UPDATE 1-Czech CSA Q1 loss widens to $51 mln vs $44 mln

                                
 *Expects full year pre-tax loss
                                
 *Sees recovery in 2010
 (Adds details, CFO quote) 
                                
 By Jan Korselt
                                
 PRAGUE, May 21 (Reuters) - State-run Czech Airlines (CSA)
widened a first quarter loss, just months before completion of
its privatisation, the company said on Thursday.
                                
 The results were affected by a 12 percent annual drop in
passenger numbers as a global economic downturn hits the airline
industry, the company said.
                                
 It showed a loss of $50.87 million, wider than last year's
loss of $44.03 million. Revenues fell to $214.53 million from
$282.26 a year ago and the operating loss hit $45.65 million,
versus $35.15 last year.
                                
 "The first quarter of 2009 was of course ... the worst in a
very long time from the point of view of air traffic and it's
hard to find a comparison of this unprecedented decline," said
Lubos Cerny, the carrier's chief financial officer.
                                
 The company said it hoped to heal its poor operating results
through cost cuts and savings, including  250 million crowns
($12.94 million) it hopes to save through trimming wages.
                                
 But it said this year's overall costs will be raised by a 2
billion crown payment for new planes.
                                
 CSA, whose privatisation should be completed in the autumn,
did not provide an earnings outlook in international accounting
standards but said it expected a pre-tax loss of 361 million
crowns for the whole of 2009, according to Czech accounting
standards, versus a 499 million pre-tax profit a year ago. 
                                
 The difference between Czech and international standards
consists in booking aircraft leasing costs, which make the
results look worse in the Czech accounting.
                                
 The company said it targeted a pre-tax profit of 157 million
crowns in 2010 provided the economic environment does not
deteriorates any further.
                                
 Air France-KLM and a consortium comprising Czech companies
Unimex and Travel Service <ICEAIR.IC> were picked last months to
advance in the CSA privatisation tender. Analysts expect CSA to
fetch 5 billion Czech crowns.
 (Reporting by Jan Korselt, writing by Jana Mlcochova; Editing
by Hans Peters and Rupert Winchester)