Should I buy Lufthansa stock in 2025?

What is Lufthansa?

How much is the Lufthansa stock?

The price of Lufthansa stock is rising this week. At €7.08 per share, the stock is up by €0.06 (+0.85%) in the last 24 hours, though it has declined by 8.03% over the past week. Lufthansa’s current market capitalization stands at €8.42 billion, with an average three-month trading volume of 8.25 million shares. The stock trades with a P/E ratio of 6.89, offers a dividend yield of 4.24%, and has a beta of 1.19. With volatility on the rise, investors in Ireland should be mindful of short-term swings while weighing the airline’s growth potential in a competitive European sector.

Our full analysis on the Lufthansa stock

Having rigorously reviewed Lufthansa’s latest financial performance, analysed the share’s behaviour over the past three years, and integrated cross-validated market data via our in-house quantitative models, we present a detailed perspective that synthesises both technical and fundamental insights. By blending multi-source evaluations—ranging from key ratios and analyst consensus to competitive comparisons—we aim to clarify the opportunities emerging for Lufthansa investors in the evolving European aviation landscape. So, why might Lufthansa stock once again become a strategic entry point into the global airline sector in 2025?

Recent Performance and Market Context

Despite a year of volatility, Lufthansa’s share price currently stands at €7.08 (as of 30 May 2025), up by a solid 11.74% over six months, and trading within a 52-week range of €5.38–€8.16. The short-term negativity noted in the recent five-day (-8.03%) and one-month (-9.53%) windows does not fully reflect the far more favourable medium-term trajectory. This divergence between recent pullbacks and the underlying upward six-month trend often signals the type of constructive consolidation that precedes renewed buy-side interest—particularly as we head deeper into the 2025 travel season.

Fundamentally, Q1 2025 results confirmed robust sectoral momentum: quarterly revenue reached a record €8.13 billion, up nearly 10% year-on-year. This marks the first time Lufthansa has surpassed €8 billion in Q1 revenue, a milestone reinforced by a €127 million improvement in adjusted EBIT over the prior year. The continued rise in passenger traffic (+6% y/y) reflects persistent demand following the post-pandemic recovery, but also strengthened market positioning amidst ongoing consolidation across European aviation.

On the macro level, the air travel sector is benefiting from resilient demand in both leisure and business segments. The successful finalisation of the ITA Airways acquisition has positioned Lufthansa to capture incremental value from the Italian market—now treated as a quasi-domestic base—which could be transformative for near-term earnings resilience and long-term market share. This structural shift, coupled with an ambitious recruitment and fleet renewal programme, further reinforces a context that seems particularly favourable for investors seeking defensively-advantaged, high-recovery plays in European transport.

Technical Analysis

Lufthansa’s technical framework underscores a market in the process of establishing a new, stronger foundation. Currently, the stock trades below its principal short- and medium-term moving averages, often a sign of short-term consolidation. However, several compelling indicators suggest a possible bullish reversal:

• Relative Strength Index (14-day): Hovering near the neutral 50% level, the RSI reflects a market neither overbought nor oversold—often a precursor to directional moves, especially when historical volatility is high and recent declines have tested support.
• MACD and Moving Averages: While the price remains beneath the 20-, 50-, and 200-day moving averages, momentum oscillators are stabilising. The MACD histogram nears a potential bullish crossover, historically a reliable early indicator of renewed upside interest in such cyclical sectors.
• Support and Resistance: Technical support is robust in the €6.22–€5.56 zone, levels that have repeatedly acted as inflection points over the past year. Upside potential is capped only by the recent 52-week high at €8.16, implying meaningful headroom should a positive catalyst emerge.

The technical structure appears primed for a classic mean-reversion move, with recent downward volatility offering an advantageous entry for investors eyeing a rebound in line with broader sector tailwinds.

Fundamental Analysis

In pure fundamental terms, Lufthansa’s value proposition looks particularly attractive heading into mid-2025.

• Growth and Profitability: Revenue growth of nearly 10% year-on-year in Q1 outpaced consensus estimates and signalled not just a return to normalcy, but a phase of expansion. While Q1 is seasonally the least profitable quarter in aviation, the reduction in net loss compared to prior years is encouraging. Importantly, capacity has reached 90% of pre-pandemic 2019 levels, suggesting a secular return to baseline efficiency.
• Valuation: Lufthansa is currently priced at a trailing P/E of 6.89 and a Price/Sales ratio comfortably below major European peers—metrics that point to considerable undervaluation relative to sector norms, especially when accounting for a forward earnings rebound. The dividend yield, at 4.24%, adds a layer of downside protection rarely offered in cyclical transport.
• Strategic Assets: The group continues to benefit from significant market share in Europe, an unmatched brand portfolio (including SWISS, Austrian Airlines, and Brussels Airlines), and a diversified segment base (passenger, MRO, and logistics). The ITA Airways acquisition stands out as a potentially game-changing move, with substantial profit synergies anticipated in the quarters ahead.

Lufthansa’s combination of structural strengths, demonstrated expansion, and undemanding valuation metrics justifies renewed institutional and retail interest at present levels.

Volume and Liquidity

Lufthansa’s liquidity picture adds another layer of confidence. With a robust average daily turnover of 8.25 million shares (65-day average) and a substantial market capitalisation (€8.42 billion), the stock offers deep liquidity that supports tight bid-ask spreads and efficient price discovery—key for both institutional flows and nimble individual investors.

The sizeable free float (over 1 billion shares) ensures that price movements genuinely reflect broad-based sentiment, and the healthy trading volume suggests significant market confidence, with any substantial accumulation by large players likely to result in visible momentum on the upside.

Catalysts and Positive Outlook

The case for further upside in Lufthansa is particularly underpinned by tangible catalysts emerging for the second half of 2025 and beyond:

• ITA Airways Integration: The successful onboarding of ITA Airways (41% acquired in January 2025) is expected to immediately contribute positively to group earnings, a view supported by group leadership and early financial data. This isn’t just a bolt-on acquisition, but a strategic transformation that adds a “domestic” Italian base to Lufthansa’s core markets.
• Ongoing Sector Recovery: With European air travel demand now solidly above 2022–2023 levels and showing no signs of abating, the macroeconomic backdrop remains benign for aviation. The industry’s consolidation, with Lufthansa at the forefront, continues to drive pricing power and operational synergies.
• Operational Efficiencies: The 2025 hiring plan (10,000 new staff), targeted fleet renewal, and structural cost savings are already showing benefits. These forward-looking investments enhance competitive positioning while improving overall resilience and profitability.
• ESG and Sustainability Play: Lufthansa’s progressive fleet modernisation—essential for both cost and environmental reasons—is increasingly recognised by institutional ESG investors, further broadening the stock’s appeal.

Together, these factors point to a favourable upward context. Notably, consensus revenue estimates of €39.7 billion for 2025 and analyst earnings expectations imply a strong rebound as operational leverage takes effect.

Investment Strategies

Lufthansa stock currently aligns well with multiple strategic timeframes, each benefiting from the intersection of technical, fundamental, and catalytic momentum:

• Short-term
• Entry Opportunity: Recent technical consolidation and proximity to strong support levels (€6.22–€5.56) present a classic mean-reversion setup. Short-term traders may view current pricing below key moving averages as an opportunity to enter ahead of a potential sentiment reversal spurred by summer travel demand.
• Medium-term
• Catalyst-Driven Rebound: The ITA Airways integration, forthcoming Q2–Q3 results, and continued macro recovery all represent potential inflection points. Investors with a three- to twelve-month horizon could benefit from positive earnings surprises, improved margins, and further newsflow regarding route expansion or additional strategic alliances.
• Long-term
• Structural Transformation: For those with a long-term outlook, the broader case hinges on Lufthansa’s transformation into a dominant European aviation group, reinforced by ongoing fleet modernisation, brand equity, and cost discipline. The attractive dividend yield and discounted valuation underpin a strong total return profile, with the possibility of material capital appreciation as the group returns to pre-pandemic profit levels—or exceeds them.

In all cases, the technical structure and presence of robust supports seem to tilt the odds in favour of buyers, particularly as operational catalysts materialise.

Is it the Right Time to Buy Lufthansa?

In summary, Lufthansa’s current set-up—marked by record-breaking Q1 revenues, sustained demand growth, and a transformative strategic acquisition—suggests the stock represents an excellent opportunity for investors seeking exposure to Europe’s resurgent airline sector. The technical pullback over recent weeks has reset the price to levels that look increasingly attractive relative to both historical valuations and the company’s medium-term earnings power.

• Compelling valuation multiples relative to sector peers.
• Enhanced market share and revenue prospects post-ITA Airways integration.
• Robust dividend yield, offering both income and capital appreciation potential.
• Technical structure suggesting the foundation for an upward move amid constructive volume and liquidity.

With a confluence of bullish catalysts, healthy profitability resurgence, and sector-leading strategic advantages, Lufthansa appears poised to enter a new phase of value creation. For Irish and international investors alike, the combination of risk-mitigated entry levels and powerful upside drivers means that now may be an ideal moment to revisit—and potentially reweight—Lufthansa within a diversified equity portfolio. The current dynamics strongly justify renewed attention to this leading European aviation stock as 2025 unfolds.

How to buy Lufthansa stock in Ireland?

Buying Lufthansa Stock Online: Simple, Secure and Flexible Methods

Investing in Lufthansa shares online is now more accessible and secure than ever for Irish retail investors, thanks to regulated online brokers. With just a few clicks, you can open an account, deposit funds in euros, and buy Lufthansa shares directly on the Frankfurt XETRA stock exchange. Investors typically choose between two main methods: buying the shares outright (spot buying) or trading via Contracts for Difference (CFDs). Each method has its benefits, and the best choice depends on your objectives and risk appetite. To help you get started, we provide a detailed comparison of the top brokers available further down this page.

Spot Buying

When you buy Lufthansa stock for cash (spot), you become a direct shareholder. Your shares are held securely in your name, and you may receive dividends and have voting rights at shareholder meetings. Spot buying typically involves a fixed commission per order, which usually ranges from €3 to €10 with most Irish-facing brokers.

Important Example

Example: Suppose the Lufthansa share price is €7.08 and you want to invest €1,000 (about €1,000 ≈ €925 at a €1 ≈ $1.08 exchange rate; for simplicity, we’ll use €1,000). Deducting a €5 brokerage fee, you could buy approximately 140 shares (€1,000 - €5 = €995; €995/€7.08 ≈ 140 shares).

✔️ Gain scenario: If the share price rises by 10%, your 140 shares would be worth about €1,100.
Result: +€100 gross gain, or +10% on your investment (excluding potential taxes or currency fluctuations).

Trading via CFD

CFD trading allows you to speculate on Lufthansa’s stock price movements without owning the actual shares. CFDs are complex instruments which use leverage, so you can control a larger position with a smaller amount of capital. Fees for CFDs typically include a “spread” (the difference between buy and sell prices) and overnight financing if you hold positions beyond the trading day.

Important Example

Example: If you commit €1,000 as margin with 5x leverage, you gain exposure to €5,000 worth of Lufthansa stock.

✔️ Gain scenario: If Lufthansa shares rise by 8%, your leveraged position would yield a 40% return (8% × 5 = 40%).
Result: +€400 gain on your €1,000 investment (excluding spread and overnight fees).

Final Advice

Before investing, it’s essential to carefully compare brokers’ fees, trading platforms, and available services to find the best solution for your needs—the comparison table further down the page will help you make an informed choice. Ultimately, the right method depends on your personal goals: spot buying is suitable for long-term investors seeking steady growth, while CFDs appeal to traders looking for flexibility and leverage. Choose the approach that aligns best with your financial objectives and risk profile.

Our 7 tips for buying Lufthansa stock

The latest news about Lufthansa

Lufthansa posted Q1 2025 revenue growth of 9.9%, surpassing €8 billion for the first time. The airline group outperformed analyst expectations, with revenue hitting €8.13 billion and the passenger segment contributing €5.9 billion (up 6% year-on-year). This robust performance, despite the traditionally loss-making first quarter due to seasonality, points to operational improvements and sustained travel demand across major European markets. The positive trend is further underpinned by a significant year-on-year improvement in adjusted EBIT, narrowing losses and reaffirming Lufthansa’s recovery trajectory in the post-pandemic environment.

The dividend yield for Lufthansa stands at an attractive 4.24%, with a calculated price target 30% above the current share price. With the stock trading at €7.08 and offering a €0.30 per share dividend, the yield is notably above many sector peers, which is particularly appealing for investors in Ireland seeking euro-denominated returns. Moreover, a medium-term calculated price target of €9.20, about 30% above current levels, combined with a modest price-to-earnings ratio of 6.89, signals valuation upside potential as operational results improve and the group delivers on its long-term transformation strategy.

Lufthansa completed the strategic acquisition of ITA Airways, increasing cross-border synergies and European footprint. The integration of a 41% stake in ITA Airways, finalized in January, is already expected to contribute positively to the group’s earnings this year, according to the CEO. This move solidifies Lufthansa’s role as a leading consolidator in the European airline industry, putting the group in a strong position to tap into growing traffic flows between Ireland, Italy, and Lufthansa’s extended network, which is especially relevant given Ireland’s strategic role as a European aviation hub and strong business and tourism ties with continental Europe.

The group is actively modernizing its fleet and expanding its workforce, enhancing operational resilience and customer experience. A new hiring plan for 10,000 employees and continued fleet renewal underline Lufthansa’s commitment to efficiency and service quality. These investments are crucial for maintaining competitiveness on routes linking Ireland to the wider Lufthansa network, including popular Irish destinations served by SWISS, Austrian Airlines, Brussels Airlines, and Eurowings—airlines all falling under the Lufthansa Group umbrella and regularly used by Irish leisure and business travelers.

Analyst sentiment remains constructive, with a consensus price target near current prices but some upward revisions following strong Q1 results. From a market perspective, the consensus of 20 analysts recommends ‘Hold,’ with an average price target of €6.91, but with calculated upside to €9.20 as noted by independent assessments. While some houses have adjusted targets in light of recent volatility, Bernstein continues to advise a buy. The resilience shown in Q1, positive integration news from ITA Airways, and robust dividend yield present a compelling case for Irish investors who value blue-chip exposure to the continental European transport sector and are seeking opportunities in companies with a strong regional presence and recovery potential.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.