A deal is possible by the end of the year that would allow the airlines to offer tickets on the same plane under different flight numbers, helping reduce the number of empty seats on flights. Both companies declined to comment.

Lufthansa had offered to buy Condor, but the sale has been put on hold while the charter airline's cash-strapped owner, Thomas Cook, holds talks on a rescue deal with China's Fosun Tourism.

CEO Carsten Spohr is meanwhile under pressure to boost efficiency and profitability at Lufthansa. According to a report in Germany's Manager Magazine on Thursday, he plans to raise his medium-term profit target to 3 billion euros (£2.7 billion) from 2 billion euros.

Lufthansa cut its earnings guidance for this year in June, forecasting an adjusted operating margin of 5.5% to 6.5% for 2019. That corresponds with profit of 2 billion to 2.4 billion euros - a decline of 14% to 28.5% from last year.

A Lufthansa spokesman declined to comment on the magazine report.

(Reporting by Klaus Lauer; Writing by Douglas Busvine; Editing by Elaine Hardcastle)