Frankfurt, Oct 15: Morgan Stanley has initiated coverage on Deutsche Lufthansa AG (DLAKY) with an Underweight rating and a price target of EUR 5.40, citing persistent headwinds and weak financial performance through 2024.
Analyst Axel Stasse noted that the airline continues to grapple with cost pressures, subdued travel demand in key European routes, and delayed recovery in corporate travel. The firm expects Lufthansa’s near-term profitability to remain constrained by high fuel prices, wage negotiations, and fleet renewal costs.
Morgan Stanley’s initiation follows a challenging year for the German carrier, which struggled with slower-than-expected capacity recovery and operational bottlenecks despite broader improvements in the aviation sector.
The investment bank’s cautious stance contrasts with growing optimism among some peers who expect a gradual rebound in European travel demand in 2026.
Lufthansa shares were last seen trading marginally lower on the Frankfurt Stock Exchange following the report.
