Oddo BHF maintains its 'neutral' rating on Lufthansa shares, with a price target lowered from 8.5 to 8 euros.

The analyst reports that for 2024, "the upside could come from the pricing environment".

Indeed, Lufthansa reports that, after 4 to 5 weeks of repercussions from the strike, bookings have regained solid momentum for the summer season, particularly on intra-European routes, but also on transatlantic routes.

The FY24 unit revenue target (RASK) is still a 'low single-digit' decline, and is explained by the fact that 60% of the seats offered in Q3 have not yet been sold, says Oddo BHF.

Apart from CityLine and Discover, Lufthansa has now signed a wage agreement with all its pilots running until the end of 2026, offering visibility until the end of 2026.

In the end, our FY24 estimates now take into account the cost of strikes (c450 ME at Adjusted EBIT level) and conservative assumptions on RASK. On the other hand, our estimates for subsequent years are virtually unchanged at Adjusted EBIT level (the visible change at EPS level is linked to the neutralization of other non-cash financial results)', concludes the broker.

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