LAN’s debt increases as 24 aircraft join in 2011

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

LAN Airlines' net debt reached $3.2 billion at the end of the third quarter, up from $2.6 billion at 30 September 2010.

The Chile-based airline group ended the third quarter of 2011 with a cash balance of $332.0 million, down from $587 million in last year's corresponding period.

During the quarter, LAN received four Airbus A320-200s and one Boeing 767-300 aircraft. Capital expenditures will reach $841 million this year after the Group receive six additional Airbus A320 Family aircraft to operate domestic and regional routes, as well as two 767-300s during the fourth quarter.

During the first half, the Group received three Airbus A319s, seven A320s as well as one 767-300 freighter. The Group also sold five A318s.

LAN said it had $1.05 billion pre-delivery payments deposits with aircraft manufacturers, $526.3 million of which were funded internally at the end of the third quarter.

In 2012, capital expenditure is budgeted at $1.8 billion as LAN expects to receive 13 A320 Family aircraft to operate domestic and regional routes, as well as seven 767-300 and the first five Boeing 787-eight Dreamliners for long-haul routes. The Group will also add two 777-200 freighters.

During 2012, LAN's fleet plan also includes the sale of five A318s and the return of two leased 767-300s as well as three 737-700s operated by AIRES.

LAN's third quarter net income was $94.5 million, down from $106.2 million in last year's corresponding period.