Lufthansa

FY 2019 overshadowed by current crisis

  • Sectors : Airlines & Other Transport
  • Companies : Lufthansa

Ratings and price correct at time of issue.

  • Lufthansa

    Closing Price: 826c

  • RATING 30/10/18

  • PREVIOUS RATING 27/01/17

    OUTPERFORM

DAVY VIEW

With the drastic collapse in demand, it’s all about liquidity now -Lufthansa has €4.3bn plus unused credit lines of around €800m and unencumbered aircraft with a book value of c.€10bn. Far-reaching capacity reductions, ‘short-time working’ mechanism in home markets and suspension of dividend are some of the measures used to stem the cash burn, which will be considerable. We may know more on the analyst call at 13:00 CET. Unsurprisingly, Lufthansa indicates that the “magnitude of the expected decline in adjusted EBIT is currently not predictable”.

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Mar 19 2020, 07:00 GMT

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