Chile's dominant airline LAN on Monday lowered its passenger traffic forecast for 2008 due to high fuel prices.
"We will probably grow less than we were expecting," LAN chief executive Enrique Cueto told reporters, referring to passenger traffic.
LAN, which has affiliates in Ecuador, Peru and Argentina, had expected its air traffic to increase by 16 percent to 18 percent this year.
LAN's revenue grew 16.1 percent in 2007 over 2006, while profit rose 28 percent to USD$308.3 million, as growth in passenger and cargo traffic offset higher fuel costs.
LAN is forecasting its revenues will rise to around USD$4 billion this year from USD$3.52 billion in 2007.
But Cueto said the company was considering reducing the frequency of some flights to help offset higher fuel costs.
"On the longer routes, that is where the fuel price impacts most," Cueto said. "We are evaluating the routes we are operating."
Crude oil prices rose to about USD$133 a barrel on Monday as long-term supply concerns lingered and fresh production problems appeared in Nigeria and Norway.
Oil prices have risen nearly 40 percent this year, topping USD$135 for the first time last week.
LAN accounts for more than half of Chile's international passenger traffic and nearly three-quarters of its domestic traffic.
