Deutsche Lufthansa Stock: Shares Fall Amid Strike Concerns

Lufthansa shares declined sharply on Friday afternoon, dropping 2.9 percent to €7.83 on XETRA, with trading volume exceeding 8.7 million shares. Despite the current downturn, the stock remains 31.24 percent above its 52-week low of €5.38 recorded in August. The company's recent quarterly results showed a slight decrease in earnings per share to €0.92 compared to €1.00 in the previous year, although revenue increased by 4.51 percent to €10.74 billion. Adding to investor concerns, investment giant BlackRock has reduced its stake in Lufthansa from 3.85 percent to 3.61 percent as of February 28, 2025, with direct voting rights decreasing from 3.11 to 2.92 percent.

Nationwide Airport Strikes Threaten Operations

The labor union Verdi has announced a nationwide 24-hour warning strike at eleven German airports for Monday, including major hubs like Frankfurt, Munich, Berlin-Brandenburg, and Hamburg. According to airport association ADV, approximately 3,400 flights will be canceled, affecting around 510,000 passengers. The strike stems from an ongoing wage dispute in the public sector, with Verdi demanding an eight percent pay increase. This development poses significant operational challenges for Lufthansa, potentially impacting its business outlook and putting additional pressure on the stock price. Analysts currently estimate the fair value of Lufthansa shares at €7.47, with a projected dividend of €0.244 for 2024, below the previous year's €0.300.