LAN Airlines completed a takeover of Brazilian rival TAM in June, creating the world's second-largest airline by market value, in a deal that executives expect to yield up to $700 million in annual cost savings within four years.

LATAM LAN.SN (LFL.N) aims to have a 359-strong fleet by 2014, up from the 319 planes projected for this year, the firm said during a conference call.

The Latin American carrier reiterated it hopes to regain its investment-grade credit rating within a year. If not, the firm could consider a capital increase in the second half of 2013.

"Going forward, we would see a rapid deleveraging process of the company, as the new synergies are captured," Chief Financial Officer Alejandro de la Fuente told analysts on the call. "So going forward, we expect that we regain the investment grade level maybe in a couple of quarters or maybe in one year, but an equity offering hasn't been decided yet."

LATAM said on Friday it posted a profit of $49.725 million in the second quarter, boosted by accounting effects of the tie-up and higher sales.

Shares in LATAM closed 1.2 percent lower at 11,219.000 Chilean pesos on Monday, compared with a 0.16 percent fall of Santiago's blue-chip IPSA .IPSA stock index. (Reporting by Felipe Iturrieta in Santiago; editing by Matthew Lewis)

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