Lufthansa has said its likely purchase of the bulk of Air Berlin will make it “very well positioned” to compete better with Ryanair across Europe, even though it will still have an inferior share of the market.

Lufthansa chief Carsten Spohr expects France and Germany to take a hard line against the UK aviation industry in Brexit negotiations, threatening to disrupt flight connections across Europe.

Lufthansa said a slide in fares triggered by excess capacity is beginning to slow, easing the burden on earnings as fuel costs rise.

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.

A group of parents whose children were killed in the Germanwings plane crash have released a scathing letter to Lufthansa’s chief executive, accusing him of ignoring their needs and feelings and insulting them with his company’s compensation offer.

The French Alps plane disaster took a dramatic turn after black box recordings pointed to the co-pilot deliberately crashing the Airbus A320 into the mountains.

Lufthansa pilots began the first of two days of strike action yesterday in a long-running dispute over early retirement benefits and cost-cutting plans which shows no sign of ending.

Lufthansa chief executive Carsten Spohr said the German airline needs a deeper overhaul after acknowledging the most expansive saving plan to date was swept away by higher costs and falling ticket prices.

Lufthansa may launch low-cost long haul flights under a new brand as part of plans to attract more price conscious travellers and battle competition from Middle East carriers and low cost airlines, its new chief executive said yesterday.

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