** Analysts at Jefferies warn of emerging downside risks to earnings for Auckland International Airport AIA.NZ, as airlines respond to higher fuel prices driven by Middle East conflict
** The airport operator on Monday said February international seat capacity increased 4% on same month last year
** Brokerage highlights rising risks from higher fuel prices, noting Air New Zealand AIR.NZ announced a 5% capacity cut, cancelling about 1,100 flights through early May and raising fares across its network
** While airlines historically continued adding capacity during periods of elevated fuel costs, Jefferies expects greater demand impact in current cycle given New Zealand's economic recovery is still nascent
** Two of seven analysts rate the stock "buy" or higher, five "hold"; their median PT is A$8.70, according to data compiled by LSEG
** Stock has fallen 0.5% this year, as of last close
(Reporting by Roshan Thomas in Bengaluru)
((Roshan.Thomas@thomsonreuters.com;))
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