** Shares of JetBlue Airways JBLU.O down 2% and Frontier Group Holdings ULCC.O down 3% premarket after Deutsche Bank trims rating on stocks to "hold" from "buy"

** Brokerage says both airlines are exposed to potential pockets of weakness in domestic demand

** "While we continue to remain constructive on the supply backdrop – which we still believe is favorable – our attention has shifted to what appears to be an emerging economic "soft patch"" - brokerage

** As of last close, JBLU down 17.8% and ULCC down 2.5% YTD

(Reporting by Anshuman Tripathy)

((Anshuman.Tripathy@thomsonreuters.com))