BUZZ-European airlines: Lufthansa warning sees sector extend sell-off

(Updates)

** European airlines hammered after Lufthansa's profit warning, Nice (Milan: NICE.MI - news) attack, Turkey attempted coup

** Lufthansa, easyjet near the bottom of the Stoxx 600, down 7.3 pct, 6.3 pct respectively; ICAG, Air France (Paris: FR0000031122 - news) -KLM Ryanair down 4-4.6 pct

** 1.1x easyJet's, 1.9x Lufthansa's daily avg vols gone through by 1015 GMT

** German flag carrier cut forecasts saying bookings have declined significantly due to "terrorist attacks in Europe and to greater political and economic uncertainty"

** Easyjet (Other OTC: EJTTF - news) revenue per seat falls 7.7 pct on a reported basis; says trading prospects so uncertain it can't give a profit forecast

** Franco-Dutch airline Air France-KLM (LSE: 0LN7.L - news) down c. 3 pct, dragged by weak performance of Kenya Airways, which it partly owns

** Credit Suisse (LSE: 0QP5.L - news) cuts rating on easyJet and IAG to "neutral" from "outperform"; broker is four-star rated on both cos according to StarMine data

** CS analysts say easyJet earnings estimates clearly need to come down following Thursday's results; cuts IAG rating after Lufthansa warning, adds escalating revenue risk likely to drive material downgrades

** Consensus bearish on cos: StarMine's ARM model, a measure of change in analyst sentiment, shows easyJet and IAG strongly out of favour with sellside; each score 1 out of the maximum 100

** Airlines bottom five losers on the Stoxx 600 Travel and Leisure Index, which is down 0.85 pct