Deutsche Lufthansa AG (DLAKY)
OTHER OTC:DLAKY
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Deutsche Lufthansa AG
(OTC:DLAKY)
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Rating:69Neutral
Price Target:
$12.00
▲(28.76% Upside)
Action:Reiterated
Date:06/06/26
The score is driven by strong valuation (low P/E and ~4% dividend) and supportive technical uptrend (price above major moving averages with positive MACD). Offsetting this, financial performance is mixed due to a sharp recent margin step-down and negative TTM free cash flow despite solid operating cash generation.
Positive Factors
Balance sheet improvement
Material equity rebuild and a reduction in absolute debt strengthen the company’s capital base and credit profile. This durable improvement increases financial flexibility to fund fleet investment, absorb demand shocks, and pursue strategic initiatives without heavy reliance on new borrowing.
Negative Factors
Negative and volatile free cash flow
Repeated negative and swingy free cash flow signals sizeable capex or working-capital demands that erode financial flexibility. Over a multi-quarter horizon, persistent negative FCF can constrain fleet renewals, dividend policy, and debt reduction unless operating cash flow sustainably improves or capex is reduced.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet improvement
Material equity rebuild and a reduction in absolute debt strengthen the company’s capital base and credit profile. This durable improvement increases financial flexibility to fund fleet investment, absorb demand shocks, and pursue strategic initiatives without heavy reliance on new borrowing.
Read all positive factors
Deutsche Lufthansa AG (DLAKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.42B
Dividend Yield3.41%
Average Volume (3M)35.66K
Price to Earnings (P/E)7.5
Beta (1Y)0.92
Revenue Growth13.11%
EPS Growth30.65%
CountryUS
Employees100,997
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)1.30
Shares Outstanding1,202,082,900
10 Day Avg. Volume16,796
30 Day Avg. Volume35,658
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 Cap1.68
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit4.34
Enterprise Value/Ebitda5.64
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.16
Revenue Forecast (FY)$49.51B
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:Mar 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call presents meaningful operational and financial progress: record revenues, improved adjusted EBIT and free cash flow, stronger liquidity and clear momentum across turnaround initiatives, ancillaries, cargo and MRO growth. Management also outlined concrete transformation levers (One IT, fleet renewal, productivity) with explicit targets. However, near-term risks have risen materially due to geopolitical disruption in the Middle East, a sharp short-term jet fuel/jet-crack spike, cost inflation, tariff and FX headwinds and ongoing labor negotiations. Management believes the positives and hedging/operational flexibility give it the ability to increase 2026 adjusted EBIT, but the range of uncertainty has widened and outcomes depend on the duration and magnitude of recent shocks.Positive Updates
Record Revenue and Improved Profitability
Group revenue reached EUR 39.6 billion (+5.4% YoY). Adjusted EBIT increased by EUR 350 million to EUR 1.96 billion, delivering an adjusted EBIT margin of 4.9%.
Negative Updates
Fuel Price Spike and Jet Crack Volatility
Following the Middle East events, jet fuel moves imply ~20–25% higher fuel cost for March–April versus the company’s prior EUR 7.2bn fuel estimate; jet crack spiked materially and liquidity in crack markets is low. Hedging does not fully cover the crack component, creating short-term cost risk.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Improved Profitability
Group revenue reached EUR 39.6 billion (+5.4% YoY). Adjusted EBIT increased by EUR 350 million to EUR 1.96 billion, delivering an adjusted EBIT margin of 4.9%.
Read all positive updates
Company Guidance
Guidance for 2026: the Group plans around 4% capacity growth (intercontinental mid‑ to high‑single digits, continental broadly flat), expects adjusted EBIT to be “significantly above” 2025’s adjusted EBIT of EUR 1.96bn (2025 adjusted EBIT margin 4.9%) and targets adjusted free cash flow of about EUR 0.9bn (vs EUR 1.2bn in 2025); net CapEx is guided at ~EUR 2.9bn to fund up to 45 aircraft deliveries (the largest single‑year fleet expansion, ~27 widebodies), liquidity was EUR 10.7bn at year‑end 2025 and is expected to return to the EUR 8–10bn target corridor by end‑2026, financial net debt was EUR 6.4bn with leverage improving to 1.8x. Fuel: 2026 fuel bill is estimated at ~EUR 7.2bn (EUR 7.0bn fossil + EUR 0.2bn mandatory SAF), with ~82% of Passenger Airlines’ fuel needs hedged for the remainder of 2026; recent market moves imply a near‑term 20–25% higher fuel cost for March–April versus the base case and management estimates ~EUR 5m per week impact from current Middle East cancellations (Middle East capacity ~3% in Q1 vs ~2% in 2025). Cost and transformation: Lufthansa Airlines ex‑fuel CASK is expected to increase by no more than half the annual rate of inflation in 2026, the turnaround program aims for ~EUR 1.5bn of measures by end‑2026 (EUR 2.5bn by 2028), Allegris currently shows ~12% RASK uplift and ancillaries were +15% in 2025, One IT delivered >EUR 50m in 2025 and targets ~EUR 200m of annual sustainable savings by 2030.Deutsche Lufthansa AG Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
66
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.27B | 38.03B | 37.58B | 35.48B | 32.77B | 16.81B |
| Gross Profit | 5.21B | 3.63B | 4.83B | 7.43B | 4.62B | -3.00M |
| EBITDA | 4.00B | 3.07B | 4.66B | 5.33B | 3.73B | 96.00M |
| Net Income | 1.55B | 1.29B | 1.38B | 1.67B | 791.00M | -2.19B |
Balance Sheet | ||||||
| Total Assets | 50.75B | 49.40B | 47.05B | 45.32B | 43.34B | 42.54B |
| Cash, Cash Equivalents and Short-Term Investments | 7.71B | 8.14B | 8.49B | 8.27B | 8.30B | 7.60B |
| Total Debt | 13.03B | 14.55B | 14.23B | 13.95B | 15.17B | 16.69B |
| Total Liabilities | 38.34B | 37.69B | 35.46B | 35.61B | 34.86B | 38.05B |
| Stockholders Equity | 12.34B | 11.64B | 11.54B | 9.66B | 8.40B | 4.45B |
Cash Flow | ||||||
| Free Cash Flow | -264.51M | -707.91M | -6.00M | 895.00M | 2.66B | -700.00M |
| Operating Cash Flow | 4.55B | 3.59B | 3.89B | 4.95B | 5.17B | 618.00M |
| Investing Cash Flow | -2.36B | -3.37B | -2.33B | -2.98B | -3.44B | -3.02B |
| Financing Cash Flow | -2.86B | -816.45M | -1.45B | -2.07B | -2.27B | 2.87B |
Deutsche Lufthansa AG Technical Analysis
Positive
9.32
Price Trends
9.40
Positive
9.40
Positive
9.21
Positive
Market Momentum
0.44
Negative
73.69
Negative
99.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLAKY, the sentiment is Positive. The current price of 9.32 is below the 20-day moving average (MA) of 10.07, below the 50-day MA of 9.40, and above the 200-day MA of 9.21, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 73.69 is Negative, neither overbought nor oversold. The STOCH value of 99.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $60.82B | 13.38 | 23.14% | 0.96% | 5.24% | 20.93% | |
73 Outperform | $44.18B | 12.09 | 24.91% | ― | 4.73% | 1.55% | |
69 Neutral | $13.42B | 7.48 | 13.67% | 3.41% | 13.11% | 30.65% | |
68 Neutral | $32.16B | 13.33 | 24.66% | 1.37% | 19.66% | 49.49% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $25.37B | 32.85 | 10.67% | 1.73% | 4.72% | 72.71% | |
50 Neutral | $11.82B | 57.65 | -5.17% | ― | 3.33% | -70.60% |
* Industrials Sector Average
DLAKY
Deutsche Lufthansa AG
11.16
3.01
36.95%
DAL
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92.57
43.57
88.91%
RYAAY
Ryanair Holdings
64.49
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14.43%
LUV
Southwest Airlines
51.91
20.34
64.45%
UAL
United Airlines Holdings
136.11
56.93
71.90%
AAL
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17.87
6.59
58.42%
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.