Frankfurt  - Despite the crisis gripping the global economy, Germany's biggest airline Lufthansa AG said Tuesday that it had turned in a solid earnings performance in
2008.

The airline said that operating profit for the full year will come in at about 1.3 billion euros (1.67 billion dollars), as a result beating the group's 1.1-billion-euro target as energy costs tumbled during the second half of the year.

"Lower revenues associated with a noticeable slowdown in demand were offset by cost reductions as a result of the decreasing fuel price and favourable valuation effects," Lufthansa said.

But it warned: "Lufthansa will continue to closely observe the situation as it develops and react with the necessary measures." Lufthansa's full-year results are to be published on March 11. dpa