BUZZ — Jet fuel crunch puts 2027 earnings at risk for European airlines, JPM says

* JPMorgan says the latest surge in jet fuel prices could lead to weaker earnings for European airlines next year, with low-cost carriers more exposed to higher energy costs * "We expect further capacity cuts if fuel remains high, especially from the mid-lower end of the market in short-haul," JPM says * The brokerage says further spikes in fuel prices could lead to larger operating losses in 2027, particularly for budget airlines * However, long-haul carriers, such as British Airways owner IAG, are best placed to withstand further energy price increases, it adds * Flag carriers are less sensitive to fuel hikes due to stronger hedging to lock in prices and steady passenger demand for premium services, JPM says COMPANY RATING OLD RATING PT OLD PT Air Overweight Overweight €14.50 €16 France-KLM easyJet Neutral Neutral 715 pence 715 pence IAG Overweight Overweight €5.75 €5.75 Lufthansa Neutral Neutral €7 €7.50 Ryanair Overweight Overweight €29 €32 Wizz Air Neutral Neutral 1,050 1,200 pence pence (Reporting by Gianluca Lo Nostro) ((gianluca.lonostro@thomsonreuters.com)