Chile's dominant airline, LAN, said on Thursday it expects its passenger traffic to increase but cargo to fall in 2009.

"This year, we will have growth rates of 10 percent for passengers, but we will fall 5 percent in cargo," LAN chief executive Enrique Cueto told a business forum, adding the cargo sector was suffering more from the global economic crisis.

Passenger traffic grew 12.3 percent in 2008, while cargo traffic increased 7.6 percent.

LAN accounts for more than one-half of Chile's international passenger traffic and nearly three-quarters of its domestic traffic.

The company said last month its first quarter profit fell 35 percent from a year earlier to USD$65 million, citing losses due to fuel hedging.