UPDATE 1-Forward Air Q3 rises, but gives low Q4 outlook

* Forward reports in-line Q3 profit, up on year

* Gives low Q4 outlook

* Says Q3 profit came despite mid-quarter freight decline

DETROIT, Oct 20 (Reuters) - Air cargo company Forward Air Corp (FWRD.O) on Monday reported a higher quarterly net profit that matched market expectations despite an industrywide freight slowdown.

But Forward Air gave a fourth-quarter earnings outlook that fell short of analysts' estimates.

The Greeneville, Tennessee-based company reported third-quarter net income of $12.1 million, or 42 cents a share, compared with $10.8 million, or 36 cents a share, a year earlier.

Analysts had on average expected earnings per share for the quarter of 42 cents, according to Reuters estimates.

"Our people's ability to react to the mid-quarter industry-wide decline in freight makes this performance truly extraordinary," Chief Executive Bruce Campbell said in a statement.

A slowing U.S. economy has hit freight volumes throughout the transportation sector.

Revenue in the quarter totaled $121.5 million, up from $97.8 million in the same period in 2007.

Analysts had expected revenue of $128.4 million in the quarter.

For the current quarter, Forward Air said it expects revenue to rise between 14 percent to 19 percent and earnings per share in a range from 40 cents to 44 cents.

Analysts had expected fourth-quarter earnings per share of 47 cents.