Airbus, Lufthansa, TUI, Silver Viper - Here we go!

Airbus SE - Strong planning figures for life after the pandemic

Good news from Toulouse. Airbus continues to prepare for life after the Covid-19 pandemic and has specified its production plans. In doing so, it is unusually optimistic about the outlook, as Airbus expects the market for commercial aircraft to recover to pre Covid-19 levels between 2023 and 2025. A strained view, since it assumes unimpeded travel, both personal and business.

With the introduction of various online tools for cross-site communication and international collaboration, it is hard to imagine that travel volumes from 2015-2019 will even come close to returning. Nevertheless, the Airbus control center in Toulouse has sent out corresponding information to its global suppliers about the new plans for aircraft production.

For the production of medium-range jets of the A320 model family, this means in concrete terms that Airbus assumes 64 aircraft per month by the second quarter of 2023. Suppliers should prepare for a scenario of 70 aircraft by early 2024 and up to 75 aircraft by 2025 if the market continues to recover. The group confirmed a current run rate of 45 aircraft per month until the end of 2021. There is still a small order push expected for the following years.

If Airbus' plans come to fruition, we will all be in the clear and the whole thing certainly would not be priced in on the stock market yet. The Airbus fans traded the value yesterday only once, 9% higher up to EUR 107. The all-time high of EUR 130 is still some way off.

Lufthansa - Increase of flight offers

Even if there are currently no more flights over the airspace of Belarus, the inner-European destinations and even long-distance destinations will be increased again shortly before the vacation season. From June 3 to 6, 2021, Lufthansa has announced that it will expand its flight offerings to vacation destinations in Spain, Portugal and Greece. An additional 20 planes will take off to popular destinations such as Crete, the Algarve and the Balearic Islands from both Munich and Frankfurt.

This summer, Lufthansa and Eurowings offer more vacation destinations than ever before, with over 100. Lufthansa is flying non-stop from Germany to twelve destinations in Greece for the first time. New long-haul offers are available for the Maldives, Mexico and the Dominican Republic. That really makes you want to travel! Lufthansa is presenting these offers and can be sure that many vacation-hungry Germans will book them.

The heirs of Lufthansa's major investor Heinz Hermann Thiele recently reduced their shareholding to 10% and even accepted a market discount of almost 10%. Overall, the situation for the airline is likely to remain challenging, no matter how intense the summer season is due to catch-up effects. The decisive factor is the seat factor and the number of aircraft and flights that will have to be offered in the future in order to return to sustainable profitability. This is unlikely to happen before 2023. Lufthansa therefore remains a first-rate hopeful stock. The Company is currently losing a good EUR 1 billion per quarter.

TUI - Booking frenzy for the summer

TUI is also experiencing an absolute booking frenzy for the coming summer. Weather-wise and calendar-wise, the current summer has not even begun, and TUI is already releasing its travel program for the summer of the coming year. According to the marketing department, those who book by November will receive an early booking discount of up to 20%.

But here, too, there are many "buts" - TUI needs sufficient flight capacity for its vacation offers. In the vacation destinations, the number of hotels on offer has been reduced by around 20% due to insolvencies. Therefore, it will not be possible to fully satisfy a real rush because it is likely to be just as tricky as with Lufthansa to plan the load factors for the next few years. Both companies can no longer afford long stretches of losses because the state has already extended its support programs here.

Whether it will be enough for a substantial share price upswing at TUI is also a technical question. For the past 3 months, the rise has been limited to the EUR 5 mark - a real surge in sales is finally needed here in order to climb to new share price heights.

Silver Viper - Private placement successfully completed

Far away from touristic considerations, an investment in silver is more a measure against the recently emerging inflation. As the little brother of gold, silver is always in demand in inflationary spurts. Even in the last 3 months, it went up strongly from USD 24 to just under USD 28. April 2021 Eurozone inflation was 1.6% year-on-year, the highest monthly increase in 3 years, but includes the green tax at the turn of the year.

Silver Viper is a Canadian explorer searching for silver with its main property, "La Virginia," near Hermosillo, Mexico. It is a vast exploration area known primarily for epithermal precious metal mineralization with low sulfidation. Silver Viper is managed by Belcarra Group Management Ltd., which is comprised of highly skilled mining professionals.

Currently, CAD 6 million has been raised in a private placement. The offering comprises 12,765,957 units of the Company at a price of 47 cents plus half warrant at 65 cents. The Company will use the net proceeds to continue its current drilling programs.

Silver Viper shares have reacted to the latest news by rising from CAD 0.42 to CAD 0.57, bringing the market capitalization to CAD 53 million. With its good positioning in the silver state of Mexico, the Company is a suitable lever on the silver market, which is currently picking up.