SAO PAULO, Jan 31 (Reuters) - LATAM Airlines

said on Friday it was still too early to discuss potential

impacts of a planned merger between its two largest rivals in

top market Brazil, but voiced trust in antitrust watchdog CADE

to put in place mitigation measures.

"What we do not want is a more concentrated market, with

fewer options for passengers, higher prices and less growth,"

LATAM's head in Brazil, Jerome Cadier, told reporters in an

earnings call.

Rival carrier Azul ( AZUL ) and Abra Group, the majority

investor of fellow airline Gol, signed earlier this

month a non-binding memorandum of understanding with the intent

of combining their businesses in Brazil.

The Brazilian unit of Chile-based LATAM is the country's

largest airline by market share, holding about 40% of the

domestic market, but would likely lose the position to a

combined Gol-Azul firm if the merger goes through.

The tie-up would create a dominant carrier in Latin

America's No.1 economy as it would hold roughly 60% of the

domestic market, even though a merged firm would continue

operating two separate brands despite the combined ownership.

Azul ( AZUL ) and Abra have defended the potential deal as supporting

growth and allowing for lower cost of capital in the local

market, and obtained support from the Brazilian government.

Cadier said there was still a lack of detail about the deal

as the memorandum was just an early indication of Azul ( AZUL ) and

Abra's plans, but noted that proposed airline tie-ups in other

countries have been blocked in the past.

"We are certain that CADE will carry out an in-depth

analysis and propose mitigation measures," the executive said.

"It is essential to understand that these measures must seek to

preserve the competitiveness of the Brazilian market."

LATAM earlier on Friday reported solid results for the

fourth quarter, with the group's net profit more than tripling

on an annual basis to $272 million, while revenue rose 4.4% to

$3.4 billion.

The company, which has maintained a strong note since it

emerged from pandemic-related bankruptcy proceedings in 2022,

said it was considering incremental dividends or a share buyback

program of up to $150 million to return capital to shareholders.