UPDATE 2-B/E Aerospace Q2 earnings beat Street, ups 2010 view

* Sees strong operating results for 2010

* Raises 2010 outlook

* Q2 adj EPS $0.39 vs. est $0.37/shr

* Q2 rev up 2 pct (Adds conference call comments, details)

BANGALORE, July 27 (Reuters) - B/E Aerospace Inc (BEAV.O), the world's biggest supplier of aircraft interior products, posted quarterly results above estimates and raised its full-year outlook as it expects improving air traffic trends to lead to increased aircraft overhaul activity.

BE Aerospace, whose customers include Boeing Inc (BA.N) and EADS-owned (EAD.PA) Airbus, said it expects strong operating results for 2010 and significant improvements thereafter, citing continued improvement in global passenger traffic.

U.S. airlines in July posted their strongest second quarter since 2007, as growth in traffic, particularly from premium paying business customers, and higher fares contributed to the brightening prospects.

International travel capacity grew 4.8 percent in May, the largest jump in nearly two years. The growth in capacity will lead to an increase in aircraft overhaul activity, B/E Chief Executive Amin Khoury said on a conference call with analysts.

The company raised its 2010 earnings outlook by 5 cents to about $1.50 a share. It also forecast 2010 revenue to be about equal to 2009 revenue of about $1.94 billion, up from its prior forecast of about $1.90 billion. [ID:nASA00K5V] For the second quarter, it reported earnings of $37.3 million, or 37 cents a share, compared with $34.7 million, or 35 cents a share, in the year-ago period.

Excluding items, it earned 39 cents a share.

Revenue rose 2 percent to $483.9 million. Commercial aircraft revenue rose 6 percent to $236.4 million.

Analysts on average had expected earnings of 37 cents a share, before items, on revenue of $476.6 million, for the quarter, according to Thomson Reuters I/B/E/S.

Shares of the company were down 18 cents at $30.11 in late morning trade on Nasdaq. (Reporting by Bijoy Koyitty in Bangalore; Editing by Jarshad Kakkrakandy and Gopakumar Warrier)