German airport group Fraport said it expected the downturn in the aviation industry to continue for the rest of the year.

"Based on the business development of Q1 and Q2, it is clear that the global economic downturn will also determine the outlook for air traffic development in the entire fiscal year 2009," it said as it reported quarterly results Thursday.

The world's airlines are suffering from both rising oil prices and stubbornly weak demand for air travel. Industry body IATA said last week global airlines carried 7.2 percent fewer people in June, with no sign of the global recession lifting.

Fraport last said its 2009 operating earnings could come in even worse than a forecast 15 percent drop if H1N1 flu intensifies and affects business.

In the second quarter, Fraport's EBITDA fell by 49 percent to EUR155.6 million euros (USD$223.9 million).

Fraport had said last month that the decline in passenger traffic at its main airport in Frankfurt had slowed to 5.6 percent in June as demand continued to gradually recover. It said passenger volume was expected to shrink by 6-9 percent in 2009.

Fraport said it still sees full-year 2009 EBITDA to fall to EUR500 million - EUR530 million from EUR590 million.

Lufthansa, one of Fraport's biggest customers in Frankfurt, last week gave a gloomy outlook for the rest of 2009 but said it saw itself prepared to fly out of the crisis in good shape.