Shares in Wizz Air Holdings are flying low, down 3.2% at 1,642p after Citi put the stock on its 'sell' list, downgrading from 'neutral'.
"We believe pricing will lose momentum in short haul compared to long haul," the broker said.
In the short haul sector, it expects Ryanair will outperform on pricing against peers, driven by network flexibility.
But it thinks the recent engine-related bottlenecks will impact around 4% of short haul capacity, with Wizz the most exposed, with around 23% exposure of current capacity.
"We downgrade Wizz to sell, given the impact on capacity ramp-up will result in unit cost pressure," Citi said.
The broker also more than halved its price target to 1,400p from 3,100p.
Citi has also lowered the price target for IAG, the owner of British Airways, to 175p from 195p although it has kept a 'buy' rating.
Lufthansa has been downgraded to neutral, due to downside risk to its 2024 margin target.
Lufthansa shares are down 2.4% to €6.95 in Frankfurt today.