RPT-WRAPUP 1-European airlines see no signs of recovery

* Cargo slump continues, Lufthansa says

* Air France-KLM braces for possible temporary lay-offs

* Frankfurt airport slightly more optimistic on 2009

* New Iberia chairman seen boosting BA merger prospects

By Tim Hepher and Michael Shields

PARIS/FRANKFURT, July 9 (Reuters) - Figures from Lufthansa (LHAG.DE), one of the world's biggest carriers of air freight, a key barometer of world trade, showed the airline slump continuing, while Air France-KLM braced for temporary lay-offs.

Continental Europe's largest airlines -- Lufthansa by market value and Air France-KLM (AIRF.PA) by revenues -- were unable to point to significant signs of recovery in separate announcements on Thursday, though Frankfurt airport operator Fraport (FRAG.DE) sounded a rare but still fragile note of optimism.

Germany's Lufthansa said shipments of cargo and mail fell 14.3 percent in June after 10 percent in May as a slump in economic activity continued to weigh. [nL8117517]