Lufthansa 2017 growth plans driven by Air Berlin, Brussels deals

Lufthansa outlined plans for 4% capacity growth in 2017, not including recent deals to expand Eurowings, as Europe's airlines engage in a race for customers against a backdrop of rising fuel prices. The carrier said in an investor presentation Friday that its network airlines - Lufthansa, Austrian and SWISS - would grow the number of seats on offer by 3%, while Eurowings would grow 19%. Including recent deals to lease 38 planes and crew from Air Berlin plus take over Brussels Airlines, group growth would be a reported 12.5%, according to the slides. UBS earlier downgraded Lufthansa shares to "sell" from "neutral", saying it was concerned that yields would remain negative in 2017, as European carriers continue to add seats despite likely being unable to pass on increased fuel costs to passengers. <br/>