That Lufthansa profit warning has hit many of its rivals. Shares in the German airline have performed worst of all; they are down around 12%, falling 2.02 to 15.68.
On the London market EasyJet has fallen 5.32% to 879.50, while Wizz Air is down 4.36% to 3,467.
Airline woes set to continue
Shares in the airlines sector have been spooked by that profit warning from Frankfurt-listed Lufthansa that we reported earlier.
“The fact Lufthansa is still moaning would suggest life is getting even tougher for the airlines," warned Russ Mould, investment director at A J Bell.
“While price cuts are fantastic news for travellers, the airline can’t sustain loss-making operations forever.
“Ryanair issued a profit warning in January citing lower-than-expected air fares. EasyJet warned in April, flagging slow summer sales amid Brexit uncertainty. And Wizz Air warned at the end of May that its profits would be lower than expected this year because of a tough operating environment."
Lufthansa shares slump 12% on profit warning
Shares in German airline Lufthansa have slumped almost 12% this morning after it cut its profit outlook for 2019.
Its shares are down €2.04 to €15.64.
The carrier warned of intense price competition from low-cost rivals in Europe.
"Yields in the European short-haul market, in particular in the group's home markets, Germany and Austria, are affected by sustained over-capacities caused by carriers willing to accept significant losses to expand their market share," it said.
The company has cut its earnings before interest and tax forecast from between 6.5% to 8% to between 5.5% and 6.5%.
The airline's pre-tax EBIT is now forecast at between €2bn and €2.4bn down from the previously targeted €2.4bn to €3bn.
Lufthansa blames rising fuel costs for £290m quarterly loss
German airline Lufthansa has reported a €336m (£290m) operating loss for the first three months of the year.
It blamed a rise in fuel costs and "market-wide overcapacities in Europe [which] also put downward pressure on fares".
Its said profits should return in the second quarter. “We are seeing good booking levels for the quarter ahead,” said Ulrik Svensson, chief financial officer of Deutsche Lufthansa.
“At the same time, we have substantially reduced our own capacity growth. And with a reduction in growth also projected for the European market as a whole, we expect unit revenues to increase again in the second quarter.
"This should be further buoyed by the still-strong demand on our long-haul routes, especially to Asia and North America.”
Lufthansa 'hasn't lost faith in Boeing'
The boss of airline Lufthansa has issued a vote of confidence in Boeing and its 737 Max aircraft.
Carsten Spohr says the German airline plans to buy a triple-digit number of either the 737 Max or Airbus's A320neo jetliners to expand
"We have not lost our trust in Boeing," following two fatal
737 Max crashes and the grounding earlier this month of the
worldwide fleet of that aircraft.
"They've built wonderful aircraft over the decades, and I am
sure they will fix the current issue," Spohr said of Boeing.
Lufthansa cuts back on expansion
German airline Lufthansa has reported an 11% drop in profits for the final quarter of last year and warned it will slow expansion, forecasting increases in the number of seats available of 1.9% this summer, rather than the 3.8% it forecast previously.
However, the German airline group says it expects cost savings to help compensate for higher fuel costs this year.
Why Lufthansa sued a passenger for missing a flight
It's a travel hack known as 'skiplagging'. Thrifty flyers can save hundreds of dollars by booking multi-stop tickets instead of flying direct. By deliberately missing the last leg, they bag a cheap fare in the process. But one passenger has been taken to court by the German airline Lufthansa for doing exactly that. The airline is pursuing the passenger to discourage others from doing the same thing. So far a court has found in favour of the passenger -- but now Lufthansa is appealing. Sally Gethin is an independent aviation analyst. She told us more about the case and the issues it raises for travellers.
Airline shares not flying
Investors across the aviation sector have been spooked by Ryanair's profit warning.
Easyjet is down 5.7%, while British Airways-owner IAG is down more than 3%. Wizzair fell 4.8%, Air France 3.5% and Lufthansa 2.2%.
Ryanair has blamed strikes for lowering its profit guidance and outlook for future trading.
But it seems investors fear there could be more than industrial action behind Ryanair's weaker forecasts, possibly indicating a drop in business across the sector.
Ryanair in a spin with Lufthansa over Laudamotion
Remember Niki Lauda, the Former 1 racing driver?
He founded an airline called Laudamotion and Ireland's Ryanair has just won approval from the EU Commission to acquire 75% of the group.
However, Germany Lufthansa airline is getting in the way.
Ryanair, which already owns 24.9% of Laudamotion, claims that Lufthansa wants to remove nine aircraft that it was obliged by the EU to deliver to Laudamotion after the German airline bought Air Berlin.
Ryanair's chief legal and regulatory officer Juliusz Komorek, says: "We urge the EU competition authorities to take action and prevent any further attempts by Lufthansa to damage competition through its anti-consumer behaviour."
Norwegian soars on Lufthansa interest
Shares in low cost airline Norwegian have risen by more than 10% this morning, and that's because investors are relishing the prospect of a bidding war for the firm.
British Airways owner IAG has already expressed interest in the Scandinavian success story, and now it seems Germany's Lufthansa is in the running too.
CEO Carsten Spohr told the Süddeutsche Zeitung that a "wave of consolidation" in the industry was imminent, and that he was in contact with Norwegian, which would complement Lufthansa's own low cost carrier, Eurowings.