Lufthansa shares under pressure: The stock exchange is trembling over the rescue package

For the Lufthansa share, it will go down significantly on Monday at the XETRA trading start. Despite reports of a large savings package being put together by the group shaken by the pandemic crisis, current indications for Lufthansa’s share price at € 9.30 / € 9.40 are well below the XETRA closing price on Friday – which was quoted at € 10.17 . The cause of the slide is the concern that the negotiated state bailout package for Lufthansa could fail in the upcoming general meeting. Lufthansa major shareholder Heinz Hermann Thiele opposes the federal government’s entry into the aviation company and could thus block the two-thirds majority required for the measure at the shareholders’ meeting.

Lufthansa had recently warned of bankruptcy in this case and was preparing for self-administered proceedings. CEO Karsten Spohr wrote to the employees: “In the event that the general meeting does not give approval for the stabilization measures of the federal government, we have made extensive preparations, among other things, to prevent grounding.” Federal government are to be continued – additional options are to be explored. The talks between Thiele, Lufthansa and the Federal Ministry of Finance continue: “Bild am Sonntag” reports on a meeting that is to take place today.

Lufthansa is now preparing for personnel cuts. 22,000 jobs are on the brink, half of them in Germany. Talks with the unions should end today, operational layoffs should be avoided as far as possible.

The emerging price slide for Lufthansa shares would be exacerbated by a chart-technical sell signal. If Lufthansa’s share price has stabilized at EUR 9.73 / EUR 9.90 in the past few days, this technical support, as well as the 50-day line at EUR 9.62, is now undercut. Between EUR 9.22 / 9.39 and EUR 8.73 / 8.89, additional support marks are emerging on the chart for the Lufthansa share.


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