Lufthansa has given a gloomy outlook for the key summer season and said it would focus on reducing costs after attacks in Europe deterred passengers from booking trips, creating price pressure for the German airline and its European rivals.

Lufthansa cut profit targets for the next two years citing competition from Middle East and low-cost rivals, sending shares plunging.

Lufthansa says it is working hard in a difficult market to recoup earnings lost through strikes as it reported a narrower first-quarter loss yesterday.