Lufthansa has slashed its profit forecast for 2014 by close to one-third. The group’s board yesterday (June 11) announced a €300m-€500m ($405m-$676m) cut from its previous profit predictions. The group has blamed excess capacity on its American and European routes, as well as stiffer competition from Gulf-based airlines. The statement also revealed that a pilot strike in April cost the group €60m ($81m) and that the ongoing negotiations with the Venezuelan government had cost a further €60m ($81m) so far this year. Simone Menne, chief officer finances and aviation services at Deutsche Lufthansa, confirmed that the firm will be “noticeably” reducing its capacities during the winter timetable to minimise losses. Following the announcement Lufthansa’s share price has fallen by more than 14 per cent.