Shares: Lufthansa misses out on Dax promotion - no disadvantage for the stock
The hopes of Lufthansa to be included in the Dax have been disappointed once again. Shareholders should not be bothered by this, because companies that are promoted to the Dax often perform worse than the index.
Frankfurt - The German benchmark index Dax remains unchanged without Lufthansa, the airline which is a founding member of the index. This is the second consecutive time the airline has missed the chance to return to the top tier of German stock exchanges. Lufthansa had missed the mark in March and June as well. The company has remained in the secondary MDax index.
In 2020, Lufthansa fell out of the index due to ongoing issues during the COVID-19 pandemic. The pandemic led to a worldwide decline in passenger traffic, causing the airline to suffer billions in losses and require a state bailout. The shares hit a record low of just over five euros. Although the price is now at 7.71 euros, it is still far from its peak of 22 euros at the end of 2017/2018.
The sector remains challenging, with conflicts in Ukraine and Iran leading to air space restrictions, flight cancellations, and soaring jet fuel costs.
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- Deutsche Börse: Lufthansa verpasst Aufstieg in den Dax handelsblatt.com
