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.

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.

Net profit more than doubled in the quarter to $258 million, from revenues up 18% to $3.32 billion.

Meanwhile, LATAM's costs were steady in the quarter at 4.3 cents per ASK, the carrier said, while generating $137 million in cash.

Chief Financial Officer Ramiro 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. (Reporting by Gabriel Araujo and Kylie Madry; Additional reporting by Valentine Hilaire and Aida Pelaez-Fernandez; editing by Diane Craft and Chris Reese)