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Tuesday, December 3, 2024

Why the Airline Stock is Getting Thinner

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Lufthansa

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The airline was able to gain a price increase of 35 percent in the past few months – but the lead over other airlines is melting.

(Photo: Bloomberg)

According to analysts, it is worth taking a closer look at the Lufthansa share. Many experts have the paper on their list of recommended buys, only a few recommend selling it. The main reason for the positive tenor: The entire aviation industry is recovering faster and more vigorously than expected.

Concerns that a high inflation rate will lead to less being spent on travel have not yet been confirmed. In this environment, investors obviously have a lot of confidence in Lufthansa.

The share price shows that. In the past 12 months, only two of Europe’s larger airlines have managed to gain ground: Lufthansa and Ryanair.

Lufthansa is clearly ahead with a price increase of around 35 percent. The Irish low-cost provider’s paper only rose by around four percent. In view of such advance praise, however, the air for Europe’s largest airline group is slowly getting thinner.

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