Deutsche Lufthansa: 30% Upside; Undervalued To Flag Carrier Peers As Europe Recovers
Helix Investment Research
Helix Investment Research
Mon, Jul. 25, 2:39 AM
- A cascade of terrorist attacks in Europe is driving away tourists at the height of the summer rush, casting a pall over hotel chains, airline companies and luxury retailers that are already grappling with Britain's vote to leave the EU.
- Germany was the latest country to get hit by a series of violent incidents over the weekend, including a suicide bombing and stabbing by two Syrian refugees and a German-Iranian teenager that shot and killed nine people at a mall in Munich.
- Related stocks: IHG, AAL, OTCQX:DLAKF, OTCQX:DLAKY, OTCPK:AFLYY, OTC:AFRAF, OTCPK:ICAGY, OTCQX:ESYJY, OTC:EJTTF, RYAAY, OTC:RYAOF, OTCPK:TCKGY, OTC:TCKGF, OTCPK:HESAY, OTCPK:HESAF, OTCPK:LVMUY, OTCPK:LVMHF, OTCPK:PPRUY, OTC:PPRUF
Thu, Jul. 21, 10:39 AM
- Airline stocks (JETS -2.8%) are broadly lower following Southwest Airlines' (LUV -8.8%) Q2 earnings miss and downbeat guidance for a 3%-4% decline in Q3 RASM from a 0.6% gain in Q2.
- Shares also are hurt by warnings from Deutsche Lufthansa (OTCQX:DLAKF, OTCQX:DLAKY) and EasyJet (OTC:EJTTF, OTCQX:ESYJY) that recent terror attacks and political turmoil in Europe were weighing on their businesses.
- Lufthansa says advance bookings, particularly on longer routes to Europe, "have declined significantly, in particular due to repeated terrorist attacks in Europe and to greater political and economic uncertainty."
- Easyjet also warns on terrorism, and says the U.K.’s Brexit vote would hurt per-seat revenue, and that foreign exchange and fuel cost effects would add ~£25M ($33M) to full-year expenses.
- DAL -3.1%, UAL -2.9%, AAL -2%, RYAAY -2.9%, ALK +0.8%, JBLU -2.3%, SAVE -2.6%, HA -1.3%, SKYW -0.2%.
Thu, Jul. 21, 4:18 AM
- Helped by cost-control measures, Unilever (NYSE:UL) posted a profit rise and said it's ready for challenges ahead.
- Swatch (OTCPK:SWGAY) expects a recovery in the second half after net profit plunged 52% in H1.
- Roche (OTCQX:RHHBY) confirmed its outlook for 2016 and reported results that exceeded expectations.
- Driven by price and mix realization, SABMiller's (OTCPK:SBMRY) group net producer revenue grew 2% in Q1.
- Lufthansa (OTCQX:DLAKY) cut its full-year profit target, saying "terrorist attacks in Europe" weighed on its bookings.
- The fears also hit Easyjet (OTCQX:ESYJY), with shares under pressure after weak Q3 revenues.
Tue, Jul. 5, 1:36 PM
- Lufthansa (OTCQX:DLAKY) works out a deal with a union representing cabin crew workers to end a long dispute.
- The German airline will boost wages by 5.5% up until June of 2019 and offer a one-time payment of €3K ($3.34K) per worker. As part of a broad cost-cutting initiative, Lufthansa will have more flexibility with staffing during seasonal swings in demand and will adopt a defined contribution pension plan instead of a defined benefit arrangement.
- Lufthansa still needs to work out a contract with pilots.
Thu, Jun. 30, 5:32 AM
- Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) has delivered its first CSeries jet to launch operator Swiss International Air Lines (OTCQX:DLAKY), marking the company’s emergence as a direct competitor to challenge Airbus (OTCPK:EADSY) and Boeing (NYSE:BA) in the single-aisle passenger jet market.
- The plane's development ran 2.5 years late and blew billions past its initial $3.4B budget, weighing on Bombardier’s stock price and triggering the replacement of most of its executive team.
Fri, Jun. 10, 6:23 AM
- CFO Simone Menne has handed in her resignation, opening an unwelcome hole in the airline’s top management at a time when its strategy is in a state of flux.
- Conflicts with labor unions over cost-cutting efforts remain unresolved, and the ramp up of the Eurowings low-cost arm has been sluggish.
- Lufthansa shares -5.3% in Frankfurt.
Wed, Jun. 1, 3:41 AM
- It may turn out to be an even worse upcoming tourist season for Europe.
- The U.S. State Department is warning Americans of possible terrorist attack threats across the continent this summer, saying targets could include "tourist sites, restaurants, commercial centers and transportation."
- It also pointed to two events in particular - the Catholic Church's World Youth Day in Poland and France's European Soccer Championship.
- Related tickers: AAL, UAL, DAL, RYAAY, OTCQX:DLAKF, OTCQX:DLAKY, OTCPK:AIRYY, OTCPK:MLYAF, OTCPK:AFLYY, OTC:RYAOF, VA, OTC:EJTTF, OTCQX:ESYJY, OTC:AFRAF, OTCPK:ICAGY
Mon, May 30, 2:21 AM
- Lufthansa (OTCQX:DLAKY) will suspend flights to Venezuela next month "until further notice" as it struggles with the country's economic downturn and strict currency controls.
- American Airlines also canceled its Caracas route (to New York) recently, just three months after reinstating it.
- According to the IMF, Venezuela's economy is projected to contract by 8% in 2016, with the average rate of inflation expected to surge to near 500%.
Tue, May 3, 4:08 AM
- Germany's DAX has dipped below the 10K mark, weighed down by the Q1 results of big corporate names including Lufthansa (OTCQX:DLAKY), BMW (OTCPK:BAMXY) and Commerzbank.
- Pricing pressure took its toll on Lufthansa, driving the airline to scale back its capacity growth plans, as the terror attacks in Paris and Brussels affected bookings.
- BMW managed to beat expectations on its margin level but missed on earnings before interest and tax, as a record quarter for luxury car sales failed to offset currency headwinds.
- DAX -1.6% to 9,950.
- ETFs: EWG, DAX, GF, DXGE, DBGR, HEWG, EWGS, FGM, QDEU
Thu, Apr. 14, 3:43 AM
- Relatives of those killed on a Germanwings flight last year are suing a training unit of the airline's parent, Deutsche Lufthansa (OTCQX:DLAKY), in Arizona for wrongful death.
- Andreas Lubitz flew his jet into the French Alps on March 24, 2015, killing 150 passengers and crew.
- The families maintain Lufthansa's Airline Training Center Arizona was negligent in failing to discover the pilot's medical history before admitting him to the program in 2010.
Wed, Apr. 6, 10:31 AM
- The U.S. Global Jets ETF (NYSEARCA:JETS) announces the index it tracks has added six stocks and removed six others.
- Additions (1% weighting each): Air France (OTCPK:AFLYY), International Airlines Group (OTCPK:ICAGY), Scandinavian Airlines, Singapore Airlines (OTCPK:SINGY), SATS Ltd. (OTCPK:SPASF, [[SDPASY]]), Dassault Aviation (OTCPK:DASTY, OTCPK:DASTF).
- Removals: China Eastern Air (NYSE:CEA), Air China (OTCPK:AIRYY, OTCPK:AICAF), Deutsche Lufthansa (OTCQX:DLAKF, OTCQX:DLAKY), El Al Israel Airlines (OTC:ELALY), China Southern Airlines (NYSE:ZNH), Travelsky Technologies (OTCPK:TSYHF, OTCPK:TSYHY).
Mon, Mar. 21, 12:58 PM
- Lufthansa (OTCQX:DLAKY -1.7%), the first operator of Airbus' (OTCPK:EADSY -0.5%) troubled A320neo jetliner, is placing conditions on taking delivery of more of the planes this year after holding back on putting its second into service.
- The carrier will take formal delivery of its latest Neo "in coming days," said spokeswoman Anja Lindenstein, but like the first, the second plane will be restricted to routes within Germany amid concerns about an engine glitch.
- While Lufthansa is prepared to operate two planes solely on domestic routes for now, Lindenstein said that Airbus "cannot have more aircraft flying with these restrictions given our extensive network."
- Previously: Lufthansa: A320neo engine improving but not there yet (Mar. 17 2016)
Thu, Mar. 17, 10:47 AM
- Lufthansa (OTCQX:DLAKY -4.7%) says issues with the new engine of its A320neo plane are not fully fixed and as a result it is not ready to put more of the revamped jets into commercial service.
- Airbus (OTCPK:EADSY -2.3%) missed an end-2015 target for the first delivery of its new best-selling plane after the engines, made by Pratt & Whitney (UTX +0.6%), needed longer than usual to start properly.
- Lufthansa, which stepped in as the first operator when Qatar Airways refused to take the plane, took delivery of its first A320neo in January. The carrier is due to receive five more A320neo jets in 2016.
- Previously: New snag for Pratt & Whitney engines (Feb. 26 2016)
Thu, Mar. 17, 8:18 AM
Thu, Mar. 17, 4:55 AM
- Cement giant LafargeHolcim (OTCPK:HCMLY) posted a surprise loss of 2.86B Swiss francs ($2.9B) on the back of impairment charges, but maintained its dividend and said its on track to hit 2018 targets.
- Lufthansa (OTCQX:DLAKY) reported a sharp rise in full-year earnings aided by lower fuel costs, while signaling the pace of improving financial results would slow in 2016.
- U.K. Construction group Kier (OTC:KIERY) hiked its interim dividend by 12%, after posting a big rise in underlying operating profit.
Wed, Jan. 20, 10:54 AM
The Lufthansa Group is an aviation group with global operations and a total of more than 400 subsidiaries and associated companies. It is divided into four business segments, which cover the areas of passenger transportation, airfreight and airline services: Passenger Airline Group, Logistics,... More