Chile's dominant airline LAN said Tuesday its net profit fell 31 percent to USD$231.1 million in 2009, weighed down by its cargo arm, lower passenger traffic and fuel hedging losses.

LAN's profit totaled USD$109.8 million in the fourth-quarter, up 17.6 percent compared with a profit of USD$93.3 million a year earlier.

The company said its revenues fell 14.7 percent in 2009 to USD$3.66 billion from USD$4.28 billion a year earlier. But the slide in revenue eased in the fourth quarter, when it fell 4 percent from the same period a year earlier to USD$1.07 billion.

"Passenger growth will be determined mainly by growth of regional and international markets," LAN said in a statement to Santiago Stock Exchange. It expects its passenger capacity to rise by 10 percent in 2010.

LAN, which is one of Latin America's biggest airlines, signed a deal in December to buy 30 new Airbus A320 short-haul aircraft worth around USD$1.97 billion to renew its fleet.

In September, LAN said the worst of the economic crisis had passed, but noted other influences, including the spread of the H1N1 swine flu virus and rising fuel prices, could hurt profits.

LAN's third-quarter profit fell 37 percent to USD$52 million compared with the same quarter a year ago.

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