching US$111.2 million, with a 7.2 per cent operating margin.

Results this quarter were impacted by a 14.7 per cent increase in fuel prices and a more challenging environment in the cargo business, as well as by the ongoing development of LAN Colombia’s operations.

During quarter one of this year 2012, LAN’s consolidated revenues increased 12.6 per cent compared to 2011.

Passenger revenues increased 16.4 per cent during the quarter, driven by continued traffic growth and a 2.2 per cent expansion in yields.

Passenger traffic growth during the quarter reached 14 per cent, while load factors reached 82.9 per cent, 1.9 points higher than 2011, and an historically high level even considering the high season.

Capacity increases focused mainly on domestic routes within Chile and regional routes within South America.