Investing in Lufthansa
However, it is convenient to analyze in detail the evolution of this company and how it has been growing in recent years. Below, we will show you everything you need to know about the company and how much a Lufthansa share is worth, as well as its advantages, disadvantages and the best way to buy Lufthansa shares.
What is Lufthansa?
Deutsche Lufthansa AG is a German airline based in Cologne and belongs to the Lufthansa Group. Together with other airlines such as United Airlines, Thai Airways International, Air Canada, Scandinavian Airlines System, it is a founder of the Star Alliance airline alliance.Since 2009, it has been considered the largest airline group in Europe. Then, in 2010 it was awarded as the best airline in Europe at the World Airline Awards. Lufthansa and Star Alliance offer more than 19,000 daily flights departing from approximately 1,200 different airports.The company has a main airport located in Frankfurt am Main and Munich International Airport as a second airport. In addition, it has several hangars located within Hamburg.In each of their flights they offer different services, one of them is the possible choice of a specific aircraft. You will be able to consult all the data related to it before traveling. Another service available is internet access during the flight so you can enjoy the entertainment offered. In this entertainment you will find a wide selection of magazines and newspapers, classic and recent movies, music and games for the little ones of the house.
Lufthansa shares are listed on Prime Standard of Deutsche Boerse AG of Germany. Lufthansa was first listed on the stock exchange in 1966, the German government at that time held 34% of its shares. It was then in 1997 that the company passed into private hands and it has remained the same so far.There are currently almost 500 million Lufthansa shares outstanding and 9.95% of these come from Templeton Global Advisors. The remaining shares come from both private investors and institutional investors. As of 2017 the Lufthansa stock had total revenues exceeding €8800 million. You can also find a Lufthansa stock within the German stock index DAX 30.Buying Lufthansa Shares: Advantages
- It is a company with excellent positioning in the area: Lufthansa has had a worldwide leadership, this provides them to enjoy a strong image in the eyes of the public and helps them to obtain a strong bargaining power.
- It is one of the world’s leading suppliers of airline products: It offers IT, maintenance and even in-flight catering systems.
- The company has strong allies: As one of the founders of the Star Alliance, it attracts more and more investors to help boost the value of Lufthansa shares.
- It is usually associated with a rather positive image: Because it builds its products with German engineering, it is associated with descriptive words such as high performance and good quality.
- Abundant workers worldwide: It has approximately 100,000 employees distributed in more than 80 countries. All of them occupy different jobs that are not only in air transportation, generating even more income for the company.
- It has an excellent marketing strategy: The company has long been working hard on its sponsorship. In addition, this strengthens all the premium services they offer to their passengers.
- Lufthansa’s share price is low: Compared to its competitors, the price of a Lufthansa share is just over 10 euros, which is affordable for investors.
Buying Lufthansa shares: Disadvantages
- Its image has been somewhat affected by some accidents that have occurred with its airplanes.
- Strong competition in the area: Sometimes this limits the rapid growth of the company and decreases the value of its Lufthansa shares on stock markets such as Nasdaq for example.
If you do not know how to buy Lufthansa, it is best to use a stock broker. These act with different investment strategies, there are some that work internationally or for a specific continent. On the other hand, there are brokers that usually ask for a commission to invest, as there are others that do not. The choice will depend only and only on you.The most used brokers to buy Lufthansa shares are: eToro, Plus500, Trade, ForexTB, IQ Option, Admiral Markets, Degiro, Interactive Brokers. Below, we will explain in detail how you can buy Lufthansa shares using a broker.ForexTBWhen using ForexTB for trading you have the possibility to choose between this platform or a platform called Metatrader. The latter is mostly used by experienced investors. ForexTB, on the other hand, is ideal for beginners because it not only yields excellent results, but it is also very easy to use.To get started, all you need to do is create an account by filling out the form on the screen. Then, follow these steps to buy Lufthansa stocks:
- Log in to your account and transfer the amount of money to invest.
- Then at the top press the operate button.
- Now in the search bar on the left side, enter the name of the company.
- In the market execution section, indicate how many Lufthansa shares you wish to buy.
- Click on the buy option, and you will have Lufthansa stocks at the best price in the market.
- Create an investment plan: To begin with, it is ideal to set a profitability goal and an investment plan, so you will know how much you can afford to invest and for how long.
- Study the types of investors that exist: So you can decide if you want to have a low risk of loss in a short time of action or one with high risk and a long time of investment.
- Choose the broker that suits you best: Remember that each one works differently, some charge commissions and there are others that have a minimum amount to buy or sell. The best ones are those that allow you to operate in a large number of stock markets.