Lufthansa price target raised to EUR 5.70 from EUR 4.30 at Barclays » 12:2010/1910/19/20
Barclays analyst Rishika…
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Lufthansa price target lowered to EUR 5.20 from EUR 5.70 at Deutsche Bank » 13:3910/1610/16/20
Deutsche Bank analyst…
Deutsche Bank analyst Jaime Rowbotham lowered the firm's price target on Lufthansa to EUR 5.20 from EUR 5.70 and keeps a Sell rating on the shares.
|Over a week ago|
Lufthansa CEO says airline far from breaking even, Reuters reports » 14:4710/0510/05/20
Lufthansa CEO Carsten…
Lufthansa CEO Carsten Spohr said that the airline is burning cash at a rate of EUR500M per month and is not close to breaking even, Reuters' Ilona Wissenbach reports. Speaking at an event run by the BDI association of German industrial companies in Berlin, the CEO said that the company was hoping to stop the outflow of cash once it reached a utilization rate of roughly 50% for seat capacity, Wissenbach says. "That is absolutely not foreseeable. We are happy if we can reach 20% during winter," he added. Reference Link
|Over a month ago|
Air France-KLM downgraded to Market Perform from Outperform at Bernstein » 16:1708/1708/17/20
AFLYY, ICAGY, DLAKY
Bernstein analyst Daniel…
Bernstein analyst Daniel Roeska downgraded Air France-KLM (AFLYY) to Market Perform from Outperform with a EUR 4 price target. The post-COVID recovery for business and long-haul air travel will take longer than expected, which "significantly impairs" the outlooks for the three network airline groups in Europe, Roeska tells investors in a research note. The analyst downgrades Air France-KLM, keeps an Outperform rating on top pick IAG (ICAGY), and a Market Perform rating on Lufthansa (DLAKY).
Lufthansa price target lowered to EUR 6.50 from EUR 8 at Berenberg » 13:1508/1008/10/20
Berenberg analyst Adrian…
Berenberg analyst Adrian Yanoshik lowered the firm's price target on Lufthansa to EUR 6.50 from EUR 8 and keeps a Sell rating on the shares.
|Over a quarter ago|
Citi sees expectations for corporate travel rebound all but evaporating » 07:5407/0907/09/20
ALK, LUV, DAL, JBLU, UAL, SAVE, AAL, AFLYY, ICAGY, DLAKY, RYAAY, WZZZY
Expectations of any form…
Expectations of any form of a corporate travel rebound in the next year "will likely all but evaporate" given the lack of employees in the office and the ensuing litigation risks of sending employees abroad, Citi analyst Mark Manduca tells investors in a research note. The analyst believes long-haul airlines that rely on a hub will struggle throughout Q3 and Q4 since "short-haul feeder routes will become neutered by the lack of long-haul traffic." Without a vaccine, the three network carriers in Europe, Air France- KLM (AFLYY), IAG (ICAGY) and Lufthansa (DLAKY), will "weaken financially" over the next year and burn "significantly" more cash than investors currently forecast, says Manduca. For investors that want to be involved in airlines at all, the "only responsible methodology" is to focus on short-haul, point-to-point names like Ryanair (RYAAY) and Wizz Air (WZZZY), contends the analyst. Publicly traded companies in the U.S. airlines space include Alaska Air (ALK), American Airlines (AAL), Delta Air Lines (DAL), JetBlue (JBLU), Southwest (LUV), Spirit Airlines (SAVE) and United Airlines (UAL).
Lufthansa to reduce number of leadership positions by 20% » 12:4507/0707/07/20
The executive board of…
The executive board of Lufthansa has approved a second set of measures as part of its overall restructuring program in the wake of the coronavirus crisis. With the first set of measures launched in early April it had been decided, among other things, to reduce the fleet by 100 aircraft and not to resume the flight operations of Germanwings. The comprehensive restructuring program entitled "ReNew" is scheduled to run until December 2023 and is headed by Dr. Detlef Kayser, Member of the Lufthansa Group Executive Board and responsible for Airline Resources & Operations Standards. It also includes restructuring programs that are already underway at the Group's airlines and service companies. These will continue unchanged. In detail, the following resolutions were adopted by the Group Executive Board and communicated internally: Following the downsizing of the Executive Board of Deutsche Lufthansa AG, the executive board and management bodies of the subsidiaries will be reduced in size compared with 2019. In a first step, the number of board members was reduced by one position each at Lufthansa Cargo AG, LSG Group, and Lufthansa Aviation Training; Government loans and equity participations are to be reduced as quickly as possible to avoid a further increase in interest charges; The number of leadership positions throughout the Group will be reduced by 20%; The administration of Deutsche Lufthansa AG will be reduced by 1,000 positions; The process of transforming Lufthansa Airline into a separate corporate entity is being accelerated; The already planned reduction of sub-fleets and the bundling of flight operations will be implemented. This measure includes the long- and short-haul leisure business at the Frankfurt and Munich hubs. At Lufthansa alone, 22 aircraft have already been phased out ahead of schedule, including six Airbus A380, eleven Airbus A320 and five Boeing 747-400 aircraft; The financial planning up to 2023 provides for the acceptance of a maximum of 80 new aircraft into the Lufthansa Group carriers' fleets. This will reduce the investment volume for new aircraft by half. Due to the long-term effects of the coronavirus pandemic, which are particularly serious for air travel, there is a calculated personnel surplus of at least 22,000 full-time positions in the companies of Lufthansa Group even in the period following the crisis. Nearly all airlines worldwide are currently affected by personnel surplus. In contrast to many of its competitors, Lufthansa will continue to avoid layoffs wherever possible. This requires agreements on crisis-related measures with unions and social partners representing the Lufthansa employees. So far, negotiations have only been successful with the UFO cabin union.
Lufthansa shareholders accept EUR9B German government rescue package » 13:0206/2506/25/20
Lufthansa shareholders have voted in favor of accepting the capital measures and the participation of the Economic Stabilisation Fund of the Federal Republic of Germany in Deutsche Lufthansa AG. The corresponding proposal received the necessary majority at today's Extraordinary General Meeting of the company. The package provides for stabilization measures and loans of up to EUR9B. The WSF will make silent capital contributions of up to EUR5.7B to the assets of Deutsche Lufthansa AG. It will also establish a 20% stake in the share capital of Deutsche Lufthansa AG by way of a capital increase. This capital increase was approved at today's Extraordinary General Meeting. The shareholders also voted in favor of granting two conversion rights for parts of the silent capital contributions. These conversion rights are intended, on the one hand, to safeguard the Federal Government in case of a takeover of Lufthansa and, on the other hand, to secure the interest payments for the silent capital contribution. Both conversion rights can be transformed into a further five percent of the company's share capital should these conditions be met. The package will be supplemented by a loan of up to EUR3B with the participation of KfW and private banks. As a result of the resolution of the Extraordinary General Meeting, the company's liquidity is secured on a sustained basis. The companies of Lufthansa Group are working at full speed to get their operations up and running again. The airlines' flight schedules will therefore be consistently expanded in the coming weeks. The flight schedule for the next few weeks will be published at the beginning of next week. The plan is to include 90% of all originally planned short-haul destinations and 70% of all long-haul destinations in the flight schedule again by September.
Lufthansa draws up backup plan to avoid insolvency, Reuters reports » 14:0106/2406/24/20
Lufthansa has drafted a…
Lufthansa has drafted a plan to avoid insolvency should a stakeholder vote this week fail to give the OK to a $10B government bailout, Reuters' Ilona Wissenbach reports, citing a company source. The German government could still get a 20% holding in the airline, as originally envisaged, but under a new plan this would occur in two steps, without the need for investors' approval, Wissenbach says. Reference Link
Lufthansa shareholder Thiele seeks talks with Germany, Reuters says » 14:0706/1806/18/20
Heinz Hermann Thiele,…
Heinz Hermann Thiele, Lufthansa's (DLAKY) largest stakeholder, has reached out to politicians in Germany for talks, the latest step in a standoff over the German air carrier's EUR9B bailout, Reuters' Holger Hansen and Joern Poltz report, citing Handelsblatt. Lufthansa investors need to approve the rescue package but Thiele, who has a 15% interest in the company, has criticized bailout terms and is raising more cash by selling down EUR760M worth of shares in Knorr-Bremse (KNRRY), the authors say. Reference Link