|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||16.48 - 16.64|
|52 Week Range||14.22 - 27.64|
|Beta (3Y Monthly)||1.09|
|PE Ratio (TTM)||2.99|
|Forward Dividend & Yield||0.90 (5.51%)|
|1y Target Est||27.00|
(Bloomberg) -- Chancellor Angela Merkel is working on an investment package worth perhaps 50 billion euros ($55 billion) that aims to get German efforts to cut carbon emissions back on track.Merkel’s Christian Democrats are trying to thrash out a common position with their coalition partners, the Social Democrats ahead of a cabinet meeting on Sept. 20. The outcome of those negotiations will have profound consequences for a range of companies from utilities to airlines as well as the chancellor’s increasingly controversial balanced budget.Germany is way behind on its climate efforts and saw a series of protests this year demanding more action to stem emissions and another demonstration is scheduled for Saturday in Frankfurt. With wildfires sweeping the east of the country and record temperatures disrupting summer travel, the governing parties were punished in local elections as support for the Greens surged.While opinion polls show that climate change has surpassed immigration as the German public’s no. 1 concern, the government abandoned a self-imposed target to lower CO2 emissions by 40% from 1990 levels by next year. After struggling to rein in coal-fired power generation, emissions will be just 32% lower in 2018 and Germany risks missing its legally binding EU goals.Coalition StrainsThe coalition parties know they need to step up their climate action, but they don’t agree on how much or how fast.The SPD want more aggressive measures, such as a carbon tax and new debt to finance climate projects. Merkel’s CDU favors market mechanisms such as the Emissions Trading System, which lets companies buy or sell their carbon allowances. The CDU also wants to tap private capital more heavily to help finance the measures.The plans announced so far would be enough to derail Merkel’s prized balanced budget if the government ended up footing the bill and Sueddeutsche Zeitung reported Friday that the program could stretch to as much as 75 billion euros.That’s why CDU Economy Minister Peter Altmaier is proposing an investment fund seeded with 5 billion euros of government money. To lure investors and win round the German public, he wants to guarantee a 2% return -- that’s more than you make from a 10-year Greek bond.But SPD Finance Minister Olaf Scholz, who’s looking at a possible campaign to succeed Merkel, doesn’t like the idea and his party has threatened to bring down the government if it doesn’t get something it likes.C-Suite Winners and LosersFor German executives, there’s a lot riding on the outcome.Electricity producers like EON SE and RWE AG could benefit if the policies encourage households to ditch gas heating and diesel cars in favor of electric options. Firms that use a lot of electricity could also benefit, as well as companies that make electric heaters, cars and energy-efficiency products like smart meters.Firms that can’t easily cut C02 emissions out of their business model are likely to lose out. While companies like Thyssenkrupp AG and Volkswagen AG already have sweeping carbon-reduction strategies, dialysis machine-maker Fresenius emitted 1 million tons of carbon dioxide last year and doesn’t yet have a goal to significantly reduce that.If the CDU plan to impose a trading scheme instead of a carbon tax wins out, that would give the government flexibility to help out companies and consumers when the economy slows. Officials could increase the supply of the emissions permits during a recession to lower costs for companies, or cut supply during a boom.Cheap Air TravelMerkel’s Bavarian sister party, the CSU, is proposing a minimum price on airline tickets and all the parties have signaled they’d like to see airfares rise. That could actually benefit Germany’s flagship carrier Deutsche Lufthansa AG. Europe’s biggest airline is fighting off low-cost challengers like Ryanair, Easyjet and Wizz Air, and its budget unit, Eurowings, is losing hundreds of millions in euros as it tries to match their bargain-basement fares.A price floor would be easier for Lufthansa to absorb than for the low cost carriers whose business strategy centers on having aircraft more than 95% full. Indeed, Lufthansa Chief Executive Officer Carsten Spohr has called for an end to loss-leading fares that he said are stoking demand for needless flights that raise pollution and make the industry an easy target for climate campaigners."You only have to look at what happened when the first 2011 aviation tax in Germany was introduced," Ruxandra Haradau-Doeser, head of airline research at Kepler Cheuvreux, said. "Ryanair cut capacity by one third."The CSU also wants to cut the taxes on rail travel.Europe’s Climate FightMerkel wants something to show abroad as well.Her climate decision comes three days before United Nations Secretary-General Antonio Guterres holds a summit in New York to encourage countries to make good on their commitments under the Paris Climate Accord and to make their goals more aggressive.Berlin’s renewed push dovetails with efforts by Ursula von der Leyen, the incoming president of the European Commission, to focus attention on the climate. Von der Leyen, who previously served as Merkel’s defense minister, wants to make Europe the first climate-neutral continent by 2050.German plans to put a price on emissions from transportation and heating is in line with von der Leyen’s plan to extend the EU carbon market, the biggest in the world, to cover transport and construction.But more broadly, von der Leyen and Guterres need Germany to deliver. If Europe’s biggest emitter can’t meet it’s goals, the EU is unlikely to either. And that would be a disaster for the global push to limit climate change.\--With assistance from Ewa Krukowska, Birgit Jennen and Brian Parkin.To contact the reporters on this story: Raymond Colitt in Berlin at email@example.com;Arne Delfs in Berlin at firstname.lastname@example.org;William Wilkes in Frankfurt at email@example.comTo contact the editors responsible for this story: Ben Sills at firstname.lastname@example.org, Caroline AlexanderFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Seeking to tackle climate change, Germany's conservatives want to increase taxes on domestic flights and reduce the cost of long-distance train tickets, a party document seen by Reuters on Friday showed. The German government - made up of Chancellor Angela Merkel's conservatives, their Bavarian sister party CSU and the Social Democrats (SPD) - is expected to present a far-reaching package of climate protection measures on Sept. 20. The tax for domestic flights is now 7.40 euros ($8.21).
German flag carrier Lufthansa and German national railway Deutsche Bahn have reached agreement on a long-festering dispute concerning an air cargo cartel. The settlement was announced Aug. 26, although ...
German carrier Lufthansa will continue to fight for market share in the hotly contested market for short-haul flights, where it is determined to compete with budget airlines such as Ryanair , its chief executive said. "We will not be chased away from our home market by those that have been used to come, see and conquer," Lufthansa Chief Executive Carsten Spohr told journalists late on Monday. Spohr also said that Lufthansa was well positioned for keeping up with the global consolidation in the airline industry, in which only 12 global carriers would exist in the future and Lufthansa wanted play an active role.
Evidence of the increasing effects of climate change is building, as are the investing opportunities and changes in consumer habits linked to environmental concerns and resource use. Campaigning by filmmaker David Attenborough and viral teenage climate activist Greta Thunberg — who said she’d sail, not fly, to upcoming conference-speaking engagements — is persuading more air travelers to sign up for carbon-offset programs. Myclimate, a Swiss nonprofit whose clients include Deutsche Lufthansa AG (XE:LHA) , saw a five-fold jump in credit purchases meant to mitigate the environmental impact of flights in a year, Bloomberg News reported.
Today we'll evaluate Deutsche Lufthansa AG (ETR:LHA) to determine whether it could have potential as an investment...
Lufthansa Cargo posted weak earnings for the first half of 2019, citing lower economic growth and trade conflicts for its lackluster performance. The company posted an 88 percent fall in adjusted earnings before tax and interest (EBIT) year-over-year. Germany-based Lufthansa Cargo is a wholly owned subsidiary of Lufthansa.
Escalating trade wars, the impact of Brexit, possible oil supply shocks and a growing likelihood of recession will put a damper on global air travel and hotel rates in 2020, according to an industry forecast. Airfares will rise by a modest 1.2% and hotel rates by 1.3% in U.S. dollar terms and an average of about 2.2% for both in local currencies, said the annual business travel forecast from Carlson Wagonlit Travel (CWT) and the Global Business Travel Association (GBTA) released on Wednesday.
Faltering German giants led European stocks down on Tuesday as markets prepared for the Federal Reserve’s expected rate cut.
Lufthansa Group is preparing for a sustained battle with low-cost competitors Ryanair and EasyJet in its home market of Germany. The collapse of Air Berlin in 2017 allowed other airlines to plant a flag on Lufthansa’s home turf and with that has come more planes and lower prices making it harder for the once-dominant legacy […]The post Lufthansa Ready at Home in Germany for Long Battle With Low-Cost Rivals appeared first on Skift.
Europe's main STOXX 600 index posted its worst session since a selloff in May on Tuesday after U.S. President Donald Trump ramped up his trade rhetoric against China, deepening wounds left by a batch of weak economic data and corporate earnings. The pan-European equities index closed down 1.5% in heavy trading and Germany's trade-sensitive stocks hit a six-week low after Trump warned China against waiting out his first term in office to finalise any trade deal.
German airline Lufthansa said it was braced for very tough price competition with Ryanair and easyJet for at least the rest of this year as it reported a plunge in second-quarter earnings on Tuesday. Lufthansa, which had issued a profit warning last month, blamed price competition on short-haul routes and rising fuel and maintenance costs as it said second-quarter adjusted earnings before interest and tax (EBIT) fell by 25% on the year to 754 million euros ($839.73 million). Net profit for the quarter plummeted 70% to 226 million euros, partly due to an almost 200 million euro tax provision.
German airline Lufthansa is considering adopting a corporate holding structure to simplify its operations, improve profitability and regain the support of investors, newspaper Handelsblatt reported on Monday. Citing unnamed sources familiar with the matter, the newspaper said the idea of a group holding structure was under early discussion both at management level and in parts of the supervisory board. Responding to the report, Lufthansa said that it reviewed its group structure at regular intervals.
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Egypt's aviation minister on Sunday expressed his dismay over British Airways' decision to suspend flights to the Egyptian capital to the UK's ambassador to Cairo. International Airlines Group's British Airways suspended flights to Cairo on Saturday for seven days "as a security precaution" as it reviews security at the city's airport. Air France, Emirates and Etihad Airways continued to operate flights to Cairo.