LHA.DE - Deutsche Lufthansa AG
| Previous close | 17.26 |
| Open | 17.15 |
| Bid | 17.14 x 948200 |
| Ask | 17.14 x 1900800 |
| Day's range | 16.97 - 17.37 |
| 52-week range | 12.58 - 23.66 |
| Volume | 1,857,666 |
| Avg. volume | 4,626,701 |
| Market cap | 7.988B |
| Beta (3Y monthly) | 0.87 |
| PE ratio (TTM) | 5.89 |
| EPS (TTM) | 2.91 |
| Earnings date | 7 Nov 2019 |
| Forward dividend & yield | 0.80 (4.63%) |
| Ex-dividend date | 2019-05-08 |
| 1y target est | N/A |
- Reuters - UK Focus
UPDATE 2-Trade worries push European shares to worst day in three weeks
European shares logged their worst day in three weeks on Wednesday on mounting worries that rising U.S.-China tensions could take a toll on trade negotiations between the two countries. "This deal is so not even there...there's a good reason it could fall through altogether," said Tom Martin, portfolio manager at Globalt in Atlanta. Expectations that the world's top two economies would strike a trade deal have been instrumental in driving the STOXX 600 to a four-year peak.
- Reuters
Union threatens strikes unless Lufthansa makes concessions in wage dispute
FRANKFURT/BERLIN (Reuters) - A trade union representing Lufthansa's cabin-crew on Wednesday threatened strikes that could fall during the busy Christmas period if Germany's biggest airline does not make concessions in a wage dispute. Trade union UFO said that if no progress was made during talks, it would announce next Thursday when and where strikes would take place and for how long they would last. A Lufthansa spokesman said the airline would use the time to try to come to an agreement with UFO, adding that a solution could only be found in joint discussions and arbitration.
- Bloomberg
Airplanes Aren’t Selling Like They Used To
(Bloomberg Opinion) -- Airplanes just aren’t selling like they used to.Monday marked the second day of the Dubai Air Show, and while there was the usual smattering of headlines with big-dollar figures, there was also fresh evidence that the robust aerospace cycle that’s propelled the industry’s stocks to new highs is getting long in the tooth. Carriers including Emirates and Etihad Airways rejiggered orders at the Air Show as they sought to adapt to a global growth slowdown and weaker demand for travel in the Middle East amid stubbornly low oil prices. This follows similar rethinks at British Airways-parent IAG SA and Deutsche Lufthansa AG earlier this month, with both carriers seemingly pushing out or putting on hold orders for Boeing Co.’s 777X wide-body model. The general takeaway is that the world doesn’t need as many planes right now as airlines might have thought just a few years ago, especially when it comes to the biggest jets used for long-distance international flights. The 777X in particular appears to be in trouble, with launch customer Emirates also reportedly contemplating cutting or delaying its order for 150 of the jets, perhaps in part by swapping in some of the smaller 787 Dreamliners. The Middle East is one of the more attractive markets for the 777 model, which is too big to fly in many other regions. So if airlines there are balking, then production rates may need to come down. Complicating things is a delay in the first deliveries of the 777X until 2021 due to durability issues with a General Electric Co. jet engine. Emirates chief Tim Clark has made it clear he’s fed up with a pattern of delayed rollouts, or worse, post-delivery glitches that force costly groundings, and the delay could factor into any decision. Stanley Deal, who took over as head of Boeing’s commercial airplanes division in October following the ouster of Kevin McAllister, told reporters over the weekend that the company was still in talks with Emirates on the 777X and a still yet-to-be-confirmed order for 40 Dreamliners. “Long term, the 777X’s value remains intact,” Deal said.Boeing has also trimmed its production targets for the Dreamliner after expected orders from China failed to materialize. Etihad Airways said at the Dubai Air Show that it will take 20 fewer Dreamliners over the next four years than originally planned as it grapples with eye-popping losses. Airbus SE models weren’t spared from weakening demand, either. Emirates finalized a $16 billion order for 50 Airbus A350 widebody jets — more than it had committed to in February — but appears to have backed away from an earlier commitment to buy 40 A330neos as well, meaning the total value of the deal before customary discounts is less than originally outlined.The news was better in the narrow-body market. Air Arabia inked a firm order for 120 of Airbus’s A320-model jets. Even Boeing’s troubled 737 Max got some love, with Turkish holiday carrier SunExpress exercising an option to add 10 more of the jets to its fleet. Indian low-cost carrier SpiceJet Ltd. may also seize on the dearth of Max orders as an opportunity to pick up some of the jets at a discount as it contemplates a new hub in the Middle East. In an interview with Bloomberg TV, SpiceJet chairman Ajay Singh wouldn’t rule out signing a deal at the air show, although the size and ultimate timing remain up in the air. Even so, the early returns on the Air Show would seem to be at odds with Airbus CEO Guillaume Faury’s comments last week that aviation demand continues to move “up and up.” Global passenger traffic is indeed still growing, but at a much lower rate than over the past few years. And that matters, because aviation stocks aren’t cheap right now. The SPDR S&P Aerospace and Defense ETF is up 42% so far this year, well outpacing the broader S&P 500 benchmark. The high valuations for aerospace stocks can hold to the extent margins are still on an uptrend and the rebound investors are positioning for in the manufacturing industry plays out, Denise Chisholm, Fidelity’s head of sector strategy, said in a Bloomberg TV interview. At least some airlines, though, are choosing to plan more conservatively.To contact the author of this story: Brooke Sutherland at bsutherland7@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Reuters - UK Focus
WRAPUP 2-Airbus dominates second day of Dubai show as Boeing wins MAX order
Gulf airlines Emirates and Air Arabia spent a combined $30 billion at list prices on Airbus jetliners as the Dubai Airshow burst into life on Monday, while Boeing won a symbolic first official order for the 737 MAX since its grounding in March. Emirates threw its weight behind the Airbus A350 with an expanded order for 50 jets worth $16 billion, but shelved plans to order the slightly smaller A330neo as the Middle East’s largest carrier embarked on a more diversified fleet structure.
- Reuters - UK Focus
Boeing, Airbus kept in suspense over big Dubai jet deals
Airbus and Boeing fought to save billions of dollars of jet deals on Sunday as host airline Emirates kept the Dubai Airshow in suspense over dozens of tentative orders designed to fine-tune the world's largest international airline network. The world's top jetmakers are trying to win final approval for more than $30 billion in orders from Emirates that have been on ice for up to two years as Emirates protests about industrial delays. Interlocking deals involving a total of 110 Boeing 787 and Airbus A330neo and A350 are up for grabs, but it remains unclear whether there was room for all them in Emirates' revised fleet, delegates said.
- Reuters - UK Focus
UPDATE 2-Wizz Air raises profit forecast, capacity outlook as rivals struggle
Wizz Air lifted the bottom end of its annual profit forecast and further raised its capacity growth outlook, as the budget airline flew more passengers and curbed costs in the first-half, while struggling rivals cut expansion plans. Wizz, which mainly flies to central and eastern Europe, said on Wednesday net profit for the financial year 2020 would be between 335 million euros to 350 million euros ($369.17 million to $385.70 million). Chief Executive Officer József Váradi said the airline was increasing its capacity growth rate to 22%, from 20% promised in July, while net profit for the six months ended Sept. 30 rose 87.1% to 371.5 million euros.
- Reuters
Lufthansa agrees to arbitration with cabin crew, averting strikes
Lufthansa has agreed with its cabin crew labour union to enter arbitration over a wage dispute, the German airline and the union said on Tuesday, averting further strikes. Cabin crew held a strike over pay and pensions for two days last week, resulting in the cancellation of one in five flights, affecting around 180,000 passengers and costing the airline 10-20 million euros ($11-$22 million). The UFO labour union is obligated to "maintain industrial peace," Lufthansa said in a statement.
- Bloomberg
Are Passenger Jet Engines Hitting Their Technical Limits?
(Bloomberg Opinion) -- The high-pressure turbine blades in a Trent 1000 passenger jet engine have to withstand temperatures far above the melting point of the nickel alloy from which they’re made. It’s a fiendish technical challenge for the engine’s British manufacturer, Rolls-Royce Holdings Plc — comparable to trying to stop an ice cube melting inside a kitchen oven on full blast. The solution found by the company’s engineers was to blow cool air through tiny holes in the blades. Unfortunately this clever approach has encountered some unexpected problems.Boeing 787 aircraft operated by British Airways, Norwegian Air Shuttle, Virgin Atlantic and others have been grounded in recent months for inspections and repairs because the Trent 1000 engine blades have been degrading faster than anticipated. It’s the type of problem that’s becoming common in the industry as the demands placed on engines become ever greater.The expense of dealing with these things is rising too. Last week, Rolls-Royce quantified the cost of fixing various Trent 1000 issues at 2.4 billion pounds ($3.1 billion), a cash outflow the debt-laden manufacturer can ill afford.Few inventions have done more to transform our life over the past century than jet engines. They’ve let people travel faster and further, and they’re remarkably safe. Passenger fatalities like the one caused by a turbine failure on a Southwest Airlines flight last year are rare. Developed at enormous expense and using innovative new materials, the most recent “powerplants” (to use engines’ industry name) are comparatively quiet and fuel efficient.Yet these innovations have taken the technology closer to its technical limits and reliability issues have crept in. “By pushing the envelope on thrust and efficiency, things have started to go wrong elsewhere in the system,” says Nick Cunningham at Agency Partners. This is worrying because companies are under pressure to build even more efficient propulsion systems to curb carbon emissions. Rolls-Royce’s problems appear the most serious — some 40 787s powered by its engines are parked — but this is an industry-wide issue. Forced to ground planes and adjust flight schedules, airlines have resorted to leasing replacement aircraft and have told engine manufacturers to pay compensation.In September Tim Clark, the boss of Emirates, said manufacturers are delivering aircraft that don’t do what was promised. “Give us airframes and engines that work from day one. If you can’t do it, don’t produce them,” he said.The laws of science aren’t the only thing testing the engine makers. Airbus SE and Boeing Co. have brought several new passenger jets to market in quick succession and their powerplant suppliers have had to ramp up production rapidly. A lot of new demand is from emerging markets where dusty or polluted air can put additional strain on engines.Airbus production was thrown into chaos last year by engine glitches involving Pratt & Whitney’s geared turbofan (GTF) for the A320neo, Airbus’s top-selling jet. More recently the launch of Boeing’s 777x wide-body aircraft was pushed to next year after the premature wearing out of a General Electric engine component.It’s one thing for an engine to miss tough production targets, but quite another for engines to fail once they’re in service. “Engine manufacturers have always had teething problems but in four decades I’ve never seen anything like the list of technical issues they’re been having lately,” says John Strickland, director of JLS Consulting. This month India threatened to ground scores of Airbus A230neo jets operated by domestic carrier Indigo unless the Pratt engines were replaced by the end of January. The warning followed several incidents of engines shutting down in-flight.In October Lufthansa AG subsidiary Swiss temporarily grounded its Airbus A220(1) fleet so the Pratt engines could be inspected after a spate of powerplant failures (the debris from one such incident was recovered from a French forest last week). Since then Canadian regulators ordered the same aircraft not to operate at full power above a specified altitude.About 70% of airlines and lessors surveyed by Citi Research said groundings caused by engine issues were a key concern. Some are looking to operate mixed fleets to lessen the risk of one engine type being grounded. While that’s prudent, it’s more expensive than using a single type of equipment.The risk for engine manufacturers is that reliability issues cost them market share. Earlier this year Air New Zealand switched an order for 787 jet engines to GE after problems with its Rolls-Royce kit. Indigo placed a $20 billion order with the GE/Safran engine joint venture rather buy from Pratt (Pratt claimed the decision was price-related).The problems haven’t affected all new technologies. Rolls-Royce’s XWB powerplant for the Airbus A350 has proven reliable so far. The core gearing innovation underpinning Pratt’s GTF also appears to work as planned; a relief because it cost about $10 billion to develop. There’s more at stake, though, than airline flight schedules and manufacturers’ pride and profitability. As with the car industry, the aerospace sector is gearing up for an epochal effort to curb carbon emissions. Aviation accounts for 2%-3% of greenhouse gas emissions but the sheer volume of plane deliveries in coming years will counteract engine efficiency gains. Aviation’s share could rise to between 10% and 25% by 2050, a Roland Berger study found. Unlike carmakers, the airlines lack viable technological alternatives. Biofuels have potential but fully electric large commercial aircraft are probably decades awayEngine manufacturers are working on still more efficient jet engine designs. Rolls-Royce claims its Ultrafan technology will deliver a 25% improvement in fuel burn compared to the first generation of Trents. Bringing these innovations to market quickly is essential from a planetary perspective but rushing development could prove counterproductive. “My sense is that public opinion in Europe at least is moving quicker than the technology,” says Rob Stallard at Vertical Research Partners.Cunningham is even less optimistic. “Gas turbines are running out of road at just the point where the political impetus is toward greater decarbonization,” he says. “Jet engines are unlikely to get a lot better from here.”(1) The plane was developed by Bombardier Inc and was known as the C-Series before Airbus acquired a majority stake.To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis 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.
- Reuters - UK Focus
UPDATE 3-BA owner IAG trims capacity growth forecast to shield margins
British Airways owner IAG scaled back its three-year capacity growth forecast on Friday, hitting its earnings per share outlook but protecting its margins in the face of a weak global economy and a highly competitive marketplace. Although Walsh was presenting mid-term targets, he is likely to leave before the end of the period as the long-serving CEO confirmed he plans to retire by October 2021.
- Reuters - UK Focus
LIVE MARKETS-Closing snapshot: 9 points is all it would take
* Wall Street opens higher Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. 9 little points is all it would take to bring the STOXX 600 to its highest level ever and join Wall Street in the fun of fresh milestones and "record high" headlines. With upbeat trade optimism lifting stock markets across the planet, it's absolutely possible this will happen tomorrow (unless writing this just jinxed it!).
- Reuters - UK Focus
LIVE MARKETS-Two decades of Wall Street outperforming Europe: "An illusion"
* Wall Street opens higher Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Natixis chief economist Patrick Artus makes an interesting argument about the two-decade long stellar outperformance of Wall Street over Europe, saying it's "an illusion".
- Reuters - UK Focus
LIVE MARKETS-Are UK retail investors drifting away from the Tories?
* Wall Street opens higher Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. ARE UK RETAIL INVESTORS DRIFTING AWAY FROM THE TORIES? No surprise here: one wouldn't exactly expect UK retail stock investors to massively support Labour.
- Bloomberg
Lufthansa Jumps as Eurowings Profit Boost Erases Strike Concerns
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Deutsche Lufthansa AG said an improved performance at its no-frills Eurowings arm helped stem profit declines as a two-day strike underscores the challenge facing the airline in cutting costs.Shares of Europe’s biggest airline rose the most in three years as Eurowings staged a comeback amid fierce price competition with rival discount carriers. While a drop in fares forced Lufthansa’s third-quarter earnings down 8% to 1.3 billion euros ($1.44 billion), the result was ahead of analyst estimates.Lufthansa said it expects capacity to shrink 1% on short-haul routes in its home markets this winter, comments that Sanford C. Bernstein analyst Daniel Roeska said may point to a better operating environment over the next six months. A glut of seats in the past few years has pushed down fares and undermined margins at European carriers despite efforts to boost efficiency.The cabin-crew strike highlights the challenge still facing Lufthansa as it seeks to secure deeper cost costs. The walkout, which began at midnight, has led to the cancellation of 1,300 flights and could push earnings toward the lower end of a targeted range, Chief Financial Officer Ulrik Svensson said on a call, adding that such action can cost up to 20 million euros per day.A spokesman for the UFO union said later Thursday the group would meet with Lufthansa for talks on Saturday before reviewing whether to expand the strikes.AlitaliaChief Executive Officer Carsten Spohr said Lufthansa would be interested in bankrupt Italian carrier Alitalia SpA only once it has been restructured. He declined to comment on whether his company would be willing to invest cash to oust Delta Air Lines Inc. from a rescue package.Lufthansa shares gained 9.7%, the biggest advance since October 2016, before trading 6.7% higher at 17.24 euros as of 2:54 p.m. in Frankfurt.Spohr said the performance of Eurowings, which turned profitable after posting losses in the previous three quarters, indicates “turnaround measures are showing first results.” The unit has reduced winter capacity this winter, helping to buoy yields despite the fare war.(Updates with detail in fifth paragraph on UFO agreeing to talks)To contact the reporter on this story: William Wilkes in Frankfurt at wwilkes1@bloomberg.netTo contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net, ;Anthony Palazzo at apalazzo@bloomberg.net, Tara PatelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Reuters - UK Focus
UPDATE 1-Lufthansa ready for arbitration as cabin crew strike begins
Lufthansa is ready to go into arbitration to resolve a long-running staff dispute, the CEO of Germany's largest airline said on Thursday, as a walkout by flight attendants disrupted travel plans of tens of thousands of passengers. An end to the row over pay and pensions, and the legal status of flight attendants' union UFO would relieve the company of a major headache. Lufthansa faces intense competition from Ryanair and easyJet and has reacted by cutting costs and announcing a turnaround plan for its budget unit Eurowings, which it said on Thursday was paying off as it reported better-than-expected quarterly figures.
- Reuters - UK Focus
LIVE MARKETS-Germany: no fast rebound but no crash either
- Reuters
Lufthansa only interested in 'restructured' Alitalia - CEO
German airline Lufthansa is only interested in investing in struggling Italian airline Alitalia, which is running out of cash and racing to find new funds, once it has been restructured, its chief executive said on Thursday. "The technical restructuring of taking elements out, people out needs to be done by the current ownership before we can see ourselves getting involved here," Carsten Spohr told analysts after Lufthansa reported third quarter results. On Wednesday, Alitalia's administrators said they had no preferred option between Delta Air Lines and Lufthansa, the two groups talking with rail operator Ferrovie dello Stato about a rescue for the Italian carrier.
- Reuters
Lufthansa only interested in 'restructured' Alitalia: CEO
German airline Lufthansa is only interested in investing in struggling Italian airline Alitalia [CAITLA.UL], which is running out of cash and racing to find new funds, once it has been restructured, its chief executive said on Thursday. "The technical restructuring of taking elements out, people out needs to be done by the current ownership before we can see ourselves getting involved here," Carsten Spohr told analysts after Lufthansa reported third quarter results. On Wednesday, Alitalia's administrators said they had no preferred option between Delta Air Lines and Lufthansa, the two groups talking with rail operator Ferrovie dello Stato about a rescue for the Italian carrier.
- Reuters - UK Focus
UPDATE 2-Trade optimism, upbeat earnings send European shares to 4-year peak
European shares rose for a fifth straight session on Thursday to hit fresh four year highs as investors cheered signs of progress in U.S.-China trade talks and largely positive earnings reports from a host of companies. Shares of Siemens hit their highest in more than a year after the German industrial company beat fourth-quarter profit expectations, while Italy's biggest bank UniCredit rose 6% after announcing its first share buyback in more than a decade after solid third-quarter earnings. Lufthansa jumped 6.8% on plans to cut costs at some of its units to revive profit.
- Reuters
Lufthansa ready for arbitration as cabin crew strike begins
Lufthansa is ready to go into arbitration to resolve a long-running staff dispute, the CEO of Germany's largest airline said on Thursday, as a walkout by flight attendants disrupted travel plans of tens of thousands of passengers. An end to the row over pay and pensions, and the legal status of flight attendants' union UFO would relieve the company of a major headache. Lufthansa faces intense competition from Ryanair and easyJet and has reacted by cutting costs and announcing a turnaround plan for its budget unit Eurowings, which it said on Thursday was paying off as it reported better-than-expected quarterly figures.
- Reuters - UK Focus
LIVE MARKETS-Earnings, positive trade headlines help extend rally
