The predication came as the airline reported a 200m euro ($229.6m; �139m) operating profit for the July to September period.

But the figure was worse than analysts' expectations, who had forecast operating profits of 275m euros.

Like other airlines, Lufthansa was hit this year by the Iraq war and Sars.

Last month the carrier announced plans to cut 2,000 jobs in Germany as part of a cost-cutting move.

The airline has also cut routes, and is expected to give details of further cost-cutting plans on Wednesday.

Lufthansa's operating loss for the first nine months of the year came in at 154m euros, compared with an operating profit of 790m euros during the same period last year.

But the airline said it expected an operating result "close to breakeven" for 2004 as a whole.

Pre-tax losses for the nine months were 366m euros, made worse by a one-off charge of 150m euros which included a hefty write-down of its catering assets.