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Uncovering the Future Potential of Lufthansa’s Shares: A Closer Look at the Company’s Stockmarket Performance
Lufthansa has been a prominent figure in the global aviation industry for over a century, but the future of the company has been highly uncertain in recent years. On Thursday, 26th September 2023, the stockmarket will take a close look at Lufthansa’s shares as the company looks to the future.
Since 2014, Lufthansa has been under significant financial pressure, due to rising fuel costs and competition from budget airlines. In 2015, the company’s share price saw a dramatic decline, from a high of €20.51 to a low of €7.83. Despite the drop in value, Lufthansa remained resilient and continued to operate, even in the midst of a difficult and uncertain environment.
In the last few years, Lufthansa has been making strides to improve its finances. In March 2019, the company announced a new cost-savings and restructuring programme, which is estimated to reduce Lufthansa’s operating costs by at least €1 billion by 2021. The plan includes optimising flight networks, improving yields, reducing aircraft leasing costs and optimising staff costs.
The efforts of the company have been paying off and, at the time of writing, Lufthansa’s share price had recovered to €15.43. Analysts have suggested that, with the company’s restructuring plan in place, Lufthansa’s share price could continue to climb in the coming months.
On Thursday, 26th September 2023, the stockmarket will take a close look at Lufthansa’s shares. With the company’s restructuring plan in motion and the outlook of the global aviation industry improving, it is likely that investors will be keen to gain an insight into the company’s plans and performance. With the stockmarket expected to take a close look at Lufthansas’ shares tomorrow, it is likely that the share price could see a further increase in the near future.Lufthansa Shares Set to Soar Tomorrow
On the back of strong earnings reports, German airline giant, Lufthansa is primed to see its share price soar tomorrow. With the company’s market cap already at an impressive 9 billion, the signs are pointing to a healthy jump in share value.
Recent news from the airline sector has been positive, with the International Air Transport Association (IATA) increasing its growth forecast for the airline industry in 2021. This bodes well for Lufthansa, which released strong results for the first half of this year. The company reported a net profit totaling €30 million for the first half of 2021.
Lufthansa has made a number of moves to bolster its financial success. The company executed a series of asset sales in an effort to reduce its debt. It also successfully negotiated wage reductions with its staff in an effort to increase profits.
The airline can also count on increased demand from international travelers. Even though the industry is still in the midst of recovering from the widespread disruption caused by the pandemic, IATA predicts that global travel will reach 2019 levels by the end of 2021. This is likely to drive increased demand for Lufthansa’s services.
In addition, Lufthansa recently announced a partnership with Oracle and IBM to create a platform called “Flight Plan 2020”. This platform is designed to make air travel easier and more efficient, utilizing data and artificial intelligence to better manage passenger flows.
In light of all this positive news, analysts are predicting that Lufthansa shares will increase tomorrow. Some are even expecting a major jump in share value, with the stock price potentially reaching €25.
It’s clear that Lufthansa is moving in the right direction. With its latest moves, the company is well-positioned to capitalize on rising demand for air travel. Investors should be optimistic as tomorrow’s opening bell rings on the Frankfurt stock exchange.
The information provided in this article is for informational purposes only and should not be considered as investment advice. The stock market can be volatile, and investing in stocks carries risks. Always do your own research and consider consulting with a financial advisor before making any investment decisions.