Cost PressuresPersistent cost inflation, prolonged airport capacity constraints, and volatility in crude oil/jet fuel prices could lead to earnings disappointment.
Macroeconomic FactorsMacroeconomic weakness and geopolitical tensions could curb discretionary spending on travel, with rising unemployment and higher cost of living in Europe leading to households cutting back on travel spending.
Operational ChallengesLufthansa Airlines to continue experiencing operational challenges, unscheduled engine maintenance and delayed deliveries in FY25, underpinning a neutral stance on the group at this juncture.