Lufthansa posted a first-quarter operating loss that beat analyst forecasts as the company benefited from falling fuel prices.

The operating loss came to EUR44 million euros (USD$58.30 million), compared with a year-earlier profit of EUR172 million, Germany's flagship carrier said on Wednesday.

The quarterly net loss of EUR256 million missed an average forecast of EUR212 million, though.

Lufthansa said in the absence of signs that demand would recover in the short term it still saw 2009 operating profit falling considerably from the EUR1.35 billion made last year but clearly remaining in positive territory.

Airlines are struggling to remain profitable as businesses and consumers cut travel during the recession. World airlines are set to lose a total USD$4.7 billion this year, industry body International Air Transport Association said last month.

Citigroup this week said European airlines could post a collective first-quarter operating loss of EUR1.8 billion, as revenue from business travel and air cargo drops 20-25 percent and overall passenger numbers fall 8 percent.

Adding to airlines' woes, the industry is now also starting to be hit by worries related to an outbreak of swine flu that has killed a number of people in Mexico and a child in Texas and that has sparked fear of a pandemic.

Lufthansa shares have fallen around 3 percent over the past week. British Airways and Air France-KLM, Lufthansa's two closest rivals, have lost around 11 percent and 5 percent, respectively.

Lufthansa is due to publish full quarterly results on Thursday.