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JPM places Lufthansa on negative catalyst watch, shares fall

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** J.P.Morgan says pricing could besofter in Q2 for European long-haul airlines and places Lufthansa LHAG.DE on negative catalyst watch ahead of Q2 results

** Shares in the German carrier fall around 6% to October 2022 lows

** JPM cites potential for earnings downgrades and/or a further downwards revisions in company guidance

** It adds that it is about 10% below 2024 Bloomberg EBIT consensus and sticks to its "underweight" rating on Lufthansa

** The broker notes thatelevated capacity growth and mixed demand backdrop at a time when costs also remain higher could lead to a softer pricing in Q2 for network carriers

** It keeps its "overweight" rating on British Airways-owner IAG ICAG.L saying it offerspotential earnings upside from more resilient pricing driven by leisure demand and more self-help restructuring in an uncertain backdrop

** It also maintains its "underweight" rating on Air France-KLM AIRF.PA

** Shares in IAG and Air France-KLM slip around 1.8%

Reporting by Eva Orsolya Papp


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