Deutsche Lufthansa Stock: Tehran Flights Resume, Market Reacts

Lufthansa's stock showed positive movement on the XETRA exchange, rising 0.72 percent to €6.96 after the airline resumed flights to Tehran. According to Iran's state news agency Irna, a Lufthansa aircraft landed in the Iranian capital late Saturday evening, marking the first flight since operations were temporarily suspended last autumn. This strategic decision follows the recent reactivation of Tel Aviv routes, which were also suspended amid Israel-Iran tensions. Market observers view this route expansion positively as it strengthens the airline's network and opens additional revenue streams. The stock currently trades approximately 6.7 percent below its 52-week high of €7.34 (reached mid-April) but remains about 21 percent above its 52-week low of €5.38 recorded in early August.

Persistent Industry Challenges

Despite route expansions, Lufthansa continues to face significant challenges in the European aviation market. Flight offerings from German airports remain 18.1 percent below pre-pandemic 2019 levels, though showing a 3.0 percent increase compared to last year. Reduced capacity combined with higher government fees and taxes contribute to persistently rising ticket prices, positioning Germany as one of Europe's more expensive countries for air travel. Analysts have set an average price target of €7.36 for Lufthansa shares and project 2024 earnings of €0.867 per share, while experts forecast a reduced dividend of €0.242 per share for the current year compared to €0.300 previously.