** Analysts at Jefferies warn of emerging downside risks to earnings for Auckland International Airport AIA.NZ, as airlines respond to higher fuel prices driven by Middle East conflict

** The airport operator on Monday said February international seat capacity increased 4% on same month last year

** Brokerage highlights rising risks from higher fuel prices, noting Air New Zealand AIR.NZ announced a 5% capacity cut, cancelling about 1,100 flights through early May and raising fares across its network

** While airlines historically continued adding capacity during periods of elevated fuel costs, Jefferies expects greater demand impact in current cycle given New Zealand's economic recovery is still nascent

** Two of seven analysts rate the stock "buy" or higher, five "hold"; their median PT is A$8.70, according to data compiled by LSEG

** Stock has fallen 0.5% this year, as of last close

(Reporting by Roshan Thomas in Bengaluru)

((Roshan.Thomas@thomsonreuters.com;))