UPDATE 1-Chile airline LAN 3rd quarter profit down 37 pct

(Adds quote, details)

SANTIAGO, Oct 26 (Reuters) - Net profit at Chile's dominant
airline, LAN LAN.SNLFL.SN, tumbled 37 percent in the third
quarter compared with a year earlier on reduced traffic due to
the economic crisis and losses on fuel hedging.

LAN's net profit totaled $52 million in the quarter
compared with a net profit of $83 million a year earlier.

The company said its revenues tumbled 19 percent in the
quarter from a year earlier due to lower yields in passenger
and cargo traffic, which were partially offset by lower fuel
costs.

Losses associated with fuel hedging totaled $14.4 million
in the quarter.

"In the weak global economic environment and despite the
impact of the H1N1 flu in the regional market, LAN continued to
show significant growth in its passenger operations," the
company said in a statement.

In September, LAN said the worst of the economic crisis had
passed, but noted other influences, including the spread of
swine flu virus and rising fuel prices, could hurt profits.

LAN's second-quarter profit fell 93 percent to $4.2
million.

Chile's leading airline has affiliates in Ecuador, Peru and
Argentina. It accounts for more than half of Chile's
international passenger traffic and nearly three-quarters of
its domestic traffic.
(Writing by Louise Egan and Aaron Nelsen; editing by Andre
Grenon)