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Deutsche Lufthansa AG
(OTC:DLAKY)
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Rating:57Neutral
Price Target:
$10.50
▲(5.32% Upside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by weaker cash conversion (negative free cash flow) and meaningful leverage alongside moderating margins, plus soft near-term technical momentum (below 20/50-day averages with negative MACD). Offsetting these risks are an attractive valuation (low P/E and ~3.7% yield) and a balanced earnings-call outlook featuring strong liquidity/hedging and operational progress, though tempered by guidance reset and fuel/strike-related uncertainty.
Positive Factors
Strong liquidity
A liquidity buffer of about €10.7bn materially improves near‑term financial flexibility in a capital‑intensive, cyclical airline. It supports continued capex, hedging and transformation programs, reduces refinancing risk and provides runway to absorb industry shocks over the next 2–6 months.
Negative Factors
Negative free cash flow
Negative free cash flow indicates heavy investment and/or working capital drains that cash from operations doesn't fully cover. This weakens earnings quality, increases reliance on external funding or asset sales, and constrains capital allocation flexibility for debt reduction or shareholder returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity
A liquidity buffer of about €10.7bn materially improves near‑term financial flexibility in a capital‑intensive, cyclical airline. It supports continued capex, hedging and transformation programs, reduces refinancing risk and provides runway to absorb industry shocks over the next 2–6 months.
Read all positive factors
Deutsche Lufthansa AG (DLAKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.40B
Dividend Yield4.11%
Average Volume (3M)8.55K
Price to Earnings (P/E)14.4
Beta (1Y)0.84
Revenue Growth13.60%
EPS Growth-61.13%
CountryUS
Employees103,255
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.55
Shares Outstanding1,202,082,900
10 Day Avg. Volume8,846
30 Day Avg. Volume8,547
Financial Highlights & Ratios
PEG Ratio-1.12
Price to Book (P/B)0.86
Price to Sales (P/S)0.26
P/FCF Ratio-14.12
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.1
Revenue Forecast (FY)$49.24B
Deutsche Lufthansa AG Business Overview & Revenue Model
Company Description
Deutsche Lufthansa AG engages in the provision of passenger, freight, and cargo airline services. It operates through the following segments: Network Airlines, Eurowings, Logistics, Maintenance Repair Overhaul, Catering and Additional Businesses a...
How the Company Makes Money
Lufthansa generates revenue through multiple aviation-focused business lines. (1) Passenger airlines: The company earns ticket revenue from scheduled passenger flights, including fares across cabin classes and route networks, and also collects anc...
Deutsche Lufthansa AG Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Neutral
Balanced. The call highlighted clear operational and strategic progress (record Q2 revenue, strong cargo and Technik performance, successful ITA integration, healthy liquidity and robust hedging) and reiterated multi‑year transformation initiatives that should support margin recovery. However, near‑term headwinds are significant: unusually large fuel cost increases, strike impacts, delivery delays and reduced capacity caused an earnings setback and forced guidance recalibration. Management presented concrete mitigation actions and mid‑term levers but acknowledged elevated short‑term uncertainty.Positive Updates
Record Q2 Revenue
Group revenue increased 8% year‑on‑year to EUR 11.1 billion, a new record for the second quarter, driven by higher passenger revenues, strong airfreight and MRO demand.
Negative Updates
Significant Fuel Headwind
Jet fuel costs rose ~40% in Q2, creating an incremental fuel bill of roughly EUR 750 million in the quarter. Full‑year fuel bill estimated ~EUR 8.7 billion (EUR 8.5B fossil + EUR 0.2B SAF) with high market volatility.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Q2 Revenue
Group revenue increased 8% year‑on‑year to EUR 11.1 billion, a new record for the second quarter, driven by higher passenger revenues, strong airfreight and MRO demand.
Read all positive updates
Company Guidance
Lufthansa updated its 2026 guidance to an adjusted EBIT range of EUR 1.7–2.2 billion and now expects capacity to be broadly flat year‑on‑year (vs prior 0–2% growth); adjusted free cash flow is still targeted at ~EUR 0.9 billion with net investments cut to ~EUR 2.5 billion (from EUR 2.9bn). Management projects a full‑year fuel bill of ~EUR 8.7 billion (≈EUR 8.5bn fossil fuel + EUR 0.2bn SAF), hedge ratios of ~81% for the group and ~86% for passenger airlines (positive hedge result ≈EUR 1.5bn; jet‑crack swaps ≈20% of exposure), and noted fuel bill estimates have swung by >EUR 700m in recent months; to offset an expected ~EUR 700m H2 fuel headwind they need mid‑to‑high single‑digit RASK growth (Q2 recapture was ~60% and mathematically >100% recapture in Q4 would be required to realize prior upside). They also flagged 2026 aircraft deliveries reduced to 41 (vs 45 planned), near‑term hedge cover for 2027 at >50% (aiming for ~85% six months ahead), H1 operating cash flow of EUR 2.3bn, liquidity ~EUR 10.7bn, net debt ~EUR 8.3bn and leverage ~2x.Deutsche Lufthansa AG Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
57
Neutral
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.09B | 38.03B | 37.58B | 35.48B | 32.77B | 16.81B |
| Gross Profit | 4.84B | 3.63B | 4.83B | 7.43B | 4.62B | -3.00M |
| EBITDA | 3.29B | 3.07B | 4.66B | 5.33B | 3.73B | 96.00M |
| Net Income | 656.76M | 1.29B | 1.38B | 1.67B | 791.00M | -2.19B |
Balance Sheet | ||||||
| Total Assets | 50.87B | 49.40B | 47.05B | 45.32B | 43.34B | 42.54B |
| Cash, Cash Equivalents and Short-Term Investments | 8.14B | 8.14B | 8.49B | 8.27B | 8.30B | 7.60B |
| Total Debt | 14.82B | 14.55B | 14.23B | 13.95B | 15.17B | 16.69B |
| Total Liabilities | 38.70B | 37.69B | 35.46B | 35.61B | 34.86B | 38.05B |
| Stockholders Equity | 12.11B | 11.64B | 11.54B | 9.66B | 8.40B | 4.45B |
Cash Flow | ||||||
| Free Cash Flow | -1.26B | -707.91M | -6.00M | 895.00M | 2.66B | -700.00M |
| Operating Cash Flow | 3.71B | 3.59B | 3.89B | 4.95B | 5.17B | 618.00M |
| Investing Cash Flow | -2.08B | -3.37B | -2.33B | -2.98B | -3.44B | -3.02B |
| Financing Cash Flow | -1.69B | -816.45M | -1.45B | -2.07B | -2.27B | 2.87B |
Deutsche Lufthansa AG Technical Analysis
Negative
9.97
Price Trends
10.27
Negative
9.58
Negative
9.54
Negative
Market Momentum
-0.22
Positive
38.55
Neutral
-0.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLAKY, the sentiment is Negative. The current price of 9.97 is below the 20-day moving average (MA) of 9.98, below the 50-day MA of 10.27, and above the 200-day MA of 9.54, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 38.55 is Neutral, neither overbought nor oversold. The STOCH value of -0.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DLAKY.
Deutsche Lufthansa AG Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $59.14B | 15.02 | 19.33% | 0.91% | 10.28% | -12.67% | |
70 Outperform | $40.61B | 11.79 | 22.50% | ― | 8.48% | 6.74% | |
68 Neutral | $29.83B | 13.78 | 20.27% | 1.74% | 13.24% | -1.27% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $11.40B | 14.37 | 5.65% | 3.90% | 13.60% | -61.13% | |
57 Neutral | $22.00B | 27.10 | 11.27% | 1.60% | 9.46% | 137.74% | |
46 Neutral | $9.88B | -30.73 | 8.29% | ― | 7.53% | -157.37% |
* Industrials Sector Average
DLAKY
Deutsche Lufthansa AG
9.46
0.09
0.95%
DAL
Delta Air Lines
91.31
32.99
56.56%
RYAAY
Ryanair Holdings
59.17
-5.94
-9.13%
LUV
Southwest Airlines
44.87
14.74
48.91%
UAL
United Airlines Holdings
126.35
27.21
27.45%
AAL
American Airlines
15.06
2.24
17.47%
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.