FRANKFURT (dpa-AFX) - Lufthansa shares failed to escape the broader market and sector downturn on Monday. Despite a media report discussing a potential stake increase by logistics billionaire Klaus-Michael Kuehne, the airline's share price slipped 1.8 percent. The pan-European Stoxx Europe 600 Travel & Leisure index recorded a similarly sharp decline over the same period.
The sector was weighed down by fears of a renewed escalation in the Iran conflict. Rhetoric between Iran and the U.S. is sharpening once again, driving oil prices higher. This remains a major concern for airlines due to rising fuel costs. Such uncertainties also led Irish low-cost carrier Ryanair to refrain from providing a profit forecast for the current year on Monday.
Experts at JPMorgan and Bernstein Research expect analyst estimates to be revised downward following the Ryanair news. Shares of the budget carrier tumbled more than three percent in Dublin, hitting their lowest level in over a year. In London, the Ryanair fallout dragged Easyjet down by three percent and Wizz Air by 4.5 percent.
Regarding Kuehne Holding's stake in Lufthansa, market participants pointed to an article in the 'Neue Zuercher Zeitung'. In the report, Chairman Karl Gernandt did not rule out the acquisition of further shares within the next twelve months. However, one trader noted that this came as no surprise. The current 20 percent stake is intended to support strategic objectives, it was stated. The holding company is already Lufthansa's largest individual shareholder./tih/bek/jha/
