Lan Safest Airline Stock Again After Tam Buy: Riskless Return

Lan Airlines SA regained its status as the best airline stock when adjusting for volatility, a distinction it lost after agreeing to buy Tam SA almost two years ago, on prospects that a foothold in Brazil will fuel earnings growth.

Lan, the world’s safest airline investment over the past decade, returned 1.3 percent in the first quarter this year when adjusting for volatility, the best among 32 major airlines, according to the BLOOMBERG RISKLESS RETURN RANKING. Tam SA, the world’s most volatile airline stock in the decade before the deal was announced, moved up to third place. Lan and Tam plan to start a share swap this month after securing antitrust and shareholder approvals for the $3.8 billion transaction, which will form the world’s biggest air carrier by market value.