Lufthansa - Rights issue to improve balance sheet position

Davy Research
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Lufthansa’s €2.1bn rights issue will allow it to repay tranches of state support, thus starting the sell-down of the German government’s stake, and reach targeted leverage levels by 2024. In this context, it will achieve its core objectives. In the shorter term, signs of improved passenger demand as well as continued momentum in Cargo will be well received.