Cologne, Germany  -  Lufthansa AG chief Wolfgang Mayrhuber predicted Tuesday that the global aviation industry faced increasing competition and warned that record high energy prices could hit the airline business in the coming 12 months.

"Lufthansa is prepared and will not shy away from any headwinds," Mayrhuber told shareholders attending the German airline's annual general meeting in the west German city of Cologne.

But he said Germany's biggest carrier still needed to work hard to improve its performance in the face of growing competition.

"The record year 2007 does not have to be a flash in the pan," Mayrhuber told the meeting, adding that he still expects Lufthansa's full-year operating profit in 2008 to reach last year's level of 1.378 billion euros.

Despite the current global economic uncertainty, Mayrhuber believes that the aviation industry faces good prospects as the demands for mobility increases. (dpa)