SAO PAULO/MEXICO CITY, May 2 (Reuters) - Chilean carrier

LATAM Airlines hiked its earnings forecasts for this

year on Thursday, backed by a strong first-quarter performance

and increased demand.

LATAM sees its revenues ranging from $12.8 billion to $13.1

billion for the year, up from a previous estimate of $12.4

billion to $12.8 billion.

Meanwhile, its adjusted EBITDAR - earnings before interest,

tax, depreciation, amortization and restructuring or rent costs

- for the year were estimated at a record $2.75 billion to $3.0

billion, up 10% to 22% from 2023.

The previous estimate in December had been for between $2.6

billion and $2.9 billion.

In a presentation to journalists, LATAM executives cited

boosted operations, cost-containment measures and an improved

capital structure as the reasoning behind the fresh EBITDAR

outlook.

In the first quarter, LATAM brought in $796 million in

EBITDAR. Net profit more than doubled in the quarter to $258

million, from revenues up 18% to $3.32 billion.

Passenger traffic, as measured by available seat kilometers

(ASK), grew 17.5% in the quarter, topping the pre-pandemic

capacity logged in 2019.

LATAM said the increase came as it moved a record number of

passengers in the quarter and upped its occupation levels on

flights.

Meanwhile, LATAM's passenger costs were steady in the

quarter at 4.3 cents per ASK, the carrier said, while generating

$137 million in cash.

LATAM's liquidity "allows us to be competitive, to grow

more steadily, to more calmly take on new projects and to obtain

better terms with providers," Chief Financial Officer Ramiro

Alfonsin told journalists.

The carrier, which currently operates a 330-plane fleet, is

waiting on several aircraft deliveries this year, Alfonsin said.

LATAM Airlines said late last month that it was no

longer seeking to

acquire Boeing B737 planes

, opting to look for alternative narrowbody aircraft after

talks failed.

Alfonsin said that LATAM was targeting Airbus' A320 or

A321 aircraft in the absence of B737s, but that the carrier was

open to alternatives.

Alfonsin said going forward LATAM would deleverage "more

than expected" after closing out the quarter with a financial

net debt to adjusted EBITDAR ratio of 1.9 times. He later added

that the firm was weighing a debt refinancing later this year.