German airline Lufthansa said 2008 operating profit beat its forecasts, adding that further developments are “afflicted by higher than usual risks” because of the recession.
Operating profit last year totalled about €1.3 billion ($1.67 billion), compared with a target of €1.1 billion, because of a "more stable result development" in the fourth quarter than the airline had forecast, Cologne.
"The market environment has evolved poorly, however, with overall demand persisting at lower levels," Lufthansa said. The company "will continue to closely observe the situation as it develops and react with the necessary measures."
The International Air Transport Association predicts the global recession will cause
industry passenger numbers to fall 3 per cent in 2009 and airlines to log combined losses of $2.5 billion.
Lufthansa's profit outlook contrasts with competitors Air France-KLM Group and British Airways, which have said they'll post losses for at least the three months ended December 31st.
Lufthansa rose as much as 42 cents, or 4.5 per cent, to €9.81 and was up 3.1 per cent as of 11.58am in Frankfurt trading. The stock has fallen 14 per cent this year, valuing the carrier at €4.43 billion.
The company is scheduled to report detailed earnings on March 11th.
Bloomberg