|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||15.52 - 15.66|
|52 Week Range||14.22 - 27.41|
|Beta (3Y Monthly)||1.09|
|PE Ratio (TTM)||2.80|
|Forward Dividend & Yield||0.90 (5.79%)|
|1y Target Est||N/A|
(Bloomberg) -- German authorities are considering emergency financial aid for Thomas Cook Group Plc’s Condor subsidiary as Deutsche Lufthansa AG remains tight-lipped on the fate of a unit it bid for earlier this year.Germany’s Economy Ministry on Monday said it’s urgently assessing Condor Flugdienst GmbH’s request for a bridge loan after Thomas Cook collapsed under a pile of debt. The state of Hesse, where Condor’s base at Frankfurt Airport is located, is ready to help with a loan guarantee and is already in talks with the airline and the federal government, Premier Volker Bouffier said.“Condor is in a difficult situation thanks to its British parent Thomas Cook,” Bouffier said in a statement. “Both are victims of Brexit, which has created uncertainty among companies and its customers.”The administration in 2017 made a similar loan to Air Berlin Plc to keep the airline flying while Lufthansa considered taking it over. The European Union Commission may also have to sign off on potential aid, a government spokesman said. Lufthansa earlier this year bid for Condor but in June said the offer would likely be rejected.“The federal government is examining the application,” an economy ministry spokesman said in an emailed statement. A spokesman for Lufthansa declined to comment on Thomas Cook’s bankruptcy.European airlines are struggling to turn a profit due to the surplus of seats on tourist and business routes. Despite the demise of Air Berlin, Monarch, Wow and several other airlines since the end of 2017, too many planes are still flying to too many places.Germany’s UFO cabin personnel union said Condor is a profitable company that “deserves a chance for survival,” a position echoed by the VC pilots’ union.Slots Available“We very much hope that the decision makers in the federal government and in Hesse look closely at the situation and contribute to this happening,” UFO head Sylvia De la Cruz said in a statement.While a spokesman for Lufthansa on Monday wouldn’t reveal details of its earlier bid, the airline is unlikely to be interested in the company’s medium- and long-haul jets, which are mostly older than its own. Condor’s slots would be valuable to Lufthansa, although Chief Financial Officer Ulrik Svensson in June said an integration with its low-cost unit Eurowings would be “complex”.That complexity could prove insurmountable as the Cologne-based airline has issued profit warnings and is under pressure from investors to turn Eurowings around after years of underperformance. Investors have also lambasted management for its costly integration of the Air Berlin jets.One option for Lufthansa would be to wait for Condor to go bust and then acquire the airline’s slots from airport operators. The Condor brand would likely also be of value, as the airline is popular with German travelers.Main BattlegroundThomas Cook flew German customers with three different airlines. All three remain airborne for the time being, meaning that 58, or just over half, of the company’s aircraft are still flying. Lufthansa owned Condor before selling the unit to Thomas Cook a decade ago.Germany’s aviation market is one of the main battlegrounds in a Europe-wide fare war to gain market share. Ryanair Holdings Plc and Easyjet Plc rushed into a vacuum created by the collapse of Air Berlin, forcing Lufthansa into a price war in which the firm’s Eurowings subsidiary has lost hundreds of millions of euros.This summer has seen heated competition on holiday routes to western Mediterranean destinations such as Spain, after Ryanair added a plethora of flights from Lufthansa’s main Frankfurt hub to the Iberian peninsula.(Adds Hesse, union comments from second paragraph)To contact the reporters on this story: William Wilkes in Frankfurt at firstname.lastname@example.org;Richard Weiss in Frankfurt at email@example.com;Birgit Jennen in Berlin at firstname.lastname@example.orgTo contact the editors responsible for this story: Ben Sills at email@example.com, Raymond Colitt, Iain RogersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Germany has pledged a 54 billion euros ($60 billion) program to put its climate target back on track without abandoning its long-standing policy of zero deficit spending.The landmark package worth more than Germany’s 2009 economic stimulus plan following the financial crisis, gradually increases automotive fuel prices and taxes air travel, while cutting costs for trains. It also introduces carbon allowances for transportation and provides incentives for people to junk old furnaces.The deal gives Chancellor Angela Merkel something to showcase at a UN climate conference next week, partially alleviates investor concerns that swelling expenditures could increase debt, and at least temporarily breathes some fresh life into an otherwise fragile coalition. Yet critics say the measures could be too little too late to make the 2030 target of slashing greenhouse gas emissions by 55%.Environmental groups and opposition politicians agreed that the carbon price set was far too low to really have an impact.Johannes Teyssen, Chief Executive Officer of power utility EON SE, agreed."It’s good news that there’ll be a price for carbon dioxide in heating and transport," said Teyssen, who is shifting EON away from power generation to concentrate on network solutions like electric car charging services. "But costs under 35 euros per ton will have little steering effect."Speaking at a press conference to detail the plan, Merkel said the measures were a compromise between what science required to slow climate change and what the population would be willing to support.“We’ve created numerous incentives, so that people can behave in a more environmentally responsible way,” said Merkel.The 65-year-old physicist-turned-politician insisted the plan wouldn’t require the government to raise more debt. The costs for incentives such as promoting electric vehicles and upgrading older furnaces will be balanced by income from carbon-dioxide certificates. The deal was reached after more than 16 hours of overnight negotiations that began Thursday evening in Berlin."We’re sticking by the black zero," she said in reference to her administrations long-standing policy of a zero deficit spending.The measures could shake up Germany’s transport sector, an industry that includes automotive giants like Volkswagen AG and Lufthansa AG, Europe’s biggest airline. On electric cars, the government said it wants to see the number of those vehicles rise to 10 million. It also wants to attract battery cell factories to Germany, breaking an all-Asian stranglehold on supply from LG Chem, Samsung SDI and CATL.The cabinet wants to make flying more expensive with changes to ticket price laws to restrict the number of ultra-low fairs. Higher prices could benefit Lufthansa, analysts have said, as the airline struggles to compete in a pan-European war for market share. When Germany raised the cost of flying in 2011, Ryanair retreated from the country’s market, allowing Lufthansa to claw back customers.Germany’s leaders were under pressure to seal a deal, with the country falling far short of its climate goals. Tens of thousands of demonstrators gathered to march in Berlin, Hamburg, Munich and around 500 other locations across Germany as part of the Fridays for Future movement. Finance Minister Olaf Scholz said the demonstrations have been a “wake-up call.”But the plan was also criticized for its incremental approach in other areas. Automotive fuels would initially rise by only 0.03 euro per liter, while oil-fired furnaces can be sold for another six years.Merkel has faced a series of protests this year demanding action to stem emissions, and the Green party has surged in the polls as the impact of global warming becomes increasingly tangible, with forests fires more frequent and droughts causing the Rhine river to recede.Some of the SPD leaders had indicated they would push for the party to leave Merkel’s coalition if the government didn’t agree on substantial climate measures.(Adds detail, context throughout.)\--With assistance from Tom Lavell, Patrick Donahue and Chris Reiter.To contact the reporters on this story: Brian Parkin in Berlin at firstname.lastname@example.org;Arne Delfs in Berlin at email@example.com;William Wilkes in Frankfurt at firstname.lastname@example.orgTo contact the editors responsible for this story: Chad Thomas at email@example.com, Raymond Colitt, Iain RogersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A cargo containing lithium ion batteries is said to have prompted Lufthansa's air cargo arm to issue a temporary ban on taking some shipments, including those from Flexport's Asia arm. Air Cargo World reported that Lufthansa Cargo blacklisted three companies on Sept. 6 following the discovery of a cargo of e-cigarette cartridges which contained the batteries. In addition, forwarders China Freight and Flexport Asia were also said to have faced a ban, which is expected to be lifted this coming Monday, Sept. 16.
(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 firstname.lastname@example.org;Arne Delfs in Berlin at email@example.com;William Wilkes in Frankfurt at firstname.lastname@example.orgTo contact the editors responsible for this story: Ben Sills at email@example.com, 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.