UPDATE 1-Lufthansa sees 2010 oper profit meeting estimates

* Lufthansa Q2 revenues 6.9 bln eur vs poll avg 6.44 bln

* Q2 operating profit 159 mln eur vs poll avg 123 mln

* Says still sees higher 2010 revenues

* Sees 2010 oper profit in line with market expectations

(Adds details, background)

FRANKFURT, July 28 (Reuters) - German flagship airline Lufthansa (LHAG.DE) said it expects to post 2010 operating profit in line with market expectations as demand for air travel and cargo services picked up in the first half of the year.

The company had previously said it sees its 2010 operating profit exceeding last year's 130 million euros ($169 million) as global economic recovery helps offset the negative impact of a volcanic ash cloud that swept across Europe in April.

On average, analysts expect Lufthansa to post 2010 operating profit of 399 million euros, according to a Reuters poll.

Lufthansa said late on Wednesday is still expects its full-year revenues to increase from 2009's 22.28 billion euros.

The carrier's optimism echoes European peers' recent statements.

Rival Air France-KLM (AIRF.PA) on Tuesday unveiled a narrower-than-expected quarterly loss as the fallout from April's ash crisis dropped into second place behind renewed evidence of an upswing in the economy. [ID:nLDE66Q24C]

Lufthansa's operating profit in the April-June period tripled to 159 million euros, exceeding the 123 million euro average estimate in a Reuters poll. (Reporting by Maria Sheahan)