UPDATE 1-Korean Air posts Q3 profit, cautiously sees recovery

* Posts second straight net profit, swings to op profit

* Lower fuel costs, won help; cargo demand still weak

* Shares up 2.3 pct vs KOSPI's 0.8 pct gain (Adds details, analyst comment)

SEOUL, Nov 10 (Reuters) - South Korea's top airline Korean Air Co posted its second straight quarterly net profit on Tuesday thanks to lower fuel costs and the strengthening won KRW=, and cautiously forecasted further recovery next year.

Airlines around the world have been hit by soft travel demand and low fares after the global financial crisis and more recent worries over the H1N1 flu pandemic, but are seeing a stabilising trend.

Singapore Airlines (SIAL.SI), the world's largest airline by market value, is set to report its quarterly results later on Tuesday.

"Both passenger and cargo businesses showed improvement in October. Concerns over the H1N1 flu are expected to cool down after hitting a peak likely in November," said Lawrence Kim, an analyst at Woori Investment & Securities.

Korean Air (003490.KS) shares rose 2.3 percent as of 0253 GMT, leading the wider market's 0.8 percent gain.

Korean Air, the world's biggest air cargo carrier, reported a net profit of 264 billion won ($228.7 million) for the third quarter, slightly below a consensus forecast of 279.4 billion won from Thomson Reuters I/B/E/S.