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

(Updates)

** European airlines hammered after Lufthansa's profit warning, Nice attack, Turkey attempted coup

** Lufthansa, easyjet near the bottom of the Stoxx600, down 7.3 pct, 6.3 pct respectively; ICAG,Air France-KLM Ryanair down 4-4.6 pct

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

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

** Easyjet revenue per seat falls 7.7 pct on a reportedbasis; says trading prospects so uncertain it can't give aprofit forecast

** Franco-Dutch airline Air France-KLM down c. 3pct, dragged by weak performance of Kenya Airways,which it partly owns

** Credit Suisse cuts rating on easyJet and IAG to "neutral"from "outperform"; broker is four-star rated on both cosaccording to StarMine data

** CS analysts say easyJet earnings estimates clearly needto come down following Thursday's results; cuts IAG rating afterLufthansa warning, adds escalating revenue risk likely to drivematerial downgrades

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

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