Lan Airlines S.A. ADRLFL

Morningstar Rating

Stock Research and Analysis

by Morningstar Equity Analysts

LAN Airlines operates two businesses in one, leading to a more stable revenue stream. The firm primarily serves the traditional passenger market. At the same time, it has developed a cargo transportation business using a fleet of airline freighters, Read more

Bulls Say

LAN boasts one of the highest cargo-passenger revenue mixes in the industry. Approximately 34% of its revenue mix is derived from cargo operations, while 64% of revenue is derived from passengers.

Chilean law requires LAN to pay annual cash dividends of at least 30% of annual consolidated net income. Read more

Bears Say

Open-skies provisions in Chile have made it easier for upstart Sky Airlines to grab share from LAN, and the continued liberalization of the skies between Latin America and international destinations will intensify competition.

Chilean law prescribes that existing shareholders get pre-emptive rights to purchase shares when a company offers shares to the public, but U.S. investors are not afforded such rights. Read more

Strategy

LAN Airlines focuses on operational efficiencies by employing a highly productive workforce and developing sophisticated schedules to maximize aircraft utilization while optimizing the combination of Read more

Management

Enrique Cueto Plaza has been CEO since 1994. He is a member of the Cueto Group, one of two groups of controlling shareholders that collectively own approximately half of LAN's outstanding shares. Cueto shares in the beneficial ownership of 25% of outstanding Read more

Profile

As an airline based in Latin America, LAN Airlines provides both passenger and cargo transport services. The firm started in Chile and has expanded to Peru, Ecuador, and Read more

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