Lufthansa share

Lufthansa share loses 23% of its value over the course of the year

From a 2023 year-end closing price of EUR 8.05, the Lufthansa share lost ground over the course of the year and reached a low of EUR 5.53 in mid-August 2024. In general, the somewhat weak macroeconomic trend and the high location costs in Germany were seen as a disadvantage for the Lufthansa Group – and for its Lufthansa Airlines core brand in particular – by comparison with its direct competitors. However, in the first four months of the year the negative price trend also reflected the effects on earnings of a large number of strikes. In April 2024, these then led to a profit warning, including a reduction of the Company’s targets for the year. This trend was also shaped by market concerns of a year-on-year drop in demand over the course of the year. Analysts saw the Company’s strong capacity growth – on long-haul routes especially – as a risk for the development of the European network airlines’ yields. This was indeed borne out - in the Asian market especially. On account of its declining yields, the Lufthansa Group was forced to issue a second profit warning in July 2024, while once again revising downwards its targets for the year.

The Lufthansa share price picked up again from mid-August 2024 onwards. On the one hand, the market considered that the Company’s reduced annual targets were achievable and, as such, arrived at a more positive valuation of them. Further factors included, in particular, favourable changes in fuel prices and analysts’ expectation that the fall in demand had now bottomed out.

On 31 December 2024, the Lufthansa share was trading at EUR 6.18. The share price thus suffered a loss of 23% over the course of the period under review. The shares of the European low-cost airlines Ryanair and easyjet performed better in the same period, as did the share of the Company’s key competitor IAG. On the other hand, WIZZair and Air France-KLM shares performed less well. The share price of Air France-KLM especially suffered due to concerns of a continuing high level of cost inflation.

On 31 December 2024, the MDAX benchmark index was 6% lower than at the end of 2023.

Executive Board and Supervisory Board propose dividend of EUR 0.30 per share

At the Annual General Meeting for the financial year 2024, the Executive Board and Supervisory Board of Deutsche Lufthansa AG will propose the distribution of a dividend of EUR 0.30 per share, in line with the applicable dividend policy. This represents a dividend ratio of 26% of Group profits and a dividend yield of approx. 5%, based on the Lufthansa share’s closing price for the year. Financial strategy and value-based management, Earnings position.

Analyst assessments more cautious than in the previous year

At year-end 2024, of the 22 equity analysts covering the Company (previous year: 21), three (previous year: eleven) recommended buying the share, 16 (previous year: seven) holding it, and three (previous year: three) selling it. Whereas the analysts viewed the ongoing recovery in the passenger business, the continued strength of Lufthansa Technik and the further strengthening of the balance sheet positively, there were concerns about the feasibility of the planned efficiency gains at Lufthansa Airlines, the state of future demand and the short-term outlook for the cargo business. The macroeconomic and geopolitical situation is also seen as a risk factor. The average target price at year-end 2024 was EUR 7.23, with a range of EUR 5.50 to EUR 12.00.

Share of German shareholders in the Company remains high

In order to protect international air traffic rights and its operating licence, the German Aviation Compliance Documentation Act (Luftverkehrsnachweissicherungsgesetz – LuftNaSiG) requires Lufthansa to provide evidence that a majority of its shares are held by German shareholders. For this reason, all Lufthansa shares are registered shares with transfer restrictions.

At the end of 2024, the shareholders’ register showed that German shareholders held 79.3% of the shares (previous year: 73.4%). The second largest group, with 8.3%, was shareholders from the USA. Shareholders from Ireland accounted for 3.7% of the issued capital. They were followed by Canada, with 1.6%, and Luxembourg, with 1.4%. This ensured that the conditions of the German Aviation Compliance Documentation Act (LuftNaSiG) were met.

On the basis of the voting rights notifications received, Kühne Aviation GmbH remained the largest shareholder at year-end 2024 with 15.01%.

According to Deutsche Börse’s definition, 85% of Lufthansa shares were in free float. As of the reporting date, 49% (previous year: 54%) of its shares were held by institutional investors and 51% by private individuals (previous year: 46%). The number of shareholders declined year-on-year to 590,000 (previous year: 604,000), but remained high by historical standards. The shareholder structure is updated quarterly and published on the website www.lufthansagroup.com/investor-relations. The notifications on voting rights received by the Company from shareholders and published during the 2024 financial year are also available there.

Lufthansa share is featured in the MDAX and other important indices

The Lufthansa share is part of the MDAX. At year-end, the share had an index weighting of 4.8%. With market capitalisation of EUR 6.5bn, adjusted for the free float, the Lufthansa Group came in at number 40 (previous year: 36) in the ranking of DAX companies (including the DAX 40) published by Deutsche Börse at year-end. The average daily trading volume of the share in 2024 was 6,048,725 shares (previous year: 5,424,345).

The Lufthansa share is also included in many classic international share indices. It is also represented in several sustainability indices, such as the MSCI EMU ESG, the MDAX ESG Screened and the FTSE4Good Europe Index.

American Depositary Receipts (ADRs) offer an alternative to equity investment

In addition to its stock market listing in Germany, investors who are only allowed to invest in securities denominated in US dollars can also gain exposure to the Lufthansa Group via the Sponsored American Depositary Receipt Program (ADR). The programme is managed by Deutsche Bank Trust Company Americas. Lufthansa ADRs are also registered on the standardised trading and information platform OTCQX. At year-end 2024, 13,149,480 ADRs were in circulation (31 December 2023: 10,969,245). Based on the 1:1 ratio to the share, this corresponds to around 1% of the issued capital.

Lufthansa Group pursues intensive dialogue with investors

As in prior years, the Lufthansa Group once again provided its investors with timely and comprehensive information in the 2024 financial year. In addition to its quarterly conferences, the Executive Board and Investor Relations team held a large number of roadshows and investor conferences to discuss with institutional investors the current developments at the Group and its operating environment in 2024. The Chairman of the Supervisory Board also met investors in the context of a roadshow in early 2024, mainly to discuss corporate governance topics and the Company’s steps to reduce its emissions. In-depth discussions were also held with debt investors.

In May 2024, the Group hosted around 3,500 shareholders who attended the Annual General Meeting, which was held online. This was again significantly more than the number of visitors to the in-person Annual General Meetings in the years before the coronavirus pandemic.

An Investor Day in December 2024 provided participating analysts and institutional investors with information on Lufthansa Technik.

All of the publications, financial reports, presentations, the quarterly shareholder information letter and the latest news are available at www.lufthansagroup.com/investor-relations. The site also contains the financial calendar and the dates of all the conferences and shareholder events that the Lufthansa Group will be attending.