Finland's national carrier Finnair said it expects first-half operating profit, excluding one-offs, at last year's level, and it predicted a squeeze on airlines which would lead to industry restructuring.

The company gave no profit forecast for 2008 in its latest earnings report last month, when Chief Executive Jukka Hienonen called the outlook "hazy."

"Growth of demand is expected to continue and the (ticket) price level is expected to remain almost at the same level as last year. In Asian traffic, unit revenues are on the rise," Finnair said in a statement at its annual shareholders meeting on Thursday.

The airline added that hedging and the weak dollar alleviated the impact of strongly rising fuel costs.

Hienonen said in the text of his speech to the meeting however, he expected to see consolidation in the industry.

"Now as economic conditions appear to be slowing and the high price of fuel puts the squeeze on airlines, it's clear that we are going to see structural changes in the sector."

He added: "Companies will collapse and the weak will be merged with the strong," but did not say whether Finnair would be interested in buying weaker rivals.

Finnair would continue its strategy of increasing its Asian traffic and would work to improve its load factors, Hienonen said.

Demand in Asia continued to grow in the early part of the year, Finnair said, reiterating that it sees Asian traffic growing more than 20 percent this year.