|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||13.21 - 13.31|
|52 Week Range||13.21 - 26.29|
|Beta (5Y Monthly)||1.00|
|PE Ratio (TTM)||2.38|
|Forward Dividend & Yield||0.90 (6.46%)|
|Ex-Dividend Date||May 07, 2019|
|1y Target Est||14.50|
When airlines began suspending service to China and Hong Kong last month because of the coronavirus outbreak it was understood their finances would be dinged in some way. On Tuesday, Deutsche Lufthansa AG said it is implementing a range of cost-reduction measures to counter the lost revenue associated with COVID-19, the technical name for the coronavirus, as it begins to spread more widely to Europe and other parts of the world. The airline group had previously canceled all Lufthansa, SWISS and Austrian Airlines flights to China through March 28 and dialed back service to Hong Kong.
Air China will cancel flights between Beijing and Vienna, Austria, from Feb. 28 through March 20 due to a lack of passengers, a Vienna Airport spokesman said on Wednesday. "Air China will arrive from Beijing tomorrow morning and return to China for the last time for now," the spokesman said. This means there will be no more direct connections between Austria and China for the time being.
KLM, the Dutch arm of Air France KLM , joined Germany's Lufthansa on Wednesday in making budget cuts in response to a slowdown in business resulting from the coronavirus outbreak. KLM will cut back on hiring new staff and external consultants, delay new IT projects and office refurbishment plans and reduce travel expenses significantly, Chief Financial Officer Erik Swelheim said in an internal letter to management. "The impact on KLM's revenues will be very significant and will only partly be mitigated by lower costs and a lower fuel price," Swelheim said in reference to the coronavirus.
Airlines in Europe are freezing recruitment and investment in an emergency effort to protect profitability as the coronavirus spreads rapidly around the world, hitting passenger demand. Dutch carrier KLM, part of the Air France-KLM group, is delaying investment in IT and real estate projects, slashing travel expenditure and cutting back on hiring staff. outside China in recent days, with South Korea particularly badly hit along with Italy.
(Bloomberg) -- Deutsche Lufthansa AG is adopting a package of cost-saving measures, including a hiring freeze, as the economic fallout of the coronavirus starts to bite. The shares fell to a six-month low.While it cannot yet estimate the impact of the virus on earnings, Lufthansa is putting all hiring on hold and offering employees unpaid leave effective immediately, the German airline said Wednesday in a statement. It’s also looking at expanding part-time work options.Global cases of the new coronavirus currently total 80,991, with China accounting for the bulk of those as well as most of the deaths. Concern is growing that the outbreak could develop into a pandemic. Parts of northern Italy -- the Lufthansa group’s second-biggest foreign market, after the U.S. -- are under a lockdown after an outbreak there.Lufthansa and its Swiss and Austrian arms have already scrapped all flights serving mainland China until the end of March. It said it’s planning further cuts to Hong Kong after reducing capacity there. The measures translate into the equivalent of 13 idle aircraft.Shares of Lufthansa fell as much as 3.6% to 12.93 euros, the lowest intraday price since Aug. 16, and were down 3.3% as of 10 a.m. in Frankfurt. The carrier is also scrapping all flight attendant and station personnel training courses that were due to begin in April. In administrative areas, the core Lufthansa brand will reduce project volume by 10% and the budget for material costs by 20%, it said.The group will present fourth-quarter earnings on March 19, when it will comment more on the outbreak, Lufthansa said.To contact the reporter on this story: Richard Weiss in Frankfurt at email@example.comTo contact the editors responsible for this story: Daniel Schaefer at firstname.lastname@example.org, Tom Lavell, Christopher JasperFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
PARIS/LONDON, Feb 24 (Reuters) - European budget airlines bore the brunt of Monday's plunge in global stock markets as the arrival of the coronavirus in Italy pointed to a longer, deeper crisis than many have banked on. EasyJet dropped 16.4% and Ryanair 13.5% as airlines were forced to reassess the fallout from the rapid spread of the COVID-19 virus across Asia and beyond, with South Korea, Italy and Iran now struggling to contain outbreaks. "Concerns are growing that COVID-19 continues to spread and will impact demand to and from other European countries," Credit Suisse analysts said.
A jump in number of coronavirus cases outside China hit European shares on Monday, as investors feared the outbreak will take a bigger toll on global growth than anticipated. The pan-European STOXX 600 tumbled 2.5% by 0816 GMT, on pace for its biggest percentage loss since October, with all the major regional indexes down over 2%. Milan shares tumbled 3.7% to its lowest in nearly three weeks as Italy saw the biggest flare-up of coronavirus cases in Europe, with three people dying of the illness since Friday and more than 150 cases reported.
Dividend paying stocks like Deutsche Lufthansa AG (ETR:LHA) tend to be popular with investors, and for good reason...
The trade group for global airlines said Thursday that the virus causing COVID-19 has the potential for causing a 13% decline in demand for Asian carriers this year.
The Chinese manufacturing engine that powers much of the world economy is struggling to restart after an extended Lunar New Year break, hindered by travel and quarantine restrictions imposed to curb the coronavirus epidemic and still in place in many parts of the country. Case in point: in the southern China manufacturing hub of Dongguan, a factory that makes vaporizers and other products had just half of its workforce of 40 last week and was struggling to function without key personnel.
(Bloomberg Opinion) -- Even Willie Walsh admits that International Consolidated Airlines Group SA, where he’s the boss, is a “very boring name” for an airline group (IAG’s portfolio includes the more evocatively titled British Airways and Iberia).But should his successor ever wish to change it to something racier they’ll have to seek the blessing of Qatar Airways. On Wednesday the loss-making Gulf carrier said it had hiked its IAG stake from 21.4% to 25.1% in a move that will have cost about $600 million at current prices.Under British share ownership rules, an investor with 25% or more of the stock can block special resolutions, such as changes to the articles of association or to a company’s name. Unlike some airlines, IAG is focused on making money for its shareholders but it’s still a little baffling why the Qatar Airways boss, Akbar Al Baker, would pay all that money for such limited influence (his airline didn’t respond to questions seeking further clarification). Usually, the company’s approach is not to seek board seats.Qatar Airways is doubtless snaffling up stakes in rivals as a means of asserting soft power on behalf of its government, and enhancing its own global flight network — and it’s not alone in doing that. But the Gulf company is one of the most acquisitive carriers, and maybe that’s not a good thing given the mixed performance of airline stocks. In addition to its IAG shares, Qatar owns minority stakes in Latam, Cathay Pacific and China Southern Airlines. It also wants one in RwandAir. Financial considerations aside, Qatar certainly has more of a need to curry favor with international partners than a typical airline. In 2017, the state’s regional neighbors Saudi Arabia, Bahrain, Egypt and the United Arab Emirates imposed an air, sea and land blockade that remains in place. That threatens Doha’s status as an aviation hub.But Qatar Airways’ efforts to gain influence overseas by acquiring stakes in rival carriers haven’t always been welcome. Al Baker had to give up on buying a stake in American Airlines Group Inc. after the latter’s chief executive officer, Doug Parker, made clear the Qataris wouldn’t be welcome. U.S. airlines often accuse the Gulf carriers of unfair competition owing to state subsidies, which they deny.More recently, Lufthansa AG said Qatar Airways should rethink any idea of investing in the German flag carrier. “We did not have Lufthansa privatized in Germany to have it nationalized in Qatar," a spokesman told Reuters in December, sounding unusually frosty. In fairness, IAG has been one of Qatar Airways’ better investments. The stock has gained about 17% in British pound terms since the airline first acquired a 10% stake in 2015. Subsequent IAG share purchases have done better. With respect, though, few financial advisers would counsel their clients to make concentrated bets on airline stocks.Some of Qatar Airways’ other investments are instructive. Earlier this month Air Italy went into liquidation despite Qatar’s strong desire to keep it afloat. In the end its 49% shareholding counted for nothing. The 9.6% stake that Qatar purchased in Cathay Pacific Airways Ltd. in 2017 also appears to be underwater. The stake was acquired for HK$13.65 a share but the stock is now worth about HK$10.50 amid the protests in Hong Kong and the new coronavirus. Others have struggled too. Qatar’s Gulf rival Etihad Airways PJSC invested in Alitalia and Air Berlin Plc. Both went bust.Of course, Al Baker can invest his company’s capital however he wishes — he doesn’t have shareholders to answer to. But he may want to listen to someone who does. Walsh, who will step down at IAG in March, had this to say about the merits of shareholdings and alliances late last year: “Taking a minority stake without having some form of control, or some influence over what the airline is going to do, has no value whatsoever.”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 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Germany's Lufthansa on Friday said it would suspend all flights to mainland China until March 28 due to the new coronavirus, which is spreading in China and around the world. "The Lufthansa Group has now decided to cancel the flights of Lufthansa, SWISS and Austrian Airlines from/to Beijing and Shanghai until the end of the winter timetable on 28 March," the company said in a statement. Lufthansa had initially suspended its flights until the end of February.
Singapore kicked off Asia's largest aerospace event under heightened scrutiny on Tuesday as thousands of visitors shunned the Singapore Airshow over coronavirus fears, while all eyes were on a sensitive fly-off between U.S. and Chinese fighters. The United States brings F-35B to Singapore a month after it approved sale of 12 jets to the city-state.
The European Union Aviation Safety Agency (EASA) issued a safety information bulletin on Monday saying It was closely monitoring developments related to the coronavirus outbreak in China but the concern does currently warrant an operational directive.
The German government wants to evacuate another group of Germans from the Wuhan area in central China due to the coronavirus outbreak that has killed more than 630 people, magazine Der Spiegel reported on Friday. Germany had already evacuated more than 100 Germans and family members from Wuhan - where the outbreak originated - last weekend but the magazine reported that there were still around 20 Germans in the region of Wuhan.
Airbus posted its biggest January order haul in at least 15 years on Thursday as it booked a major leasing order that has been in the pipeline for several months, and carried out 31 aircraft deliveries. The European planemaker said it had taken orders for 296 aircraft in January, including the recently finalised order for 102 planes from Air Lease Corp as well as 100 jets from U.S. low-cost carrier Spirit Airlines. After cancellations, it started the year with 274 net orders.
(Bloomberg Opinion) -- Ryanair Holdings Plc has been given a telling off by the U.K.’s advertising watchdog for making “misleading” claims about its carbon emissions. Ads claiming Ryanair is Europe’s “lowest emissions airline” must be withdrawn because the Irish carrier did not fully substantiate this and other environmental boasts, the Advertising Standards Authority found.As the climate crisis intensifies, Ryanair probably won’t be the last big company given a dressing down by regulators for “greenwashing.” Environmental considerations are increasingly directing consumer purchases and institutional investment decisions. This creates a big incentive for companies to put a positive spin on things. The huge variety and inherent complexity of some climate-related disclosures tempt businesses to focus on the flattering ones and ignore the rest. In fairness to Ryanair, its claims are based on facts. But it’s an airline, and airlines are heavy polluters, however much they tie a bow on it.The company and its outspoken boss, Michael O’Leary, certainly have form when it comes to making specious claims about the business. On past occasions the company has claimed to be “Europe’s favorite airline.” That may have been true in terms of passengers carried — it’s neck and neck with Deutsche Lufthansa AG — but Ryanair ranks last in Which Magazine’s yearly U.K. passenger satisfaction survey. O’Leary’s capacity for chutzpah is high.In some respects, the ASA’s new ruling is a bit harsh on Ryanair. Its operations are pretty efficient in terms of carbon per passenger kilometer traveled, as I’ve written before.Ryanair flights tend to be full, it doesn’t waste space on business class and its planes fly point-to-point, rather than via hubs, which saves fuel. If consumers are going to buy a product or service anyway, it’s better that they favor a company with a lower per-unit carbon footprint. Ryanair’s new practice of publishing a monthly CO2 report is commendable too. ASA’s main beef was that it hadn’t provided sufficient data to back up its claims and some information was out of date.Still, no one should shed tears on Ryanair’s behalf; its environmental messaging is still way off key. In public statements, O’Leary has repeatedly disparaged climate science. Furthermore, Ryanair’s business model of selling cheap tickets has helped transform flying from an uncommon luxury into a mass-market phenomenon, thereby worsening the industry’s emissions.In absolute terms, Ryanair’s carbon emissions aren’t the biggest among European airlines. But they’ve kept rising because Ryanair is carrying more passengers every year.It’s fine for companies to brag about and set targets for carbon efficiency, as Ryanair does. This a necessary counter-balance to reporting only on absolute emissions, which might show improvement just because a company’s sales have declined. If their total emissions keep rising, however, corporate claims to be the “greenest” anything will ring hollow.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 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
FRANKFURT/SEOUL Feb 5 (Reuters) - Major air cargo carriers said they have no immediate plans to add China flights to replace the capacity lost amid steep cuts to passenger travel due to the coronavirus, as many factories have remained shut down after the Lunar New Year. Aviation data firm OAG said there would be more than 25,000 fewer flights operated to, from and within China this week compared with two weeks ago, with 30 airlines halting services. About half of the air cargo carried globally is in the belly of passenger jets rather than in dedicated freighters, and the flight cuts have made the Chinese market more dependent on freight haulers.
Passenger airlines are extending flight blackouts to China as the death toll and confirmed infections from the flu-like coronavirus continue to rise. Airlines have been slashing flights amid a steep drop in demand for travel to and from China, as corporations prohibit employees from traveling to the area. On Tuesday, Lufthansa Group suspended Lufthansa, SWISS and Austrian Airlines flights to Beijing and Shanghai until Feb. 28 after initially cutting flights through Feb. 9.
The European Union will consider raising from three hours the minimum flight delay for which passengers can receive financial compensation, a move that could cut airlines' costs, according to a document seen by Reuters.