Lufthansa Group continues to assess the future of British Midland International with the company over concerns that it may not be "compatible" with the German carrier's portfolio.
Speaking as it unveiled its results for the first nine months of the year, Stephan Gemkow, group chief financial officer, said: "We do not expect [BMI] to meet last year's operating result for the full year.
"We are looking into various options in connection to BMI as today and in the long term it may not be entirely compatible with the future Lufthansa portfolio."
Talks with potential buyers of the loss making UK carrier continue, said Gemkow, but no final decision has yet been made.
In the nine months to the end of September, BMI made an operating loss of €154 million on turnover of €658 million. EBITDA was a loss of €129 million, down 89.7% on the same period last year.