(updates: share price performance, details on Iran conflict)
FRANKFURT (dpa-AFX) - Lufthansa shares moved into positive territory during Monday trading, tracking the broader market. In the Middle East conflict, a vague rapprochement between the U.S. and Iran is emerging. Furthermore, a media report discussed the potential expansion of the stake held by logistics billionaire Klaus-Michael Kühne. Lufthansa shares rose by 1.5 percent in the afternoon. The pan-European sector index, Stoxx Europe 600 Travel & Leisure, was also trading significantly higher after a weak start to the week.
The sector environment was supported by reports of new negotiation proposals regarding the Iran conflict. According to Iranian media, the U.S. is reportedly prepared to temporarily ease oil sanctions against the country. Oil prices retreated following the news but remained at elevated levels. This continues to be a major concern for airlines due to increased fuel costs. These uncertainties also led Irish low-cost carrier Ryanair to refrain from providing a profit forecast for the current year on Monday.
Experts from JPMorgan and Bernstein Research expect analyst estimates for Ryanair to be revised downwards following the news. Nevertheless, after a weak start that saw the stock hit its lowest level in over a year, shares of the budget airline in Dublin recently surged by more than six percent. On the London Stock Exchange, Easyjet gained 1.3 percent, while Wizz Air slipped by 0.7 percent.
Regarding Kühne Holding's stake in Lufthansa, reference was made to an interview given by Chairman Karl Gernandt to the 'Neue Zürcher Zeitung'. Gernandt did not rule out the acquisition of further shares within the next twelve months. However, one trader saw this as no surprise. The current 20 percent stake is intended to serve the implementation of strategic goals, it was stated. The holding company is already Lufthansa's largest individual shareholder./tih/bek/niw/he
