|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||16.88 - 17.02|
|52 Week Range||16.48 - 28.25|
|Beta (3Y Monthly)||1.10|
|PE Ratio (TTM)||3.04|
|Forward Dividend & Yield||0.90 (5.38%)|
|1y Target Est||27.00|
German airline Lufthansa expects passenger numbers to rise about 4% this year, its chief executive told a newspaper, playing down talk that public support for teenage climate activist Greta Thunberg might be curbing air travel. "At this time we don't see restraint - in fact, the opposite," Carsten Spohr told the NZZ am Sonntag newspaper in the interview published on Sunday. "In comparison to last year, already a record year, we're expecting passenger growth of about 4 percent, (Lufthansa unit) Swiss International Air Lines is also showing growth.
EUROPE MARKETS European markets rallied Monday on the perceived lightening of trade skirmishes among the U.S. and China, with tech stocks among the best performers. How did markets perform? The Stoxx 600 (XX:SXXP) rallied to 388.
Days after stealing the Paris Airshow with a deal to sell 200 of the grounded 737 MAX, Boeing's sales chief faces fallout from the discovery of a new flaw that will delay the jet's return to service. Senior vice-president Ihssane Mounir has built a reputation for striking where least expected in the global jet industry, shunning the spotlight. Last week, he and other Boeing executives scored a major coup in winning British Airways owner IAG - a big Airbus short-haul user - over to an initial $24 billion deal for the 737 MAX.
FRANKFURT/BERLIN (Reuters) - Lufthansa's budget airline Eurowings will aim to cut costs by 15% over the next three years and focus on short-haul flights as part of a plan to return to profit by 2021, the German carrier said on Monday. Lufthansa cited falling revenues at Eurowings as a major reason behind a profit warning on June 16. Eurowings' revenue was forecast to drop sharply in the second quarter.
Lufthansa will look at ordering Airbus's new long-range A321XLR jets, Chief Executive Carsten Spohr said on Monday but added that he did not think the new model was a game changer. "The new XLR could be used in our network.
German carrier Lufthansa on Monday said it would start pegging its dividend payout ratio to net profit in the future, adding this would give the group, which issued a profit warning a week ago, more flexibility. Lufthansa said it would pay out a regular dividend of 20-40% of net profit, adjusted for one-off gains and losses, in the future. Its previous dividend policy was based on a payout ratio of 10-25% of earnings before interest and tax.
(Bloomberg) -- Airlines worldwide are diverting flights away from southern Iran, lengthening travel times, after the Federal Aviation Administration issued an edict barring American operators from the region amid escalating tensions with the Persian Gulf country.Deutsche Lufthansa AG, Dutch carrier KLM and Qantas Airways Ltd of Australia are among carriers re-routing long-haul services to avoid the Strait of Hormuz, where the U.S. has blamed Iran for attacks on shipping and an American drone was shot down on Wednesday. United Airlines suspended flights between Newark, New Jersey, and Mumbai that regularly pass over the area.“We closely follow all developments that may be related to the safety of airspace,” KLM, the Dutch arm of Air France-KLM, said. “The incident with the drone is reason not to fly over the Strait of Hormuz for the time being. This is a precautionary measure.”A so-called notice to airmen from the FAA says airline flights above the Tehran flight-information region of the Persian Gulf and Gulf of Oman are prohibited until further notice “due to heightened military activities and increased political tensions.” Those circumstance present an inadvertent risk to planes in the form of “potential miscalculation or mis-identification.”Chicago-based United said in an emailed statement that it had conducted “a thorough safety and security review” of its India service in light of recent events and decided to suspend the route.Lufthansa has been avoiding the Strait of Hormuz and the Gulf of Oman since Thursday and has now expanded that zone in line with the FAA’s advice, which may result in “slightly longer flight times between Europe and India,” spokesman Thomas Jachnow said. Services to Tehran operated by the carrier and its Austrian Airlines unit aren’t affected.British Airways, Singapore Airlines Ltd., Malaysia Airlines Bhd. and Qantas are also diverting inter-continental flights away from the area, according to reports, though not all global carriers are affected, with KLM’s sister company Air France saying relevant services are already routed further south.In the region itself, the United Arab Emirates civil aviation authority ordered carriers on Saturday to avoid risky air space, a day after some airlines took their own measures. Dubai-based Emirates, the world’s biggest long-haul airline, said on Friday it rerouted flights away from areas of possible conflict, while Abu Dhabi-based Etihad Airways said it was evaluating the FAA directive and would consult with the United Arab Emirates civil aviation authority. Discount carrier FlyDubai said it would adjust some flight paths as a precautionary measure.U.S. and Iranian officials have differing accounts of whether the high-altitude U.S. Navy drone was over international or Iranian waters when it was shot down. The downing comes after weeks of rising tensions, including attacks on cargo ships that the U.S. has also blamed on Iran.Though an Iranian military officer was quoted by state-run media as saying the drone was shot down in order to send a “clear message,” President Donald Trump downplayed the incident, saying it “could have been somebody who was loose and stupid.”(Updates with U.A.E. measures in eighth paragraph.)\--With assistance from Sarah Jacob, Wout Vergauwen, Ania Nussbaum and Dana Khraiche.To contact the reporters on this story: Christopher Jasper in London at email@example.com;Richard Weiss in Frankfurt at firstname.lastname@example.org;Layan Odeh in Dubai at email@example.comTo contact the editor responsible for this story: Anthony Palazzo at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
PARIS/BRUSSELS, June 20 (Reuters) - The Netherlands and France are trying to convince fellow European nations at a conference in The Hague to end tax exemptions on jet fuel and plane tickets, as part of a drive to make the EU carbon neutral by 2050. In the first major initiative on air travel tax in years, the conference on Thursday and Friday - which will be attended by about 29 countries - will discuss ticket taxes, kerosene levies and value-added tax (VAT) on air travel.
(Bloomberg Opinion) -- If it’s true that all political lives end in failure, then the same could be said for business. Carsten Spohr became Deutsche Lufthansa AG’s chief executive in 2014, made an impressive start, and had his contract extended to the end of 2023. He may regret signing up for that long.The German airline’s shares tumbled 12 percent on Monday after it issued a second profit warning in as many months. It expects to generate as little as 2 billion euros ($2.2 billion) of operating profit in 2019, up to 25% below what was expected by analysts.The stock is now worth less than four times last year’s earnings, a pretty pitiful multiple, and investors who bought the stock when Spohr took over have lost money. Suddenly, a man feted as one of Germany’s most accomplished corporate leaders looks ordinary.How times have changed. Spohr’s response to a 2015 aircraft crash at the Lufthansa offshoot Germanwings was both sensitive and assured. Later on he faced down industrial action to win concessions from staff on pensions. In 2017, Lufthansa’s profit hit a record high and the stock price soared 150%. Spohr was duly named Manager of the Year by Germany’s influential Manager Magazin.Sustaining all of this was always going to be hard in the notoriously unstable airline business. Fuel costs have risen, rivals have added new capacity and air cargo demand has waned, thanks in part to U.S. President Donald Trump’s trade crusades. (It’s worth reading Bloomberg’s William Wilkes on Lufthansa’s litany of problems.)But Spohr can’t just blame external factors. His company has chased growth to the detriment of profitability and it has spent heavily on new jets and integrating older ones from the insolvent Air Berlin. Gross capital expenditure jumped 8% to 3.8 billion euros ($4.3 billion) last year, leaving precious little spare cash.While Lufthansa is still doing fine on long-haul routes, Spohr’s big idea — a budget subsidiary called Eurowings — has been a disaster. The new unit was meant to challenge Ryanair Holdings Plc and EasyJet Plc in Europe, and to serve long-haul holiday destinations, but it lost more than 230 million euros last year. Instead of breaking even in 2019, as was anticipated, it will now remain in the red.Spohr has hit the brakes on Eurowings’s expansion but the company plans to “vigorously defend” its dominant market position in Germany and Austria. Translated, that sounds worryingly like: “Fare war? Bring it on.”Ryanair is pursuing a similar battle of attrition against weaker rivals such as Norwegian Air Shuttle ASA, with the aim of forcing them out of business. But Ryanair’s costs are much lower than those of Eurowings.Of course, Lufthansa can afford a couple of bleak years. At the end of March it had 12 billion euros of net debt, aircraft lease and pension liabilities — or about 2.4 times Ebitda (a measure of earnings). Norwegian’s leverage is miles higher.But when your corporate strategy is all about acquisition (Thomas Cook Group Plc’s German arm could be next on Spohr’s shopping list) and heavy investment, falling profits are doubly alarming. They suggest cash might be misallocated. “We think the sooner the company focuses on value for shareholders and less chasing or defending market share, the better for the shares. We see no hint of that yet,” RBC’s Damian Brewer complained.At an investor event next week, Spohr has a chance to explain how he plans to fly Lufthansa out of this mess. Once seen as a safe steward of Lufthansa’s capital, he’s starting to look a little reckless.To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
European stock markets closed marginally lower on Monday with a profit warning from Germany's Lufthansa hitting airline stocks, while markets globally awaited clues from the U.S. Federal Reserve on its policy direction. The pan-European STOXX 600 index finished 0.1% lower.
Germany's Lufthansa sent shockwaves through the European airline sector on Monday as it cut its full-year profit forecast, with lower prices and higher fuel costs compounding the effect of losses at its budget subsidiary Eurowings. The warning follows gloomy comments last month from Irish budget airline Ryanair, which vies with Lufthansa for top spot in Europe in terms of passengers carried. In a statement issued late on Sunday, Lufthansa forecast annual EBIT of between 2 and 2.4 billion euros, down from the previously targeted 2.4 billion euros to 3 billion euros.
Today we'll take a closer look at Deutsche Lufthansa AG (FRA:LHA) from a dividend investor's perspective. Owning a...
The world's airlines have enough challenges handling conventional cargo, let alone cross-border e-commerce with a universe of consumers who can be more demanding than even the toughest shipping manager. Brian Bourke, vice president, marketing for multi-national freight forwarder Seko Worldwide, said Lufthansa's involvement "can only help" to satisfy the growing demand for cross-border e-commerce.