LAN reports net income up 10.1% in 1Q

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LAN Airlines reported a net income of $97.2 million for first quarter 2011, an increase of 10.1% compared with $88.3 million posted in the corresponding period last year.

Operating income grew 7.3% year-over-year from $143 to $153 million in the three-month period, while the operating margin decline to 11.2% compared with 13.8% in first quarter 2010.

Revenues for the quarter were up 31.9% from $1.03 billion to $1.36 billion, driven by 32% increase in passenger revenues and a 30.2% growth in cargo revenues.

Its active hedging strategy resulted in a $22 million fuel hedge gain, says the carrier. However, the company's operating expenses increased 35.8% from $892 million to 1.21 billion.

In the first quarter 2011, LAN took deliveries of three Airbus A319 and six Airbus A320 passenger aircraft as well as a Boeing 767-300F freighter.