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UPDATE 1-Lufthansa says on course for 2007 profit boost

Thu Aug 23, 2007 3:32am EDT

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FRANKFURT, Aug 23 (Reuters) - Germany's Deutsche Lufthansa (LHAG.DE) is on track to meet its full-year target to boost earnings and sees no impact from the current financial crisis, board member Stefan Lauer told journalists.

Lufthansa will achieve its goal of operating profit "significantly over 1 billion euros ($1.36 billion)", Lauer said at an event in Frankfurt late on Wednesday.

The airline has said its result will rise to 1-1.3 billion euros this year from 845 million euros last year, partly boosted by the purchase of rival carrier Swiss.

"We are solid...we are financially strong, we have no liquidity problems," Lauer said.

Shares in Lufthansa were 1.6 percent higher at 20.91 euros by 0717 GMT, outperforming a 1 percent gain on the German blue-chip DAX index .GDAXI.

Lauer also said Lufthansa would not rush into any further takeovers that did not make sense for the airline.

Spain's Iberia (IBLA.MC) and Italy's Alitalia AZPIa.MI were both still "interesting". But Iberia remained "overvalued", while the conditions had not been right regarding Alitalia.

"Reason goes before gut feeling," Lauer said.

Private equity group TPG [TPG.UL] is heading a provisional 3.4 billion-euro takeover bid for Iberia in a team that also includes rival carrier British Airways (BAY.L). Iberia has said it expects TPG to finish due diligence this month.

Alitalia meanwhile is struggling to find a buyer after the Italian government's attempt to sell it through an auction failed last month when all the bidders pulled out. Rome wants to shed its 49.9 percent stake. Alitalia said on Tuesday it had been contacted by a new group of interested investors.

Shares in Iberia were 4.4 percent higher at 3.36 euros by 0715 GMT. Alitalia stock was up 0.8 percent.

((Reporting by James Regan; editing by Sue Thomas; james.regan@reuters.com, Reuters Messaging: james.regan.reuters.com@reuters.net, +49 69 7565 1263))

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