Airline group IAG, which owns British Airways, Aer Lingus and several other airlines saw its shares downgraded by Deutsche Bank as they look to exercise some caution across European airlines.

Deutsche Bank analyst Jaime Rowbotham downgraded IAG to Hold from Buy and lowered its price target to 165p, down from 200p.

Rowbotham is “exercising some caution” on European Airlines due to some weakness in the firm’s fare data. He added that 60-day out prices for travel in August are down 2% YoY on average. European Airlines are currently facing the peak summer period, and with school holidays approaching, demand is expected to continue.

Deutsche Bank also downgraded Air France-KLM to Hold from Buy, citing similar reasons for the matter.

Recent IAG Q1 results saw a operating profit of f €9 million, up €750 million versus Q1, 2022. Demand has been strong, and the group commented on the encouraging outlook for the summer, with around 80% of expected Q2 revenue already booked back in May.