Several European airline stocks are falling on Thursday after JP Morgan lowered its recommendations for Air France-KLM, Lufthansa and British Airways owner IAG.

Both Air France-KLM and Lufthansa are being downgraded in two steps, according to Bloomberg News, from overweight to underweight. IAG is also being downgraded to underweight, from previously neutral.

The justification for the reductions is that lower margins and higher fuel costs are expected to result in revenue per passenger not increasing.

By around 11:10 a.m., Air France-KLM had fallen 6 percent in Paris. Lufthansa was down 4.5 percent in Frankfurt while IAG in London lost 3.5 percent. All three shares were among the weakest of the day in the Stoxx 600 index.

Source: Nyhetsbyrån Direkt