Air Canada's Turmoil, Potential Profits for Lufthansa Explored
Lufthansa and Air Canada Face Temporary Disruptions
After a three-day strike by Lufthansa's cabin crew and the subsequent cancellations of hundreds of flights, both airlines are working towards resuming normal operations. The disruption has also impacted Air Canada, leading to revised projections for the crucial summer quarter and the full year 2025.
Lufthansa, Germany's largest airline, has seen a significant increase in its stock price in recent days. On Friday, the stock reached its highest level since December 2023 at €8.35 in Xetra trading. As of today, the stock is trading around €8.30. The price increase is partly due to a long-term price target set by DER AKTIONÄR at €10.50.
Air Canada, which typically transports around 130,000 customers daily and is the largest foreign carrier operating flights to the US, has been affected by the cancellations. Around 500,000 passengers were affected by the disruptions. The airline advises customers with confirmed bookings to check their flight status on the airline's website or app.
In a positive development, Air Canada and CUPE, the flight attendants' union, have reached an agreement on wage increases. The agreement includes higher compensation for tasks performed while the aircraft is stationary.
Lufthansa may pick up some flights as a replacement for Air Canada. The name of the captain or flight attendant who operated the first Air Canada flight after the strike interruption is not mentioned in the available sources. The first resumed flights after the strike were AC009 from Toronto to Tokyo-Narita and AC556 from Vancouver to Los Angeles on August 20, 2025.
Operations are expected to resume later today, with the first flights taking off in the evening (local time). It will take seven to ten days to return to regular operations. If the stock does not fall below the short-term uptrend (currently at €7.60) or the 50-day moving average (currently at €7.55), the uptrend for Lufthansa is expected to continue.
However, some flights may still need to be cancelled until the flight schedule stabilizes. Air Canada has revised its projections for the crucial summer quarter and the full year 2025 due to the cancellations. The board and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Fötsch, has directly and indirectly entered positions in Lufthansa NA, potentially benefiting from the price development resulting from the publication.
In conclusion, both Lufthansa and Air Canada are working to recover from the disruptions caused by the strikes. Passengers are advised to keep a close eye on their flight status, and investors should monitor the stock prices of both airlines as they navigate through these temporary challenges.
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