Profits forecast raised to €1.3bn
Lufthansa has increased its full-year 2008 profit forecast from €1.1bn to €1.3bn after a strong fourth quarter.
Despite the negative impact of the economic crisis on the airline industry, both Deutsche Lufthansa AG and Irish low cost carrier Ryanair have improved profit forecasts.
Lufthansa said falling oil prices and "favourable valuation effects" led to the increased forecast, according to reports.
Shares in the German carrier closed up 7.8% at €10.125 following the announcement, reversing earlier market losses.
"Lufthansa was able to beat market assumptions and outperformed main competitors with already reduced profit targets like Air France-KLM and British Airways," DZ Bank analyst Robert Czerwensky told Reuters.
Both Air France-KLM and British Airways, Lufthansa's main European rivals, issued profit warnings in the past two weeks.
Lufthansa is due to issue its 2008 results on March 11.
The airline was hit by cabin crew strikes last month, forcing it to cancel dozens of flights.
www.lufthansa.com