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Lufthansa’s failure to gain DAX entry signals continued investor skepticism about its recovery prospects

Executive summary: Deutsche Börse announced that Lufthansa did not meet the criteria for inclusion in the DAX index at the latest review. DAX membership influences index fund flows, perceived prestige, and can affect a company's cost of capital and share price liquidity.

Who is involved: Deutsche Börse (index operator), Lufthansa AG, and institutional investors tracking the DAX.

Likely next: Lufthansa will need to improve its market capitalization and trading volume to qualify at the next semi‑annual review, expected in March 2027.

Deutsche Börse’s latest review concluded that Lufthansa did not meet the market‑capitalisation and liquidity thresholds required for DAX inclusion. The airline remains in the MDAX/SDAX universe, meaning index‑fund flows tied to the DAX will not automatically benefit its shares. While the decision does not reflect operational performance directly, it underscores market concerns about Lufthansa’s valuation relative to its peers.

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