Kuehne & Nagel sees no upturn before 2010 - paper

* Pace of decline slowing

* Air freight volumes still down around 20 percent

ZURICH, June 17 (Reuters) - Swiss logistics group Kuehne & Nagel (KNIN.VX) has seen the pace of decline slow, but does not expect a sustainable recovery before 2010, its chief executive was quoted as saying on Wednesday.

"The decline in the volumes is not as dramatic as it was a few months ago, but we are not seeing a definite recovery," Reinhard Lange told Swiss newspaper Handelszeitung.

Air freight volumes were still down around 20 percent, close to levels in the first quarter, Lange said, adding there had been a slight recovery in sea freight volumes but they were also at low levels.

Air cargo demand tumbled 21.7 percent in April, the fifth consecutive month of a drop of more than 20 percent, but the pace of decline held steady, the International Air Transport Association (IATA) said last month.[nLR698604]

"The coming third quarter will not contribute much to a recovery because of the traditional summer lull in Europe. In the final quarter Christmas business is a reason for some hope, but how this will go is still open," Lange said.

Demand for logistics services has fallen sharply as shoppers curb spending and businesses cut back on investment in the economic downturn.

Lange also said the group was likely to make an acquisition in its overland sector this year in Spain or Italy. (Reporting by Katie Reid; Editing by Dan Lalor)