Chilean carrier Lan said demand was strong enough to revise growth plans upward for its cargo division.

The airline expects to increase cargo capacity 10 to 12 percent this year and more next year, chief financial officer Alejandra de la Fuente told analysts. That is a 2 percent increase over previous expectations. Lan now operates eight 767-300 freighters.

In the second quarter, cargo revenue increased 49 percent to $413 million, which was 39 percent of total Lan revenue. Yield increased 33 percent. Lan added only 15 percent to cargo capacity.

Strong local currencies fueled import markets, especially in Brazil, Colombia and Peru, where cargo growth measured nearly 30 percent compared with last year.

In 2009, Lan will begin taking delivery on four 777 freighters and launch its subsidiary in Colombia, spurring more cargo growth. The more fuel efficient aircraft will enhance the company's competitive position, said La Fuente. Lan has a 40 percent market share in the Latin America region, where most of its competitors fly older McDonnell Douglas DC-10 freighters.