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Deutsche Lufthansa AG (DLAKY)
OTHER OTC:DLAKY
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Deutsche Lufthansa AG
(OTC:DLAKY)
Rating:76Outperform
Price Target:
$11.00
▲(24.01% Upside)
Deutsche Lufthansa AG (DLAKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.53B
Dividend Yield3.88%
Average Volume (3M)5.70K
Price to Earnings (P/E)5.2
Beta (1Y)0.92
Revenue Growth6.95%
EPS Growth86.01%
CountryUS
Employees102,574
SectorIndustrials
Sector Strength74
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.96
Shares Outstanding1,200,015,000
10 Day Avg. Volume2,921
30 Day Avg. Volume5,699
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 Cap1.57
Enterprise Value/Revenue0.43
Enterprise Value/Gross Profit3.38
Enterprise Value/Ebitda3.71
Forecast
1Y Price Target
$11.00Price Target Upside24.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Deutsche Lufthansa AG Business Overview & Revenue Model
Company DescriptionDeutsche Lufthansa AG operates as an aviation company in Germany and internationally. The company's Network Airlines segment offers passenger services. Its Eurowings segment provides passenger services through a route network of more than 100 destinations in over 50 countries. The company's Logistics Business segment offers transport services for various cargoes, including general cargo, dangerous goods, valuables, vulnerable, perishables, live animals, courier, emergency, airmail/e-commerce, and temperature sensitive goods services approximately 300 destinations in 100 countries. Its Maintenance, Repair and Overhaul Services (MRO) segment provides maintenance, repair, and overhaul services for civilian commercial aircraft serving original equipment manufacturers and aircraft leasing companies, operators of VIP jets, and airlines. The company's Catering Business segment engages in-flight services and convenience retail, as well as other areas, such as retail and food producers. As of December 31, 2021, it had a fleet of 713 aircraft. Deutsche Lufthansa AG was founded in 1926 and is headquartered in Cologne, Germany.
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: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong operational stability, passenger growth, and promising results from Lufthansa Cargo and Technik. However, ongoing challenges with location costs, regulation, and aircraft delivery delays were noted. The integration of ITA Airways and ancillary revenue growth provided positive momentum, but cost pressures and yield declines tempered the outlook.Q2-2025 Updates
Positive Updates
Operational and Financial Stability
Network reliability improved by 1 percentage point to over 99%, and punctuality increased by 8 percentage points. Adjusted EBIT increased by 1/3 from EUR 185 million to EUR 871 million in the second quarter.
Passenger Growth and Capacity
Welcomed 61 million passengers in the first half of the year, with a 3.8% increase in capacity.
Lufthansa Cargo Performance
Lufthansa Cargo doubled its result to EUR 73 million compared to last year, driven by volume and stable base yield.
Lufthansa Technik Record EBIT
Lufthansa Technik achieved a record adjusted EBIT of EUR 310 million in the first half of 2025.
ITA Airways Integration
Positive financial effects from ITA Airways integration were seen earlier than expected, contributing EUR 91 million to adjusted EBIT.
Ancillary Revenue Growth
Ancillary revenues increased by 18% compared to last year, with a 25% boost in Lufthansa Airlines due to Allegris.
Negative Updates
Location Costs and Regulation Challenges
Increased location costs in Germany and Europe, along with rising taxes and fees, posed competitive disadvantages.
Cost Pressure on Operations
Material costs (excluding fuel) rose by over 9%, fees and charges increased by 11%, and personnel expenses were up by 10%.
Yield and RASK Decline
Overall yields were slightly down, especially in the short-haul business within Europe, affecting RASK.
Delayed Aircraft Deliveries
Industry-wide delays in aircraft deliveries continue to affect fleet modernization plans, with 2025 labeled as a transition year.
Company Guidance
In the call, Lufthansa Group's leadership provided a detailed overview of their second-quarter 2025 performance and guidance for the rest of the year. Key metrics highlighted include a 3% revenue growth aligned with a 3.8% increase in available seat kilometers (ASK), leading to an adjusted EBIT of EUR 871 million, a 27% year-over-year increase. Passenger airlines saw a EUR 690 million operating result, while Lufthansa Cargo doubled its result to EUR 73 million. Operational stability improved, with network reliability exceeding 99% and punctuality rising by 8 percentage points. The group welcomed 61 million passengers in the first half and reduced irregularity costs by 28%. The fleet modernization is progressing, albeit slower than desired, and they achieved a significant 1/3 increase in adjusted EBIT compared to the previous year. Challenges highlighted include rising location costs, taxes, and regulatory burdens in Europe. The integration of ITA Airways is ahead of schedule, already contributing positively with a EUR 91 million EBIT contribution in Q2. The group maintains a strong financial position, with a net debt of EUR 5.5 billion, and reiterated its full-year guidance, emphasizing a focus on long-term value creation despite ongoing geopolitical and economic uncertainties.Deutsche Lufthansa AG Financial Statement Overview
Summary
Deutsche Lufthansa AG has shown strong revenue growth and improved leverage post-pandemic. However, challenges remain with profitability margins and cash flow generation, indicating a need for further improvement in 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
Neutral
8.87
Price Trends
8.96
Negative
8.25
Positive
7.46
Positive
Market Momentum
<0.01
Positive
42.16
Neutral
5.77
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLAKY, the sentiment is Neutral. The current price of 8.87 is below the 20-day moving average (MA) of 9.39, below the 50-day MA of 8.96, and above the 200-day MA of 7.46, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.16 is Neutral, neither overbought nor oversold. The STOCH value of 5.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DLAKY.
Deutsche Lufthansa AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $34.33B | 10.63 | 27.70% | ― | 4.23% | 13.13% | |
80 Outperform | $39.54B | 8.89 | 30.07% | 1.05% | 3.01% | -0.90% | |
76 Outperform | $10.53B | 5.20 | 17.85% | 3.88% | 6.95% | 86.01% | |
75 Outperform | $29.63B | 14.69 | 27.12% | 1.41% | 10.61% | 37.32% | |
66 Neutral | $8.84B | 17.28 | -21.27% | ― | 1.50% | ― | |
64 Neutral | $10.73B | 15.74 | 7.64% | 2.01% | 2.76% | -15.10% | |
58 Neutral | $16.94B | 48.50 | 4.30% | 2.31% | 1.64% | 284.24% |
* Industrials Sector Average
Performance Comparison
DLAKY
Deutsche Lufthansa AG
8.87
2.63
42.15%
DAL
Delta Air Lines
61.18
19.64
47.28%
RYAAY
Ryanair Holdings
60.51
16.45
37.34%
LUV
Southwest Airlines
31.39
2.35
8.09%
UAL
United Airlines Holdings
106.59
60.58
131.67%
AAL
American Airlines
13.08
2.28
21.11%
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.