Vienna  - Austrian Airlines should seek a strategic partner through privatization, the carrier's supervisory board chairman said Monday, as the company reported losses of 48.7 million Euros (76.5 million dollars) in the first half of 2008.

Austrian Airline's supervisory board took note of a study by Boston Consulting on Monday, which said that long-term financial stability could only be achieved by joining a strategic partner.

According to media reports, Boston Consulting recommended that Lufthansa would be the best candidate to take over stakes currently held by the Austrian state through a state holding. Russian carrier Aeroflot was named as another possible partner by the consultants.

The holding, which owns 42.72 per cent of Austrian Airlines, would recommend the government to authorize the privatization quickly, Chairman of the supervisory board Peter Michaelis said in a statement.

"We have to implement a number of optimizing measures on our own, but structural weaknesses can only be rectified with a partner," the Austrian flag carrier's CEO Alfred Oetsch said.

Austrian Airlines' losses totalled 48.7 million dollars in the first six months of this year, compared with minus 8.6 million euros in the same period last year, the company announced Monday.

The negative EBIT (earnings before interest and taxes) amounted to 24.6 million euros in the first half year, compared with minus 10.1 million euros year-on-year. Operating revenues were down 1.5 percent to 1.226 million euros.

Although the half-year results show a downward trend due to a weak first quarter, second-quarter results paint a more positive picture. Net profits rose to 11.7 million euros in the second quarter, from 7.7 million euros last year. At 25.5 million euros, the second- quarter EBIT was up by 12.8 per cent.

Austrian Airlines confirmed the earlier forecast of losses between 70 and 90 million euros for 2008. (dpa)