The regional carrier's 2010 profit rose 82 percent to $419.7 million from last year, beating a market forecast of $412 million as passenger and cargo traffic rebounded from the financial crisis.
LAN did well in 2010 in the cargo and passenger businesses despite the earthquake that struck Chile in February, the company said in a statement.
The plans to invest more than $4 billion to renew its fleet between 2011 and 2013, increasing it to 185 planes from 131.
It also said that a delivery of two Boeing 787-8 Dreamliners will be delayed until 2012.
LAN shares ended 0.2 percent lower on Tuesday before the company announced the results.
The airline's stock has risen about 14 percent since mid-August when the carrier said it would merge with Brazil's TAM , creating Latin America's largest airline.
LAN said last week that it expects to complete the merger in six to nine months, pending approval in Brazil and Chile.
The fourth-quarter profit beat the market forecast of $158 million, according to a Reuters poll. (Reuters)
