For the rest of this year we can expect, at most, a stabilisation of the present level in the passenger business segment

Karl-Ludwig Kley chief financial officer Lufthansa

The airline is pushing ahead with its severe cost-cutting measures - including a freeze on investment and recruitment and capacity cut-backs.

This should help stave off an operating loss for the full year, said chief financial officer Karl-Ludwig Kley.

Operating profits fell 63.5% during the first nine months of this year to 290m euros from 794m euros during the same period last year.

Sales rose from 10.8bn euros (�6.6bn; $9.5bn) to 12.3bn euros while net profits fell from 672m euros to 65m euros during the first three quarters.

Revenues down

Mr Kley said he predicted a 1.2bn euros fall in revenues for the full year as Lufthansa, along with other airlines, is suffering from a slump in air travel in the wake of the 11 September terror attacks on the US.

"We can compensate for about 40-45% of the amount by scaling back... in order to cut costs," he said.

The remaining 55-60% will hit full-year profits.

"For the rest of this year we can expect, at most, a stabilisation of the present level in the passenger business segment. There are no signs of a reversal of the current trend."

He added: "We do not anticipate any change in patterns in current booking and travel behaviour for a good part of 2002," he said.