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Airline Finance News - Latin America / Caribbean.

For more airline finance news, data and analysis, please go to: Jul 31, 2006

Caribbean Star Airlines, Caribbean Sun Airlines

Caribbean Star Airlines and Caribbean Sun Airlines announced cost-cutting initiatives including the retirement of two leased Dash 8-100s and suspension of Sun service to St. Croix, St. Thomas and Santiago and Star flights to Anguilla as of Sept. 11. Sun will continue to fly to the Dominican Republic with a new four-times-daily San Juan-Santo Domingo service launched last week. Jul 24, 2006

Copa Airlines

Copa Airlines flew 311.4 million RPMs in June, a 15.3% increase over the year-ago month. Capacity climbed 8.2% to 406.9 million ASMs, lifting load factor 4.7 points to 76.5%. Jul 27, 2006

LAN Airlines

LAN Airlines posted a profit of $16.5 million in the second quarter after a one-time charge of $6.4 million related to severance payments, reduced 38% from $26.6 million in the second quarter of 2005.However, the airline group's operating performance was sound for a period that traditionally is the weakest in South America. Operating revenues climbed 21% to $690 million, driven by a 23.1% rise in passenger revenues. Expenses grew 19.8%--LAN did not provide a figure--and operating income surged 60.8% to $25.4 million. This was achieved despite a $36.4 million jump in fuel costs, $9.4 million in losses in LAN's Argentine domestic market and a 37% decline in fuel hedge gains to $10.4 million. Jul 27, 2006

LAN Airlines

LAN Airlines said it incurred significant costs related to the addition of 11 aircraft in the second half of this year. It took delivery of a 767-300ER last month and will take two more this fall. It will add eight A319s and a 767-300F by year end. Jul 27, 2006

LAN Airlines

LAN Airlines said its operating performance highlighted its "ability to adapt to challenging conditions by rapidly adjusting its operations and deploying cost containment measures." Among those were layoffs that resulted in the severance payment. It said the cuts will result in annual savings of $15 million. Jul 27, 2006

LAN Airlines

LAN Airlines traffic across the group rose 5.7% against a 6.8% increase in capacity, dropping load factor 0.7 point to 67.8%. Unit revenues climbed 15.3% and yield rose 16.4% on improved segmentation and fuel surcharges, the company said. Cost per ATK was up 14%, or 7.5% excluding fuel. LAN Airlines flew 1.37 billion RPKs in June, a 6.4% increase over the year-ago month. Capacity climbed 8.2% to 2 billion ASKs, dropping load factor 1.2 points to 68.6%. Jul 27, 2006


TAM flew 1.57 billion domestic RPKs in June, a 45.6% increase over the year-ago month. Domestic capacity rose 21% to 2 billion ASKs and load factor increased 13.2 points to 78.5%. International RPKs grew 51.9% to 540 million as ASKs climbed 40.4% to 718 million and load factor went up 5.7 points to 75.1%. Jul 26, 2006


Job Cuts Start At Varig. Brazilian airline Varig, which was sold last week, said on Friday it planned to lay off almost 60 percent of its work force as part of a restructuring plan. Jul 30, 2006


Varig said it reestablished domestic service Wednesday from Rio de Janeiro and Sao Paulo to Porto Alegre, Salvador, Recife, Fortaleza and Manaus and is continuing international flights to Buenos Aires and Frankfurt. The airline said on its website that it already has "solved a series of problems in this period of transition" following last week's purchase at auction by former subsidiary VarigLog. "We recognize the discomfort that the passengers of Varig have experienced, but all can be certain that we are working hard and quickly to solve the problems, reinstitute the network and normalize services," Varig President Marcelo Bottini said. VarigLog board member Marco Antonio Audi said the carrier is reestablishing credit with lessors and airlines who honored Varig tickets and is looking to bring aircraft back into the fleet and reestablish service on discontinued routes. Jul 28, 2006
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Publication:Airguide Online
Geographic Code:2PANA
Date:Jul 31, 2006
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