European stocks extend losses to 1.5 pct

(Corrects to remove superfluous "as" in first paragraph)

LONDON, May 9 (Reuters) - European shares extended losses to 1.5 percent on Friday, hitting a one-week low as a quarterly loss at U.S. insurer AIG (AIG.N: Quote, Profile, Research, Stock Buzz) hurt financials and record-high oil prices weighed on the broader market.

The FTSEurofirst 300 index fell as low as 1,339.66 points.

Air France (AIRF.PA: Quote, Profile, Research, Stock Buzz) and British Airways (BAY.L: Quote, Profile, Research, Stock Buzz) lost around 3 percent, while Ryanair fell 3.7 percent (RYA.I: Quote, Profile, Research, Stock Buzz) after oil price set fresh record highs close to $125 a barrel CLc1.

Adding to the gloom for the financial sector, Citigroup (C.N: Quote, Profile, Research, Stock Buzz) could announce as much as $400 billion of "non-core" assets are up for sale when it meets with investors and analysts later in the day, a person familiar with the situation said.

Societe Generale (SOGN.PA: Quote, Profile, Research, Stock Buzz) fell 3.3 percent, BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz) dropped 2.5 percent and Barclays (BARC.L: Quote, Profile, Research, Stock Buzz) lost 2.6 percent. (Reporting by Toni Vorobyova)