JPM places Lufthansa on negative catalyst watch, shares fall
** 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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