-
Lufthansa
- IATA/ICAO Code:
- LH/DLH
- Airline Type:
- Full Service Carrier
- Hub(s):
- Frankfurt Airport, Munich Airport
- Year Founded:
- 1953
- Alliance:
- Star Alliance
- Airline Group:
- Lufthansa Group
- CEO:
- Carsten Spohr
- Country:
- Germany
The German government has sold off its last shares in Lufthansa following its intervention during the COVID pandemic. Germany's Economic Stabilization Fund sold its remaining shares to international investors after taking a 20% stake in Lufthansa in mid-2020.
Germany sells last shares in Lufthansa
After stepping in to save Lufthansa during the early days of the COVID pandemic, the Economic Stabilization Fund of the Federal Republic of Germany (WSF) has now sold its remaining 6.2% stake in the airline.
The final 6.2% stake (74.4 million shares) was sold to international investors in a block placement for EUR 455 million ($454 million). The WSF initially acquired a 20% stake in Lufthansa following a financial bailout amounting to around $9 billion.
Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, said,
"On behalf of all Lufthansa employees, I would like to thank the current and previous German government and all German taxpayers for their support of our Lufthansa during the most severe financial crisis in our company's history. The stabilization of Lufthansa was successful, and is also paying off financially for the German government and thus for the taxpayer."
Back in private hands
The state had been gradually selling its shares with the intention of exiting entirely by the end of 2023 but has managed to get out ahead of schedule, meaning Lufthansa is now entirely back in private hands.
WSF head Jutta Doenges said,
"With this gratifying balance, the WSF's participation comes to an end and the company is once again in private hands."
Lufthansa was able to fully repay all loans and deposits received from the Government by November 2021, also ahead of schedule. According to the airline, it drew approximately EUR 3.8 billion in financial aid, including the 306 million put forward by the WSF.
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Sizeable surplus for the WSF
The WSF acquired its 20% stake in Lufthansa at a cost of EUR 306 million in mid-2020. The fund revealed that the proceeds from selling off its shares totaled EUR 1.07 billion ($1.07 billion), amounting to a significant 250% profit margin.
Spohr added,
"We had already repaid the stabilization loan amounts earlier than expected; and the WSF has now also sold its last remaining shares one year before the deadline. This brings the stabilization of Lufthansa to a successful conclusion. Lufthansa is once again fully in private hands. All Lufthansa employees worldwide will continue to work hard to strengthen our position among the world's leading airline groups, for example through a broad-based premium product and quality offensive."
Lufthansa shares closed down 1.5% at EUR 6.32 per share on Tuesday. The airline recently returned to profitability after reporting its first quarterly profit since the outbreak of the pandemic.
As Simple Flying reported this week, Lufthansa is also eyeing up a move for TAP Air Portugal after likely missing out on a deal to acquire Italian national carrier ITA Airways.
Are you happy to see Lufthansa back entirely in private hands? How well do you think the airline handled the COVID pandemic? Let us know your insights in the comments.