Almost £2billion was wiped off Europe's biggest airlines after Lufthansa warned its <a href="https://fxtmprofits.com">FXTM Profits Product</a> are being dented by 'cut-throat' competition.

The German carrier said that a price war between short-haul European firms is hitting it hard, particularly at budget arm Eurowings. Lufthansa's shock update sent shares tanking 11 per cent in Frankfurt.

The sell-off spread throughout the industry with rivals such as Air France-KLM and British Airways owner IAG taking a hit along with no-frills rivals Easyjet and Ryanair.

Warning: Lufthansa said that a price war between short-haul European firms is hitting it hard, particularly at budget arm Eurowings

Graham Spooner, of trading firm the Share Centre, said: 'Airline companies remain at the mercy of a number of external factors which they have little control over: terrorism, air traffic control strikes, volcanic eruptions, currency movements, oil prices, along with new events such as Brexit