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Research Tree provides access to ongoing research coverage, media content and regulatory news on DEUTSCHE LUFTHANSA-REG. We currently have 48 research reports from 1 professional analysts.
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Lufthansa achieved a sharp rise in passenger numbers during March
11 Apr 17
The group’s passenger numbers increased by 14% to 9.59m in the last month, taking the Q1 number to 25.2m, an increase of 13%. Eurowings, the low-cost carrier, saw its numbers rising by 66% to 2.16m and 68% to 5.55m, respectively. Simultaneously, the incumbent brands saw their numbers increasing by 4.5% to 7.44m and 3.5% to 19.68m. The group achieved a slight SLF improvement in both the last month (+0.8pp to 77.2%) and Q1 (+1.2pp to 76.1%. This was exclusively achieved by the incumbent brands whereas Eurowings saw its SLF falling by 1.5pp to 76.3% in March and by 0.1pp to 73.9% in Q1 although demand for sold ton-kilometers more than doubled in both periods. However, capacity increased even more strongly. The network airlines, as Lufthansa calls its incumbent brands, achieved higher SLFs on all destinations in the last month while it was down marginally to/from the Americas in Q1. The strongest improvement was achieved to/from APAC followed by Middle East/Africa and Europe. The Logistics division has also seen an increase in demand. Lufthansa increased capacity by 6.7% in the last month while demand increased by 13%. Consequently, the FLF improved by 4.3pp to 73.8%. The respective Q1 numbers were +3.6%, +8.3%, and +3.0pp to 70.2%.
2017 earnings just short of our expectations
16 Mar 17
Lufthansa’s consolidated revenue fell by 1.2% to €31.7bn in 2016. However, earnings were sharply up as the group benefited from the pension settlement with UFO members, i.e. the crews (excluding the pilots). As a result of this one-time gain of €661m, EBIT increased by 36% to €2.28bn, otherwise it would have fallen by 3.7% to €1.61bn. Stated net earnings were up by 4.6% to €1.78bn which allows management to propose an unchanged dividend of €0.50, whereas we had expected a cut to €0.25.
Early 2017 was superb
10 Mar 17
The group’s number of passengers was up by 12.4% to 7.77m in February which brought the ytd number to 15.64m, an increase of 12.5%. These growth rates were overwhelmingly achieved by Eurowings (the budget brand) which saw its passenger numbers rising by 70% to 1.70m and 69% to 3.39m, respectively. However, brandname airlines (i.e. Lufthansa, Swiss, and AUA) also saw positive growth rates (+2.6% to 6.06m and +2.9% to 12.25m).
Lufthansa and its pilots have settled the pay dispute, but nothing else
15 Feb 17
The two parties have agreed to the result of the mediation process which translates into a wage increase, in four steps, of 8.7%. In addition, a one-off payment of €30m has been agreed which gives each of the airlines 5,400 pilots another €5,000-6,000. However, the parties involved have not agreed on anything else, i.e. not on a new pension scheme and the early retirement scheme. According to management, the pay deal will cost the carrier some €85m annually and the contract expires at the end of 2019. As the pilots intend to negotiate each open point of discussion separately, they are likely to threaten with new strike action in the not too distant future. Management has reacted by announcing its intention to man 40 new aircraft with pilots who are not part of the Lufthansa contract. It is unclear whether these are new aircraft or whether these will replace old jets.
Superb start into the new year, by Eurowings
09 Feb 17
The number of passengers increased by 13% to 7.88m in January. As demand (+10.5%) increased more strongly than the offer (+9.9%), the SLF was up by 0.4pp to 76.0%. Cargo freight demand (+4.9%) was also up more strongly than the offer (+1.7%) which resulted in a 2.0pp improvement in the FLF to 65.9%. Lufthansa’s legacy airlines (i.e. Lufthansa, SWISS and Austrian) showed single-digit passenger increases with the strongest growth to Middle East/Africa (+6.3%). The consolidated group’s passenger number was up by double-digits as the budget brand (i.e. Eurowings) saw the number rising by 68% to 1.69m. In spite of this, this SLF was down by 0.9pp to 71.2% as the offer was up by 115% while demand increased by ‘only’ 112%. On the other hand, the legacy airlines achieved rising SLFs to all destinations except for the Americas (-1.7pp to 78.7%) with the strongest growth achieved to/from APAC (+4.0% to 84.6%).
Small Cap Breakfast
19 Apr 17
Global Ports Holding—Intention to float on Standard List. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected 3 May. RTO of Escape Hunt raising £14m at 135p Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1. Admission expected 25 April but capital raising details TBC. ADES International Holding— Intends to join the Standard List in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
N+1 Singer - Morning Song 20-04-2017
20 Apr 17
Carpetright (CPR LN) Preview – FY pre-close update due on Tuesday | SDL (SDL LN) Disposal of Social Intelligence | Senior (SNR LN) Q1 trading in line | Senior (SNR LN) Q1 trading in line | Servelec Group (SERV LN) Calling the bottom | Trifast (TRI LN) FY17 results ahead of expectations
Strong final results
20 Apr 17
The group has reshaped its business over the past two years, strengthening management and operational infrastructure, increasing capacity and reviewing strategic emphasis. We anticipate a progressive revaluation given the potential growth profile in an addressable and fragmented international market. Our 2017 forecasts remain unchanged following the results which imply EBITDA growth of 26%, and we raise our target price to 6p, implying potential share price upside of 23%.