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FRANKFURT, Oct 12 (Reuters) - Deutsche Lufthansa is on course to meet its cost-cutting targets, the chief executive of the German flagship carrier said on Monday.
"We are on track in all areas," Lufthansa Chief Executive Wolfgang Mayrhuber told journalists at a news conference for the relaunch of its on-board broadband internet service FlyNet.
To safeguard profitability in the downturn, Lufthansa has said it plans to cut 1 billion euros ($1.47 billion) of annual costs by 2011. It will cut several hundred jobs at its passenger airlines business and said it could defer some aircraft orders.
Lufthansa has forecast a full-year operating loss for its cargo business and has said it could also post a loss in its passenger airlines if it cannot cut costs fast enough.
Lufthansa will introduce on-board internet access again on its long-haul flights from next year, allowing passengers to send SMS messages, transfer data via smartphones and use the internet via laptops.
The airline's first attempt more than six years ago failed to take off properly as Lufthansa's partner at the time, Boeing , withdrew the service. Lufthansa now cooperates with Panasonic.
"On long-haul routes we offer business travellers, in particular, a range of communications options on a par with powerful hotspots or upmarket hotels," Mayrhuber said.
Lufthansa plans to start the service on 50 aircraft next year and the remainder of its fleet in the following one to two years, it said. On-board broadband will so far only be introduced on Lufthansa planes and not other airlines it owns.
Lufthansa shares were up 1.4 percent at 11.965 euros by 1046 GMT, in line with the German blue-chip DAX index. (Reporting by Eva Kuehnen, Editing by Michael Shields) ($1=.6795 Euro) Keywords: LUFTHANSA/

(eva.kuehnen@thomsonreuters.com; +49 69 7565 1244; Reuters Messaging: eva.kuehnen.reuters.com@reuters.net)

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