Lufthansa to make capacity cuts.

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German airline Lufthansa plans to cut capacity to match a decline in passenger numbers.

Lufthansa has already grounded 43 aircraft, cutting capacity by 20% since 11 September terrorist attacks in the United States.

Wolfgang Mayrhuber, chief executive, passenger airlines, has warned rivals against trying to fill seat capacity through price cutting. He said he could not understand the logic of some major airlines which could not break even at 80% seat load factors, but insisted on cutting prices even if their load factor fell to only 45%, reported Reuters.

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