June 13 (Reuters) – Lufthansa fell on the stock market on Thursday after broker JPMorgan placed the stock on negative watch due to an expected drop in prices in the second quarter for long-haul flights operated by European airlines.
On the Frankfurt Stock Exchange, the stock fell by almost 5% around 09:15 GMT and reached its lowest level since October 2022.
According to the broker, the growth in available capacity, combined with mixed demand in a context where costs remain high, could lead to a drop in prices in the second quarter for carriers.
JP Morgan, which maintains its “underweight” recommendation on Lufthansa, raises the possibility of a further downward revision of the group’s forecasts.
The airline confirmed in April its forecast of adjusted earnings before interest and tax (EBIT) of 2.2 billion euros for the full year, which had been revised downwards shortly before following of a wave of costly union actions. IAG, the owner of British Airways and Iberia, and Air France-KLM lost between 1.5% and 2.5%.
(Report by Eva Orsolya Papp, French version by Diana Mandiá, edited by Blandine Hénault)
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