Deutsche Lufthansa Stock: Shares Drop Amid Ita Integration Plans

Deutsche Lufthansa's stock experienced a notable decline on Monday, dropping 2.2 percent to €6.13 in XETRA trading, marking a significant retreat from its 52-week peak of €8.04 reached in early February. The downturn comes as the airline advances its integration plans for Italian carrier Ita Airways, in which Lufthansa currently holds a 41 percent stake. While the company projects positive earnings for Ita Airways within the first year post-acquisition, the full synergy benefits are expected to materialize only after an 18-month delay. The integration process is scheduled for completion by 2027, with operational procedures at Frankfurt and Munich hubs being streamlined to accommodate Ita passengers at Lufthansa terminals.

Financial Outlook and Pricing Strategy

Analysts maintain cautious optimism about Lufthansa's financial trajectory, projecting earnings per share of €0.873 for the current fiscal year, though the anticipated dividend of €0.242 falls below the previous year's figure. Air travelers should prepare for continued fare increases, as operational costs continue to rise across European air travel. The company's medium-term strategy targets an operational margin of eight percent, though this benchmark may take time to achieve through the complete integration process.