Lufthansa(#LHA.DE) weekly special report based On 1.00 Lot Calculation:
GLOBAL AIRLINES MARKETS:
- GLOBAL AIRLINES INDUSTRY MARKET SIZE: The global airline industry recorded revenues of $841.44B IN 2023, an increase of 7.1% from 2022. The market has recovered strongly since the Covid pandemic, and is expected to continue growing.
- MARKET POTENTIAL: Airlines are expected to earn $25B in net profit throughout 2024 according to the International Air Transport Association (IATA). This would be about 97% of the pre-pandemic profit, with the association expecting further growth beyond 2024.
LUFTHANSA (ANALYSIS)
- THE COMPANY: Deutsche Lufthansa provides passenger and cargo air transportation services worldwide. The Company offers flight and connection programs in North America, Scandinavia, and Asia. The company has around 300 subsidiaries and around 728 aircraft in its fleet. Lufthansa group has the largest aircraft fleet in Europe.
- PARIS OLYMPICS SET TO DRIVE STRONG TRAVEL DEMAND, WITH AN EXTRA 10 MILLION PEOPLE EXPECTED TO TRAVEL FOR THE GAMES: The Olympic games is one of the most widely recognized sports events in the world, and is held once every four years. The games attract tourists from around the world, and airlines like Lufthansa, Europe’s biggest air carries, are likely to see revenues spike.
- EUROPEAN CARRIER MARKETS CONTINUE TO SEE INCRESAES IN AIR TRAFFIC: According to the IATA, European air carrier traffic has increase around 11.6% year-on-year, with traffic expected to continue rising. International demand continued to rise and increased 18.9% in March.
- EUROPEAN TRAVEL DEMAND IS EXPECTED TO CONTINUE INCREASING IN 2024: According to the most recent statistics, passenger traffic in Europe is expected to increase from 2.3B passengers in 2023, to 2.5B in 2024. Growth in travel to Europe throughout 2024 could even exceed pre-pandemic levels by 2% according to some estimates.
PRICE ACTION
- STOCK PRICE ACTION: Lufthansa stock made its all-time high of €31.21 in January, 2018. The stock currently trades around €6.61 which is around 78% below the record high. If a full recovery follows, the stock could increase around 372%. However, the price could decline further.
- ANALYSTS OPINIONS: HSBC: €9.50, Morgan Stanley €8.40, Stifel: €11.00
Lufthansa, May 9, 2024
Current Price: 6.61
|
Lufthansa |
Weekly |
|
Trend direction |
|
|
9.50 |
|
|
8.10 |
|
|
7.15 |
|
|
6.15 |
|
|
6.00 |
|
|
5.75 |
Example of calculation based on weekly trend direction for 1.00 Lot1
|
Pivot Points |
||||||
|
Profit or loss in $ |
31,001.03 |
15,983.23 |
5,792.58 |
-4,934.42 |
-6,543.47 |
-9,225.22 |
|
Profit or loss in €² |
28,900.00 |
14,900.00 |
5,400.00 |
-4,600.00 |
-6,100.00 |
-8,600.00 |
|
Profit or loss in £² |
24,849.23 |
12,811.54 |
4,643.11 |
-3,955.24 |
-5,244.99 |
-7,394.58 |
|
Profit or loss in C$² |
42,566.58 |
21,946.09 |
7,953.62 |
-6,775.30 |
-8,984.64 |
-12,666.87 |
- 1.00 lot is equivalent of 10 000 units
- Calculations for exchange rate used as of 10:55 (GMT+1) 09/05/2024
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient Manager regarding their use.
- You may wish to consider closing your position in profit, even if it is lower than suggested one
- Trailing stop technique can protect the profit – Ask your Senior Account ManagerClient Manager for more detail