Analysis of Lufthansa share price

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You are no doubt familiar with the names and fame of the major European and even international airlines, and perhaps you are considering betting on their stock market shares. In that case, the Lufthansa share, which we will be presenting in more detail today, might catch your attention. Whether you want to buy and sell it online or hold it in your stock portfolio, here are some datas for a good live analysis of its price.

Elements that can influence the price of this asset:

Analysis N°1

Lufthansa's takeovers and acquisitions of smaller airlines will need to be carefully scrutinised.

Analysis N°2

Lufthansa's strategy to further develop in emerging countries will also be followed, in particular by developing its offerings for high-end customers in these markets.

Analysis N°3

Generally speaking, any changes in the services offered by Lufthansa to its users with the aim of improving their experience and therefore moving up the range should be followed.

Analysis N°4

We will of course follow all the data coming from the competition in this sector of activity. Indeed, given the highly competitive aspect of this sector, publications and announcements from the main players in this field can have an influence on the share price.

Analysis N°5

We will also follow the development of low-cost airlines, which of course affect the passenger volume of the other major airlines.

Analysis N°6

Finally, an eye will also be kept on oil prices as well as on labour costs and government regulations that may affect the group's margins.

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General presentation of Lufthansa

The Lufthansa Group is a German group which is today one of the best known airlines in the world. While its core business is, of course, air transport, it also generates part of its turnover from other activities such as maintenance and rental services, in-flight catering and IT services.

Lufthansa has no less than 622 aircraft in 8 companies with different names and generates most of its turnover in Europe.

Analysis of Lufthansa share price
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The major competitors of Lufthansa

The airline Lufthansa is one of the market leaders in Europe and worldwide. With no less than 200 international destinations and a presence in 80 countries, the group employs 27,000 people worldwide and is currently the leading provider of IT services for the airline industry. But while it benefits from a strong image associated with German engineering, the group still faces fierce competition, which we invite you to discover here in more detail. Here is a list of the main competitors of the German Lufthansa and their country of origin:

British Airways

In the United Kingdom

Thai Airway

In Thailand

Cathay Pacific

In Hong Kong

The major partners of Lufthansa

Lufthansa is a partner of the car rental company Hertz. Members of the Lufthansa loyalty programme can earn points for every rental with Hertz.

Star Alliance

Since 2009, Air Canada and Lufthansa, partners in the Star Alliance, have been sharing their airline codes, allowing the Canadian airline to offer flights to passengers based in the provinces to travel to Canada.

Oman Air

In 2017, Oman Air announced the signing of an interline agreement with Lufthansa covering more than 50 destinations in Europe and North America. In return, Lufthansa will put its codes on Oman Air flights from Germany.

United Airlines

The same year, in April 2017, the German airline group Lufthansa and its American competitor United Airlines announced Wednesday the creation of a joint venture in the transport of goods between the United States and Europe.

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The factors in favour of a rise in the Lufthansa share price:

First of all, the Lufthansa Group's position in its sector is of course one of its main strengths, as it is one of the world's leaders in this sector, which gives it a strong brand image and increased negotiating power. Lufthansa stands out in particular because it is one of the leading providers of IT services in the fields of aviation, maintenance and in-flight catering services.

The Lufthansa group is one of the founding members of the Star Alliance and is even one of its most important members. This contributes to the attractiveness of this stock for investors and can therefore help to increase its share price. The company's very positive brand image is also due to the fact that it is often associated with German engineering as a guarantee of quality and performance.

Of course, we can also talk here about the workforce of the Lufthansa Group with more than 100,000 employees worldwide. This enables it to operate in more than 80 different countries and to serve no fewer than 200 different destinations. The Lufthansa Group is also active worldwide in freight forwarding and logistics. It is particularly active in this area and thus generates additional revenues to those from passenger transport.

Finally, the group's marketing strategy is another of its strengths. Indeed, Lufthansa's brand awareness is very strong worldwide thanks to recurrent sponsoring operations and the marketing efforts made, but also thanks to an offer focused on exclusive services for its customers such as lounges, loyalty programmes and other premium services for business and first class travellers.

The factors in favour of a drop in the Lufthansa share price:

First of all, although Lufthansa's reputation is rather strong throughout the world, its brand image may have been damaged in the past due to some serious incidents on aircraft in its fleet and a few accidents.

On the other hand, the fact that the business sector in which Lufthansa operates is a particularly competitive one. However, this strong competition limits the group's opportunities for growth in market share.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.


Frequently Asked Questions

Which subsidiaries are currently owned by Lufthansa?

At present, the Lufthansa Group owns several subsidiaries around the world. The complete list is as follows: The airline owns and operates Air Dolomiti, Austrian Airlines, Austrian Arrowq, Brussels Airlines, Edelweiss Air, Eurowings, Germanwings, Lufthansa Cargo, Lufthansa CityLine, Lufthansa Regional and Swiss. The group also owns 50% of the capital of SunExpress. These various entities make Lufthansa a large group with a strong international presence.

How can you anticipate changes in the Lufhtansa share price?

To find out how the Lufthansa share price will develop over the next few hours, days, weeks, months or years, you can use a number of analytical methods that we have discussed in this article. Ideally, you should carry out a technical analysis of the stock by studying the graphic signals as well as a fundamental analysis, this time based on a study of the major news and publications.

Is it possible to bet on a fall in the Lufthansa share price?

While it is of course possible to buy Lufthansa shares or trade on the price of that security at the time of purchase, you can also bet directly on the decline in that security by using CFD contracts or contracts for difference. These contracts can only be accessed online from the trading platforms of market brokers.

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