STOCKS NEWS EUROPE-Lufthansa, Air Berlin dip after downgrades
Shares in German airlines Lufthansa (Xetra: 823212 - news) and Air Berlin (Xetra: AB1000 - news) fall 3.3 percent and 3 percent, respectively, after Deutsche Bank (LSE: 0H7D.L - news) downgrades the stocks.
A bank note issued to clients says it was reducing its stance on Lufthansa to 'hold', and on Air Berlin to 'sell' from a previous 'buy' rating for both airline stocks.
Lufthansa is the biggest decliner in a 0.9 percent weaker Travel and Leisure sector index.
"We have ... come to the conclusion that the restructuring programmes might take longer than expected, the demand situation remains sluggish and current trading is difficult and capacity discipline is fading," the note said, referring to both airlines.
Lufthansa shares are flat so far this year, compared to a 16 percent stronger sector index. Air Berlin has won 11 percent so far this year.
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