Lufthansa said today it was slowing its growth plans this year due to fierce price pressure in the airline industry.
This comes after the airliner reported improved first-quarter results thanks to low fuel and cost reductions.
The carrier will now grow the number of seats it offers by 6% this year instead of 6.6% and is looking at whether more reductions need to be made, its chief financial officer Simone Menne said today.
IAG last week said it was offering fewer flights than initially planned this summer because people were flying less after the Brussels attacks, while oil weakness and Brexit worries were also denting demand.
Menne said Lufthansa's capacity reductions were mainly down to price pressure after yields - a measure of revenues per mile per passenger - fell 5.4% in the quarter.
She said that while attacks in Paris and Brussels meant people were waiting longer than usual to book flights, it was not having a substantial financial impact on the group.
Lufthansa reported a first-quarter adjusted loss before interest and tax of €53m, improved from a loss of €167m last year but missing forecasts for a €38m loss in a Reuters poll.
Lufthansa is still trying to bring costs down at its main brand to compete more effectively with low cost carriers in Europe and Middle East rivals on long-haul and is negotiating pay deals with pilots and cabin crew.
But unit costs excluding fuel and currency dropped 4% in the quarter, as measures from its restructuring programme took hold, Menne said.
Lufthansa also confirmed a forecast for profits to improve slightly this year, even though its cargo unit will now see profit significantly below last year.