Interim report
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lufthansagroup.com investor-relations.lufthansagroup.com 2025 2nd Interim Report January - June 2025 CONNECTING PEOPLE, CULTURES AND ECONOMIES IN A SUSTAINABLE WAY
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INTERIM MANAGEMENT REPORT Key figures LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 2 THE LUFTHANSA GROUP KEY FIGURES Jan - Jun 2025 Jan - Jun 2024 Change in % Apr - Jun 2025 Apr - Jun 2024 Change in % Revenue and result T otal revenue €m 18,449 17,399 6 10,322 10,007 3 of which traffic revenue €m 15,009 14,332 5 8,643 8,429 3 Operating income €m 20,016 18,807 6 11,189 10,632 5 Operating expenses €m 19,963 18,980 5 10,452 9,969 5 Adjusted EBITDA €m 1,344 978 37 1,465 1,257 17 Adjusted EBIT €m 149 -163 871 686 27 EBIT €m 120 -212 861 659 31 Net profit/loss €m 127 -265 1,012 469 116 Key balance sheet and cash flow statement figures Total assets €m 48,137 47,233 2 – – Equity €m 10,342 9,701 7 – – Net indebtedness €m 5,455 5,640 -3 – – Net pension obligations €m 2,227 2,451 -9 – – Cash flow from operating activities1) €m 2,831 2,688 5 1,014 1,388 -27 Gross capital expenditures2) €m 1,637 1,761 -7 818 837 -2 Net capital expenditures1) €m 1,934 1,654 17 777 725 7 Adjusted free cash flow €m 1,024 878 17 138 573 -76 Key profitability figures Adjusted EBITDA margin % 7.3 5.6 1.7 pts 14.2 12.6 1.6 pts A djusted EBIT margin % 0.8 -0.9 1.7 pts 8.4 6.9 1.5 pts EBIT margin % 0.7 -1.2 1.9 pts 8.3 6.6 1.7 pts Lufthansa share Share price as of 30 June € 7.18 5.71 26 – – E arnings per share € 0.11 -0.22 0.84 0.39 115 Employees E mployees as of 30 June number 102,974 100,173 3 – – KEY FIGURES (CONTINUED) Jan - Jun 2025 Jan - Jun 2024 Change in % Apr - Jun 2025 Apr - Jun 2024 Change in % Traffic figures F lights number 483,005 469,625 3 278,826 272,654 2 P assengers thousands 61,391 60,298 2 37,100 35,939 3 Available seat-kilometres millions 160,132 153,816 4 90,211 86,945 4 Revenue seat-kilometres millions 128,962 124,733 3 73,943 71,460 3 Passenger load factor % 80.5 81.1 -0.6 pts 82.0 82.2 -0.2 pts Available cargo tonne-kilometres1) millions 8,738 8,214 6 4,627 4,418 5 Revenue cargo tonne-kilometres1) millions 5,114 4,796 7 2,666 2,537 5 Cargo load factor1) % 58.5 58.4 0.1 pts 57.6 57.4 0.2 pts 1)Previous year's figures have been adjusted. 2) Without acquisition of equity investments. Date of publication: 31 July 2025. CONTENT 27 Interim financial statements 27 Consolidated income statement 28 Consolidated statement of comprehensive income 29 Consolidated statement of financial position 31 Consolidated statement of changes in shareholders’ equity 32 Consolidated cash flow statement 33 Notes 43 Further information 43 Declaration by the legal representatives 44 Review report 45 Credits/Contact Financial calendar 2025/2026 3 Letter from the Executive Board 4 Interim management report 4 Macroeconomic environment 5 Sector development 5 Course of business 6 Significant events 6 Events after the reporting date 7 Financial performance 15 Business segments 24 Opportunities and risk report 25 Forecast
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INTERIM MANAGEMENT REPORT Letter from the Executive Board LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 3 Letter from the Executive Board Ladies and gentlemen, dear shareholders, The Lufthansa Group developed positively in the first half of 2025 in a challenging market environment. We would particularly like to emphasise the significant improvement in operational stability. Moreover, we responded to the continued high level of global demand for flights. Thanks to further capacity expansion and selling of capacities, overall our airlines reliably carried more than 61 million passengers to their destinations. Our Passenger Airlines once again increased their half-year result year-on-year and generated a positive second-quarter result which was higher than in the same period in the previous year. We achieved this positive development despite continuing delays in the delivery of new aircraft as well as challenging geopolitical conditions. We also did so in spite of significantly increased costs, including the location costs in Germany. As regards taxes, levies, fees and charges, these have climbed to a negative record level. Our Logistics and MRO business segments also continued to develop successfully in the first half of 2025 and once again achieved positive earnings that were higher than in the previous year. Lufthansa Cargo in particular benefited from the ongoing market volatility and deliberately played to its strengths. Lufthansa Technik also further expanded its position and contributed to the overall success of the Lufthansa Group. In the first half of 2025, the Lufthansa Group achieved Adjusted EBIT of EUR 149m, which corresponds to a EUR 312m improvement on the previous year. We have also substantially strengthened our balance sheet. For the year as a whole, we expect Adjusted EBIT significantly above the previous year’s level of around EUR 1.6bn. The earnings trend for Lufthansa Airlines, the fuel price trend and Lufthansa Cargo’s traditionally strong fourth quarter are key factors shaping the positive outlook. The continuing implementation of Lufthansa Airlines’ turnaround programme is already having a substantial positive impact on operational stability. Following the operational difficulties of the previous years, we now look forward to a strong and very stable summer 2025. Our core brand’s levels of punctuality and regularity exceeded their 2019 pre-crisis levels for the first time in the first half of 2025. Our restructuring of the Lufthansa Group is also proceeding according to schedule. Our City Airlines fleet is continuously growing. We have successfully introduced our new Allegris in-flight product for Lufthansa long-haul routes, and in June we brought our tenth Airbus A350 fitted with the innovative Allegris cabin into service. Moreover, in late summer we expect to take delivery of our first Boeing 787 “Dreamliner” with the Allegris interior, while SWISS is due to receive its first A350 with the new “SWISS Senses” cabin. Our airlines are thus improving the first-class premium experience for our passengers and setting new standards in the area of customer satisfaction. Our integration of ITA Airways is also rapidly progressing. With the aim of harnessing Group-wide synergies even more, in the coming year we intend to fully incorporate this airline within our Group, as the Lufthansa Group’s fifth network airline. Together, we aim to lead our Company into a successful future – for the benefit of our shareholders, our passengers and our employees. We are pleased that you are accompanying us on our journey. Frankfurt, 30 July 2025 Carsten Spohr, Chairman of the Executive Board
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INTERIM MANAGEMENT REPORT Macroeconomic environment and sector developments LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 4 INTERIM MANAGEMENT REPORT MACROECONOMIC ENVIRONMENT AND SECTOR DEVELOPMENTS MACROECONOMIC ENVIRONMENT GDP DEVELOPENT in 2025 in % Q1 Q2 Q3 1) Q4 1) Full year 1) World 2.9 2.6 2.2 1.8 2.4 Europe 1.6 1.1 1.0 0.9 1.1 Germany 0.0 0.2 0.1 0.6 0.2 North America 2.0 1.6 1.1 0.9 1.4 South America 2) 3.0 2.2 1.5 1.5 2.0 Asia/Pacific 4.5 4.4 4.0 2.9 3.9 China 5.4 5.2 4.5 3.0 4.5 Middel East 2.9 3.0 3.9 4.9 3.7 Africa 3.9 3.5 3.7 3.6 3.5 Source: S&P Global as of 15 July 2025. 1) Forecast. 2) excluding Venezuela. Global economic growth has been positive overall in the year to date, with some clear regional variations. According to data from S&P Global, the global economy grew by 2.6% year-on-year in the second quarter of 2025, compared with a growth rate of 2.9% in the first quarter of 2025. In full-year 2024, global economic growth amounted to 2.8%. Overall, the European economy grew significantly more slowly than the global economy and its pace of growth dropped off. In the second quarter of 2025, the European economy expanded by 1.1%, compared with 1.6% in the first quarter of 2025. In full-year 2024, economic output in Europe rose by 1.2%. Germany’s economic output increased by 0.2% in the second quarter of 2025, which was a significantly lower rate than for Europe as a whole. The same is true of the first quarter, when Germany did not achieve any growth at all. In full-year 2024, Germany’s economic output fell by 0.2%. DEVELOPMENT OF CRUDE OIL, KEROSENE, AND CURRENCY (Jan - Jun 2025) 30.06.2025 Average Average previous year Brent ICE in USD/bbl 66.74 70.75 83.40 Jet Fuel Crack in USD/bbl 22.03 18.94 24.10 Kerosene in USD/t 699.50 707.86 846.56 USD 1 EUR/USD 1.1787 1.0918 1.0813 JPY 1 EUR/JPY 169.7800 162.1677 164.4501 CHF 1 EUR/CHF 0.9348 0.9412 0.9614 CNY 1 EUR/CNY 8.4356 7.9152 7.7986 GBP 1 EUR/GBP 0.8583 0.8423 0.8545 CAD 1 EUR/CAD 1.6040 1.5390 1.4684 Souce: Bloomberg, annual average daily price. The average price of oil (Brent ICE) declined by 15% in the first half of 2025 to USD 70.75/barrel (previous year: USD 83.40/bbl). The jet fuel crack, the price difference between crude oil and kerosene, averaged USD 18.94/barrel in the first half of 2025 and is thus down by 21% year-on-year (previous year: USD 24.10/barrel). Accordingly, the average kerosene price decreased by 16% year-on-year to USD 707.86/t (previous year: USD 846.56/t). Overall in the first half of 2025, the euro was stable against the main currencies for the Lufthansa Group in comparison with the previous year. On average, it rose by 4.8% against the Canadian dollar, by 1.5% against the Chinese renminbi and by 1.0% against the US dollar. On the other hand, the euro fell by 1.4% against the Japanese yen and the British pound. On average, it lost 2.1% against the Swiss franc. In the first half of 2025, the central banks’ continued restric- tive monetary policy prompted a further drop in inflation. At the end of June 2025, the average global inflation rate was 3.6% (previous year: 5.4%), while in Europe and Germany it stood at 2.0% (previous year: 2.5% and 2.2% respectively). The US Federal Reserve has lowered its key interest rate from a 5.5% high in the previous year to 4.5%. The European Central Bank has cut interest rates eight times since June 2024 and its key interest rate is currently at 2.15% (previous year: 4.25%).
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INTERIM MANAGEMENT REPORT Macroeconomic environment and sector developments LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 5 SECTOR DEVELOPMENTS SALES PERFORMANCE IN THE AIRLINE INDUSTRY (Jan - May 2025) in % compares with previous year Revenue passenger-kilometres Cargo tonne-kilometres Europe 5 2 N orth America 0 1 Central and South America 8 7 Asia/Pacific 9 8 Middle East 6 -4 Africa 9 -4 Industry 6 3 Source: IATA Air Passenger & Air Freight Figures (May 2025). In the first five months of the reporting year for which estimates from the International Air Transport Association (IATA) are currently available, the sales trend for the global passenger business improved year-on-year as a result of the further increase in demand. According to IATA, the number of passenger-kilometres sold worldwide rose by 6% year-on- year in the first five months of 2025, while in Europe the volume of sales grew by 5%. At the same time, the ongoing supply restrictions through- out the sector are preventing the Passenger Airlines from achieving a disproportionately strong increase in capacity. This is having a stabilising impact on the yield trend. Compared with the situation at the start of the year, growing macroeconomic uncertainty (above all driven by the political developments in the USA) is somewhat curbing demand for travel. The global market for airfreight also grew in the first five months of the 2025 financial year, supported by the COURSE OF BUSINESS OVERVIEW OF THE COURSE OF BUSINESS Earnings improvement in all of the Lufthansa Group’s business segments The Lufthansa Group registered a positive earnings tr end in the first half of 2025. It achieved a year-on-year earnings improvement in all of its business segments. Lufthansa Group Passenger Airlines further increased their volume of traffic due to the continued high level of demand for air travel, and to holiday destinations especially. Capacity rose by 4% year-on-year in the first half of 2025. Lufthansa Airlines is forging ahead with its turnaround programme, and this is having a substantial positive effect on operational stability. Overall, the levels of punctuality and regularity achieved by the Lufthansa Group’s Passenger Airlines surpassed their pre-crisis levels in the first half of 2019 for the first time in the first half of 2025. Passenger Airlines’ Adjusted EBIT improved by 28% year- on-year to EUR -244m in the first half of 2025 (previous year: EUR -337m). Increased costs (in particular, for fees and charges as well as staff) constituted significant burdens in the first half of 2025. This contrasted with positive effects resulting from lower fuel costs, reduced costs due to strikes and irregulari- ties in flight operations as well as exchange rate effects, among others in the result from the Group’s equity invest- ment in ITA Airways. continuing boom in online trade as well as capacity bottle- necks in global maritime shipping. According to IATA, global airfreight volumes (measured in revenue cargo tonne- kilometres) climbed by 3% year-on-year. In Europe, the volume of sales rose by 2%. The aircraft maintenance, repair and overhaul (MRO) business continued to develop positively. A persistently high level of demand for flights is driving further growth in demand for MRO services. The ongoing shortage of materi- als on the global market is having an adverse impact. This shortage has been triggered by delays in deliveries by the manufacturers and suppliers of aircraft, engines and aircraft components. In addition, tariffs such as those levied on aluminium and steel represent a challenge for the MRO providers’ cost situation. In the Logistics business segment, the positive operational and financial trends which were already apparent in the second half of 2024 continued in the first half of 2025. Lufthansa Cargo achieved an Adjusted EBIT of EUR 135m, which was EUR 121m higher than in the previous year (previous year: EUR 14m). Adjusted EBIT in the MRO business segment rose by 2% to EUR 310m (previous year: EUR 305m) due to continued strong demand for MRO services in the first half of 2025. Lufthansa Technik thus achieved another record result. ↗ Business segments, p. 15. Despite declining yields, the Lufthansa Group’s revenue increased by 6% year-on-year to EUR 18,449m (previous year: EUR 17,399m) due to the expansion of its flight programme and strong growth in its Logistics and MRO business segments.
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LUFT HANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 6 INTERIM MANAGEMENT REPORT Course of business The Lufthansa Group’s Adjusted EBIT came to EUR 149m in the first half of 2025 (previous year: EUR -163m). Its result thus improved by EUR 312m year-on-year. The Adjusted EBIT margin increased by 1.7 percentage points to 0.8% (previous year: -0.9%). ↗ Earnings position, p. 7. The Lufthansa Group achieved a positive Adjusted free cash flow in the first half of 2025. At EUR 1,024m, this was 17% higher than in the previous year (previous year: EUR 878m). This increase is based on the slight rise in operating cash flow and reduced net capital expenditure. Operating cash flow increased due to the higher EBITDA figure, which was partly offset by negative working capital effects. ↗ Financial position, p. 11. The Lufthansa Group further strengthened its balance sheet in the first half of 2025 Due to valuation effects associated with the US dollar exchange rate trend, at EUR 5,455m on 30 June 2025, net indebtedness was EUR 289m lower than at the end of 2024 (31 December 2024: EUR 5,744m). Net pension obligations decreased by EUR 339m to EUR 2,227m (31 December 2024: EUR 2,566m), primarily due to the increase in the discount rate. The ratio of Adjusted net debt/Adjusted EBITDA in the past twelve months stood at 1.7 as of 30 June 2025 and was thus lower than at the end of 2024 (31 December 2024: 2.0). ↗ Net assets, p. 12. SIGNIFICANT EVENTS Shareholders approve all Annual General Meeting agenda items Deutsche Lufthansa AG’s Annual General Meeting took pla ce on 6 May 2025. Its shareholders approved all of the items on the agenda by large majorities. The agenda items included the use of distributable earnings, with the distribution of a dividend of EUR 0.30 per share envisaged, as well as the election of Supervisory Board members. Erich Clementi, Chairman of the Supervisory Board of E.ON SE, Astrid Stange, Chief Executive Officer of ELEMENT Insurance AG, and Angela Titzrath, Chief Executive Officer of Hamburger Hafen und Logistik AG, were re-elected to the Supervisory Board. Alexis von Hoensbroech, Chief Executive Officer of the Canadian airline WestJet Airlines, was newly elected to the Supervisory Board. The members were in each case elected for a three-year term of office. ITA Airways’ integration continues The Lufthansa Group has made substantial progress in it s integration of ITA Airways. Since April 2025, ITA Airways has been officially included in the Star Alliance integration process. This represents a significant step towards its full integration within the Lufthansa Group’s global network. In addition, the Lufthansa Group and ITA Airways have expanded their code-share partnership. As well as European connections, selected joint long-haul flights are now also bookable, thus significantly improving the offering for passengers. Moreover, since 1 July 2025 status customers have benefited from harmonised advantages such as lounge access and priority services on flights operated by ITA Airways and the Lufthansa Group’s airlines. German Federal Cartel Office approves Lufthansa Group ’ s acquisition of a stake in airBaltic On 30 June 2025, the German Federal Cartel Office app roved the Lufthansa Group’s acquisition of a stake in the Latvian airline airBaltic. Previously, on 29 January 2025 the Lufthansa Group had signed a purchase agreement for convertible bonds that represents a 10% stake in airBaltic. The transaction price was EUR 14m. The Lufthansa Group also gets a seat on the Supervisory Board of airBaltic. The transaction builds on the existing wet lease contract between the Lufthansa Group and airBaltic and is intended to strengthen airBaltic as a strategic partner. The convertible bonds will be converted to common shares if airBaltic goes public. The Lufthansa Group’s stake will not fall below 5%. EVENTS AFTER THE REPORTING PERIOD Bundesrat passes immediate tax investment programme On 11 July 2025, the upper house of the German parliame nt (the Bundesrat) passed a law for an immediate tax invest- ment programme which includes a gradual reduction in corporation tax rates in Germany. This will affect deferred taxes on loss carry-forwards and temporary differences. An initial estimate based on the information currently available points to a decrease in reported deferred tax assets in the mid three-figure million euro range. Roughly half of this amount would be recognisable through profit or loss.
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INTERIM MANAGEMENT REPORT Financial performance LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 7 FINANCIAL PERFORMANCE EARNINGS POSITION Traffic revenue for Lufthansa Group airlines up by 5% year -on -year Lufthansa Group Passenger Airlines expanded their capacity (available seat-kilometres) by 4% year-on-year in the first half of 2025. Sales (revenue seat-kilometres) grew by 3% in comparison with the previous year. The passenger load factor fell by 0.6 percentage points to 80.5%. Traffic revenue in the passenger business picked up by 4% to EUR 13,199m (previous year: EUR 12,702m). This increase is based on the growth in traffic, higher ancillary revenues and lower compensation payments due to irregularities in flight operations. In the Lufthansa Group’s cargo business, capacity (available cargo tonne-kilometres) was 6% higher than in the previous year due to the delivery of a B777F freighter in the second half of 2024 and increased belly capacities ofthe Passenger Airlines. Sales (revenue cargo tonne-kilometres) grew by 7% by comparison with the previous year. The cargo load factor rose by 0.1 percentage point to 58.5%. Traffic revenue in the cargo business rose by 11% to EUR 1,809m due to increased sales and higher yields (previous year: EUR 1,630m). Compared with the previous year, traffic revenue at Lufthansa Group airlines rose overall by 5% in the first half of 2025 to EUR 15,009m (previous year: EUR 14,332m). Revenue up by 6% year -on -year Other revenue rose by 12% to EUR 3,440m (previous year: EUR 3,067m), mainly due to the increase in third-party business activities and the associated higher volume of income in the MRO business segment. Revenue, which consists of traffic revenue plus other revenue, increased by 6% in the first half of 2025 to EUR 18,449m (previous year: EUR 17,399m). Due to higher foreign exchange gains in particular, other operating income was up by 11% to EUR 1,567m (previous year: EUR 1,408m). Operating income rose overall by 6% to EUR 20,016m (previous year: EUR 18,807m). Operating expenses increase by 5% year -on -year Operating expenses at the Lufthansa Group rose by 5% year-on-year in the first half of 2025 to EUR 19,963m (previous year: EUR 18,980m). Above all, this reflected the expansion of its business operations as well as cost increases. The cost of materials and services at the Lufthansa Group came to EUR 11,402m, a 5% increase on the previous year (previous year: EUR 10,850m). Fuel expenses decreased overall by 8% to EUR 3,536m (previous year: EUR 3,836m). The effects of the increased level of consumption (+3%) as a result of the expanded flight programme were more than offset by the decline in prices (-10% including hedging) for both crude oil and the jet crack (the price difference between crude oil and kerosene) and currency effects (-1%). The result of price hedging was EUR -152m (previous year: EUR -7m). Expenses for other raw materials, consumables and supplies as well as purchased goods increased by 10% to EUR 1,796m (previous year: EUR 1,630m), particularly in the MRO busi- ness segment, due to increased business activity, higher purchasing prices and increased expenses for emissions certificates. Fees and charges rose by 12% to EUR 2,666m in the first half of 2025 (previous year: EUR 2,372m), primarily due to price increases for government-levied aviation security and airport fees. For instance, aviation security fees rose by 19% year-on-year.
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INTERIM MANAGEMENT REPORT Financial performance LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 8 Expenses for external MRO services increased by 21% to EUR 1,566m (previous year: EUR 1,291m), primarily due to a high level of capacity utilisation at Lufthansa Technik, which resulted in greater use of external MRO service providers. Expenses for passenger assistance in connection with flight irregularities due to strikes and operational difficulties at German airports fell by 20% to EUR 101m (previous year: EUR 127m). This decline is primarily due to the stabilisation of flight operations in Germany. In addition, the figures for the previous year were impacted by the strikes in the first half of 2024. Direct compensation payments to passengers for flight delays and cancellations, which are recognised as revenue reductions, decreased by 43% to EUR 105m (previ- ous year: EUR 184m). In total, expenses and compensation payments thus declined by 34% year-on-year. Operating staff costs picked up by 7% to EUR 4,808m (previous year: EUR 4,482m) in the first half of 2025. This increase was due to salary increases agreed in collective bargaining agreements, accruals for bonus payments and the 5% expansion in the headcount (adjusted for the sale of AirPlus). Depreciation and amortisation of EUR 1,195m was 5% higher than in the previous year (previous year: EUR 1,141m) and related mainly to aircraft and reserve engines. Other operating expenses increased by 2% to EUR 2,558m (previous year: EUR 2,507m), in particular due to higher foreign currency losses, partly offset by decreased expenses for audit and advisory services. REVENUE, INCOME AND EXPENSES in €m Jan - Jun 2025 Jan - Jun 2024 Change in % Traffic revenue 15,009 14,332 5 Other revenue 3,440 3,067 12 Total revenue 18,449 17,399 6 Other operating income 1,567 1,408 11 Total operating income 20,016 18,807 6 Cost of materials and services 11,402 10,850 5 of which fuel 3,536 3,836 -8 of which other raw materials, con- sumables and supplies and pur- chased goods 1,796 1,630 10 of which fees and charges 2,666 2,372 12 of which external MRO services 1,566 1,291 21 Staff costs 4,808 4,482 7 Depreciation 1,195 1,141 5 Other operating expenses 2,558 2,507 2 Total operating expenses 19,963 18,980 5 Operating result from equity investments 96 10 860 Adjusted EBIT 149 -163 Total reconciliation EBIT -29 -49 41 EBIT 120 -212 Net interest -92 -120 23 Other financial items 89 -35 Profit/loss before income taxes 117 -367 Income taxes 11 109 -90 Profit/loss from continuing opera- tions 128 -258 Profit/loss from discontinued opera- tions 11 – Profit/loss after income taxes 139 -258 Profit/loss attributable to minority interests -12 -7 -71 Net profit/loss attributable to share- holders of Deutsche Lufthansa AG 127 -265 Adjusted EBIT up to EUR 149m The operating result from equity investments came to EUR 96m in the first half of 2025 (previous year: EUR 10m). This item mainly comprises the pro rata positive result from the equity investment in ITA Airways, which was strongly influenced by foreign currency valuation effects, as well as the negative performance of Lufthansa’s Sun Express joint venture due to seasonal factors. Adjusted EBIT thus improved by EUR 312m to EUR 149m in the first half of 2025 (previous year: EUR -163m). The Adjusted EBIT margin (the ratio of Adjusted EBIT to revenue) improved by 1.7 percentage points to 0.8% (previous year: -0.9%).
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INTERIM MANAGEMENT REPORT Financial performance LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 9 In the first half of 2025, Adjusted EBIT in the Passenger Airlines business segment amounted to EUR -244m (previ- ous year: EUR -337m). With an Adjusted EBIT of EUR 690m, the passenger airlines thus achieved a positive result in the second quarter of 2025 (previous year: EUR 581m). Adjusted EBIT in the Logistics business segment increased to EUR 135m (previous year: EUR 14m). With an Adjusted EBIT of EUR 310m, the MRO business segment achieved another record result (previous year: EUR 305m). The other Group companies, which under IFRS 8 do not require separate reporting, and the Group Functions reduced the Group’s Adjusted EBIT by a total of EUR -5m (previous year: EUR -84m). The Lufthansa Group’s EBIT improved by EUR 332m to EUR 120m in the first half of 2025 (previous year: EUR -212m). Unlike in the case of the Adjusted EBIT figure, this mainly comprises expenses associated with adjust- ments to pension plans (EUR 17m), impairment losses which arose, in particular, on aircraft held for sale (EUR 14m), and book gains from sales of aircraft especially (EUR 13m). Net interest improved to EUR -92m (previous year: EUR -120m) due to increased interest income, in particular on account of claims for refunds resulting from tax audits. Other financial items came to EUR 89m (previous year: EUR -35m). Negative effects from the recognition in profit or loss of the convertible bond were more than offset by the valuation of non-hedged financial liabilities in foreign curren- cies and ineffective components of the currency hedges. The income tax result amounted to EUR 11m (previous year: EUR 109m). At -9%, the effective tax ratio for continuing operations was below the expected tax rate of 25%. This was mainly due to tax-free income as well as positive earnings from income tax audits which significantly exceeded the negative effects of the non-recognition of current tax losses in Germany and Austria in particular. This results in earnings after income taxes of EUR 139m (previous year: EUR -258m). The net result attributable to shareholders of Deutsche Lufthansa AG in the first half of 2025 came to EUR 127m (previous year: EUR -265m). Earnings per share amounted to EUR 0.11 (previous year: EUR -0.22).
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INTERIM MANAGEMENT REPORT Financial performance LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 10 RECONCILIATION OF RESULTS Jan - Jun 2025 Jan - Jun 2024 in €m Income statement Reconciliation Adjusted EBIT Income statement Reconciliation Adjusted EBIT Total revenue 18,449 17,399 Changes in inventories and work performed by entity and capitalised 429 484 Other operating income 1,150 929 of which book gains -13 -4 of which write -ups on capital assets and assets held for sale – -1 of which write -backs of provisons for restructuring expenses, significant litigation costs and business combinations cost – -1 Total operating income 20,028 -13 18,812 -6 Costs of materials and services -11,402 -10,851 Staff costs -4,829 -4,500 of which past service costs/settlements 17 7 of which restructuring expenses 4 11 Depreciation -1,209 -1,153 of which impairment losses 14 13 Other operating expenses -2,564 -2,530 of which impairment losses on assets held for sale 1 – of which expenses incurred from book losses 4 15 of which expenses of business combinations 2 10 of which other extraordinary expenses – -1 Total operating expenses -20,004 42 -19,034 55 Profit/loss from operating activities 24 -222 Result from equity investments 96 10 EBIT 120 -212 Total amount of reconciliation Adjusted EBIT 29 49 Adjusted EBIT 149 -163 Depreciation 1,195 1,141 Adjusted EBITDA 1,344 978
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INTERIM MANAGEMENT REPORT Financial performance LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 11 FINANCIAL POSITION Gross capital expenditure lower than in the previou s year at EUR 1,637m The gross capital expenditure of the Lufthansa Group in the first half of 2025 was at EUR 1,637m, 7% lower than in the previous year (previous year: EUR 1,761m). It mainly includes final payments for ten aircraft received (one Airbus A350, seven A320s and two A321s), capitalised major maintenance events and advance payments for future aircraft purchases. Net capital expenditure amounted to EUR 1,934m and was thus 17% higher than in the previous year (previous year: EUR 1,654m). This figure includes payments for aircraft spare parts, equity investments such as the acquisition of a 41% stake in ITA, revenue from the sale of assets as well as dividend and interest income. EUR 2.8bn generated in cash flow from operating activities The Lufthansa Group achieved cash flow from operating activities of EUR 2,831m in the first half of 2025. This was 5% higher than in the previous year (previous year: EUR 2,688m). The increase in EBITDA was partly offset by lower cash inflows from the change in working capital. The cash inflow from the change in working capital amounted to EUR 1,756m in the first half of 2025 (previous year: EUR 1,940m). This was associated with increased liabilities from unused flight documents, which rose by EUR 2,223m in the first half of 2025 (previous year: EUR 2,406m). Effects resulting from reduced customer receivables and contract assets as well as advance payments amounted to EUR -315m (previous year: EUR -856m), while increased supplier liabilities and contract obligations came to EUR +117m (previous year: EUR +701m). In addition, the change in advance payments gave rise to effects totalling EUR -195m (previous year: EUR -136m), in particular from advance payments to wet lease partners and IT service providers. Adjusted free cash flow amounts to EUR 1,024m Adjusted free cash flow rose by 17% to EUR 1,024m in the first half of 2025 (previous year: EUR 878m). This increase is based on the slight rise in operating cash flow, while cash flow from investing activities (not including share purchases) has decreased. 1) Capital payments of operating lease liabilities within cash flow from financing activities. Repayment of liabilities results in cash outflow The balance of financing activities resulted in a net cash outflow of EUR 812m (previous year: EUR 1,264m). This resulted from repayments in the overall amount of EUR 1,294m, mainly due to a bond, a borrower’s note loan, leasing and aircraft financing as well as interest and dividend payments (including the related payments from hedging transactions) totalling EUR 931m. On the other hand, the cash inflow from new financing measures amounted to EUR 1,413m. This comprised a hybrid bond, eight borrower’s note loans and four aircraft financing deals. Total available liquidity of EUR 11.1bn Balance-sheet liquidity (total of cash, current securities and fixed-term deposits) came to EUR 8,590m as of 30 June 2025 (31 December 2024: EUR 8,487m). EUR 8,104m of this overall amount was available centrally at Deutsche Lufthansa AG. In addition, there were unused credit lines of EUR 2,554m (31 December 2024: EUR 2,549m). As of 30 June 2025, the Company therefore had EUR 11,144m of available liquidity in total (31 December 2024: EUR 11,036m).
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INTERIM MANAGEMENT REPORT Financial performance LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 12 NET ASSETS Total assets up by EUR 1.1bn As of 30 June 2025, total Group assets rose by EUR 1,085m over year-end 2024 to EUR 48,137m (31 December 2024: EUR 47,052m). EUR 469m increase in non -current assets As of 30 June 2025, non-current assets of EUR 31,205m were EUR 469m higher than at year-end 2024 (31 December 2024: EUR 30,736m). In particular, investments accounted for using the equity method (EUR +368m), deferred tax assets (EUR +219m) and aircraft and reserve engines (EUR +217m) each increased. This was offset by a decline in derivative financial instruments (EUR -437m). The value of aircraft and reserve engines amounted to EUR 19,045m (31 December 2024: EUR 18,828m). Depreciation and disposals were exceeded by capital expenditure on ten new aircraft, major maintenance events, advance payments on existing orders and additions of right-of-use assets for aircraft. As of 30 June 2025, the Lufthansa Group fleet consisted of 735 aircraft (31 December 2024: 735 aircraft). The increase in equity investments related, in particular, to the acquisition of a 41% stake in ITA. Declining market values of derivative financial instruments have resulted, in particular, from the US dollar exchange rate trend. Current assets rise by EUR 616m As of 30 June 2025, current assets were up EUR 616m at EUR 16,932m (31 December 2024: EUR 16,316m). In particular, trade receivables (due to seasonal factors) and other receivables (EUR +432m) as well as assets held for sale (EUR +379m) increased. This was offset by a decline in derivative financial instruments (EUR -430m) which was mainly attributable to exchange rates. Non -current provisions and liabilities increase by EUR 348m As of 30 June 2025, non-current provisions and liabilities rose by EUR 348m to EUR 16,225m (31 December 2024: EUR 15,877m). Derivative financial instruments in particular increased (EUR +660m), while pension provisions (EUR -222m) and non-current borrowing (EUR -199m) decreased. Pension provisions fell by EUR 222m to EUR 2,470m (31 December 2024: EUR 2,692m). The decrease includes negative net valuation effects of EUR -303m. Interest rate-related decreases in obligations in the amount of EUR -716m were partly offset by negative valuation effects with a volume of EUR 413m for plan assets. The interest rates used to discount pension obligations rose by 0.4 percentage points to 4.0% in Germany and Austria and by 0.25 percent- age points to 1.25% in Switzerland. At EUR 2,227m, net pension obligations, i.e. pension provisions less asset surpluses for some pension plans, which are presented separately in non-current assets, were EUR 339m below their level at the end of 2024 (31 December 2024: EUR 2,566m). Non-current borrowing of EUR 11,214m was EUR 199m lower than at year-end 2024 (31 December 2024: EUR 11,413m). The increase as a result of new financing arrangements was more than offset by the maturity-related reclassification of non-current liabilities to current liabilities. Current provisions and liabilities increase by EUR 2.0bn Current provisions and liabilities rose by EUR 1,989m to EUR 21,570m as of 30 June 2025 (31 December 2024: EUR 19,581m). This change mainly reflects the increase in liabilities from unused flight documents (EUR +2,223m) due to the seasonal growth in ticket sales.
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INTERIM MANAGEMENT REPORT Financial performance LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 13 CALCULATION OF NET INDEBTEDNESS 30.06.2025 31.12.2024 Change in €m in €m in % Bonds -6,680 -6,969 4 Borrower`s note loans -672 -395 -70 Credit lines -19 -26 27 Aircraft financing -3,914 -3,798 -3 Leasing liabilities -2,603 -2,887 10 Other borrowings -133 -148 10 Financial liabilities -14,021 -14,223 1 Bank overdraft -24 -9 -167 Group indebtedness -14,045 -14,232 1 Cash and cash equivalents 1,800 1,790 1 Interest bearing securities and similar investments 6,790 6,698 1 Net indebtedness -5,455 -5,744 5 Pension provisions -2,470 -2,692 8 Pension surplus 243 126 93 Net pension obligations -2,227 -2,566 13 Net indebtedness and net pension obligations -7,682 -8,310 8 Shareholders’ equity down by EUR 1.3bn As of 30 June 2025, shareholders’ equity stood at EUR 10,342m, which was EUR 1,252m lower than at the end of 2024 (31 December 2024: EUR 11,594m). This was mainly due to negative valuation effects recognised directly in equity for derivative financial instruments in the first half of 2025 as well as dividend payments to Lufthansa’s shareholders. Compared with year-end 2024, the equity ratio fell by 3.1 percentage points to 21.5% (31 December 2024: 24.6%). Due to valuation effects associated with the US dollar exchange rate trend, at EUR 5,455m net indebtedness was EUR 289m lower than at the end of 2024 (31 December 2024: EUR 5,744m). Positive free cash flow offset the interest and dividend payments. Adjusted net debt, the sum of net indebtedness and net pension obligations less 50% of the hybrid bonds issued in 2015 and 2025, fell by EUR 878m to EUR 7,185m compared with year-end 2024 (31 December 2024: EUR 8,063m). The ratio of Adjusted net debt/Adjusted EBITDA in the last twelve months was 1.7 as of 30 June 2025 (31 December 2024: 2.0).
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INTERIM MANAGEMENT REPORT Financial performance LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 14 GROUP FLEET - NUMBER OF COMMERCIAL AIRCRAFT Lufthansa Airlines including regional airlines, Germanwings and Discover Airlines (LH), SWISS including Edelweiss (LX), Austrian Airlines (OS), Brussels Airlines (SN), Eurowings (EW) and Lufthansa Cargo (LCAG) as of 30 June 2025. Manufacturer/type LH LX OS SN EW LCAG Group fleet of which lease Change as of 31 Dec 2024 Change as of 30 Jun 2024 Airbus A220 30 30 Airbus A319 40 14 31 85 16 -1 -1 Airbus A320 63 25 29 16 50 183 22 Airbus A320neo 37 11 5 5 8 66 17 +5 +7 Airbus A321 54 6 6 6 41) 76 4 Airbus A321neo 17 6 5 28 10 +2 +2 Airbus A330 21 14 11 46 4 Airbus A340 30 9 39 -3 -3 Airbus A350 31 4 35 5 +1 +6 Airbus A380 8 8 Boeing 747 27 27 Boeing 767 3 3 Boeing 777 12 6 18 2 Boeing 787 5 2 7 2 Boeing 777F 18 2) 18 6 +1 Bombardier CRJ 23 23 -4 -5 Embraer 26 17 43 Total Aircraft 382 117 68 46 100 22 735 88 +/ - 0 +7 1) A321P2F operated by Lufthansa CityLine. 2) Partially operated by Aerologic, of which 2 aircraft in pro rata allocation.
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INTERIM MANAGEMENT REPORT Business segments LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 15 BUSINESS SEGMENTS PASSENGER AIRLINES BUSINESS SEGMENT KEY FIGURES Jan - Jun 2025 Jan - Jun 2024 Change in % Apr - Jun 2025 Apr - Jun 2024 Change in % Revenue €m 14,146 13,579 4 8,227 8,017 3 of which traffic revenue €m 13,199 12,702 4 7,755 7,556 3 Operating income €m 14,733 14,051 5 8,559 8,265 4 Operating expenses €m 15,013 14,364 5 7,965 7,686 4 Adjusted EBITDA €m 704 556 27 1,163 1,028 13 Adjusted EBIT €m -244 -337 28 690 581 19 EBIT €m -256 -357 28 685 563 22 Adjusted EBIT margin % -1.7 -2.5 0.8 pts 8.4 7.2 1.2 pts Segment capital expenditure €m 1,742 1,521 15 644 713 -10 Employees as of 30.06. number 66,474 63,634 4 – – Flights number 477,126 464,217 3 275,819 269,756 2 Passengers thousands 61,391 60,298 2 37,100 35,939 3 Available seat-kilometres millions 160,132 153,816 4 90,211 86,945 4 Revenue seat-kilometres millions 128,962 124,733 3 73,943 71,460 3 Passenger load factor % 80.5 81.1 -0.6 pts 82.0 82.2 -0.2 pts In the first half of 2025, the Lufthansa Group’s Passenger Airlines have further increased their volume of traffic due to continued high demand for air travel. Traffic is being adversely affected by the situation in the Middle East, uncertainty over the tariff conflict, and ongoing delays in the delivery of new aircraft. The Passenger Airlines have significantly improved their level of operational stability. The levels of punctuality and regularity achieved by the Lufthansa Group’s Passenger Airlines surpassed their pre-crisis levels in the first half of 2019 for the first time in the first six months of 2025. In the first half of 2025, the Passenger Airlines’ capacity (available seat-kilometres) was 4% higher than in the previous year. The number of flights increased by 3% year-on-year. Sales (revenue seat-kilometres) likewise grew by 3%. The passenger load factor fell by 0.6 percentage points to 80.5%. Yields declined by 0.7% on the previous year. Despite reduced yields, the Passenger Airlines’ traffic revenue increased by 4% year-on-year to EUR 13,199m (previous year: EUR 12,702m) in the first half of 2025. This was due to the higher volume of traffic and increased ancillary revenues. Revenue of EUR 14,146m was likewise 4% higher than in the previous year (previous year: EUR 13,579m). Other operating income increased by 24% to EUR 587m due to higher exchange rate gains (previous year: EUR 472m). Overall, operating income rose by 5% to EUR 14,733m (previous year: EUR 14,051m). Unit revenues increased by 0.3% year-on-year, in particular due to reduced compensation payments to passengers and higher additional income. Direct compensation payments for flight delays and cancellations, which are recognised as revenue reductions, decreased by 43% to EUR 104m (previous year: EUR 184m).
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INTERIM MANAGEMENT REPORT Business segments LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 16 Operating expenses of EUR 15,013m were 5% higher than in the previous year (previous year: EUR 14,364m). Within the cost of materials and services, fees and charges in particular rose by 12% (EUR +270m) due to prices, while fuel expenses declined by 8% (EUR -290m) year-on-year, also due to prices. Staff costs rose by 9% (EUR +280m) due to the 4% increase in the number of employees as well as salary increases agreed in collective bargaining agreements. Expenses for passenger assistance in connection with flight irregularities fell by 21% to EUR 100m (previous year: EUR 127m). Other operating expenses increased by 4% to EUR 2,049m (previous year: EUR 1,974m) due to higher foreign exchange rate losses. Unit costs excluding fuel and emissions trading expenses increased by 3.6% year-on-year, above all due to the strong rise in costs, fees and charges (such as for air safety, +19%) as well as higher staff costs. The result from equity investments came to EUR 36m in the first half of 2025 (previous year: EUR -24m). The equity investment in ITA Airways positively affected the result due to currency effects in particular, while the result for the Sun Express joint venture was negative for seasonal reasons. The Passenger Airlines’ Adjusted EBIT thus improved by 28% to EUR -244m in the first half of 2025 (previous year: EUR -337m). This trend is mainly attributable to declining fuel costs and the improved result from equity investments in the current financial year. In the second quarter of 2025, the Passenger Airlines generated a positive Adjusted EBIT of EUR 690m (previous year: EUR 581m). In terms of the individual airlines, in the first half of 2025 SWISS and Eurowings registered a decline in earnings by comparison with the previous year, while the other passenger airlines improved their earnings figures. The Passenger Airlines’ EBIT improved by 28% year-on-year to EUR -256m in the first half of 2025 (previous year: EUR -357m). Segment capital expenditure of EUR 1,742m was 15% higher than in the previous year (previous year: EUR 1,521m) and primarily related to new aircraft deliveries as well as the acquisition of the Group’s stake in ITA Airways. The number of employees as of 30 June 2025 increased by 4% year-on-year to 66,474 (previous year: 63,634), above all due to new employee hires in the operational areas as a result of expanding business operations. OPERATING FIGURES Jan - Jun 2025 Jan - Jun 2024 Change in % Exchange-rate adjusted change in % Apr - Jun 2025 Apr - Jun 2024 Change in % Exchange-rate adjusted change in % Yields € Cent 9.2 9.3 -0.7 -1.0 9.5 9.6 -1.5 -1.3 Unit revenue (RASK) € Cent 9.0 9.0 0.3 0.0 9.3 9.4 -1.3 -0.9 Unit cost (CASK) excluding fuel and emissions trading € Cent 6.9 6.7 3.6 3.1 6.5 6.2 4.1 3.5
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INTERIM MANAGEMENT REPORT Business segments LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 17 TRENDS IN TRAFFIC REGIONS Traffic revenue Number of passengers Available seat-kilometres Revenue seat-kilometres Passenger load factor Jan - Jun 2025 Change Jan - Jun 2025 Change Jan - Jun 2025 Change Jan - Jun 2025 Change Jan - Jun 2025 Change in €m in % in thousands in % in millions in % in millions in % in % in pts Europe 5,315 0 49,586 2 62,497 6 49,009 4 78.4 -1.8 pts America 3,712 6 5,741 4 53,490 5 43,186 4 80.7 -1.0 pts Asia/Pacific 1,748 2 2,811 3 26,465 0 22,318 3 84.3 2.5 pts Middle East/Africa 1,087 2 3,253 0 17,680 2 14,449 2 81.7 0.4 pts Non allocable 1,337 17 Total 13,199 4 61,391 2 160,132 4 128,962 3 80.5 -0.6 pts Lufthansa Airlines 1) KEY FIGURES Jan - Jun 2025 Jan - Jun 2024 Change in % Revenue €m 8,002 7,679 4 Operating income €m 8,370 8,003 5 Operating expenses €m 8,690 8,431 3 Adjusted EBITDA €m 100 -40 Adjusted EBIT €m -307 -427 28 EBIT €m -323 -442 27 Employees as of 30.06. number 40,044 38,204 5 Flights number 229,723 226,594 1 Passengers thousands 30,321 30,004 1 Available seat-kilometres millions 89,362 87,288 2 Revenue seat-kilometres millions 72,293 70,440 3 Passenger load factor % 80.9 80.7 0.2 pts 1) Including regional partners and Discover Airlines. In June 2025, Lufthansa Airlines added its 31st Airbus A350-900 to its fleet, the tenth fitted with the new Allegris in-flight product. Since the start of the 2025 summer flight timetable, passengers can now also fly on A350s to interna- tional destinations from Frankfurt as well as Munich. Five aircraft of this type were already stationed in Frankfurt at the end of June 2025. Moreover, in the second quarter of 2025 Lufthansa City Airlines took delivery of its first two brand-new Airbus A320neos. This underlines the relevance of Lufthansa City Airlines within the Lufthansa Group in redefining European traffic to and from the Group’s hubs. Lufthansa Airlines is continuing to pursue its turnaround programme. More than 700 measures have been identified to date, over 350 of which are already being implemented. As part of this programme, measures impacting earnings are to be executed with a volume of EUR 1.5bn in 2026 and EUR 2.5bn in 2028. This is already delivering results in operational stability. In the first half of 2025, flight regularity and punctuality reached levels not seen since 2019. The process of transformation is also continuing at a structural level. Lufthansa is consistently rolling out its new Allegris in-flight product and is expanding Lufthansa City Airlines’ fleet. Measures leading to improved fuel efficiency and automated technical and service processes are expected to deliver substantial additional savings in the current year. Central digitalisation initiatives have already been success- fully implemented. These include equipping ground staff with mobile devices at both hubs, the successful rollout of the digital technical logbook and the launch of an AI-based application to optimise flight cancellations. Lufthansa Airlines is continuously improving its passengers’ travel experience. In May 2025 it reopened the Lufthansa First Class Lounge in Terminal 2 at Munich Airport following a redesign and modernisation work. Since June 2025, Lufthansa Airlines is now offering its FlyNet Service on inter- continental flights. The service enables passengers in all travel classes to chat on their mobile devices free-of-charge and without any time restrictions. In addition, Lufthansa Airlines is continuing to expand its innovative luggage collection and check-in service for its passengers. Since June 2025, this service has also been available to passen- gers from the Cologne and Siegburg/Bonn region (in addi- tion to those from Frankfurt) travelling by train to Frankfurt Airport. Discover Airlines passengers in the Frankfurt and Cologne areas are now likewise able to use this service. In June 2025, Lufthansa Airlines was named the “World’s Most Family Friendly Airline” at the Skytrax World Airline Awards. In addition, Lufthansa’s First Class Terminal in Frankfurt was recognised as the “World’s Best First Class Lounge”.
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INTERIM MANAGEMENT REPORT Business segments LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 18 Revenue at Lufthansa Airlines rose by 4% in the first half of 2025 to EUR 8,002m (previous year: EUR 7,679m) due to expanded flight operations, increased ancillary revenues and as a result of the effects of the strikes in the previous year no longer applying. Operating expenses of EUR 8,690m were 3% higher than in the previous year (previous year: EUR 8,431m). Within the cost of materials and services, fees and charges in particular rose due to volumes and prices, while fuel expenses declined due to prices. Staff costs were higher than in the previous year due to higher wage settlements and transfers of operations within the Group. Adjusted EBIT improved by 28% to EUR -307m in the first half of 2025 (previous year: EUR -427m). In the second quarter of 2025, Lufthansa Airlines achieved a positive Adjusted EBIT of EUR 246m (previous year: EUR 213m). EBIT improved by 27% to EUR -323m (previous year: EUR -442m). The difference by comparison with Adjusted EBIT mainly resulted from changes to pension plans. SWISS 1) KEY FIGURES Jan - Jun 2025 Jan - Jun 2024 Change in % Revenue €m 3,058 2,998 2 Operating income €m 3,245 3,127 4 Operating expenses €m 3,040 2,848 7 Adjusted EBITDA €m 426 486 -12 Adjusted EBIT €m 205 279 -27 EBIT €m 208 280 -26 Employees as of 30.06. number 11,065 10,418 6 Flights number 79,521 78,094 2 Passengers thousands 9,880 9,820 1 Available seat-kilometres millions 30,166 29,368 3 Revenue seat-kilometres millions 24,161 24,074 0 Passenger load factor % 80.1 82.0 -1.9 pts 1) Including Edelweiss Air. SWISS has continued to modernise its fleet. In the second quarter of 2025 the airline added an A320neo and an A321neo to its fleet. SWISS thus currently has 17 aircraft from the A320neo family. Overall, it intends to bring into service 25 A320neo family aircraft, comprising 16 A320neos and nine A321neos. The A320neo aircraft will gradually replace older A320 family planes. In the first half of 2025, revenue at SWISS was EUR 3,058m, which represents an increase of 2% year-on- year due to the expansion of flight operations (previous year: EUR 2,998m). Operating expenses rose by 7% year-on-year to EUR 3,040m (previous year: EUR 2,848m), mainly as a result of higher fees and charges due to volumes and prices as well as higher staff costs on account of the increased number of employees. This was partly offset by the price- related decrease in fuel expenses. In the first half of 2025, Adjusted EBIT at SWISS fell by 27% to EUR 205m (previous year: EUR 279m). EBIT of EUR 208m was 26% lower than in the previous year (previ- ous year: EUR 280m). Austrian Airlines KEY FIGURES Jan - Jun 2025 Jan - Jun 2024 Change in % Revenue €m 1,177 1,070 10 Operating income €m 1,226 1,103 11 Operating expenses €m 1,270 1,166 9 Adjusted EBITDA €m 13 -8 Adjusted EBIT €m -43 -62 31 EBIT €m -44 -65 32 Employees as of 30.06. number 6,139 6,204 -1 Flights number 58,011 55,034 5 Passengers thousands 6,592 6,498 1 Available seat-kilometres millions 13,545 12,530 8 Revenue seat-kilometres millions 10,450 9,817 6 Passenger load factor % 77.2 78.3 -1.1 pts In June 2025, Austrian Airlines was singled out for its outstanding quality of service and received the prestigious “Best Airline Staff in Europe” award at the Skytrax World Airlines Awards 2025. Revenue at Austrian Airlines climbed by 10% to EUR 1,177m in the first half of 2025 due to expanded flight operations (previous year: EUR 1,070m). Operating expenses of EUR 1,270m were 9% higher than in the previous year (previous year: EUR 1,166m), in particular on account of fees and charges which increased due to volumes and prices as well as the rise in staff costs. Austrian Airlines’ Adjusted EBIT improved by 31% year-on- year to EUR -43m in the first half of 2025 (previous year: EUR -62m).
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INTERIM MANAGEMENT REPORT Business segments LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 19 EBIT improved by 32% year-on-year to EUR -44m (previous year: EUR -65m). Brussels Airlines KEY FIGURES Jan - Jun 2025 Jan - Jun 2024 Change in % Revenue €m 750 683 10 Operating income €m 780 705 11 Operating expenses €m 826 752 10 Adjusted EBITDA €m 9 8 13 Adjusted EBIT €m -46 -47 2 EBIT €m -46 -47 2 Employees as of 30.06. number 3,768 3,573 5 Flights number 32,412 29,206 11 Passengers thousands 4,203 3,907 8 Available seat-kilometres millions 9,220 8,387 10 Revenue seat-kilometres millions 7,366 6,896 7 Passenger load factor % 79.9 82.2 -2.3 pts Brussels Airlines’ revenue increased by 10% in the first half of 2025 to EUR 750m (previous year: EUR 683m) thanks to expanded flight operations – partly due to a long-haul aircraft it took delivery of in the second half of 2024 – as well as higher yields. Operating expenses of EUR 826m were 10% higher than in the previous year (previous year: EUR 752m), in particular on account of its expanded flight operations, higher fees and charges due to volumes and prices as well as additional short-term expenses for wet leases. In the first half of 2025, Brussels Airlines’ Adjusted EBIT and EBIT both improved by 2% to EUR -46m (previous year: EUR -47m). Eurowings KEY FIGURES Jan - Jun 2025 Jan - Jun 2024 Change in % Revenue €m 1,281 1,249 3 Operating income €m 1,371 1,285 7 Operating expenses €m 1,446 1,345 8 Adjusted EBITDA €m -75 -19 -295 Adjusted EBIT €m -137 -87 -57 EBIT €m -137 -89 -54 Employees as of 30.06. number 5,458 5,235 4 Flights number 77,459 75,289 3 Passengers thousands 10,396 10,070 3 Available seat-kilometres millions 17,839 16,242 10 Revenue seat-kilometres millions 14,692 13,506 9 Passenger load factor % 82.4 83.2 -0.8 pts In June 2025, Eurowings was named “Europe’s Best Low-Cost Airline” at the Skytrax World Airline Awards 2025. Eurowings once again registered a high level of demand, in particular for tourist flights, in the first half of 2025. Revenue rose by 3% year-on-year to EUR 1,281m (previous year: EUR 1,249m) due to higher volumes despite lower yields. Operating income increased by 7% to EUR 1,371m (previous year: EUR 1,285m), mainly due to income resulting from foreign exchange gains and the release of provisions. Operating expenses climbed by 8% to EUR 1,446m (previous year: EUR 1,345m), primarily on account of volume and price-driven increases in fees and charges (particularly in Germany), expenses for wet leases as well as increased foreign exchange losses. Eurowings’ Adjusted EBIT declined by 57% year-on-year in the first half of 2025 to EUR -137m (previous year: EUR -87m). This includes the result of the equity investment in SunExpress which was negative due to the seasonal nature of its business model. It amounted to EUR -62m (previous year: EUR -27m). EBIT likewise came to EUR -137m and was thus 54% lower than in the previous year (previous year: EUR -89m).
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INTERIM MANAGEMENT REPORT Business segments LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 20 LOGISTICS BUSINESS SEGMENT KEY FIGURES Jan - Jun 2025 Jan - Jun 2024 Change in % Apr - Jun 2025 Apr - Jun 2024 Change in % Revenue €m 1,654 1,490 11 820 799 3 of which traffic revenue €m 1,548 1,388 12 766 747 3 Operating income €m 1,689 1,527 11 842 815 3 Operating expenses €m 1,572 1,528 3 785 791 -1 Adjusted EBITDA €m 236 111 113 124 84 48 Adjusted EBIT €m 135 14 864 73 36 103 EBIT €m 133 14 850 74 37 100 Adjusted EBIT margin % 8.2 0.9 7.3 pts 8.9 4.5 4.4 pts Segment capital expenditure €m 53 24 121 26 16 63 Employees as of 30.06. number 4,276 4,194 2 – – Available cargo tonne-kilometres 1) millions 6,896 6,506 6 3,664 3,506 5 Revenue cargo tonne-kilometres 1) millions 4,384 4,071 8 2,305 2,163 7 Cargo load factor 1) % 63.6 62.6 1.0 pts 62.9 61.7 1.2 pts 1) Previous year's figures have been adjusted. In the Logistics business segment, the positive operating and financial development which was already apparent in the second half of 2024 continued in the first half of 2025. This development was buoyed by e-commerce business from Asia, which remains strong, as well as a generally robust level of market demand. In particular, the latter was reflected in an increase in cargo tonnage alongside a more moderate rise in yields. Lufthansa Cargo has expanded its European cargo network and added Katowice, Poland, as a new destination. Lufthansa Cargo will strengthen its position on the European market through this addition. Since June 2025, Lufthansa Cargo has marketed ITA Airways’ freight capacities from São Paulo, Rio de Janeiro and Buenos Aires to Rome. By integrating Rome as a cargo hub in southern Europe, Lufthansa Cargo has added additional routes, capacities and destinations around the globe to its dense network. Lufthansa Cargo intends to gradually expand its marketing of belly capacities to include all of the Italian airline’s European and intercontinental routes. Lufthansa Cargo has made changes to its Executive Board. Frank Bauer, previously Lufthansa Cargo AG’s Chief Financial Officer and Labor Director, took over as Chief Operating Officer (COO) on 1 July 2025. On 1 July 2025, Gregor Schleussner joined Lufthansa Cargo’s Executive Board as its new Chief Financial Officer (CFO), Chief Human Resources Officer (CHRO) and Labor Director. He previously served as Eurowings’ Head of Finance, Controlling & Accounting. The Executive Board team led by Ashwin Bhat, CEO, has thus now returned to full strength. Lufthansa Cargo further expanded its volume of traffic in the first half of 2025. Capacity was 6% higher than in the previous year due to extra freighter capacities resulting from the addition of a Boeing 777F in the second half of 2024 as well as the expansion of passenger flight operations and the related increase in belly capacities. Sales rose by 8%. The cargo load factor increased by 1.0 percentage point to 63.6% (previous year: 62.6%). Yields at Lufthansa Cargo were up by 3.5% in the first half of 2025. Due to the positive trend in the Asia/Pacific and Americas regions in particular, traffic revenue climbed by 12% year-on- year to EUR 1,548m (previous year: EUR 1,388m). Revenue increased by 11% to EUR 1,654m (previous year: EUR 1,490m).
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INTERIM MANAGEMENT REPORT Business segments LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 21 Operating expenses rose by 3% to EUR 1,572m (previous year: EUR 1,528m). In particular, expenses associated with flight volume- dependent fees and charges are higher due to cost increases and the expansion of the airline’s fleet. In addition, staff costs increased due to wage and salary increases as well as higher variable remuneration components by comparison with the previous year. On the other hand, the development of charter expenses and rigorous cost management had a positive impact on unit costs. Adjusted EBIT thus came to EUR 135m in the first half of 2025 (previous year: EUR 14m). EBIT amounted to EUR 133m (previous year: EUR 14m). Segment capital expenditure was EUR 53m in the first half of 2025 (previous year: EUR 24m) and mainly related to the expansion and conversion of Lufthansa’s Frankfurt cargo centre. The number of employees as of 30 June 2025 increased by 2% year-on-year to 4,276 (previous year: 4,194). TRENDS IN TRAFFIC REGIONS Traffic revenue Available cargo tonne-kilometres Revenue cargo tonne-kilometres Cargo load factor Jan - Jun 2025 Change Jan - Jun 2025 Change Jan - Jun 2025 Change Jan - Jun 2025 Change in €m in % in millions in % in millions in % in % in pts Europe 114 10 366 7 176 12 48.2 2.2 pts America 609 11 3,095 2 1,892 8 61.1 3.4 pts Asia/Pacific 703 14 2,916 10 2,007 7 68.8 -2.4 pts Middle East/Africa 122 3 519 5 309 8 59.5 2.0 pts Total 1,548 12 6,896 6 4,384 8 63.6 1.0 pts
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INTERIM MANAGEMENT REPORT Business segments LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 22 MRO BUSINESS SEGMENT KEY FIGURES 1) Jan - Jun 2025 Jan - Jun 2024 Change in % Apr - Jun 2025 Apr - Jun 2024 Change in % Revenue €m 3,975 3,514 13 1,956 1,809 8 of which with companies of the Lufthansa Group €m 1,110 1,115 0 572 563 2 Operating income €m 4,261 3,738 14 2,133 1,932 10 Operating expenses €m 3,965 3,422 16 1,993 1,730 15 Adjusted EBITDA €m 386 381 1 186 235 -21 Adjusted EBIT €m 310 305 2 149 197 -24 EBIT €m 309 292 6 148 189 -22 Adjusted EBIT margin % 7.8 8.7 -0.9 pts 7.6 10.9 -3.3 pts Segment capital expenditures €m 93 69 35 39 38 3 Employees as of 30.06. number 22,352 21,236 5 – – 1) Previous year's figures have been adjusted due to the reclassification of Lufthansa Industry Solutions. Lufthansa Technik once again reported a positive course of business in the first half of 2025. A continued high level of demand for flights led to a further rise in demand for maintenance and repair services as well as other Lufthansa Technik products and services. Lufthansa Technik is building a new engine centre at Calgary Airport in order to meet the North American airlines’ growing demand for engine maintenance capacities. The ground- breaking ceremony took place on 25 June 2025. This engine centre is expected to become operational in 2027 and to create 160 jobs. The shortage of materials on the global market continues to constitute a burden, triggered by delays in deliveries by the manufacturers and suppliers of aircraft, engines and aircraft components. The USA’s punitive tariffs are putting pressure on Lufthansa Technik’s cost position. In the medium term, it will be obliged to pass these on to its customers. Staff shortages in production areas and related extensive skill- building measures are also having a negative impact. Lufthansa Technik AG’s Executive Board gained new members on 1 May 2025. Christian Leifeld took over as Chief Financial Officer (CFO) from William Willms, who left the Company on 31 March 2025. Janna Schumacher was appointed Lufthansa Technik’s new Chief Human Resources Officer (CHRO) and Labor Director. At the start of the 2025 financial year, Lufthansa Industry Solutions, which previously formed part of the MRO business segment, was allocated to Additional Businesses and Group Functions for strategic reasons relating to the Lufthansa Group’s IT operations. The figures for the previous year have been adjusted accordingly. Lufthansa Technik’s revenue increased by 13% year-on-year in the first half of 2025 to EUR 3,975m (previous year: EUR 3,514m). Operating expenses rose by 16% to EUR 3,965m (previous year: EUR 3,422m). This was mainly due to the volume- and price-related increase in the cost of materials and services. Adjusted EBIT improved by 2% to EUR 310m (previous year: EUR 305m) and thus reached a record level. The impact of the depreciation of the US dollar as well as inflation- and growth-related cost increases and higher tariffs were offset by the positive business development and price adjust- ments. EBIT improved by 6% to EUR 309m (previous year: EUR 292m). Segment capital expenditure rose by 35% to EUR 93m in the first half of 2025 (previous year: EUR 69m) and mainly related to a plot of land for a production facility in Portugal, technical equipment, operating and office equipment as well as further plant under construction. The number of employees as of 30 June 2025 increased by 5% year-on-year to 22,352 (previous year: 21,236). This increase is attributable to recruitment as a result of a higher volume of business.
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INTERIM MANAGEMENT REPORT Business segments LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 23 ADDITIONAL BUSINESSES AND GROUP FUNCTIONS KEY FIGURES 1) Jan - Jun 2025 Jan - Jun 2024 Change in % Apr - Jun 2025 Apr - Jun 2024 Change in % Operating income €m 1,635 1,784 -8 720 838 -14 Op erating expenses €m 1,668 1,899 -12 749 923 -19 Adjusted EBITDA €m 43 -29 8 -44 Adjusted EBIT €m -5 -84 94 -16 -71 77 EBIT €m -5 -102 95 -10 -74 86 Segment capital expenditures €m 48 63 -24 31 25 24 Employees as of 30.06. number 9,872 11,109 -11 – – 1) Previous year's figures have been adjusted due to the reclassification of Lufthansa Industry Solutions. Operating income for Additional Businesses and Group Functions decreased by 8% year-on-year in the first half of 2025 to EUR 1,635m (previous year: EUR 1,784m). The sale of AirPlus was one factor here. Its income is still included in the previous year’s figures. Operating expenses decreased by 12% to EUR 1,668m (previous year: EUR 1,899m) due to the sale of AirPlus. Adjusted EBIT came to EUR -5m in the first half of 2025 (previous year: EUR -84m), supported above all by an earnings improvement for the Group Functions which mainly resulted from increased exchange rate gains on foreign currency transactions. EBIT likewise amounted to EUR -5m (previous year: EUR -102m). As of 30 June 2025, at 9,872 the number of employees was 11% lower than in the previous year (previous year: 11,109). The number of employees in Group Functions dropped by 3%.
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INTERIM MANAGEMENT REPORT Opportunities and risk report LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 24 OPPORTUNITIES AND RISK REPORT The opportunities and risks for the Group described in detail in the Annual Report 2024 have materialised or developed as follows: - The trade tensions between the USA and key trade partners such as China and the EU – including the tariffs which have been imposed or announced – are leading to an increasingly volatile global economic environment. The Lufthansa Group may suffer potential financial losses due to a more subdued level of demand or changes in the level of demand, possible decreases in airfreight volumes, potentially also significant rises in costs of materials, aircraft and aircraft parts, currency and commodities price fluctuations, tariffs, and uncer- tainty on the financial and capital markets and changes on these markets. - Over the course of the second quarter of 2025, an escalation of the confrontation between Israel and Iran led to operating restrictions and to heightened price volatility for key energy sources such as oil. A further intensification of the conflict and the resumption of military activities – particularly where third-party countries such as the USA are involved – might destabilise the region. In this scenario, the Lufthansa Group might incur financial losses – in particular due to significant fluctuations in raw material prices, potential operational restrictions and a drop in demand. On the other hand, there are potential opportunities if the situation in the Middle East eases. - In April and May 2025, Luxair and Condor brought a (partial) action for annulment before the General Court of the European Union against the European Commission’s decision to approve the Lufthansa Group’s potential acquisition of control over ITA Airways. The Lufthansa Group believes that the chance of success of this action is slim. All parties are entitled to lodge an appeal before the European Court of Justice. Moreover, in this eventuality it must be assumed that, following a formal review process, the EU will once again issue its approval, possibly subject to revised conditions. - There is a general risk of labour disputes as a result of pending collective bargaining agreements with various groups of employees within the Lufthansa Group. Of particular note are the flight operations of Deutsche Lufthansa AG and Lufthansa Cargo AG. The no-strike obligation under the framework agreements for cabin crew and on retirement and transitional benefits for cockpit crew has expired without any new agreement being reached to date. There is also a strike risk for cockpit and cabin staff at the flight operations of Eurowings Germany, Lufthansa CityLine, Lufthansa City Airlines and Discover Airlines. The possibility of these wage disputes spreading to other companies also cannot be ruled out. By comparison with the end of 2024, the balance of risks and opportunities has shifted in favour of risks, even if these have not yet materialised. In this challenging environment, the Lufthansa Group continues to rely on its ability to adjust its capacities and resources flexibly in line with changing market conditions and to use this flexibility to seize opportunities for the Company’s long-term development. Taking all known circumstances and the scenario assumed in the financial planning into account, no risks have currently been identified that either on their own or as a whole might jeopardise the continued existence of the Lufthansa Group.
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INTERIM MANAGEMENT REPORT Forecast LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 25 FORECAST MACROECONOMIC OUTLOOK In 2025 S&P Global expects global economic output to grow by 2.4%, a lower rate of growth than in the previous year (previous year: 2.8%). Europe’s economy is expected to grow by 1.1% in 2025, which is slightly lower than in the previous year (previous year: 1.2%). GDP DEVELOPMENT 1) in % 2025 2026 2027 2028 2029 World 2.4 2.6 2.6 2.7 2.7 Europe 1.1 1.4 1.8 1.8 1.8 Germany 0.2 1.2 1.6 1.6 1.8 North America 1.4 1.9 1.7 1.6 1.8 South America 2) 2.0 2.5 2.8 2.8 2.8 Asia/Pacific 3.9 3.7 3.8 3.9 3.8 China 4.5 4.0 4.2 4.3 4.3 Middle East 3.7 4.3 3.0 2.9 2.7 Africa 3.5 4.0 4.0 4.1 4.0 Source: S&P Global per 15 July 2025. 1) Forecast. 2) Excluding Venezuela. With regard to the price of oil, future rates suggest that oil prices will fall slightly in the second half of 2025 compared with the level at the end of June 2025. However, volatile price developments cannot be ruled out for the second half of 2025. The central banks’ monetary policy decisions are mainly shaped by the economic growth trend, inflation and develop- ments on the labour market and thus influence the price trend on the foreign exchange markets. The US Federal Reserve is pursuing a cautious stance in response to current fiscal policy. It is expected to continue to cut key interest rates in the event of a further fall in inflation. The euro area has achieved its 2% inflation target. The European Central Bank is therefore only expected to fine-tune its monetary policy. Analysts do not predict any significant change in the euro/US dollar exchange rate in the second half of 2025. The European Commission anticipates an inflation rate of 2.1% in the euro area in 2025. A slightly higher rate of inflation of 2.4% is expected for Germany. SECTOR OUTLOOK In June, the International Air Transport Association (IATA) lowered its forecast for 2025 and now expects revenue passenger-kilometres worldwide to grow by 6% year-on-year (previous year: 11%). It had previously predicted a growth rate of 8%. This adjustment reflects weaker economic growth, conflicts and tariff disputes as well as delays in aircraft deliveries which are dampening growth in passenger numbers. For the freight sector, IATA currently expects global revenue tonne-kilometres to increase by 1% in 2025 (previous year: 11%). It had previously predicted a growth rate of 6%. Overall, IATA is forecasting an increase in profits in 2025 to USD 36.0bn (previous year: USD 32.4bn) for the global airline industry. OUTLOOK FOR THE LUFTHANSA GROUP Outlook subject to uncertainties In view of the short booking cycles in the passenger business, the fact that freight business is mainly driven by the spot market, doubts about the exact delivery dates for new aircraft and uncertainties relating to the macroeconomic and geopolitical environment, the financial outlook for the Lufthansa Group is subject to a certain degree of uncertainty. Factors such as the future trend for fuel prices, exchange rates, the price of ETS certificates, the decisions made by the new German government and a potential end of Russia’s war of aggression against Ukraine represent opportunities for the operational and financial outlook. Risks apply due to factors including possible tariffs, such as in connection with aircraft deliveries and the procurement of spare parts, particularly in relation to the raw materials they contain such as steel and aluminium. At the same time, tariffs may aggravate trade tensions between the USA and key trade partners such as China and the EU, which may lead to an economic slowdown. The overall situation might adversely impact customer demand, particularly on connections to North America, the Lufthansa Group’s second most important traffic region. ↗ Opportunities and risk report, p. 24.
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INTERIM MANAGEMENT REPORT Forecast LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 26 Outlook for the Lufthansa Group for the 2025 financial year remains unchanged The outlook for the Lufthansa Group for the 2025 fina ncial year remains unchanged by comparison with the forecast provided in its Annual Report 2024. The opportunities and risks cited above by way of examples were already applicable at that time. However, since the publication of the Annual Report 2024 the balance of risks and opportunities has shifted in favour of risks, even if these have not yet materialised. The Lufthansa Group thus continues to anticipate that available capacity for the passenger airlines in 2025 will be around 4% higher than in the previous financial year. For the 2025 financial year, the Lufthansa Group continues to predict a clear increase in revenue and Adjusted EBIT significantly higher than in the previous year. The Lufthansa Group’s net capital expenditure in the 2025 financial year is expected to be between EUR 2.7bn and EUR 3.3bn. Based on the forecast earnings performance, Adjusted free cash flow in the 2025 financial year is anticipated to be roughly in line with the previous year’s level. The outlook for the Lufthansa Group’s business segments likewise remains unchanged by comparison with the information provided in the Annual Report 2024. FORECAST FOR SIGNIFICANT KPIS Result for 2024 Forecast for 2025 Revenue in €m 37,581 clear increase Adjusted EBIT in €m 1,645 significantly above previous year Net capital expenditure in €m 2,392 between EUR 2.7bn and EUR 3.3bn Adjusted free cash flow in €m 840 roughly on par with previous year
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INTERIM FINANCIAL STATEMENTS Consolidated income statement LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 27 INTERIM FINANCIAL STATEMENTS CONSOLIDATED INCOME STATEMENT in €m Jan - Jun 2025 Jan - Jun 2024 Apr - Jun 2025 Apr - Jun 2024 Traffic revenue 15,009 14,332 8,643 8,429 Other revenue 3,440 3,067 1,679 1,578 Total revenue 18,449 17,399 10,322 10,007 Changes in inventories and work performed by entity and capitalised 429 484 228 243 Other operating income¹⁾ 1,150 929 644 384 Cost of materials and services -11,402 -10,851 -6,021 -5,959 Staff costs -4,829 -4,500 -2,443 -2,236 Depreciation, amortisation and impairment² ⁾ -1,209 -1,153 -604 -583 Other operating expenses³ ⁾ -2,564 -2,530 -1,399 -1,220 Profit/loss from operating activities 24 -222 727 636 Result of equity investments accounted for using the equity method 54 -22 102 2 Result of other equity investments 42 32 32 21 Interest income 201 173 149 109 Interest expenses -293 -293 -163 -147 Other financial items 89 -35 153 -49 Financial result 93 -145 273 -64 Profit/loss before income taxes 117 -367 1,000 572 Income taxes 11 109 7 -99 Profit/loss from continuing operations 128 -258 1,007 473 Profit/loss from discontinued operations 11 – 11 – Profit/loss after income taxes 139 -258 1,018 473 Thereof profit/loss attributable to non -controlling interests 12 7 6 4 Thereof net profit/loss attributable to shareholders of Deutsche Lufthansa AG 127 -265 1,012 469 Basic earnings per share in € 0.11 -0.22 0.84 0.39 of which from continuing operations 0.10 n/a 0.84 n/a of which from discontinued operations 0.01 n/a 0.00 n/a Diluted earnings per share in € 0.11 -0.22 0.84 0.39 of which from continuing operations 0.10 n/a 0.84 n/a of which from discontinued operations 0.01 n/a 0.00 n/a ¹⁾ The total amount includes EUR 11m (previous year: EUR 22m) from the reversal of write-downs and allowances on receivables. ²⁾ The total amount includes EUR 2m (previous year: EUR 0m) for write-downs on non-current receivables. ³⁾ The total amount includes EUR 21m (previous year: EUR 27m) for the recognition of loss allowances on current receivables.
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INTERIM FINANCIAL STATEMENTS Consolidated statement of comprehensive income LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 28 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME in €m Jan - Jun 2025 Jan - Jun 2024 Apr - Jun 2025 Apr - Jun 2024 Profit/loss after income taxes 139 -258 1,018 473 Other comprehensive income Other comprehensive income with subsequent reclassi fication to the income statement Differences from currency translation -132 -60 -33 36 Subsequent measurement of financial assets at fair value without effect on profit and loss 6 1 6 – Subsequent measurement of hedges - cash flow hedge reserve -1,548 760 -1,152 128 Subsequent measurement of hedges - costs of hedges 85 134 -23 24 Other comprehensive income from investments accounted for using the equity method – – – – Other expenses and income recognised directly in equity -7 – -5 -1 Income taxes on items in other comprehensive income 361 -213 289 -38 -1,235 622 -918 149 Other comprehensive income without subsequent recla ssification to the income statement Revaluation of defined-benefit pension plans 304 217 -49 -43 Subsequent measurement of financial assets at fair value – 1 – 1 Other comprehensive income from investments accounted for using the equity method – – – – Other expenses and income recognised directly in equity 6 1 -1 1 Income taxes on items in other comprehensive income -184 -72 10 -34 126 147 -40 -75 Other comprehensive income after income taxes -1,109 769 -958 74 Total comprehensive income -970 511 60 547 Thereof comprehensive income attributable to non controlling interests 6 8 2 4 Thereof comprehensive income attributable to shareh olders of Deutsche Lufthansa AG -976 503 58 543
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INTERIM FINANCIAL STATEMENTS Consolidated statement of financial position LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 29 CONSOLIDATED STATEMENT OF FINANCIAL POSITION - ASSETS in €m 30/06/2025 31/12/2024 30/06/2024 Intangible assets with an indefinite useful life¹⁾ 1,018 1,016 1,005 Other intangible assets 310 321 310 Aircraft and reserve engines 19,045 18,828 18,230 Repairable spare parts for aircraft² ⁾ 2,250 2,154 2,097 Other property, plant and other equipment³ ⁾ 2,977 2,958 2,910 Investments accounted for using the equity method 965 597 453 Other equity investments 246 266 239 Non-current securities 24 21 21 Loans, receivables and other assets 985 852 787 Derivative financial instruments 384 821 729 Prepaid expenses 50 55 97 Income tax receivables 50 165 112 Deferred tax assets 2,901 2,682 3,055 Non -current assets² ⁾ 31,205 30,736 30,045 Inventories² ⁾ 1,626 1,606 1,564 Contract assets 435 395 451 Trade receivables and other receivables 4,689 4,257 4,442 Derivative financial instruments 373 803 702 Prepaid expenses 450 254 368 Income tax receivables 378 501 149 Interest bearing securities and similar investments 6,790 6,698 6,393 Cash and cash equivalents 1,800 1,790 1,634 Assets held for sale 391 12 1,485 Current assets² ⁾ 16,932 16,316 17,188 Total assets 48,137 47,052 47,233 1) Including Goodwill. 2) Previous year figures adjusted due to the reclassification of non-pool material from repairable spare parts to inventories. See Note 20, Repairable spare parts within annual report 2024. 3) These include investment property of EUR 30m (as of 31.12.2024: EUR 30m).
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INTERIM FINANCIAL STATEMENTS Consolidated statement of financial position LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 30 CONSOLIDATED STATEMENT OF FINANCIAL POSITION - SHAREHOLDERS' EQUITY AND LIABILITIES in €m 30/06/2025 31/12/2024 30/06/2024 Issued capital 3,068 3,068 3,063 Capital reserve 265 265 258 Retained earnings 5,371 5,477 3,708 Other neutral reserves 1,588 2,732 2,626 Equity attributable to shareholders of Deutsche Luf thansa AG 10,292 11,542 9,655 Minority interests 50 52 46 Shareholders' equity 10,342 11,594 9,701 Pension provisions 2,470 2,692 2,652 Other provisions 859 791 821 Financial liabilities 11,214 11,413 10,813 Contract liabilities 7 8 6 Other financial liabilities 43 39 49 Advance payments received, deferred income and other non-financial liabilities 46 43 63 Derivative financial instruments 992 332 368 Deferred income tax liabilities 594 559 549 Non -current provisions and liabilities 16,225 15,877 15,321 Other provisions 871 1,056 753 Financial liabilities 2,807 2,810 2,843 Trade payables and other financial liabilities 5,839 6,003 6,037 Contract liabilities from unused flight documents 7,406 5,183 7,387 Other contract liabilities 2,859 2,954 2,780 Advance payments received, deferred income and other non-financial liabilities 859 709 929 Derivative financial instruments 522 272 137 Income tax liabilities 407 594 578 Liabilities in connection with assets held for sale – – 767 Current provisions and liabilities 21,570 19,581 22,211 Total shareholders' equity and liabilities 48,137 47,052 47,233
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INTERIM FINANCIAL STATEMENTS Consolidated statement of changes in shareholders‘ equity LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 31 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Neutral Reserves in €m Issued capital Capital reserve Fair value measurement of financial instruments Currency differences Revaluation reserve (due to business combinations) Other neutral reserves Total other neutral reserves Retained earnings Equity attribu - table to sharehol - ders of Deutsche Lufthansa AG Non- controlling interests Total shareholders' equity As of 01/01/2024 3,063 258 560 1,009 236 346 2,151 4,187 9,659 50 9,709 Consolidated net profit/loss/net profit/loss attributable to non-controlling interests – – – – – – – -265 -265 7 -258 Other comprehensive income – – 683 -60 – – 623 145 768 1 769 Total comprehensive income for the period – – 683 -60 – – 623 -120 503 8 511 Share based payment schemes – – – – – 6 6 – 6 – 6 Hediging results reclassified to acquisition costs of non-financial assets – – -154 – – – -154 – -154 – -154 Dividends to Lufthansa shareholders/ non-controlling interests – – – – – – – -359 -359 -12 -371 As of 30/06/2024 3,063 258 1,089 949 236 352 2,626 3,708 9,655 46 9,701 As of 01/01/2025 3,068 265 1,084 1,044 236 368 2,732 5,477 11,542 52 11,594 Consolidated net profit/loss/net profit/loss attributable to non-controlling interests – – – – – – – 127 127 12 139 Other comprehensive income – – -1,096 -132 – -1 -1,229 126 -1,103 -6 -1,109 Total comprehensive income for the period – – -1,096 -132 – -1 -1,229 253 -976 6 -970 Share based payment schemes – – – – – 9 9 – 9 – 9 Hediging results reclassified to acquisition costs of non-financial assets – – 76 – – – 76 – 76 – 76 Dividends to Lufthansa shareholders/ non-controlling interests – – – – – – – -359 -359 -8 -367 As of 30/06/2025 3,068 265 64 912 236 376 1,588 5,371 10,292 50 10,342
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INTERIM FINANCIAL STATEMENTS Consolidated cash flow statement LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 32 CONSOLIDATED CASH FLOW STATEMENT in €m Jan - Jun 2025 Jan - Jun 2024 Apr - Jun 2025 Apr - Jun 2024 Cash and cash equivalents at start of period 1,790 1,668 1,708 1,340 Net profit/loss before income taxes from continued and discontinued opera- tions 117 -367 1,000 572 Depreciation, amortisation and impairment losses on non-current assets (net of reversals) 1,209 1,165 604 588 Depreciation, amortisation and impairment losses on current assets (net of reversals) 1) 66 56 24 26 Net proceeds on disposal of non-current assets -8 12 -5 8 Result of equity investments -96 -10 -134 -23 Net interest 92 120 14 38 Income tax payments/reimbursements 33 -29 -67 -15 Significant non-cash expenses/income -199 -97 -228 -5 Change in trade working capital1) 1,756 1,940 -112 448 Change in other assets/shareholders' equity and liabilities -139 -102 -82 -249 Cash flow from operating activities 1) 2,831 2,688 1,014 1,388 Capital expenditure for property, plant and equipment and intangible assets -1,616 -1,721 -810 -820 Capital expenditure for financial investments -21 -40 -8 -17 Additions/loss to repairable spare parts of aircraft 1) -175 -131 -67 -50 Proceeds from disposal of non-consolidated shares - 6 - 6 Proceeds from disposal of consolidated shares 9 - 9 - Cash outflows for acquisitions of non-consolidated shares -335 -19 -7 - Proceeds from disposal of intangible assets, property, plant and equipment and other financial investments 22 43 -6 9 Interest income 140 176 80 127 Dividends received 42 32 32 20 Net cash from/used in investing activities 1) -1,934 -1,654 -777 -725 Purchase of securities/fund investments -6,681 -7,645 -2,969 -5,152 Disposal of securities/fund investments 6,617 7,922 3,325 5,728 Net cash from/used in investing and cash management activities -1,998 -1,377 -421 -149 CONSOLIDATED CASH FLOW STATEMENT (continued) in €m Jan - Jun 2025 Jan - Jun 2024 Apr - Jun 2025 Apr - Jun 2024 Non-current borrowing 1,413 760 522 731 Repayment of non-current borrowing -1,294 -1,307 -301 -1,070 Dividends paid -368 -371 -361 -361 Interest paid including interest-rate swaps -563 -346 -354 -163 Net cash from/used in financing activities -812 -1,264 -494 -863 Net increase/decrease in cash and cash equivalents 21 47 99 376 Changes due to currency translation differences -11 1 -7 - Cash and cash equivalents 30/06/2025 1,800 1,716 1,800 1,716 Less cash and cash equivalents of companies held for sale as of 30 Jun - 82 - 82 Cash and cash equivalents of companies not classified as held for sale as of 30 Jun 1,800 1,634 1,800 1,634 Interest bearing securities and similar investments 6,790 6,393 6,790 6,393 Liquidity 8,590 8,027 8,590 8,027 Net increase/decrease in liquidity 102 -238 -247 -247 1) Previous year figures adjusted due to the reclassification of non-pool material from repairable spare parts to inventories. See Note 20, Repairable spare parts and Note 44, Notes to cash flow from operating, investing and financing activities within an- nual report 2024.
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INTERIM FINANCIAL STATEMENTS Notes LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 33 NOTES 1 Applied standards, changes in the group of consolid ated companies and accounting principles The consolidated financial statements of Deutsche Lufthansa AG, Cologne, and its subsidi- aries were prepared in accordance with the IFRS accounting standards (IFRS) issued by the International Accounting Standards Board (IASB) which are applicable in the European Union (EU). This interim report as of 30 June 2025 was prepared in condensed form in accordance with IAS 34. In preparing the interim financial statements, the standards and interpretations valid as of 1 January 2025 were applied. The interim financial statements as of 30 June 2025 were pre- pared using the same accounting policies as those on which the preceding consolidated fi- nancial statements as of 31 December 2024 were based. The standards and interpretations mandatory from 1 January 2025 onwards had no effect on the Group’s net assets, financial and earnings position, and no restatements resulting from new standards were necessary. No significant changes to the group of consolidated companies occurred in the reporting period. 2 Matters of significance for the interim financial s tatements and going concern status The Lufthansa Group’s business developed positively in the first six months of 2025. All business segments improved their earnings figures year-on-year. The Passenger Airlines increased their revenue thanks to the ongoing high demand and con- tinued to expand their capacity. Whereas the results for the prior-year period were signifi- cantly affected by the financial implications of the strikes, negative impacts on earnings in the current reporting year came primarily from higher fees and charges and increased staff costs. Lower expenses in connection with irregularities in flight operations and currency ef- fects had a positive impact on earnings, as did reduced fuel expenses. In the Logistics business segment, the positive operational and financial trends, under- pinned in particular by strong e-commerce business with Asia and generally high market de- mand, continued to apply in the first half of 2025. The prior-year period was impacted by strikes. Growth and the earnings trend in the MRO business segment continued to be driven by un- broken strong demand for maintenance and repair services. Earnings in the MRO business segment were likewise affected by strikes in the prior-year period. Operating activities generated a cash inflow of EUR 2,831m in the reporting period, which resulted primarily from the positive earnings and from flight tickets sold in the reporting pe- riod but not yet used. As of 30 June 2025, Deutsche Lufthansa AG had centrally available liquidity of EUR 8.1bn. Decentralised bank balances and cash in hand came to a further EUR 0.5bn. Free credit lines of EUR 2.6bn are still available as of the reporting date. Altogether, the Lufthansa Group’s available liquidity therefore comes to EUR 11.2bn. Based on macroeconomic trends and expected customer behaviour, the Lufthansa Group regularly updates its profit and liquidity planning to reflect the changing parameters for its expected course of business. The international trade conflicts and the wars in Ukraine and the Middle East are the key factors currently causing uncertainty. Such geopolitical uncer- tainties and the related economic consequences therefore constitute a material risk for the development of the world economy, the aviation industry as a whole and the Lufthansa Group. This may be reflected in unfavourable supply scenarios on the procurement side and/or changes in demand on the sales side, along with associated adverse price trends. There are further uncertainties in connection with the public and political debate on climate protection. Taking into account the corporate planning and the resulting liquidity planning, the further potential funding measures and the uncertainties about the future course of business, the Company’s Executive Board considers the Group’s liquidity to be secure for the next 18 months. The consolidated financial statements were therefore prepared on a going concern basis.
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INTERIM FINANCIAL STATEMENTS Notes LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 34 3 Notes to the income statement, statement of financi al position and cash flow statement TOTAL REVENUE TRAFFIC REVENUE BY AREA OF OPERATIONS in €m 2025 Europe¹⁾ North- america¹⁾ Central- and South America¹⁾ Asia/ Pacific¹⁾ Middle East¹⁾ Africa¹⁾ Passenger-Airlines 13,461 9,200 2,683 270 925 171 212 Lufthansa German Airlines 7,332 SWISS² ⁾ 3,012 Austrian Airlines 1,125 Brussels 716 Eurowings² ⁾ 1,276 Logistics 1,548 651 158 51 623 15 50 Total 15,009 9,851 2,841 321 1,548 186 262 ¹⁾ Traffic revenue is allocated to the original location of sale. ²⁾ Disclosure of traffic revenue, including belly revenue; this is reported in the segment reporting in the reconciliation column. TRAFFIC REVENUE BY AREA OF OPERATIONS in €m 2024 Europe¹⁾ North- america¹⁾ Central- and South America¹⁾ Asia/ Pacific¹⁾ Middle East¹⁾ Africa¹⁾ Passenger-Airlines 12,944 9,051 2,364 224 903 199 203 Lufthansa German Airlines 7,073 SWISS² ⁾ 2,943 Austrian Airlines 1,027 Brussels Airlines 651 Eurowings² ⁾ 1,250 Logistics 1,388 578 149 44 549 23 45 Total 14,332 9,629 2,513 268 1,452 222 248 ¹⁾ Traffic revenue is allocated to the original location of sale. ²⁾ Disclosure of traffic revenue, including belly revenue; this is reported in the segment reporting in the reconciliation column. OTHER OPERATING REVENUE BY AREA OF OPERATIONS in €m 2025 Europe¹⁾ North- America¹⁾ Central and South America¹⁾ Asia/ Pacific¹⁾ Middle East¹⁾ Africa¹⁾ MRO 2,865 737 1,013 134 712 209 60 MRO services 2,544 Other operating revenue 321 Passenger-Airlines 279 251 12 1 12 1 2 Logistics 81 44 24 1 8 4 – Additional Businesses and Group Functions 215 147 22 9 21 11 5 IT services 167 Other 48 Total 3,440 1,179 1,071 145 753 225 67 ¹⁾ Other operating revenue is allocated according to the original location of sale. OTHER OPERATING REVENUE BY AREA OF OPERATIONS in €m 2024 Europe¹⁾ North- America¹⁾ Central and South America¹⁾ Asia/ Pacific¹⁾ Middle East¹⁾ Africa¹⁾ MRO 2) 2,399 710 799 88 552 145 105 MRO services 2,125 Other operating revenue 274 Passenger-Airlines 261 231 14 1 12 1 2 Logistics 78 45 24 – 6 3 – Additional Businesses and Group Functions 2) 329 242 25 12 35 10 5 IT services 162 Travel management 131 Other 36 Total 3,067 1,228 862 101 605 159 112 1) Other operating revenue is allocated according to the original location of sale. 2) Values adjusted due to the reclassification of the Lufthansa Industry Solutions Group from the MRO segment to Additional Businesses and Group Functions.
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INTERIM FINANCIAL STATEMENTS Notes LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 35 AIRCRAFT AND RESERVE ENGINES Seven newly purchased aircraft from the A320 family and an Airbus A350 were added to the fleet in the reporting period. Two further A320 aircraft returned from a lease. On the other hand, four CRJ 900 aircraft were sold, three A340-600s retired and an Airbus A319 returned to the lessor. Aircraft financing in the form of Japanese operating leases was arranged for two Airbus A350s and two Boeing 787s with a total carrying amount of EUR 341m. EQUITY INVESTMENTS ACCOUNTED FOR USING THE EQUITY M ETHOD The Italian Ministry of Economy and Finance (MEF) and Deutsche Lufthansa AG on 17 Janu- ary 2025 completed the acquisition of a 41% stake in ITALIA TRASPORTO AEREO S.P.A (ITA Airways) which the two parties agreed in May 2023 and which was cleared following the Eu- ropean Commission’s approval of competition-related concessions on 29 November 2024. The first step in this equity investment was ITA Airways’ EUR 325m capital increase sub- scribed by Deutsche Lufthansa AG. Options for the acquisition of the remaining shares in ITA Airways were agreed by the parties and may next be exercised in 2026. Due to its joint management by the MEF and Deutsche Lufthansa AG, ITA Airways is incorporated in the Lufthansa Group’s consolidated financial statements as a joint venture accounted for using the equity method. DEFERRED TAXES The same assessment criteria as before were applied for the assessment of the recoverabil- ity of deferred tax assets, in particular for loss carry-forwards. The losses incurred in recent years were due to an accumulation of exogenous factors (pandemic, supply and system partner bottlenecks, wars in Ukraine and the Middle East) whose simultaneous incidence was exceptional and is unlikely to be repeated over the next few years. This does not call into question the basic long-term profitability of the industry and, in particular, of the Deutsche Lufthansa AG tax group. Deutsche Lufthansa AG has in the past demonstrated its ability to achieve taxable profits over long-term periods. It therefore envisages a return to taxable profits from 2026 and in subsequent years. While in Germany tax loss carry-forwards are not subject to any restrictions regarding the period of time in which they can be used, their use for tax purposes may nonetheless be excluded for other reasons. The uncertainty in this respect increases in line with the length of the planning period. Deferred tax assets on loss carry-forwards are therefore only recognised to the extent that they are actually ex- pected to be used for tax purposes within ten years of the reporting date. Likewise, the same valuation principles as in the previous year were applied to the existing loss carry-for- wards of Austrian Airlines companies. Overall, this meant that no further deferred tax assets on loss carry-forwards were capitalised for the tax groups in Germany and Austria. Taxes based on BEPS Pillar II resulted in the recognition of an expense of EUR 14m in the re- porting period (previous year: EUR 13m). ASSETS CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS Assets held for sale included nine aircraft in the Airbus A320 family which are due to be sold and leased back later in the year and are allocated to the Passenger Airlines segment. The profit from discontinued operations results from a subsequent purchase price adjust- ment for the Catering segment business activities sold in 2023. PENSION PROVISIONS The discount rate used to calculate the pension obligations in Germany was 4.0% (31 De- cember 2024: 3.6%), and an interest rate of 1.3% (31 December 2024: 1.0%) was used to cal- culate the obligations in Switzerland. 4 Seasonality The Group’s business is mainly exposed to seasonal effects via the Passenger Airlines busi- ness segment. As such, revenue in the first and fourth quarters is generally lower, since peo- ple travel less, while higher revenue and operating earnings are normally generated in the second and third quarters. 5 Contingencies CONTINGENT LIABILITIES in €m 30/06/2025 31/12/2024 From guarantees, bills of exchange and cheque guarantees 1,957 2,180 From warranty contracts 332 339 From providing collateral for third-parties liabilities 17 16 2,306 2,535 Provisions for other contingent liabilities were not established since their utilisation was not sufficiently probable. The potential financial effect of these provisions on the result would have been EUR 47m (as of 31 December 2024: EUR 25m). As of 30 June 2025, the tax risks for which no provisions were recognised amounted to some EUR 650m (as of 31 December 2024: EUR 700m).
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INTERIM FINANCIAL STATEMENTS Notes LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 36 At the end of June 2025, there were order commitments of EUR 18.7bn for capital expendi- ture on property, plant and equipment, including repairable spare parts, and for intangible assets. As of 31 December 2024, order commitments came to EUR 21.6bn. Neither amount includes the foreign currency hedging transactions used to hedge capital expenditure. The decrease in order commitments resulted, in particular, from the USD exchange rate trend and the newly delivered aircraft. EVENTS AFTER THE REPORTING PERIOD On 11 July 2025, the upper house of the German parliament (Bundesrat) passed a law for an immediate tax investment programme which includes a gradual reduction in corporation tax rates in Germany. This will affect deferred taxes on loss carry-forwards and temporary dif- ferences. An initial estimate based on the information currently available points to a de- crease in reported deferred tax assets in the mid three-figure million euro range. Roughly half of this amount would be recognisable through profit or loss. 6 Financial instruments and financial liabilities FINANCIAL INSTRUMENTS The following tables show financial assets and liabilities held at fair value by level in the fair value hierarchy. The levels are defined as follows: Level 1: Financial instruments traded on active markets, the quoted prices for which are taken for measurement unchanged. Level 2: Measurement is made by means of valuation methods with parameters derived di- rectly or indirectly from observable market data. Level 3: Measurement is made by means of valuation methods with parameters not based exclusively on observable market data. As of 31 March 2025, the breakdown of financial assets and liabilities recognised at fair value by measurement category was as follows: FAIR VALUE HIERARCHY OF ASSETS AS OF 30/06/2025 in €m Level 1 Level 2 Level 3 Total Financial assets at fair value through profit and loss 4,758 8 25 4,791 Financial derivatives classified as held for trading – 8 – 8 Securities 4,758 – – 4,758 Investments – – 25 25 Derivative financial instruments which are an effec tive part of a hedg- ing relationship – 750 – 750 Financial assets at fair value through other compre hensive income – 1,237 – 1,237 Equity instruments – – – – Debt instruments – 1,237 – 1,237 Total assets 4,758 1,995 25 6,778 FAIR VALUE HIERARCHY OF LIABILITIES AS OF 30/06/2025 in €m Level 1 Level 2 Level 3 Total Financial liabilities at fair value through profit or loss – -604 – -604 Derivative financial instruments at fair value through profit or loss – -5 – -5 Derivative financial instruments which are an effective part of a hedging relationship – -1,509 – -1,509 Total liabilities – -2,118 – -2,118 In the case of the Level 3 equity investments, the acquisition costs are considered the best estimate of fair value for reasons of materiality. As of 31 December 2024, the breakdown of financial assets and liabilities recognised at fair value by measurement category was as follows:
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INTERIM FINANCIAL STATEMENTS Notes LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 37 FAIR VALUE HIERARCHY OF ASSETS AS OF 31/12/2024 in €m Level 1 Level 2 Level 3 Total Financial assets at fair value through profit and l oss 4,832 6 24 4,862 Financial derivatives classified as held for trading – 6 – 6 Securities 4,832 – – 4,832 Investments – – 24 24 Derivative financial instruments which are an effec tive part of a hedg- ing relationship – 1,619 – 1,619 Financial assets at fair value through other compre hensive income – 1,203 – 1,203 Equity instruments – – – – Debt instruments – 1,203 – 1,203 Total assets 4,832 2,828 24 7,684 FAIR VALUE HIERARCHY OF LIABILITIES AS OF 31/12/202 4 in €m Level 1 Level 2 Level 3 Total Financial liabilities at fair value through profit or loss – -600 – -600 Derivative financial instruments at fair value through profit or loss – -2 – -2 Derivative financial instruments which are an effective part of a hedging relationship – -602 – -602 Total liabilities – -1,204 – -1,204 The fair values of interest rate derivatives correspond to their respective market values, which are measured using appropriate financial and mathematical methods, such as dis- counting expected future cash flows. Discounting takes standard market interest rates and the residual term of the respective instruments into account. Forward currency transactions and swaps are individually discounted to the reporting date based on their respective fu- tures rates and the appropriate interest rate curve. The market prices of currency options and the options used to hedge fuel prices are determined using acknowledged option pric- ing models. The fair values of debt instruments also correspond to their respective market values, which are measured using appropriate financial and mathematical methods, such as discounting expected future cash flows. Discounting takes standard market interest rates and the resid- ual term of the respective instruments into account. The carrying amount for cash, trade receivables, other receivables, trade payables and other liabilities is assumed to be a realistic estimate of fair value. FINANCIAL LIABILITIES The following table shows the carrying amounts and fair values of the individual classes of financial liabilities. For bonds, the fair values correspond to the stock market quotations. The fair values for the other financial debts were determined on the basis of the interest rates applicable at the balance sheet date for the corresponding residual terms/redemption struc- tures using accessible market information (Bloomberg). FINANCIAL LIABILITIES in €m 30/06/2025 31/12/2024 Carrying amount Market value Carrying amount Market value Bonds 6,680 6,707 6,969 6,915 Borrower’s note loans 672 694 395 409 Credit lines 19 19 26 25 Aircraft financing 3,914 3,965 3,798 3,932 Other borrowings 133 140 148 123 Total 11,418 11,525 11,336 11,404 Leasing liabilities 2,603 n.a. 2,887 n.a. Total 14,021 14,223 In the period under review, a EUR 500m hybrid bond was issued with a 5.25% interest rate, a 30-year term and a first issuer call date after six years. In addition, eight borrower’s note loans were issued with a total volume of EUR 380m and four aircraft financing deals con- cluded with a volume of EUR 513m. A EUR 750m bond from the Euro Medium Term Note (EMTN) programme and a borrower’s note loan for EUR 100m were paid back on schedule. 7 Earnings per share EARNINGS PER SHARE 30/06/2025 30/06/2024 Basic earnings per share € 0.11 – 0.22 Consolidated net profit/loss €m 127 – 265 Weighted average number of shares 1,198,293,192 1,196,601,197 Diluted earnings matched basic earnings.
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INTERIM FINANCIAL STATEMENTS Notes LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 38 8 Issued capital SHARE CAPITAL Deutsche Lufthansa AG’s share capital totals EUR 3,067,690,682.88. It is divided into 1,198,316,673 registered shares with transfer restrictions, with each share representing EUR 2.56 of the share capital. AUTHORISED CAPITAL A resolution passed at the Annual General Meeting on 7 May 2024 authorised the Executive Board until 6 May 2029, subject to approval by the Supervisory Board, to increase the Com- pany’s share capital by up to EUR 1,000,000,000 by issuing new registered shares on one or more occasions for payment in cash or in kind (Authorised Capital A). In certain cases, the shareholders’ subscription rights can be excluded with the approval of the Supervisory Board. A resolution passed at the Annual General Meeting on 9 May 2023 authorised the Executive Board until 8 May 2028, subject to approval by the Supervisory Board, to increase the share capital by EUR 100,000,000 by issuing new registered shares to employees (Authorised Capital B) for payment in cash. Existing shareholders’ subscription rights are excluded. As of 30 June 2025, the issued capital was increased under this authorisation by a total of EUR 7,247,434.24, so that Authorised Capital B still amounted to EUR 92,752,565.76 as of the reporting date. The Executive Board is authorised, in the event of the fulfilment of the requirements stipu- lated in Section 4 Paragraph 3 of the German Aviation Compliance Documentation Act (LuftNaSiG) and with the consent of the Supervisory Board, to increase the share capital by up to 10% by issuing new shares in return for payment in cash and without subscription rights for existing shareholders. The issue price for the new shares must be determined sub- ject to the agreement of the Supervisory Board and may not be significantly lower than the market price. The authorisation may only be made use of insofar as this is necessary in order to achieve the non-applicability of the conditions stipulated in Section 4 Paragraph 3 Luft- NaSiG. The Executive Board is authorised, according to Section 5 Paragraph 2 LuftNaSiG and sub- ject to the approval of the Supervisory Board, to require shareholders to sell some or all of their shares and to provide the Company with proof of this sale without delay insofar as this is necessary for compliance with the requirements for the maintenance of air traffic rights and in the sequence prescribed in Section 5 Paragraph 3 LuftNaSiG, subject to an appropri- ate time limit and while indicating the otherwise possible legal consequence of the loss of their shares in accordance with Section 5 Paragraph 7 LuftNaSiG. CONTINGENT CAPITAL A resolution of the Annual General Meeting on 5 May 2020 contingently increased the Com- pany’s issued capital by up to EUR 122,417,728. The contingent capital increase serves to provide shares to the holders or creditors of conversion and/or option rights from converti- ble bonds that may be issued by the Company or its Group companies until 4 May 2025. In certain cases, the shareholders’ subscription rights can be excluded with the approval of the Supervisory Board. On 10 May 2022, the Annual General Meeting contingently increased the Company’s issued capital by up to EUR 306,044,326.40. The contingent capital increase serves to provide shares to the holders or creditors of conversion and/or option rights from convertible bonds that may be issued by the Company or its Group companies until 9 May 2027. In certain cases, the shareholders’ subscription rights can be excluded with the approval of the Super- visory Board.
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INTERIM FINANCIAL STATEMENTS Notes LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 39 AUTHORISATION TO PURCHASE TREASURY SHARES A resolution passed at the Annual General Meeting held on 9 May 2023 authorised the Ex- ecutive Board pursuant to Section 71 Paragraph 1 No. 8 of the German Stock Corporation Act (AktG) to purchase treasury shares until 8 May 2028. Up to 10% of current share capital may be purchased on the stock exchange or by means of a public purchase offer to all shareholders. The authorisation states that the Executive Board can use the shares in partic- ular for the purposes defined in the resolution passed at the Annual General Meeting. Ac- cording to the resolution of the Annual General Meeting held on 9 May 2023, the Executive Board is also authorised to purchase treasury shares by means of derivatives and to con- clude corresponding derivative transactions. As of 30 June 2025, the number of treasury shares totalled 23,481. 9 Segment reporting Segmentation has been changed by comparison with the financial statements as of 31 De- cember 2024. The Lufthansa Industry Solutions Group, which consists of four consolidated and three non-consolidated companies, was allocated to the Additional Companies and Group Functions as of 1 January 2025, having previously belonged to the MRO business segment. This reflects the fact that Lufthansa Technik AG is no longer responsible for these companies’ strategic management. The figures for the previous year in the segment report- ing have been adjusted accordingly.
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INTERIM FINANCIAL STATEMENTS Notes LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 40 SEGMENT INFORMATION FOR THE REPORTING SEGMENTS Jan - Jun 2025 in €m Passenger Airlines Logistics MRO Total reportable operating segments Additional Businesses and Group Functions Reconciliation Group External revenue 13,739 1,629 2,865 18,233 216 – 18,449 of which traffic revenue 13,199 1,548 – 14,747 1 261 15,009 Inter-segment revenue 407 25 1,110 1,542 348 -1,890 – Total revenue 14,146 1,654 3,975 19,775 564 -1,890 18,449 Other operating income 587 35 286 908 1,071 -412 1,567 Operating income 14,733 1,689 4,261 20,683 1,635 -2,302 20,016 Operating expenses 15,013 1,572 3,965 20,550 1,668 -2,255 19,963 of which cost of materials 8,786 1,111 2,578 12,475 201 -1,274 11,402 of which staff cost 3,230 232 810 4,272 537 -1 4,808 of which depreciation and amortisation 948 101 76 1,125 48 22 1,195 of which other operating expenses 2,049 128 501 2,678 882 -1,002 2,558 Operating result of equity investments 36 18 14 68 28 – 96 of which result of investments accounted for using the equity method 32 6 11 49 5 – 54 Adjusted EBIT 1) -244 135 310 201 -5 -47 149 Reconciliation items -12 -2 -1 -15 – -14 -29 Impairment losses/gains -12 – -2 -14 -1 1 -14 Effects from pension provisions & restructuring -10 -2 -2 -14 -7 – -21 Result of disposal of assets 10 – 2 12 10 -14 8 Other reconciliation items – – 1 1 -2 -1 -2 EBIT -256 133 309 186 -5 -61 120 Other financial result -3 Profit/loss before income taxes 117 Capital employed 2) 9,341 2,188 4,847 16,376 1,496 -286 17,586 of which from investments accounted for using the equity method 769 34 157 960 5 – 965 Segment capital expenditure 1,742 53 93 1,888 48 36 1,972 of which from investments accounted for using the equity method 326 – 6 332 – -1 331 Number of employees at the end of period 66,474 4,276 22,352 93,102 9,872 – 102,974 1) For detailed reconciliation from EBIT to Adjusted EBIT ↗ table "reconciliation of results", p. 10, in the interim management report. 2) The capital employed results from total assets adjusted for non-operating items, (deferred taxes, positive market values, derivatives) less cash and cash equivalents and less certain non-interest bearing liabilities (including trade payables and liabilities from unused flight documents).
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INTERIM FINANCIAL STATEMENTS Notes LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 41 SEGMENT INFORMATION FOR THE REPORTING SEGMENTS Jan - Jun 2024 in €m Passenger Airlines Logistics MRO 3) Total reportable operating segments Additional Businesses and Group Functions 3) Reconciliation Group External revenue 13,205 1,466 2,399 17,070 329 – 17,399 of which traffic revenue 12,702 1,388 – 14,090 – 242 14,332 Inter-segment revenue 374 24 1,115 1,513 347 -1,860 – Total revenue 13,579 1,490 3,514 18,583 676 -1,860 17,399 Other operating income 472 37 224 733 1,108 -433 1,408 Operating income 14,051 1,527 3,738 19,316 1,784 -2,293 18,807 Operating expenses 14,364 1,528 3,422 19,314 1,899 -2,233 18,980 of which cost of materials 8,547 1,090 2,178 11,815 225 -1,190 10,850 of which staff cost 2,950 219 767 3,936 548 -2 4,482 of which depreciation and amortisation 893 97 76 1,066 55 20 1,141 of which other operating expenses 1,974 122 401 2,497 1,071 -1,061 2,507 Operating result of equity investments -24 15 -11 -20 31 -1 10 of which result of investments accounted for using the equity method -23 6 -13 -30 8 – -22 Adjusted EBIT 1) -337 14 305 -18 -84 -61 -163 Reconciliation items -20 – -13 -33 -18 2 -49 Impairment losses/gains -13 – – -13 – 1 -12 Effects from pension provisions -3 -2 -5 -10 -9 1 -18 Result of disposal of assets -7 – -5 -12 1 – -11 Other reconciliation items 3 2 -3 2 -10 – -8 EBIT -357 14 292 -51 -102 -59 -212 Other financial result -155 Profit/loss before income taxes -367 Capital employed 2) 7,226 2,324 4,462 14,012 1,808 -388 15,432 of which from investments accounted for using the equity method 220 40 156 416 37 – 453 Segment capital expenditure 1,521 24 69 1,614 63 103 1,780 of which from investments accounted for using the equity method – – 8 8 – – 8 Number of employees at the end of period 63,634 4,194 21,236 89,064 11,109 – 100,173 1) For detailed reconciliation from EBIT to Adjusted EBIT ↗ table "reconciliation of results", p. 10, in the interim management report. 2) The capital employed results from total assets adjusted for non-operating items (deferred taxes, positive market values, derivatives), less cash and cash equivalents and less certain non-interest bearing liabilities (including trade payables and liabilities from unused flight documents). Amounts restated for Passenger Airlines, MRO, Additional Businesses and Group Functions and in total due to change in allocation. 3) Values adjusted due to the reclassification of the Lufthansa Industry Solutions Group from the MRO segment to Additional Businesses and Group Functions.
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INTERIM FINANCIAL STATEMENTS Notes LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 42 EXTERNAL REVENUE BY REGION Jan - Jun in €m 2025 2024 Traffic revenue 1) Other operating revenue Total revenue Traffic revenue 1) Other operating revenue Total revenue Europe 9,851 1,179 11,030 9,629 1,228 10,857 thereof Germany 4,345 374 4,719 4,271 407 4,678 North America 2,841 1,071 3,912 2,513 862 3,375 thereof USA 2,532 802 3,334 2,207 619 2,826 Central and South America 321 145 466 268 101 369 Asia/Pacific 1,548 753 2,301 1,452 605 2,057 Middle East 186 225 411 222 159 381 Africa 262 67 329 248 112 360 Total 15,009 3,440 18,449 14,332 3,067 17,399 ¹⁾ Allocated according to the original location of sale. 10 Related party disclosures As stated in ↗ Note 50 to the 2024 consolidated financial statements (Annual Report 2024, p. 330ff.), the business segments of the Lufthansa Group render numerous services to re- lated parties within the scope of their ordinary business activities and also receive services from them. These extensive supply and service relationships take place unchanged on the basis of market prices. There were no significant changes as of the reporting date. The con- tractual relationships with the group of related parties described in the ↗ Remuneration Re- port 2024 (Annual Report 2024, p. 353ff.) and in the notes to the consolidated financial statements 2024 in ↗ Note 51 (Annual Report 2024, p. 333) likewise continue to apply, without any changes, but are not of material significance for the Group. 11 Published standards that have not yet been applied The effects of IFRS 18 “Presentation and Disclosure in Financial Statements” which was published during the 2024 financial year are currently being reviewed. Amendments of other accounting standards approved by the IASB as of the date of publication of this report which are applicable for financial years beginning after 1 January 2025 did not have any ma- terial effect on the presentation of the net assets, financial and earnings position. Further information on the amendments resolved as of the date of preparation of the interim finan- cial statements is provided in ↗ Note 2 to the 2024 consolidated financial statements (An- nual Report 2024, p. 245ff.)
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FURTHER INFORMATION Declaration by the legal representatives LUFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 43 DECLARATION BY THE LEGAL REPRESENTATIVES We declare that to the best of our knowledge and according to the applicable accounting standards for interim reporting, the consolidated interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year. Frankfurt, 30 July 2025 The Executive Board Carsten Spohr Chairman of the Executive Board Chief Executive Officer Michael Niggemann Member of the Executive Board Chief Human Resources and Legal Officer, Labor Director Till Streichert Member of the Executive Board Chief Financial Officer Grazia Vittadini Member of the Executive Board Chief Technology Officer Dieter Vranckx Member of the Executive Board Chief Commercial Officer
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L UFTHANSA GROUP 2ND INTERIM REPORT JANUARY - JUNE 2025 44 FURTHER INFORMATION Review Report REVIEW REPORT TO DEUTSCHE LUFTHANSA AKTIENGESELLSCHAFT We have reviewed the condensed consolidated interim financial statements of Deutsche Lufthansa Aktiengesellschaft, Cologne, - which comprise the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated cash flow statement and selected explanatory notes – and the interim group management report for the period from 1 January to 30 June 2025, which are part of the half-year financial report pursuant to Sec. 115 WpHG (“Wertpapierhandelsgesetz”: German Securities Trading Act). The executive directors are responsible for the preparation of the condensed consolidated interim financial statements in accordance with IFRSs on interim financial reporting as adopted by the EU and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management reports. Our responsibility is to issue a report on the condensed consolidated interim financial statements and the interim group management report based on our review. We conducted our review of the condensed consolidated interim financial statements and of the interim group management report in compliance with German Generally Accepted Standards for the Review of Financial Statements promulgated by the Institut der Wirtschaftsprüfer (IDW - Institute of Public Auditors in Germany) and in supplementary compliance with the International Standard on Review Engagements “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” (ISRE 2410). Those standards require that we plan and perform the review to obtain a certain level of assurance in our critical appraisal to preclude that the condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with IFRSs on interim financial reporting as adopted by the EU and that the interim group management report is not prepared, in all material respects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to making inquiries of the Company’s employees and analytical assessments and therefore does not provide the assurance obtainable from an audit of financial statements. Since, in accordance with our engagement, we have not performed an audit of financial statements, we cannot issue an auditor’s report. Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with IFRSs applicable on interim financial reporting as adopted by the EU or that the interim group management report is not prepared, in all material respects, in accordance with the provisions of the WpHG applicable to interim group management reports. Eschborn/Frankfurt am Main, 30 July 2025 EY GmbH & Co. KG Wirtschaftsprüfungsgesellschaft Bösser Jansen Wirtschaftsprüfer Wirtschaftsprüfer (German Public Auditor) (German Public Auditor)
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FURTHER INFORMATION LUFTHANSA GROUP 2ND INTERIM REP ORT JANUARY - JUNE 2025 Credits, Contact, Financial calendar 2025/2026 45 CREDITS Published by Deutsche Lufthansa AG Venloer Str. 151 – 153 50672 Cologne Germany Entered in the Commercial Register of Cologne District Court under HRB 2168 Editorial staff Marc-Dominic Nettesheim (Editor) Patrick Winter Malte Happel CONTACT Marc -Dominic Nettesheim + 49 69 696 – 28008 Tim Müller + 49 69 696 – 28002 Cornelia Beier + 49 69 696 – 28001 Deutsche Lufthansa AG Investor Relations LAC, Airportring 60546 Frankfurt/Main Germany Phone: + 49 69 696 – 28008 E-Mail: investor.relations@dlh.de The Lufthansa 2nd Interim Report is a translation of the original German Lufthansa Zwischenbericht 2/2025. Please note that only the German version is legally binding. The latest financial information on the internet: ↗ www.lufthansagroup.com/investor-relations FINANCIAL CALENDAR 2025 30 October 2025 Release of 3rd Interim Report January – September 2025 FINANCIAL CALENDAR 2026 6 March 2026 Release of Annual Report 2025 6 May 2026 Release of 1st Interim Report January – March 2026 4 August 2026 Release of 2nd Interim Report January – June 2026 3 November 2026 Release of 3rd Interim Report January – September 2026 Disclaimer in respect of forward -looking statements Information published in the 2nd Interim Report 2025, with regard to the future development of the Lufthansa Group and its subsidiaries consists purely of forecasts and assessments and not of definitive facts. Its purpose is exclusively informational, and can be identified by the use of such cautionary terms as “believe”, “expect”, “forecast”, “intend”, “project”, “plan”, “estimate”, “anticipate”, “can”, “could”, “should” or “endeavour”. These forward-looking statements are based on discernible information, facts and expectations available at the time that the statements were made. They are therefore subject to a number of risks, uncertainties and factors, including, but not limited to, those described in disclosures, in particular in the Opportunities and risk report in the Annual Report. Should one or more of these risks occur, or should the underlying expectations or assumptions fail to materialise, this could have a significant effect (either positive or negative) on the actual results. It is possible that the Group’s actual results and development may differ materially from the results forecast in the forward-looking statements. Lufthansa does not assume any obligation, nor does it intend, to adapt forward-looking statements to accommodate events or developments that may occur at some later date. Accordingly, it neither expressly nor conclusively accepts liability, nor gives any guarantee, for the actuality, accuracy and completeness of this data and information. Note Unless stated otherwise, all change figures refer to the corresponding period from the previous year. Due to rounding, some of the figures may not add up precisely to the stated totals, and percentages may not precisely reflect the absolute figures.