Lufthansa Cargo, where nine-month operating profit dropped 35 percent to 43 million euros, will see earnings fall again, despite early signs of market recovery for the fourth quarter. "Given market developments in the year to date, the company no longer expects to be able to match last year's result. Lufthansa Cargo now expects to close the year 2013 with a result in the high double-digit million euro range," it said. It had previously estimated this year's cargo profit would be higher than last year's 104 million euros. Air France said low growth and high oil prices meant medium-haul and cargo activities will see a "significant reduction" in losses in 2014, without enabling them to break even as first hoped. Lufthansa Finance director Simone Menne told reporters that while a cargo upswing was absent in January to September, there are signs now that cargo's pre-Christmas business had started earlier than last year. "We are seeing positive signs" in the cargo business in general coming mainly from China and North America, she said. Analyst Donal O'Neill of Goodbody Research said the revenue development was "a little disappointing" but understandable given the exchange rate movements. "In terms of Cargo, we welcome comments that there is a pick-up coming in Q4, but we are somewhat sceptical about how sustainable that is through to FY14," he said. Lufthansa's average yield - a measure of pricing - tumbled 8.2 percent in its Asia-Pacific division, where the airline has 155 flights weekly. Out of that, 18 percent are to Japan, 20 percent to China and 30 percent to India. The yen has fallen about 33 percent against the euro since late last year, while the Indian rupee has fallen by about 24 percent year-on-year as of end-September. (Reuters)