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Deutsche Lufthansa AG (DLAKY)
:DLAKY
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Deutsche Lufthansa AG
(OTC:DLAKY)
Rating:74Outperform
Price Target:
$9.50
▼(-0.42% Downside)
Deutsche Lufthansa AG (DLAKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.33B
Dividend Yield3.55%
Average Volume (3M)5.64K
Price to Earnings (P/E)5.6
Beta (1Y)0.91
Revenue Growth6.95%
EPS Growth86.01%
CountryUS
Employees102,574
SectorIndustrials
Sector Strength84
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.96
Shares Outstanding1,200,015,000
10 Day Avg. Volume10,366
30 Day Avg. Volume5,642
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.46
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit3.38
Enterprise Value/Ebitda3.71
Forecast
1Y Price Target
$9.50Price Target Upside-0.42% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Deutsche Lufthansa AG Business Overview & Revenue Model
Company DescriptionDeutsche Lufthansa AG (DLAKY) is a leading global airline and aviation group headquartered in Germany. It operates in several sectors, including passenger and cargo airline services, aircraft maintenance, and travel services. The company is known for its extensive flight network, covering numerous domestic and international destinations through its flagship airline Lufthansa and subsidiaries such as SWISS, Austrian Airlines, and Eurowings, as well as its cargo division, Lufthansa Cargo. In addition to air transport, Lufthansa provides various ancillary services like catering, ground handling, and logistics.
How the Company Makes MoneyDeutsche Lufthansa AG generates revenue primarily through the sale of passenger and cargo tickets. Its core revenue streams include passenger transportation, which accounts for a significant portion of its earnings, and freight services provided by Lufthansa Cargo. The company also earns income from ancillary services such as baggage fees, onboard sales, and premium services. Additionally, Lufthansa benefits from partnerships and alliances, notably as a member of the Star Alliance, which enhances its network and customer base. The airline's loyalty program, Miles & More, also contributes to revenue through partnerships with hotels, car rental companies, and retail brands. Overall, Lufthansa's financial performance is influenced by factors such as ticket pricing, fuel costs, operational efficiency, and economic conditions affecting travel demand.
Deutsche Lufthansa AG Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: 11.19%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong operational improvements and financial performance in several segments, notably Lufthansa Cargo, Technik, and the integration of ITA Airways. However, challenges such as high location costs, delayed aircraft deliveries, and cost pressures present significant headwinds. The balance between achievements and challenges suggests a positive outlook, but with caution due to external pressures.Q2-2025 Updates
Positive Updates
Operational Stability and Punctuality Improvement
Network reliability improved by 1 percentage point to more than 99%, and punctuality increased by 8 percentage points.
Positive Financial Results for ITA Airways
ITA Airways integration showing positive financial effects earlier than expected, contributing EUR 91 million to adjusted EBIT.
Lufthansa Cargo and Technik Performance
Lufthansa Cargo doubled its result to EUR 73 million, and Lufthansa Technik delivered a record level adjusted EBIT of EUR 310 million in the first half of the year.
Growth in North Atlantic and Asian Markets
Increased capacity on the North Atlantic by 5% with stable yields, and promising developments in South Korea and Japan.
Fleet Modernization and Allegris Product Impact
Introduction of 10 Airbus 350-900s with Allegris product, showing significant yield uplift and high ancillary revenue growth.
Strong Ancillary Revenue Growth
Ancillary revenues increased by more than 25% compared to the first half of 2024.
Negative Updates
High Location Costs in Europe
Competitive disadvantage due to high location costs, rising taxes, and fees, especially in Germany and Europe.
Delayed Aircraft Deliveries
Specific issues with delayed aircraft deliveries affecting operational capabilities, though signs of improvement are visible.
Softer Demand in European and North Atlantic Markets
Softer growth and demand for connecting traffic on short-haul European routes and some softness in the demand for flights to the U.S. from Germany.
Cost Pressures and Inflation
Material cost ex fuel rose by more than 9%, fees and charges increased by 11%, and personnel expenses were up by 10%.
Company Guidance
In the recent call, Lufthansa Group provided detailed guidance highlighting key metrics from their second-quarter 2025 performance and outlook for the remainder of the year. The company reported an adjusted EBIT of EUR 871 million, marking a 1/3 increase from EUR 185 million the previous year, with the Passenger Airlines segment contributing EUR 690 million to this figure. Lufthansa Cargo doubled its result to EUR 73 million, and Lufthansa Technik achieved a record adjusted EBIT of EUR 310 million. The company serviced 61 million passengers in the first half of the year, a 3.8% increase in capacity compared to the previous year. Operational stability improved with network reliability at over 99% and punctuality up by 8 percentage points. Despite challenges such as rising location costs and geopolitical tensions, Lufthansa is optimistic about the ongoing integration of ITA Airways and anticipates further financial benefits. The group also highlighted significant progress in its turnaround program, particularly in operational efficiency and ancillary revenue growth, which increased by 25% year-over-year. The outlook remains cautiously optimistic, with plans for fleet modernization and strategic initiatives aimed at sustainable long-term value creation for shareholders.Deutsche Lufthansa AG Financial Statement Overview
Summary
Deutsche Lufthansa AG exhibits strong revenue recovery post-pandemic and improved leverage management. However, challenges in profitability margins and cash flow generation persist, requiring focus for sustainable financial health.Income Statement
Deutsche Lufthansa AG has shown a strong recovery in revenue growth, especially post-pandemic, with a 5.9% increase from 2023 to 2024. The gross profit margin improved significantly from negative in 2020 to positive in 2024. However, the net profit margin decreased from 4.7% in 2023 to 3.7% in 2024, indicating some efficiency challenges. EBIT and EBITDA margins have also decreased slightly, suggesting room for improvement in operating efficiency.75
Positive
Balance Sheet
The debt-to-equity ratio remains high, though it has improved from 11.4 in 2020 to 1.23 in 2024, indicating better leverage management. The equity ratio has improved over recent years, reaching 24.5% in 2024, reflecting a more stable financial position. However, the high level of debt still poses potential risks. ROE increased to 11.9% in 2024, showing better returns for shareholders.70
Positive
Cash Flow
Free cash flow has been volatile, with significant negative values in 2020 and 2024. The operating cash flow to net income ratio is relatively strong at 2.82, but the free cash flow to net income ratio is negative, indicating challenges in generating free cash flow. The company needs to focus on improving its cash flow generation to support long-term growth.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.63B | 37.58B | 35.48B | 32.77B | 16.81B | 13.59B |
| Gross Profit | 4.89B | 4.83B | 7.43B | 4.62B | -3.00M | -2.98B |
| EBITDA | 4.46B | 4.66B | 5.30B | 3.73B | 92.00M | -3.66B |
| Net Income | 1.77B | 1.38B | 1.67B | 791.00M | -2.19B | -6.77B |
Balance Sheet | ||||||
| Total Assets | 48.14B | 47.05B | 45.32B | 43.34B | 42.54B | 39.48B |
| Cash, Cash Equivalents and Short-Term Investments | 8.59B | 8.49B | 8.27B | 8.30B | 7.60B | 5.38B |
| Total Debt | 0.00 | 14.23B | 13.95B | 15.17B | 16.69B | 15.38B |
| Total Liabilities | 37.80B | 35.46B | 35.61B | 34.86B | 38.05B | 38.10B |
| Stockholders Equity | 10.29B | 11.54B | 9.66B | 8.40B | 4.45B | 1.35B |
Cash Flow | ||||||
| Free Cash Flow | 120.00M | -6.00M | 895.00M | 2.66B | -700.00M | -3.58B |
| Operating Cash Flow | 3.88B | 3.89B | 4.95B | 5.17B | 618.00M | -2.33B |
| Investing Cash Flow | -2.85B | -2.33B | -2.98B | -3.44B | -3.02B | -2.34B |
| Financing Cash Flow | -947.00M | -1.45B | -2.07B | -2.27B | 2.87B | 5.08B |
Deutsche Lufthansa AG Technical Analysis
Positive
9.54
Price Trends
8.56
Positive
7.86
Positive
7.24
Positive
Market Momentum
0.23
Negative
72.00
Negative
99.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLAKY, the sentiment is Positive. The current price of 9.54 is above the 20-day moving average (MA) of 8.91, above the 50-day MA of 8.56, and above the 200-day MA of 7.24, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 72.00 is Negative, neither overbought nor oversold. The STOCH value of 99.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DLAKY.
Deutsche Lufthansa AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $32.47B | 15.49 | 27.12% | 1.29% | 10.61% | 37.32% | |
81 Outperform | $38.16B | 8.48 | 30.07% | 1.07% | 3.01% | -0.90% | |
80 Outperform | $31.88B | 9.87 | 27.70% | ― | 4.23% | 13.13% | |
74 Outperform | $11.33B | 5.61 | 17.85% | 3.55% | 6.95% | 86.01% | |
62 Neutral | $8.56B | 16.69 | -21.27% | ― | 1.50% | ― | |
56 Neutral | $10.83B | 52.56 | 12.26% | ― | 0.00% | 0.00% | |
49 Neutral | $16.13B | 46.20 | 4.30% | 2.32% | 1.64% | 284.24% |
* Industrials Sector Average
Performance Comparison
DLAKY
Deutsche Lufthansa AG
9.54
3.60
60.61%
DAL
Delta Air Lines
59.42
19.71
49.63%
RYAAY
Ryanair Holdings
65.77
25.52
63.40%
LUV
Southwest Airlines
30.97
5.03
19.39%
UAL
United Airlines Holdings
99.79
57.13
133.92%
AAL
American Airlines
13.11
3.02
29.93%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.