LAN Airlines S.A. reported consolidated earnings results for the fourth quarter and full year ended December 31, 2011. LAN reported net income of $320.2 million for full year 2011. Results in 2011 were driven by solid demand, strong yields and high load factors in both passenger and cargo operations. Nevertheless, net income decreased 23.7% compared to the $419.7 million reported in full year 2010, mainly due to the impact of the startup of LAN's operations in Colombia and the volcanic ash cloud that disrupted air traffic throughout the region, as well as higher fuel prices, a portion of which was not recovered via the fuel surcharge mechanism. For full year 2011, operating income reached $539.7 million, a 13.4% decrease compared to the $622.9 million in full year 2010. Operating margin reached 9.4% a decrease of 4.3 points compared to 13.8% in 2010. Income before taxes and minority interest was $382,360,000 against $502,032,000 a year ago. Earnings per share were $0.94 against $1.24 a year ago. Total operating revenue was $5,718,243,000 against $4,523,327,000 a year ago. EBITDA was $944.4 million against $964.6 million a year ago. EBITDAR was $1,118.6 million against $1,063.2 million a year ago. For fourth quarter 2011, LAN reported net income of $112.5 million, a decrease of 31.6% compared to the $164.6 million reported in fourth quarter 2010. Results in the fourth quarter 2011 reflected costs related to the startup of LAN's operations in Colombia and the ongoing effects of the volcanic ash cloud on domestic operations in Chile and Argentina, as well as the 28.8% increase in fuel prices, a portion of which was not recovered via the fuel surcharge mechanism. Nevertheless, LAN continued to show solid traffic growth and yield increases in both passenger and cargo operations. Operating income reached $169.5 million in fourth quarter 2011, a 19.6% decrease compared to $210.7 million in fourth quarter 2010. Operating margin reached 11.0% compared to 16.2% in fourth quarter 2010. Total revenues in fourth quarter 2011 reached $1,535.3 million compared to $1,302.5 million in fourth quarter 2010 due to a 20.8% increase in passenger revenues and a 15.8% increase in cargo revenues. Revenue increases continue to reflect solid demand trends in both passenger and cargo operations. Passenger and cargo revenues accounted for 69.9% and 27.9% of total revenues, respectively, in fourth quarter 2011. Income before taxes and minority interest was $137,194,000 against $195,330,000 a year ago. Earnings per share were $0.33 against $0.49 a year ago. EBITDA was $277.6 million against $303.0 million a year ago. EBITDAR was $322.4 million against $330.0 million a year ago. Considering current market conditions, the company expects passenger ASK growth of between 12% and 14% in 2012, mainly driven by the net delivery of 13 passenger aircraft. LAN Cargo expects cargo ATK growth between 7% and 9% in 2012, mainly driven by the delivery of 2 Boeing 777F freighters during the second half of 2012.