Chilean airline LAN said on Monday its passenger traffic rose 10.8 percent in January from a year earlier, driven by demand in Chile, Argentina and Peru.

The company said international passenger traffic rose 2.9 percent during January, while domestic traffic in Chile, Argentina and Peru increased by 33.3 percent. International traffic accounted for about 69 percent of total passenger traffic.

LAN, which has affiliates in Ecuador, Peru and Argentina, accounts for more than half of Chile's international passenger traffic and nearly three-quarters of its domestic traffic.

Santiago-based LAN said cargo traffic fell 15.6 percent in the month amid a slowdown in Latin American import markets and exports of perishable goods from Chile and Peru.

LAN's cargo network covers about 75 destinations worldwide. It has operations in Chile, Brazil and Mexico and has been given the green light to set up an affiliate in Colombia.

The company reported in January its net profit rose 8.9 percent in 2008 and 16.1 percent in the fourth quarter as demand for passenger and cargo services offset fuel costs.

This year, LAN has 30 percent of its estimated fuel demand hedged for the first quarter, 40 percent for the second quarter and 20 percent for the rest of the year.