lufthansagroup.com
lufthansagroup.com/investor-relations
2020
TRANSFORMING THE WAY 
WE CONNECT PEOPLE, 
CULTURES AND ECONOMIES
ANNUAL REPORT

2	
Key figures
  2	
The Lufthansa Group
  3	
Business segments
  4	
To our shareholders
  4	
The Executive Board
  5	
Letter from the Executive Board	
  7	
Report of the Supervisory Board
11	
Lufthansa share
14	
Combined management report
15	
Principles of the Group
	
15	
Business activities and Group structure
	
17	
Goals and strategies
	
25	
Fleet and route network
	
28	
Employees
	
30	
Research and development
	
31	
Legal and regulatory factors
32	
Economic report
	
32	
Macroeconomic situation
	
33	
Sector developments
	
35	
Course of business
	
38	
Earnings, assets and financial position
	
49	
Comparison with original forecast and  
overall statement by the Executive Board  
on the economic position
51	
Business segments
	
51	
Network Airlines business segment
	
59	
Eurowings business segment
	
62	
Logistics business segment
	
65	
MRO business segment
	
67	
Catering business segment
	
69	
Additional Businesses and Group Functions
71	
Opportunities and risk report
	
71	
Opportunities and risk management
	
74	
Opportunities and risks at an individual level
	
84	
Overall statement on opportunities and risks
	
85	
Description of the accounting-related Internal  
Control System and risk management system  
in accordance with Section 289 Paragraph 4  
and Section 315 Paragraph 4 HGB
  86	 Combined non-financial declaration
	
  86	
About this combined non-financial declaration
	
  89	
Environmental concerns
	
  98	
Customer concerns
	
103	
Employee concerns
	
108	
Fighting corruption and bribery
	
110	
Respect for human rights
	
112	
Social concerns
	
113	
Responsible production and  
sustainability in the supply chain
	
114	
Summary
118	 Forecast
	
118	
Macroeconomic outlook
	
118	
Sector outlook
	
119	
Changes in business and organisation
	
120	
Outlook Lufthansa Group
	
121	
Overall statement by the Executive Board on the 
expected development of the Lufthansa Group
122	 Corporate Governance
	
122	
Supervisory Board and Executive Board
	
123	
Mandates
	
125	
Disclosures in accordance with  
Section 289a Paragraph 1 HGB and  
Section 315a Paragraph 1 HGB
	
128	
Declaration on corporate governance  
in accordance with Section 289f HGB  
and Section 315d HGB
128	 Notes to the individual financial statements 
	
of Deutsche Lufthansa AG (HGB)
133	 Consolidated financial statements
240	 Declaration by the legal representatives
241	 Independent auditor’s report
251	 Remuneration report
271	 Further information
272	 Independent Auditor’s Limited Assurance Report  
regarding the Non-Financial Statement 	
274	 Report of the independent auditor on the audit  
of the remuneration report pursuant to Sec. 162 (3) AktG
275	 Ten-year overview
277	 Glossary
279	 Chart and table overview
282	 Credits/Contact/Financial calendar 2021 and Disclaimer
CONTENTS
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LUFTHANSA GROUP ANNUAL REPORT 2020
1

The Lufthansa Group
The Lufthansa Group is an aviation group with operations worldwide. It is  
composed of the segments Network Airlines, Eurowings and Aviation Services.
T001  KEY FIGURES LUFTHANSA GROUP
 
 
2020 
2019  
Change  
in %
 
Revenue and result 
 
 
 
Total revenue
€m
13,589
36,424
– 63
	
of which traffic revenue
€m
9,078
28,136
– 68
Operating expenses
€m
20,846
37,124
– 44
Adjusted EBITDA 1)
€m
– 2,890
4,718
 
Adjusted EBIT 1)
€m
– 5,451
2,026
 
EBIT
€m
– 7,353
1,857
 
Net profit/loss
€m
– 6,725
1,213
 
Key balance sheet and cash flow statement figures
Total assets
€m
39,484
42,659
– 7
Equity ratio
%
3.5
24.0
– 20.5 pts
Net indebtedness
€m
9,922
6,662
49
Pension provisions
€m
9,531
6,659
43
Cash flow from operating activities
€m
– 2,328
4,030
 
Capital expenditure (gross) 2)
€m
1,273
3,559
– 64
Adjusted free cash flow 1)
€m
– 3,669
203
Key profitability and value creation figures
Adjusted EBITDA margin 1)
%
– 21.3
13.0
– 34.3 pts
Adjusted EBIT margin 1)
%
– 40.1
5.6
– 45.7 pts
EBIT margin
%
– 54.1
5.1
– 59.2 pts
ROCE
%
– 22.7
6.1
– 28.8 pts
Adjusted ROCE 1)
%
– 16.7
6.6
– 23.3 pts
Lufthansa share
Share price at year-end
€
10.82
16.41
– 34
Earnings per share
€
– 12.51
2.55
 
Proposed dividend per share
€
–
–
 
Traffic figures 3)
Flights
number
390,900
1,187,728
– 67
Passengers
thousands
36,354
145,299
– 75
Available seat-kilometres
millions
109,828
358,803
– 69
Revenue seat-kilometres
millions
69,462
296,217
– 77
Passenger load factor
%
63.2
82.6
– 19.4 pts
Available cargo tonne-kilometres
millions
10,591
17,379
– 39
Revenue cargo tonne-kilometres
millions
7,373
10,664
– 31
Cargo load factor
%
69.6
61.4
8.2 pts
Employees
Employees as of 31 Dec 
number
110,065
138,353
– 20
Average number of employees
number
125,207
137,784
– 9
1)	 Derivation ↗ Financial strategy and value-based management, p. 21ff., Earnings, assets and financial position, p. 38ff.
2)	Without acquisition of equity investments.
3)	 Previous year’s figures have been adjusted. 
Date of publication: 4 March 2021.
LUFTHANSA GROUP ANNUAL REPORT 2020
2
KEY FIGURES
The Lufthansa Group

Business segments
Network Airlines
The Network Airlines segment comprises Lufthansa German 
Airlines, SWISS, Austrian Airlines and Brussels Airlines. With 
their multi-hub strategy, the Network Airlines offer their 
customers a premium, high-quality product and service, 
and a comprehensive route network combined with the 
highest level of travel flexibility. 
Eurowings
The Eurowings business segment includes the flight  
operations of Eurowings and Eurowings Europe, as well  
as the equity investment in SunExpress. With Eurowings,  
the Lufthansa Group has an innovative offering for 
price-sensitive and service-oriented customers in the 
structurally growing European direct traffic segment.
T002  NETWORK AIRLINES
2020
Change in %
 
Revenue
€m
6,622
– 74
	
of which traffic revenue
€m 
5,488
– 76
Adjusted EBIT
€m
– 4,674
 
Adjusted EBIT margin
%
– 70.6
– 77.7 pts
Adjusted ROCE
%
– 27.9
– 38.8 pts
Segment capital expenditure
€m
958
– 65
Employees as of 31 Dec 
number
57,363
– 6
T003  EUROWINGS
2020
Change in %
 
Revenue
€m
598
– 74
	
of which traffic revenue
€m 
579
– 75
Adjusted EBIT
€m
– 703
– 476
Adjusted EBIT margin
%
– 117.6
– 112.3 pts
Adjusted ROCE
%
– 43.4
– 37.6 pts
Segment capital expenditure
€m
106
– 17
Employees as of 31 Dec 
number
3,088
– 10
Logistics
In addition to Lufthansa Cargo AG, the Lufthansa Group’s 
logistics specialists, the Logistics segment includes  
the airfreight container management specialist Jettainer 
group, the time:matters subsidiary, which specialises in 
particularly urgent consignments, and the equity invest-
ment in the cargo airline AeroLogic. 
Catering
The LSG group offers a comprehensive range of products, 
concepts and services related to in-flight service. As the 
strongest revenue driver in the LSG group, LSG Sky Chefs 
offers classical catering for airlines, as well as lounge  
management. After the sale of its European business,  
the LSG group still works for more than 300 airlines with 
139 plants in 46 countries.
MRO
Lufthansa Technik is the world’s leading independent  
provider of maintenance, repair and overhaul services (MRO) 
for civilian commercial aircraft. Lufthansa Technik AG 
serves more than 800 customers worldwide, including 
OEMs, aircraft leasing companies and operators of  
VIP jets, as well as airlines.
T004  LOGISTICS
2020
Change in %
 
Revenue
€m
2,757
11
	
of which traffic revenue
€m 
2,596
12
Adjusted EBIT
€m
772
 
Adjusted EBIT margin
%
28.0
28.0 pts
Adjusted ROCE
%
26.2
26.2 pts
Segment capital expenditure
€m
222
– 22
Employees as of 31 Dec 
number
4,373
– 4
T005  MRO
2020
Change in %
 
Revenue
€m
3,747
– 43
	
of which external revenue
€m 
2,724
– 38
Adjusted EBIT
€m
– 383
 
Adjusted EBIT margin
%
– 10.2
– 17.2 pts
Adjusted ROCE
%
– 6.3
– 12.7 pts
Segment capital expenditure
€m
152
– 51
Employees as of 31 Dec 
number
22,745
– 5
T006  CATERING
2020
Change in %
 
Revenue
€m
1,305
– 61
	
of which external revenue
€m 
1,064
– 59
Adjusted EBIT
€m
– 284
 
Adjusted EBIT margin
%
– 21.8
– 25.6 pts
Adjusted ROCE
%
– 17.3
– 23.7 pts
Segment capital expenditure
€m
28
– 78
Employees as of 31 Dec 
number
13,227
– 63
LUFTHANSA GROUP ANNUAL REPORT 2020
3
KEY FIGURES
Business segments

The Executive Board
Deutsche Lufthansa AG
Carsten Spohr, Chief Executive Officer  
Born in 1966, industrial engineer, Chairman of the Executive Board 
and CEO since 1  May 2014, Executive Board member since 2011, 
with the Lufthansa Group since 1994
Christina Foerster, Chief Customer Officer  
Born in 1971, MBA, Executive Board member since 2020,  
with the Lufthansa Group since 2002
Michael Niggemann, Chief HR & Legal Officer  
Born in 1974, lawyer, Executive Board member since 2020, with the  
Lufthansa Group since 2007
Harry Hohmeister, Chief Commercial Officer  
Born in 1964, diploma in commercial air transport, Executive Board 
member since 2013, with the Lufthansa Group since 1985
Detlef Kayser, Chief Operations Officer 
Born in 1965, Aerospace engineer, Executive Board member  
since 2019, with the Lufthansa Group since 2016 
Remco Steenbergen, Chief Financial Officer  
Born in 1968, MBA, RegisterAccountant, Executive Board member  
since 2021, with the Lufthansa Group since 2021
LUFTHANSA GROUP ANNUAL REPORT 2020
4
TO OUR SHAREHOLDERS
The Executive Board

Ladies and gentlemen,
2020 was one of the most challenging years in the history of the Lufthansa Group. We will never forget it.  
The outbreak of the coronavirus pandemic dealt an unprecedented blow to the entire airline industry and this 
also to the Lufthansa Group.
Last year, we welcomed only 36 million passengers on board our flights – a quarter of our normal passenger 
numbers. Our passenger airlines had to cut their capacity significantly, and for much longer and in more areas 
than anticipated over the course of the year. Austrian Airlines and Brussels Airlines even had to shut down their 
flight operations entirely at times. At the same time, we accepted our particular responsibilities as one of Europe’s 
leading airlines in these challenging times. In cooperation with the governments of their respective countries,  
our airlines carried out hundreds of repatriation flights to bring travellers home from all over the world. They also 
maintained Europe’s supply chains and transported urgently needed medical equipment.
Right from the start of the crisis, we cut our costs across the organisation and avoided cash outflows wherever 
possible. Despite acting so quickly and consistently, we had to resort to government stabilisation measures in 
the middle of the year to ensure the Company’s continued existence. We agreed a stabilisation package with the 
Federal Republic of Germany’s Economic Stabilisation Fund in May and June, which included funding measures 
and loans of up to EUR 9bn. State aids negotiated with the governments of Switzerland, Austria and Belgium are 
included in this stabilisation package. 
After a brief upswing, international air traffic declined again significantly at the end of the summer travel  
periods. This was also due to a new increase in infection rates and the resulting increase in travel restrictions. 
The situation remained difficult even after the end of the year. Overall, the Lufthansa Group’s revenue fell by 
63% in the reporting year due to the coronavirus crisis. Adjusted EBIT, our main performance indicator, decreased 
to EUR – 5,451m. Only Lufthansa Cargo made a positive contribution to earnings, reporting a record result.
Global air traffic will take years to return to its pre-crisis levels. In order to survive the crisis successfully, the 
Lufthansa Group is adapting to the current situation, changing and becoming smaller. This is the only way we 
can continue our contribution to society by connecting people, cultures and economies in the future. This crisis 
has shown what an important contribution that is, and how severe the long-term consequences for society  
can be if people can no longer come together across national boundaries and cultures. That is why the mission 
statement for our strategic vision in the years ahead, and at the same time the title of this annual report, is 
TRANSFORMING THE WAY WE CONNECT PEOPLE, CULTURES AND ECONOMIES.
LUFTHANSA GROUP ANNUAL REPORT 2020
5
TO OUR SHAREHOLDERS
Letter from the Executive Board

With the ReNew restructuring programme, we are adapting the Lufthansa Group to the new market conditions 
and establishing the conditions for repaying the funding from the stabilisation package quickly as well as ensuring 
sustainable, profitable growth. We have already made good progress with the restructuring. Last year, we signed 
crisis agreements with all the main trade unions of the Lufthansa Group in Germany and streamlined our organi-
sational structure. Around the world, more than 28,000 colleagues have left the Company. We have also introduced 
many structural measures to reduce complexity in the Company and increase our efficiency. ReNew also provides  
for a reduction of the fleet by 150 aircraft across the Group. To achieve this, we are decommissioning primarily 
older aircraft ahead of schedule. The programme also aims to focus the Lufthansa Group even more sharply  
on the core airline business. In this context, we are planning to resume the sales process for the remaining 
non-European business of the LSG group as soon as possible. 
Customers will always remain at the centre of our efforts. For this reason, we will continue to consistently build 
our products and services around individual customer needs. We want to use innovation and digitisation to 
increase customer satisfaction even further and offer our customers the best airline product in Europe.
Responsibility will continue to be the foundation of all business activity in the Lufthansa Group. Here, we aspire to 
lead the airline industry with our high standards. We are expanding our environmental commitment. For instance, 
we support the industrial production and use of alternative, sustainable fuels and the expansion of intermodal traffic.
The Executive Board and the entire management team are working hard together to realign the Lufthansa Group. 
And even if the impact of the crisis continues to weigh on the entire sector for a long time, we are convinced 
that we will emerge stronger from this crisis than our competitors. People want to fly again, and do so whenever 
the opportunity to travel safely opens up again.
We will be pleased if you stayed with us on our journey, and we hope to welcome you aboard our aircraft  
again soon.
Frankfurt, February 2021
Carsten Spohr
Chief Executive Officer
LUFTHANSA GROUP ANNUAL REPORT 2020
6
TO OUR SHAREHOLDERS
Letter from the Executive Board

To our shareholders
Report of the Supervisory Board
Ladies and gentlemen,
The 2020 financial year was a historically challenging year  
for the Lufthansa Group. The impacts of the coronavirus  
pandemic on global air traffic and therefore also on our Com-
pany dominated the work of the Executive Board and the 
Supervisory Board. The Supervisory Board oversaw the work 
of the Executive Board members and advised them. The 
Supervisory Board carried out the duties conferred on it by 
statute, the Company’s Articles of Association and its internal 
regulations. 
In 2020, the Supervisory Board held a total of ten meetings, 
seven of which were conducted virtually. Overall, Supervisory 
Board members had an attendance rate of 99%. No member 
of the Supervisory Board was present at only half or fewer  
of the meetings of the Supervisory Board or the Supervisory 
Board committees. An overview of individual attendance 
rates can be found at 
 https://investor-relations.lufthansa-
group.com/en/corporate-governance/supervisory-board.html. 
To ensure the ability to act quickly in times of crisis, the 
Supervisory Board transferred key powers to the Steering 
Committee in the period from April to September 2020. The 
Steering Committee met twelve times during this period, 
which allowed it to keep abreast of the developments in the 
Group and to provide intensive advice to the Executive Board. 
Due to the pandemic, no professional training events were 
organised in the 2020 financial year. 
The Executive Board regularly provided the Supervisory Board 
with full, timely information on the course of business, the 
competitive environment, planned Company policy and all 
significant strategic and operating decisions. In particular, 
they were regularly informed about the decline in business 
as a result of the pandemic, the status of liquidity and short-
time working, and the restructuring measures planned and 
implemented as a result of the coronavirus crisis. On numerous 
occasions, the Executive Board informed the Supervisory 
Board about the content and status of the government stabi-
lisation measures as well as potential insolvency scenarios. 
The Executive Board also informed us regularly and on an  
ad hoc basis of changes in the shareholder structure and the 
performance of the Lufthansa share. As Chairman of the 
Supervisory Board, I read the minutes of the Executive Board 
meetings and discussed the current situation and the course 
of business with the Chairman of the Executive Board and 
CEO on an ongoing basis.
Karl-Ludwig Kley,
Chairman of the Supervisory Board
LUFTHANSA GROUP ANNUAL REPORT 2020
7
TO OUR SHAREHOLDERS
Report of the Supervisory Board

Key topics discussed by the Supervisory Board 
Our meetings focused on the economic development  
of Deutsche Lufthansa AG and its associated companies. 
Against the background of the coronavirus pandemic, we 
regularly addressed the liquidity situation in particular. The 
stabilisation measures of the German Economic Stabilisation 
Fund (WSF) and in our other home countries as well as  
alternative scenarios and the planned measures for Group 
financing, restructuring and refinancing of the Company 
were discussed a number of times by the Supervisory Board 
or the Steering Committee.  
At its meeting on 18 March 2020, the Supervisory Board 
approved taking out additional funding of up to EUR 5bn by 
the end of 2020. In addition, at its meeting on 21 September 
2020, the Supervisory Board approved the issue of a con-
vertible bond by Deutsche Lufthansa AG in the amount of up 
to EUR 600m with a term of up to seven years.
At its meetings on 27 May 2020 and 1 June 2020, the 
Supervisory Board focused in detail on the state support 
measures to secure the necessary liquidity of Deutsche 
Lufthansa AG and, at its meeting on 24 June 2020, approved 
the framework agreement with the WSF on stabilisation 
measures of up to EUR 9bn. During the height of the crisis, 
the Supervisory Board consulted with outside attorneys,  
particularly with regard to insolvency law issues. The external 
advisers took part in individual meetings of the Supervisory 
Board and the Steering Committee.
The meeting on 22 September 2020 was dedicated to the 
Group’s ongoing strategic development, which was discussed 
in detail with the Executive Board. The corporate strategy 
was updated on this basis and then approved at the Super­
visory Board meeting on 3 December 2020. 
The Supervisory Board also approved the medium-term 
financial planning for 2021 to 2024 on 3 December 2020. 
Adjustment of Executive Board remuneration 
On 18 March 2020, the Supervisory Board adopted additional 
changes to the remuneration system for Executive Board 
members, which has been in place since 2020. These changes 
apply to new appointments and reappointments of Executive 
Board members. In order to implement the corresponding 
recommendations of the German Corporate Governance Code 
(GCGC), as amended on 16 December 2019, the decision 
was taken to offset the severance payment against the  
compensation payment resulting from a post-contractual 
non-compete clause and to limit the severance payment in the 
event of a change of control to 100% of the cap on severance 
pay provided for in Executive Board appointment contracts. 
Within the framework of the resolution on the WSF stabilisa-
tion measures, in June 2020 the Supervisory Board continued 
to classify the current remuneration of the Executive Board 
as appropriate, notwithstanding the current crisis situation. 
This was particularly the case against the background of the 
voluntary waiver by the members of the Executive Board  
of 20% of their basic remuneration for the period from April  
to September 2020, the reduction or elimination of variable 
remuneration components due to the crisis, and the addi-
tional restrictions on Executive Board remuneration resulting 
from the framework agreement.
For the implementation of the remuneration restrictions of 
the framework agreement between Deutsche Lufthansa AG 
and WSF of 29 June 2020, on 21 September 2020 the Super-
visory Board adopted a resolution to make the necessary 
adjustments (in particular with regard to variable remuneration) 
to Executive Board appointment contracts for the duration  
of the stabilisation measures or for the duration of the con-
tractual restrictions. This included the temporary suspension 
of the ramp-up phase defined in the Share Ownership Guide-
lines until variable remuneration is granted again. All acting 
members of the Executive Board have declared that they 
have no entitlement to the granting of variable remuneration 
under their appointment contracts during the period of the 
stabilisation measures, with the exception of entitlements 
which had already been acquired before 21 June 2020. 
 https://investor-relations.lufthansagroup.com/en/corporate- 
governance/executive-board/executive-board-compensation- 
system.html.
Changes in Executive Board membership 
Ulrik Svensson resigned from the Executive Board as  
Chief Financial Officer with effect from 6 April 2020 for 
health reasons. By circular resolution dated 21 April 2020, 
the Super­visory Board acknowledged the resignation of  
Ulrik Svensson from the Executive Board with effect from  
6 April 2020 and approved the conclusion of a rescission 
agreement with effect from 30 April 2020.
Thorsten Dirks resigned from the Executive Board of the 
Company in the course of the conclusion of the government 
stabilisation measures. By circular resolution dated 26 June 
2020, the Supervisory Board approved the premature termi-
nation of the Executive Board appointment of Thorsten Dirks 
and the conclusion of a corresponding rescission agreement 
with immediate effect. 
The Supervisory Board thanks Ulrik Svensson and Thorsten 
Dirks for their valuable contributions to the Lufthansa Group 
over the past three years.
At its meeting on 21 September 2020, the Supervisory Board 
reappointed Harry Hohmeister as Member of the Executive 
Board of Deutsche Lufthansa AG with effect from 1 July 2021 
for a term of three years, ending on 30 June 2024.
LUFTHANSA GROUP ANNUAL REPORT 2020
8
TO OUR SHAREHOLDERS
Report of the Supervisory Board

Furthermore, at its meeting on 10 November 2020, the 
Supervisory Board appointed Remco Steenbergen as Member 
of the Executive Board for Finance for a term of three years 
from 1 January 2021 to 31 December 2023.
Changes in the Executive Board structure
After Ulrik Svensson resigned from the Executive Board as 
Chief Financial Officer with effect from 6 April 2020,  
the Supervisory Board approved the changes to the division 
of responsibilities developed by the Executive Board at its 
meeting on 8 April 2020 with effect from 15 April 2020. As 
part of these measures, the Executive Board was reduced 
from seven members to six, and responsibility for Finance 
functions was assigned to the remaining Executive Board 
members. The previous IT, Digital & Innovation function was 
expanded to include significant parts of the Finance function 
and renamed Digital & Finance. The Corporate Human 
Resources and Legal Affairs function was expanded to 
include functional responsibility for M&A. Functional respon-
sibility for Purchasing was transferred to the Customer & 
Corporate Responsibility function, where responsibility for 
HR Management and People Development was also assigned 
to relieve the pressure on the Human Resources and Legal 
Affairs function, which was under significant strain during 
the coronavirus crisis. Investor Relations was transferred to 
the responsibility of the Chairman of the Executive Board 
and CEO.
With the appointment of Remco Steenbergen, the Supervisory 
Board approved the allocation of responsibilities as updated  
by the Executive Board with effect from 1 January 2021.  
In particular, the Finance functions were again bundled into 
an independent function. 
Following the resignation of Thorsten Dirks from the Executive 
Board in June 2020, the IT functions were not transferred to 
an independent function. Instead, they are now part of the 
Customer, IT & Corporate Responsibility function, where 
they had been managed on an interim basis in the second 
half of 2020. 
Changes in the Supervisory Board
Stephan Sturm, whose term of office ended at the close of 
the Annual General Meeting on 5 May 2020, was elected to 
the Supervisory Board as a shareholder representative for a 
further five years. Herbert Hainer, Martina Merz, Michael Nilles 
and Matthias Wissmann left the Supervisory Board at the 
close of the Annual General Meeting on 5 May 2020. Erich 
Clementi, Thomas Enders, Harald Krüger and Astrid Stange 
were newly elected to the Supervisory Board. All four were 
elected to the Supervisory Board as shareholder representa-
tives for five years. As at the end of 31 August 2020, Martin 
Koehler and Monika Ribar resigned their seats on the Super-
visory Board to allow for the appointment of Michael Kerkloh 
and Angela Titzrath, who were nominated, at my suggestion, 
by the German government in its new role as shareholder of 
Deutsche Lufthansa AG. Michael Kerkloh and Angela Titzrath 
were appointed to the Supervisory Board by the Cologne 
District Court on 2 September 2020.
With the completion of the sale of LSG group’s European 
business to gategroup Holding AG on 2 December 2020, 
Christina Weber resigned from the Company’s Supervisory 
Board in accordance with the law. In the absence of a sub­
stitute member, Jürgen Jennerke was appointed to the 
Supervisory Board by the Cologne District Court as an 
employee representative on 8 December 2020.
Christian Hirsch resigned from the Supervisory Board of 
Deutsche Lufthansa AG with effect from 31 December 2020. 
Birgit Spineux succeeded him as a substitute member of the 
Company’s Supervisory Board as of 1 January 2021. 
The Supervisory Board thanks the former members for 
assuming their responsibilities and for their constructive and 
dedicated work in this challenging financial year.
In addition, Jutta Dönges, Member of the Executive Board of 
the Federal Republic of Germany - Finance Agency, has been 
exercising rights as a visiting member on the Supervisory 
Board of Deutsche Lufthansa AG since September 2020, as 
agreed with the WSF. 
Corporate Governance
The Supervisory Board has confirmed the basic target of 
30% for the proportion of women on the Executive Board 
and has set 31 December 2021 as a deadline for meeting this 
target. Until 6 April 2020, women accounted for 14% of the 
Executive Board, 16% from 7 April 2020 to 26 June 2020, 
and 20% from 27 June 2020 to 31 December 2020. Since  
1 January 2021, women have again accounted for 16% of the 
Executive Board. 
 www.lufthansagroup.com/corporate_ 
governance_declaration.
The statutory quota requiring Supervisory Boards to consist 
of 30% women is met by the Supervisory Board as a whole 
as well as by both the shareholder and employee representa-
tive groups. 
We again reviewed the efficiency of our working practices 
this year using a detailed questionnaire. The atmosphere  
of discussion in the Supervisory Board was further improved, 
thanks largely to the measures implemented in previous 
years to improve the structure of the meetings.
In September 2020, the Supervisory Board, together with the 
Executive Board, issued an updated declaration of compliance 
with the GCGC. We also updated the requirements profile 
for the Supervisory Board. Following the changes to the com-
position of the Supervisory Board in 2020, the information 
on the current progress regarding implementation has been 
adjusted accordingly. 
 www.lufthansagroup.com/corporate_
governance_declaration. No conflicts of interest were disclosed 
in the financial year 2020. 
LUFTHANSA GROUP ANNUAL REPORT 2020
9
TO OUR SHAREHOLDERS
Report of the Supervisory Board

Work of the committees
The Supervisory Board has formed four committees, whose 
activities were each reported on at the beginning of the  
following Supervisory Board meeting. Further details on the 
composition of the committees can be found in ↗ Executive 
Board and Supervisory Board, p. 124.
The Steering Committee met 16 times in 2020. In the period 
from 18 March 2020 to 21 September 2020, the Supervisory 
Board delegated its responsibilities for urgent cases to the 
Steering Committee to the extent legally permissible in order 
to ensure that it was able to act quickly in times of crisis. In 
addition, as in previous financial years, the Steering Committee 
prepared the Supervisory Board meetings, occupied itself 
with succession planning and the remuneration system for 
the Executive Board and made recommendations to the full 
Supervisory Board on all personnel decisions concerning  
the Executive Board. 
In 2020, the Nomination Committee met once and the Audit 
Committee met six times, always in the presence of the 
auditors. By circular resolution of the Supervisory Board on  
7 May 2020, Stephan Sturm was re-elected Chairman of the 
Audit Committee. He is qualified as a financial expert within 
the meaning of Section 100 Paragraph 5 of the German 
Stock Corporation Act (AktG) due to his long tenure as the 
CFO of a DAX-listed group. The Audit Committee discussed 
the financial statements for 2019 and the interim reports for 
2020 with the CFO and the department heads with tempo-
rary responsibility, respectively before their publication. The 
committee also dealt with the supervision of accounting pro-
cesses and the effectiveness of the internal control system, 
risk management and internal auditing systems. Furthermore, 
the members received regular reports on the compliance 
management system. They also discussed in detail the Group 
operational planning for 2021 to 2024, the medium-term 
financial planning, the combined non-financial declaration and 
the remuneration report pursuant to Section 162 AktG, which 
was subject to a voluntary limited assurance engagement  
by Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft, 
Munich, Germany. ↗ Combined non-financial declaration,  
p. 86ff. 
The Arbitration Committee was not convened in the  
reporting period. 
Audit and adoption of the annual financial statements  
as of 31 December 2020, approval of the consolidated 
financial statements
The Supervisory Board appointed Ernst & Young GmbH 
Wirtschaftsprüfungsgesellschaft, Eschborn, Germany, who 
were elected as auditors for the parent company and the 
Group at the Annual General Meeting 2020, to audit the 
financial statements and the consolidated financial state-
ments, the combined management report and the system  
for the early identification of risks. The Audit Committee 
acknowledged the declaration of independence provided by 
Ernst & Young and discussed the main topics of the audit. No 
potential grounds for disqualifying the auditors or doubting 
their impartiality came to light during the course of the audit. 
The consolidated financial statements have been prepared  
in accordance with the International Financial Reporting 
Standards (IFRS) issued by the International Accounting 
Standards Board (IASB), taking account of interpretations  
by the IFRS Interpretations Committee as applicable in  
the European Union (EU). The auditors audited the annual 
financial statements and consolidated financial statements 
of Deutsche Lufthansa AG and the combined management 
report as of 31 December 2020 in accordance with the legal 
requirements, and had no reservations to make. They further 
confirmed that the system for the early identification of risks 
established by the Executive Board is suitable for the early 
identification of developments that could endanger the 
Company’s continued existence. During their audit, the audi-
tors did not come across any facts that would run contrary  
to the declaration of compliance.
On 26 February 2021, the Audit Committee discussed the 
audit reports in detail with the CFO in the presence of the 
two auditors who had signed the auditors’ report. At the 
Supervisory Board accounts meeting on 3 March 2021,  
the auditors reported on their audit findings and answered 
questions. We examined the financial statements and the 
consolidated financial statements of Deutsche Lufthansa AG, 
as well as the combined management report, including the 
combined non-financial declaration and the remuneration 
report pursuant to Section 162 AktG, and had no objections 
to make. The financial statements and the consolidated 
financial statements were approved. The 2020 annual financial 
statements of Deutsche Lufthansa AG as prepared by the 
Executive Board have thereby been adopted. A resolution  
on the use of the distributable profit was not necessary  
due to the net loss for the year reported in the commercial 
balance sheet.
The Supervisory Board thanks the Executive Board and all 
employees for their work in 2020, which was such a difficult 
year for aviation. There is currently no indication that 2021 
will be any easier. We wish everyone at Lufthansa good 
health, and the strength to cope with the privations, restric-
tions and extra work caused by the pandemic. We are all 
eagerly looking forward to a time when people can travel 
light-heartedly again and the Lufthansa Group can again 
connect people, cultures and economies without restraints. 
Frankfurt, 3 March 2021 
For the Supervisory Board
Karl-Ludwig Kley, Chairman
LUFTHANSA GROUP ANNUAL REPORT 2020
10
TO OUR SHAREHOLDERS
Report of the Supervisory Board

Lufthansa share
Airline shares severely affected by coronavirus crisis.  |  The Lufthansa share 
declines less than that of other European network airlines.  |  Number of  
shareholders increases significantly. 
Lufthansa share decline reflects challenging  
industry situation
The coronavirus pandemic put an immense strain on share 
price developments in the airline industry in 2020. This  
pressure also affected the Lufthansa share. Starting from  
a level of EUR 16.68 on 2 January 2020, the share price 
dipped to EUR 7.18 on 24 April 2020 in the wake of the 
global spread of the coronavirus. As a result, the share price 
recovered – supported by a likely upswing in demand in  
the summer months and the agreement of government sta-
bilisation measures. However, rising infection figures and 
increasing travel restrictions then triggered renewed losses, 
resulting in the share price reaching its low for the year of 
EUR 7.05 on 25 September 2020. Towards the end of the 
year, the Lufthansa share price rose again, driven by progress 
in the development of effective vaccines. 
As of 31 December 2020, the Lufthansa share traded at 
EUR 10.82. This means that the share recorded a total loss  
of 34% in the reporting year. However, the Lufthansa share 
performed better than the shares of the other two European 
network airlines, IAG and Air France-KLM, which were down 
63% and 48% respectively in 2020. By contrast, the MDAX 
index, where the Lufthansa share has been listed since  
22 June 2020, rose by 9% in the same period.
WSF stabilisation measures exclude dividend payments 
for the time being
The stabilisation measures of the Economic Stabilisation 
Fund (WSF) preclude the payment of dividends until the 
loans and silent participations have been repaid in full and  
all the shares of the Company held by the WSF have been 
disposed of. In the long term, however, shareholders are 
expected to once again participate directly in the Company’s 
success. ↗ Financial strategy and value-based management,  
p. 21ff.
140
120
100
80
60
40
20
0
C01 PERFORMANCE OF THE LUFTHANSA SHARE
indexed as of 31 Dec 2019, compared with the MDAX and competitors, in %
LUFTHANSA’S SHARE PRICE AS OF 31 DEC 2020
10.82 €
 66 Lufthansa
 58 easyJet
117 WIZZair
111 Ryanair
109 MDAX
 37 IAG
 52  Air France-KLM 
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
LUFTHANSA GROUP ANNUAL REPORT 2020
11
TO OUR SHAREHOLDERS
Lufthansa share

T007  THE LUFTHANSA SHARE: KEY FIGURES
 
 
2020
2019
2018
2017
2016
 
Year-end share price
€ 
10.82
16.41
19.70
30.72
12.27
Highest share price
€ 
16.68
23.51
30.90
31.12
15.29
Lowest share price
€ 
7.05
12.85
17.31
11.32
9.30
Number of shares
millions 
597.7
478.2
475.2
471.3
468.8
Market capitalisation (at year-end)
€bn 
6.5
7.8
9.4
14.5
5.8
Earnings per share
€ 
– 12.51
2.55
4.58
4.98
3.81
Dividend per share
€ 
–
–
0.80
0.80
0.50
Dividend yield (gross)
%
–
–
4.1
2.6
4.1
Dividend payout
€m 
–
–
380
377
234
Total shareholder return
%
– 34.1
– 12.6
– 33.3
154.4
– 12.3
Analyst recommendations are mixed
At year-end, of the 27 equity analysts tracking the Company, 
four recommended buying the share, seven recommended 
holding it, and 16 selling it. Many analysts point to increased 
corporate debt, which reduces the company value attributable 
to shareholders, as the reason for their sell recommendation. 
The average target price was EUR 6.52 with a range of 
EUR 0.50 to EUR 14.10. 
Number of shares increases due to capital increase 
Deutsche Lufthansa AG’s issued capital increased by 20%  
in the reporting year due to the WSF participation in the  
stabilisation measures and the subsequent capital increase. 
A total of 119,548,565 new shares were issued, which were 
all subscribed by the WSF. This brought the number of 
shares issued to 597,742,822. 
Changes in the shareholder structure increase the share  
of German investors in the Company
In order to protect international air traffic rights and its  
operating licence, the German Aviation Compliance Docu-
mentation Act (Luftverkehrsnachweissicherungsgesetz – 
LuftNaSiG) requires Lufthansa to provide evidence that  
a majority of its shares are held by German shareholders.  
For this reason, all Lufthansa shares are registered shares 
with transfer restrictions. 
At the end of 2020, the shareholders’ register showed that 
German investors held 83.8% of the shares (previous year: 
67.3%). The main contributors to the increase were the equity 
investments made by the WSF and Heinz Hermann Thiele. 
They were the two largest shareholders in the Lufthansa 
Group at year-end, holding 20.05% and 12.42% of the voting 
shares, respectively. The second largest group, with 9.8%, 
was shareholders from the USA. Investors from Luxembourg 
and Ireland each accounted for 1.2%. This ensures compliance 
with the provisions of the German Aviation Compliance  
Documentation Act (LuftNaSiG).
According to the definition of Deutsche Börse, 72% of 
Lufthansa shares are in free float. As of the reporting date, 
52% of the shares were held by institutional investors (pre­
vious year: 58%) and 48% were held by private individuals 
(previous year: 42%). The number of shareholders increased 
from 356,932 at year-end 2019 to 565,357 at year-end 2020, 
mainly due to the high number of new private shareholders. 
The shareholder structure is updated quarterly and pub-
lished on the website 
 www.lufthansagroup.com/investor- 
relations. The notifications on voting rights received by the 
Company from shareholders and published during 2020 are 
also available there.
Buy
Sell
16
C02 ANALYSTS’ RECOMMENDATIONS 1)
 
as of 31 Dec 2020
BUY
4
1)  Average target price: EUR 6.52, average of 27 analysts. 
Range: EUR 0.50 to EUR 14.10.
7
Hold
C03  SHAREHOLDER STRUCTURE  
BY NATIONALITY
Free float: 72%
 
as of 31 Dec 2020 in %
GERMANY
83.8
Other 4.0
Luxembourg 1.2
Ireland 1.2
USA 9.8
LUFTHANSA GROUP ANNUAL REPORT 2020
12
TO OUR SHAREHOLDERS
Lufthansa share

Executive Board members buy Company shares
Several members of the Executive Board bought shares in 
Deutsche Lufthansa AG over the course of 2020. Carsten 
Spohr bought a total of 39,937 shares for EUR 408,627.36. 
Harry Hohmeister purchased a total of 22,309 shares for 
EUR 220,502.90. These announcements can also be found 
on the website 
 www.lufthansagroup.com/investor-relations.
Lufthansa is included in the MDAX and other  
important indices
Due to the share price losses resulting from the coronavirus 
crisis and the reduced free float, the Lufthansa share has, 
since 22 June 2020, not been listed on the DAX30 index and 
is now on the MDAX index instead. At year-end, the share 
had an index weighting of 1.56%. With a market capitalisa-
tion of EUR 6.5bn, the Lufthansa Group came in at number 
52 (previous year: 34) in the ranking of DAX companies by 
market capitalisation. In terms of stock market turnover, the 
Lufthansa share was at number 20 (previous year: 21) with 
revenue of EUR 21.1bn (previous year: EUR 18.8bn). The aver-
age daily XETRA trading volume of the share in 2020 was 
8,321,590 shares (previous year: 4,304,869 shares). 
The Lufthansa share is also included in many classic inter­
national share indices. It is also represented in several sus-
tainability indices, such as the EURO STOXX Sustainability 
Index and the MSCI EMU ESG.
T008  THE LUFTHANSA SHARE: DATA
 
ISIN International Security  
Identification Number
DE0008232125
Security identification number
823212
German stock exchange code
LHA 
Stock market listing
Frankfurt
Prime sector
Transport & Logistics
Industry
Airlines
Indices (Selection) 
 
 
 
 
 
MDAX, EURO STOXX, STOXX Global, 
Bloomberg EMEA Airlines Index,  
Bloomberg European Travel Index,  
DAX 50 ESG, MSCI EMU ESG,  
Vanguard ESG INTL STOCK ETF,  
STOXX Sustainabilty,  
EURO STOXX Sustainability 
American Depositary Receipts (ADRs) offer an  
alternative to equity investment
In addition to its stock market listings in Germany, investors 
who are only allowed to invest in securities denominated  
in US dollars can also gain exposure to the Lufthansa Group  
via the “Sponsored American Depositary Receipt Program” 
(ADR). The programme is managed by Deutsche Bank Trust 
Company Americas. Lufthansa ADRs are also registered on 
the standardised trading and information platform OTCQX. 
At year-end, 6,146,428 ADRs were outstanding (31 Decem-
ber 2019: 3,751,056). Based on the 1:1 ratio to the share, this 
corresponds to around 1% of the issued capital.
Lufthansa Group pursues intensive dialogue with investors 
despite restrictions imposed by the coronavirus pandemic 
As in prior years, the Lufthansa Group again provided its 
shareholders with timely, comprehensive information in the 
2020 financial year. In addition to the quarterly meetings, 
the Executive Board and Investor Relations team held many 
roadshows and investor conferences to inform institutional 
investors about current developments at the Group in 2020. 
Due to the restrictions imposed by the coronavirus pandemic, 
most events of this type took place virtually. There were  
also intensive exchanges with debt investors, especially in 
the context of the issue of two bonds. ↗ Financing, p. 43ff. 
In May 2020, the Group hosted more than 10,000 shareholders 
who logged on to the first Annual General Meeting which was 
held exclusively online. During another virtual extraordinary 
general meeting in June, the government stabilisation pack-
ages were presented to the more than 30,000 shareholders 
who had logged on, and were put to a vote.
All the publications, financial reports, presentations, the 
quarterly shareholder information letter and the latest news 
are available at 
 www.lufthansagroup.com/investor-relations. 
The site also contains the financial calendar and the dates  
of all the conferences and shareholder events that the 
Lufthansa Group will be attending. 
LUFTHANSA GROUP ANNUAL REPORT 2020
13
TO OUR SHAREHOLDERS
Lufthansa share

COMBINED 
MANAGEMENT 
REPORT
15	
Principles of the Group
	
15	 Business activities and Group structure
	
17	 Goals and strategies
	
	
17	 Group strategy
	
	
21	 Financial strategy and value-based  
management
	
25	 Fleet and route network
	
	
25	 Fleet
	
	
27	 Route network
	
28	 Employees
	
30	 Research and development
	
31	 Legal and regulatory factors
32	
Economic report
	
32	 Macroeconomic situation
	
33	 Sector developments
	
35	 Course of business
	
	
35	 Overview of the course of business 
	
	
36	 Significant events 
	
	
37	 Events after the reporting period
	
38	 Earnings, assets and financial position	
	
	
38	 Earnings position
	
	
42	 Financial position
	
	
47	 Net assets
	
49	 Comparison with original forecast and  
overall statement by the Executive Board  
on the economic position
	
	
49	 Comparison with original forecast
	
	
50	 Overall statement by the Executive Board  
on the economic position
51	
Business segments
	
51	 Network Airlines business segment
	
59	 Eurowings business segment
	
62	 Logistics business segment
	
65	 MRO business segment
	
67	 Catering business segment
	
69	 Additional Businesses and Group Functions
71	
Opportunities and risk report
	
  71	 Opportunities and risk management
	
  74	 Opportunities and risks at an individual level
	
  84	 Overall statement on opportunities and risks
	
  85	 Description of the accounting-related Internal  
Control System and risk management system  
in accordance with Section 289 Paragraph 4  
and Section 315 Paragraph 4 HGB
86	
Combined non-financial declaration
	
  86	 About this combined non-financial declaration
	
  89	 Environmental concerns
	
  98	 Customer concerns
	
103	
Employee concerns
	
108	
Fighting corruption and bribery
	
110	
Respect for human rights
	
112	
Social concerns
	
113	
Responsible production and  
sustainability in the supply chain
	
114	
Summary
118	 Forecast	
	
118	
Macroeconomic outlook
	
118	
Sector outlook
	
119	
Changes in business and organisation
	
120	
Outlook Lufthansa Group
	
121	
Overall statement by the Executive Board on the  
expected development of the Lufthansa Group
122	 Corporate Governance
	
122	
Supervisory Board and Executive Board
	
123	
Mandates
	
125	
Disclosures in accordance with  
Section 289a Paragraph 1 HGB and  
Section 315a Paragraph 1 HGB
	
128	
Declaration on corporate governance  
in accordance with Section 289f HGB  
and Section 315d HGB
128	 Notes to the individual financial statements  
of Deutsche Lufthansa AG (HGB)
	
128	
Earnings position 
	
131	
Financial position
	
131	
Net assets
	
132	
Other disclosures
To the extent that the combined management report refers to sources other than the combined management report or the consolidated financial statements  
(e.g. internet sites), the contents of these sources are not part of the combined management report and are solely for informational purposes.  
The references made in the combined management report are not necessarily an integral part of the combined management report.
LUFTHANSA GROUP ANNUAL REPORT 2020
14

Principles of the Group
Business activities and Group structure
Lufthansa Group is a leading European airline group.  |  Company portfolio  
consists of Network Airlines, Eurowings and Aviation Services.  |  Organisational 
structure is being modified.  |  Executive Board restructured.
Lufthansa Group is a leading European airline group
The Lufthansa Group is an aviation company with operations 
worldwide. It plays a leading role in its European home market. 
The Lufthansa Group is composed of the segments Network 
Airlines, Eurowings and Aviation Services. ↗ Business seg-
ments, p. 51ff.
The Network Airlines segment comprises Lufthansa German 
Airlines, SWISS, Austrian Airlines and Brussels Airlines. 
Eurowings focuses on short-haul routes in direct traffic.  
Aviation Services particularly includes the Logistics, MRO 
and Catering segments.
As part of the focus on the airline business, a contract  
with gategroup was signed in late 2019 for the sale of the 
LSG group’s European business. The sale was closed on  
2 December 2020 once the purchaser, gategroup, had  
met the conditions set by the European Commission. LSG 
group’s international activities are to be sold as soon as the 
operating environment permits. 
The Lufthansa Group also comprises the Additional Businesses 
and Group Functions, which consist of Lufthansa AirPlus, 
Lufthansa Aviation Training, and Lufthansa Systems. 
The business segments and the airlines are each under their 
own management. Overall coordination is by means of the 
Executive Board of Deutsche Lufthansa AG or the Group 
Executive Committee, which essentially consists of the 
members of the Executive Board of Deutsche Lufthansa AG 
and the CEOs of the main companies.
ReNew restructuring programme to set the Company up 
for the future
With its Group-wide restructuring and transformation pro-
gramme ReNew, the Lufthansa Group is putting the company 
on track for a viable future. After the coronavirus crisis, the 
Lufthansa Group is to be smaller, leaner and more efficient. 
The workforce is to be adjusted in line with the market con-
traction caused by the pandemic and is currently planned  
to be reduced by around 27,000 full-time equivalents (FTE). 
The number of management positions will be reduced by  
at least 20%.
In the new organisational structure, decisions should be 
taken faster, processes sped up and collaboration simplified. 
The functional process organisation (matrix organisation)  
will be focused on the core functions of the Lufthansa Group 
airlines. A new management model with clearly defined 
responsibilities (decentralised or centralised, depending  
on the process) is to be introduced for all other areas. A  
separate executive board was formed for Lufthansa German 
Airlines, consisting of the Chief Executive Officer, Chief 
Financial Officer, Chief Commercial Officer and Chief Opera-
tions Officer.
LUFTHANSA GROUP ANNUAL REPORT 2020
15
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Business activities and Group structure

New division of responsibilities for the Executive Board  
of Deutsche Lufthansa AG
Responsibilities on the Executive Board of Deutsche Lufthansa 
AG were changed over the course of the reporting year and 
the number of Board members reduced from seven to six. 
The titles of the functions were also changed at the start  
of 2021.
Chief Executive Officer of Deutsche Lufthansa AG is  
Carsten Spohr.
Chief Financial Officer is Remco Steenbergen, who has been 
a member of the Executive Board since 1 January 2021. He 
succeeds Ulrik Svensson, who resigned from the Executive 
Board as of 6 April 2020 for health reasons.
Chief HR & Legal Officer is Michael Niggemann.
Chief Customer Officer is Christina Foerster. She is also 
responsible for IT, Corporate Responsibility and the 
Lufthansa Innovation Hub.
Chief Operations Officer is Detlef Kayser. In this function,  
he is also responsible for the central steering of the ReNew 
restructuring programme.
Chief Commercial Officer is Harry Hohmeister.
Thorsten Dirks resigned from the Executive Board as of  
30 June 2020. No replacements were appointed in the new 
Executive Board structure.
C04 LUFTHANSA GROUP STRUCTURE
Remco Steenbergen Chief Financial Officer
Michael Niggemann Chief HR & Legal Officer
Carsten Spohr Chief Executive Officer
Supervisory Board
Detlef Kayser 
Chief Operations Officer
Harry Hohmeister 
Chief Commercial Officer
Christina Foerster 
Chief Customer Officer
Vienna
Munich
Zurich
Frankfurt
LUFTHANSA GROUP ANNUAL REPORT 2020
16
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Business activities and Group structure

Goals and strategies
Market position as a leading European airline group to be strengthened by  
coping successfully with the coronavirus crisis.  |  Airlines form the core of the 
Lufthansa Group.  |  Focus is on restructuring, consistent attention to customer 
needs and long-term increases in profitability and cash flow.  |  Sustainability  
and corporate responsibility are an established part of the Group strategy.
GROUP STRATEGY
Position as leading European airline group 
The Lufthansa Group positions itself among the largest airlines 
in the world and assumes the role of leading European airline 
group. In this role, the Lufthansa Group aims to continue to 
play a part in actively shaping the global airline market. It 
strives to follow the mission statement: the Lufthansa Group 
connects people, cultures and economies in a sustainable 
way. In doing so, it aspires to set standards in terms of sus-
tainability and customer-friendliness. It uses the potential  
of innovation and digitalisation to develop customer-focused 
products and increase efficiency. Corporate responsibility 
and identity are put into practice locally and supported by 
overarching functional processes that enable synergies and 
economies of scale. A strict focus on costs, operational sta-
bility and reliability in all areas are firmly established in the 
DNA of the Lufthansa Group. The safety of flight operations 
is and will always be the top priority.
Structuring the Group along the airline value chain helps to 
maximise synergies between segments and makes it possible 
to scale business from external markets at the same time. 
The airlines form the core of the Lufthansa Group, with their 
comprehensive networks in their home markets of Germany, 
Austria, Switzerland, Belgium and northern Italy. In two busi-
ness models – network airlines and point-to-point airlines – 
they serve the relevant customers and market segments  
with dedicated brands and differentiated quality promises, 
connecting Europe with the world. The airline business is 
supplemented by Aviation Services that have synergies with 
the airlines. The aim is to continue strengthening the role of 
the airlines in the portfolio of operating segments over the 
long term. ↗ Business segments, p. 51ff.
Transformation of the Lufthansa Group is to secure 
long-term economic success
The aviation industry is defined by dynamic markets and 
competition, even when not facing a pandemic. The main 
drivers of this dynamism are exogenous uncertainty, changing 
customer demands and shifts in the value chain. These 
include new data-driven decision-making tools that have an 
increasing influence on airlines’ distribution and increased 
activity from aircraft and engine manufacturers in the mainte-
nance business. To meet these challenges, the core principles 
of the corporate strategy are continuous transformation and 
modernisation of the Lufthansa Group. The aim is to safeguard 
the Lufthansa Group’s leading market position by making it  
a more agile, flexible and competitive organisation. 
Effects of the coronavirus pandemic are a significant 
burden for the Lufthansa Group
The coronavirus pandemic has had an impact on the aviation 
industry unlike any seen before. The travel restrictions imposed 
in reaction to the pandemic and the global economic slump 
pose fundamental challenges for the industry and the Group. 
Experts assume that demand will not regain its pre-crisis 
level any earlier than 2024. The pace of recovery is subject  
to great uncertainty, however, especially concerning the 
spread of the coronavirus and its mutations, the availability 
of vaccines, and potentially lasting changes in travel patterns.  
↗ Forecast, p. 118ff.
The Lufthansa Group has tackled the short-term effects  
of the pandemic by quickly adjusting available capacity to 
meet reduced demand, cutting costs, taking further steps to 
safeguard liquidity, and ensuring the Company’s solvency  
by raising new funds, particularly in the form of government 
stabilisation measures. ↗ Course of business, p. 35ff.
LUFTHANSA GROUP ANNUAL REPORT 2020
17
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Goals and strategies

The Group is anticipating the long-term effects of the crisis 
by adapting to a permanently smaller market with a compre-
hensive restructuring programme and adjusting its strategy 
to make the best possible use of the market opportunities 
resulting from the changes wrought by the crisis. Above all, 
this means focussing even more closely on individual cus-
tomer needs, expanding its position in the tourism segment, 
and differentiating the various Group airlines within the 
framework of the multi-airline model, while simultaneously 
increasing synergies and reducing complexity. 
The ReNew restructuring programme supports  
successful management of the crisis and implementation 
of the strategy 
Successfully coping with the pandemic is a prerequisite for 
the strategic development of the Lufthansa Group. The com-
prehensive restructuring programme ReNew was set up for 
this purpose. It combines all the restructuring programmes 
at the airlines and service companies in the Group. On the 
basis of this fundamental restructuring, the intention is to 
improve profitability and cash flows, refinance and repay the 
funding from the government support package as quickly  
as possible and achieve the strategic objectives.
ReNew guides and coordinates all the restructuring activities 
on the basis of four modules:
—	 ReStructure combines the decentralised restructuring 
programmes for the airlines and Aviation Services. Its 
overarching goal is to catch up with the leading com­
petitors in the respective markets in terms of profitability. 
The main focus is on the implementation of a much smaller 
and more efficient production structure in all Group com-
panies. This entails a reduction of the operating fleet  
by around 150 aircraft, as well as the currently planned 
reduction of the workforce by some 27,000 full-time 
equivalents, which cannot be maintained long-term with 
the lower production volumes. ↗ Fleet, p. 25f., Employees, 
p. 28ff.
—	 ReOrg serves to implement a more efficient organisational 
structure, including turning Lufthansa German Airlines 
into an autonomous company as well as restructuring the 
Group Functions and matrix process organisation. This 
will entail, among other things, the loss of around 1,000 
administrative FTE in Group Functions and the reduction 
of management positions across the Group by at least 
20% compared with the period before the crisis. Down­
sizing the Executive Board of Deutsche Lufthansa AG and 
the management boards of subsidiaries compared with 
2019 was also part of this measure. 
—	 ReFocus aims to focus the Lufthansa Group even more 
sharply on its core airline business, so that the portfolio  
of operating segments is made up exclusively of syner­
gistic units. This means that the sales process for the 
remaining non-European business of the LSG group 
should be resumed as soon as possible. Disposals of 
other non-airline companies are also under review.
—	 RePay aims to plan, coordinate and implement the refi-
nancing and prompt repayment of all the funding from 
the government support packages and existing financial 
liabilities on the best possible terms. Suitable financial 
instruments for this purpose are being evaluated. In addi-
tion, suitable measures are to be taken to strengthen  
the balance sheet of the Lufthansa Group and optimise 
its gearing in order to obtain an investment grade rating 
again. ↗ Financial strategy and value-based management, 
p. 21ff.
Consistent focus on critical success factors
The strategic objective of the Lufthansa Group is to continu-
ously align its services, business models and organisational 
structures with the complex and dynamic market environment. 
This will make it possible to systematically make use of the 
opportunities arising from trends and changes to the market. 
Key success factors are a consistent focus on customer 
needs, close attention to costs and responsible, sustainable 
business practices. Flexibility and adaptability are increas-
ingly important as the market becomes more dynamic. 
Consistent alignment of products with customer needs  
for greater attractiveness 
In view of changes to the structures of supply and demand, 
an even greater focus on the customer is a core element  
of the Group strategy. The aim is put customers, with their 
individual wishes and needs, at centre stage and further 
increase customer loyalty by implementing holistic measures 
which offer direct and tangible customer benefits. At the 
same time, the intention is to make the travel experience as 
simple, flexible and individual as possible.
A particular focus is on the seamless digital travel experience 
for the customer, which is linked with personal appreciation. 
By concentrating on products and services with direct  
relevance for the purchase decision and willingness to pay, 
the focus on the customer is reconciled with the necessary 
structural cost reductions. For instance, automated and con-
tactless processes, such as the self-service baggage drop 
and check-in, assistance in the event of flight irregularities 
and general interactions with customers make travelling  
easier for passengers. 
LUFTHANSA GROUP ANNUAL REPORT 2020
18
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Goals and strategies

Customer services will continue to be automated, including 
goodwill gestures and improved digital information across  
a variety of channels. Customer-facing employees will also 
have greater decision-making authority in order to offer  
passengers an even better service. Products will continue  
to be made more modular, as with different Business Class 
seat types or the introduction of an individual, high-quality 
catering range for sale on short and medium-haul flights in 
Economy Class, because this makes it possible to align them 
even more closely with customer needs. 
Consistent use of the potential for innovation and digitalisation 
is the foundation for increasing customer satisfaction and 
boosting efficiency in an operating environment determined 
by higher customer expectations and pressure to be efficient. 
Modular solutions will increasingly feature in product and 
service development to limit investment risks. The products 
and services of partners will also be used in areas in which 
the Lufthansa Group cannot provide them cost-effectively 
itself. Customer-related tasks have been combined with IT 
and digital activities in one Executive Board function for  
this purpose. Allocating clear responsibility for defining and 
developing new products, services and customer loyalty 
measures makes it possible for customers and their individual 
wishes to always take centre stage.
Lufthansa Group to focus increasingly on sustainability 
and social responsibility
Responsibility is the basis for commercial activity in the Group. 
The Lufthansa Group aspires to lead the airline industry  
with high standards of responsibility. It therefore builds con-
tinuously on its environmental commitment, is dedicated  
to many social issues and treats its employees responsibly 
and fairly. ↗ Combined non-financial declaration, p. 86ff. 
In terms of environmental policy, the Lufthansa Group aims to 
cut its net carbon emissions in half by 2030 compared with 
2019 and supports the objective of making aviation carbon 
neutral by 2050. To this end, the Lufthansa Group continues 
to invest in fuel-efficient aircraft, accompanied by steps to 
increase the operating efficiency of the airlines, carbon offsets, 
and the further expansion of intermodal traffic in cooperation 
with Deutsche Bahn, Austrian Railways and various bus 
operators. The Lufthansa Group also works with policymakers 
and partners in industry, technology and research to support 
the industrialisation and use of sustain­able fuels.
In addition, the Lufthansa Group includes sustainability 
aspects as a vital factor in the design of its products and 
services. The Lufthansa Group platform Compensaid offers 
Group passengers and travellers with other companies 
attractive and personalised ways of making carbon offsets 
via various sales channels. In its product and service devel-
opment, the Lufthansa Group systematically applies the 
principles “reduce – recycle – reuse – replace”. Here the aim 
is to replace disposable plastic products with environmen-
tally friendly products wherever possible and to reduce plastic 
packaging overall.
In terms of responsibility for its employees, the Lufthansa 
Group attaches great importance to offering its staff an 
attractive working environment with transparent structures, 
efficient processes and a wide range of voluntary social  
benefits. This is vital for retaining committed employees  
who can tackle future challenges and for ensuring that the 
Company is competitive and successful. In terms of social 
responsibility, the Company promotes greater equality of 
opportunity for disadvantaged people worldwide via the 
financial and material support for educational establish-
ments and training provided by helpalliance, the Group’s own 
aid organisation. 
The central importance of sustainable business for the 
Lufthansa Group is reflected in the fact that it is represented 
by a dedicated Executive Board function. Implementation  
of the sustainability strategy is further supported by its 
embeddedness in Executive Board remuneration and the 
audited disclosures in the non-financial declaration. 
Dialogue with the Company’s stakeholders is also a compo-
nent of sustainable corporate governance. This continuous 
exchange gives the Lufthansa Group a better understanding 
of its different interest groups’ needs, expectations and 
wishes, which permits their inclusion in the Company’s busi-
ness practices.
Multi-airline business model ensures the success  
of the Lufthansa Group
The airlines form the core of the Lufthansa Group. Their 
nationwide presence in their home markets enables them  
to offer an attractive range of flights and route networks.  
The Lufthansa Group aims to maintain the leading market 
position of its airlines going forward. To ensure that this  
is the case, the Lufthansa Group’s traffic system is being 
transformed into a multi-traffic system, consisting of hubs, 
direct traffic and intermodal offerings.
LUFTHANSA GROUP ANNUAL REPORT 2020
19
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Goals and strategies

Lufthansa German Airlines and SWISS will continue to set 
standards for quality and cost-effectiveness in these areas in 
future. With their wide range of destinations and frequent 
flights, they offer the greatest connectivity of all the Euro-
pean airlines. 
Austrian Airlines and Brussels Airlines connect their home 
markets with Europe and the world. At the same time, they 
combine a high-quality and attractive product with a low 
cost base, which can hold its own against low-cost carriers 
at the bases in Vienna and Brussels. 
With Eurowings, the Lufthansa Group has an innovative  
and competitive offering in direct traffic, which addresses 
both price-sensitive and service-oriented customers with 
low-cost basic fares and additional service options that can 
be booked flexibly.
As a consequence of the market disruption caused by  
the pandemic, all the airlines in the Lufthansa Group are 
implementing restructuring programmes to cut costs and 
permanently secure sufficient profitability. In addition to 
reducing operating costs across the board, adapting the 
headcount in flight operations and administration to future 
demand is an important instrument for achieving this goal.  
↗ Employees, p. 28ff. 
The existing commercial integration of the airlines is being 
intensified to exploit potential synergies to the fullest and 
minimise the need for coordination. The functional organisa-
tional structure that has proven successful at Network Airlines 
will be extended to direct traffic in future. This will allow the 
Lufthansa Group to establish faster, more direct decision- 
making processes, particularly between Group Functions  
and the subsidiaries. 
The total number of flight operations is being cut to reduce 
the complexity of the production landscape. Economies of 
scale will be realised consistently and flight operations with 
competitive structures and a good operating performance 
will be scaled up. At the same time, production is being made 
more flexible in order to better balance market volatility  
and seasonality. Examples include the termination of flight 
operations at SunExpress Germany and of passenger flight 
operations at Germanwings. 
The ongoing optimisation of the Group fleet has been  
accelerated as a result of the crisis. Key targets are the  
systematic renewal of the fleet to cut fuel consumption, 
reduce carbon emissions and trim the number of aircraft 
models by retiring and phasing out older, less efficient aircraft, 
such as the Airbus A340-600 and A380. Phasing out large 
aircraft also increases operating flexibility. The fleet is to be 
scaled back by 150 aircraft compared with the size before 
the pandemic. ↗ Fleet, p. 25f. 
In order to exploit opportunities in the long-distance leisure 
travel market, the range of long-haul connections from the 
hubs in Frankfurt and Munich aimed at private travellers is 
being expanded. Some of these routes will in future be carried 
out under the Eurowings Discover brand, whereby passengers 
benefit from the broad feeder network and the established 
ground processes of Lufthansa German Airlines. Lufthansa 
German Airlines is also making use of its global distribution 
strength. 
In order to strengthen the market presence in the main traffic 
flows, successful joint ventures are being expanded and 
partnerships intensified in key markets such as South America 
and India. The range of intermodal transport solutions that 
are seamlessly integrated into the travel chain is also being 
extended. Although the pace of consolidation in the airline 
industry has slowed temporarily but significantly as a result 
of the coronavirus crisis, the Lufthansa Group still aims to 
drive the consolidation of the airline sector actively as soon 
as the conditions are right. 
Aviation Services to be aligned with the needs of  
the airline group 
With its Aviation Services, the Lufthansa Group has several 
companies that are global leaders in their respective sectors. 
In order to secure and build on their successful positioning, 
Aviation Services are permanently adapting their business 
models to changing markets and competitive environments. 
Lufthansa Cargo is becoming an integrated airfreight logistics 
company by digitalising the logistics chain and achieving 
growth by intensifying its worldwide joint ventures. Miles & 
More is the central programme for customer loyalty and is 
developed continuously by means of systematic alignment 
with customers’ interests. This entails adapting the structure 
of the programme, for instance, and making the Miles & 
More partnerships broader and deeper in order to make the 
programme even more attractive.
The value contributed to the Lufthansa Group by every one 
of the Aviation Services is reviewed and refined continuously. 
In connection with its positioning as an airline group, the 
Lufthansa Group not only assesses the attractiveness of the 
individual market segments, it also determines whether it is 
the best owner for the respective company on the basis of 
existing or potential synergies. It may therefore make sense 
for certain Aviation Services companies to be developed 
outside the Lufthansa Group or together with partners.
LUFTHANSA GROUP ANNUAL REPORT 2020
20
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Goals and strategies

Following the sale of LSG group’s European business in 2020, 
the disposal of LSG group’s international business will be 
taken forward as soon as conditions allow. Disposal and part-
nering options for all or part of Lufthansa Technik and AirPlus 
are also under review, taking into account the necessary  
capital expenditure, synergies and value creation potential.
In view of the fundamental impact of the coronavirus crisis, 
restructuring programmes are also being implemented at the 
Aviation Services companies to increase efficiency, cut costs 
and strengthen their competitiveness.
FINANCIAL STRATEGY AND VALUE-BASED MANAGEMENT
Financial strategy aims to increase Company value
The financial strategy of the Lufthansa Group seeks to 
increase its Company value in a sustainable manner. It will 
concentrate on three dimensions: returning to value creation, 
generating free cash flows and maintaining financial stability. 
The successful implementation of the financial strategy 
should make it possible to repay the stabilisation funds and 
loans that the Company received to overcome the corona­
virus pandemic.
Returning to value creation
Sustainable value creation in the Company
The Lufthansa Group applies a value-based system of  
management. At its centre is the return on capital. This is 
measured by the indicator Adjusted Return on Capital 
Employed (Adjusted ROCE). If Adjusted ROCE exceeds the 
weighted average cost of capital (WACC), the Company is 
creating value.
The Company’s profitability is measured by Adjusted EBIT. 
The adjustments eliminate non-recurring, non-operating 
effects and thus improve the presentation of the Company’s  
operating performance. Items that require adjustment are  
listed in a catalogue which has not been altered since 2015. 
They largely consist of the gains and losses on the disposal 
of assets and impairment losses and earnings attributable  
to other periods in connection with pension obligations.  
↗ T021 Reconciliation of results, p. 40.
The use of capital is also optimised by strict working capital 
management and ensuring that capital expenditure adds value. 
Finally, the Lufthansa Group factors specific carbon emissions 
into its management system in order to enable sustainable 
value creation that does not come at the expense of a higher 
environmental impact. In fact, the aim is to reduce specific 
carbon emissions continuously. Information about the long-
term goals for reducing carbon emissions can be found in the  
↗ Combined non-financial declaration/Climate protection,  
p. 90ff.
C05 FINANCIAL STRATEGY
Return to value creation
Generation of strong free cash flows
Maintain financial stability
— Increase in operating result
—  Working capital management
— Value-adding capital expenditure
— Reduction in net indebtedness
— Return to investment grade rating
— Minimisation of financial risks
—  Restructuring to adapt to changed  
market conditions
— Improved return on capital
—  Continuous reduction of  
environmental impacts
Focus
Target
Sustainable increase of Company value
— Adjusted free cash flow
— Adjusted net debt /Adjusted EBITDA
— Adjusted ROCE
— Adjusted EBIT margin 1)
— Specific CO₂ emissions
1) Derivation ↗ Earnings position, p.38ff., Financial position, p. 42ff.
LUFTHANSA GROUP ANNUAL REPORT 2020
21
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Goals and strategies

The Company’s value creation was negative in 2020 due  
to the pandemic. The Adjusted ROCE margin after tax was 
– 16.7% (previous year: 6.6%), whereas WACC was unchanged 
year-on-year at 4.2%. Adjusted EBIT came to EUR – 5,451m 
in 2020 (previous year: EUR 2,026m). The Adjusted EBIT 
margin, i.e. the ratio of Adjusted EBIT to revenue, was there-
fore – 40.1% (previous year: 5.6%). ↗ Earnings position, p. 38ff. 
Specific CO₂ emissions per passenger-kilometre (without 
wet leases) were 105.2 grammes in 2020, 14% higher than the 
previous year (previous year: 92.2 grammes). ↗ Combined 
non-financial declaration/Climate protection, p. 90ff.
T009  CALCULATION OF ADJUSTED ROCE AND COST OF CAPITAL1)
in €m
2020 
 
2019 
 
Change 
in %
 
Revenue
13,589
36,424
– 63
Other operating income
2,072
2,574
– 20
Operating income
15,661
38,998
– 60
Operating expenses
22,750
37,309
– 39
Result from equity investments
– 264
168
 
EBIT 
– 7,353
1,857
 
Adjusted EBIT
– 5,451
2,026
 
Interest on liquidity
84
79
6
Taxes (assumption 25% of EBIT  
+ Interest on liquidity)
1,817
– 484
 
Cost of capital  1)
– 1,011
– 1,007
0
EACC
– 6,463
445
 
ROCE 2) in %
– 22.7
6.1 – 28.8 pts
Adjusted ROCE 3) in %
– 16.7
6.6 – 23.3 pts
Balance sheet total
39,484
42,659
– 7
Non-interest bearing liabilities
 
 
 
	
of which liabilities from unused  
flight documents
2,064
4,071
– 49
	
of which trade payables, other  
financial liabilities, other provisions
3,856
5,868
– 34
	
of which advance payments, deferred 
income, other non-financial liabilities
4,305
3,089
39
	
of which others 
6,145
4,575
34
Capital employed
23,114
25,056
– 8
Average capital employed  4)
24,068
23,982
0
WACC in %
4.2
4.2
0.0 pts
1)	 WACC x Average capital employed.
2)	(EBIT + Interest on liquidity – 25% taxes)/Average capital employed.
3)	(Adjusted EBIT + Interest on liquidity – 25% taxes)/Average capital employed.
4)	Average capital employed in 2019 including IFRS 16 right-of-use assets  
as of 1 January 2019.
Restructuring creates conditions for a return to profitable 
and sustainable growth
The restructuring and transformation programme ReNew will 
set the Company up for the changes in the market environ-
ment resulting from the crisis. The modifications it will make 
to the cost structures reflect the lower market volumes that 
are expected to persist for many years and create the condi-
tions for a return to a positive operating result. The necessary 
measures are primarily being identified and implemented in 
the business segments. ↗ Business segments, p. 51ff. In 
addition, the ReNew programme provides for central steering 
and coordination of the activities.
Even once the pandemic is over, the aim is to increase  
structural profitability by continuously reducing unit costs, 
simplifying processes and structures and improving  
productivity. 
Generation of strong free cash flows
Generation of strong free cash flows is a principal goal  
of financial management
As a result of the coronavirus pandemic and the stabilisation 
measures necessary because of it, the Company’s net debt 
has risen significantly. One prerequisite for the prompt 
repayment of this funding is to generate strong free cash 
flows. As well as increasing the operating result, the main 
instruments for achieving this are strict working capital  
management and an investment focus on projects with the 
highest value creation. 
Adjusted free cash flow in 2020 came to EUR – 3,669m  
(previous year: EUR 203m). ↗ Financial position, p. 42ff.
Improvements in working capital management support 
cash flow generation
In strengthening and intensifying working capital manage-
ment even once the acute crisis is past, the aim is to improve 
cash flow. The focus is on optimising the capital committed 
to the short-term operating business. Specifically, measures 
may include strict receivables management, improving or 
extending the payment targets for suppliers and optimising 
inventories. In view of the crisis, options such as requiring 
advance payments from customers or deferring payments 
may be examined and used in special cases.
LUFTHANSA GROUP ANNUAL REPORT 2020
22
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Goals and strategies

Focused investing activities to maximise return  
on capital employed
As a rule, the Lufthansa Group endeavours to concentrate  
its capital expenditure on projects with the highest value 
creation. Investments planned in all segments for 2020 and 
2021 have been reviewed and postponed – whenever possible 
and economically viable – in order to minimise short-term 
cash outflows. Capital expenditure was thus reduced in 
2020 from the more than EUR 3bn originally planned to  
EUR 1.3bn.
Capital expenditure should remain lower than before the 
coronavirus pandemic. However, the Lufthansa Group will 
continue to invest in the renewal of its fleet, in-flight and 
ground products and infrastructure. The aircraft on order serve 
mainly to replace older, less efficient models. The allocation 
of new aircraft to the different airlines and bases is constantly  
optimised according to value-based criteria. This makes the 
investment profile more balanced and increases focus on  
the deployment of capital. 
Gross capital expenditure (without expenditure on equity 
investments) fell by 64% to EUR 1,273m in 2020. This was 
primarily achieved by restructuring the payment plans for  
aircraft investments. Advance and final payments for aircraft 
and aircraft components along with aircraft and engine  
overhauls account for most of the capital expenditure.  
↗ C12 Primary, secondary and financial investments, p. 42.
Reducing capital expenditure compared with the original 
budget made a major contribution to limiting the fall in free 
cash flow. 
Free cash flow used to reduce debt
Before the coronavirus pandemic, the Lufthansa Group’s  
dividend policy was to distribute to shareholders 20% to 
40% of net profit, adjusted for non-recurring gains and 
losses. The crisis prompted the Annual General Meeting in 
2020 to suspend the dividend for 2019, however.
In the long term, shareholders are expected to once again 
participate directly in the Company’s success. However, the 
stabilisation measures of the Economic Stabilisation Fund 
(WSF) currently rule out the payment of dividends. This applies 
until the stabilisation measures come to a complete end, i.e. 
all loans and silent participations have been repaid, and the 
WSF has sold all its shares in the Company. Following suc-
cessful repayment of the loans and silent participations, the 
WSF is obliged to sell the shares it still holds in Deutsche 
Lufthansa AG. The sale must take place no later than year-end 
2023. If the silent participations are sold after this date, the  
obligation must be met directly. On condition that the net  
profit for the year in the individual financial statements  
prepared in line with German commercial law for Deutsche 
Lufthansa AG permits a distribution of this amount, dividend 
payments would again be possible in the year following the 
end of the stabilisation measures. Until then, the Group  
will use its free cash flow primarily for repaying its financial 
liabilities, including the state stabilisation measures.
Maintaining financial stability
Coronavirus crisis endangers the solvency of the 
Lufthansa Group and many competitors
The Company’s financial strategy to date has been to  
protect itself against crises by holding minimum liquidity  
of EUR 2.3bn. Moreover, an investment grade rating and 
ownership of a largely unencumbered fleet were expected to 
allow new funds to be raised rapidly in the event of a crisis.
At the start of the coronavirus pandemic this was not possible, 
however, since the capital markets were no longer accessible 
for financing measures following the outbreak. The extent  
of the crisis far exceeded any other scenarios seen hitherto. 
The Lufthansa Group was therefore no longer able to cover 
its capital requirements by further borrowing on the market 
or with its existing liquidity.
As a result, the Group agreed stabilisation measures with  
the governments of its home countries to ensure it remained 
solvent. The refinancing and repayment of this emergency 
funding is a key element of the future financial strategy. The 
Group will also examine what additional measures can be 
taken to ensure financial stability in a crisis, in the knowledge 
that it will never be possible to achieve protection against 
risks with a very low probability of occurrence and a very high 
level of loss, such as a global pandemic. ↗ Opportunities  
and risk report, p. 71ff.
Lufthansa Group returns successfully to the capital markets 
after agreement on stabilisation measures
Once the stabilisation measures were complete, the Lufthansa 
Group returned to capital markets successfully and on attrac-
tive conditions in the second half of the year. Total funds of 
approximately EUR 2bn were raised via a convertible bond, 
an unsecured euro bond and aircraft financing vehicles. Along 
with the bond for EUR 1.6bn issued in February 2021, the 
Lufthansa Group has therefore secured the refinancing of  
the EUR 2.6bn in financial liabilities due in 2021 and already 
repaid the KfW loan of EUR 1bn ahead of schedule in Febru-
ary 2021. ↗ Events after the reporting period, p. 37.
LUFTHANSA GROUP ANNUAL REPORT 2020
23
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Goals and strategies

By the end of the financial year, the companies in the 
Lufthansa Group had utilised EUR 3.3bn of the stabilisation 
measures out of a total of EUR 9bn. This means that the 
Lufthansa Group can still draw on EUR 5.7bn of unused  
stabilisation measures. 
As of year-end 2020, the Company therefore has around 
EUR 10.6bn of available liquidity. This includes the stabili­
sation measures that have not yet been drawn. ↗ Financing, 
p. 43ff.
Repayment of stabilisation measures and debt reduction 
are the main aims of the financial strategy
The Lufthansa Group has set itself the target of using as  
little of the stabilisation measures as possible. Drawn-down 
funding should be repaid as quickly as possible and overall 
debt reduced. Cash inflows from the operating business and 
proceeds from the disposal of non-core business segments 
are to contribute to reducing net debt. Net borrowing came 
to EUR 9,922m at year-end 2020, 49% more than in the  
previous year. ↗ Net assets, p. 47f. 
Funding measures to finance financial liabilities as they fall 
due and to repay government stabilisation measures may 
consist of both debt and equity. 
A mix of different instruments is to be used for borrowing, 
above all aircraft financing, bonds and borrower’s note  
loans. Optimising the funding mix reduces financing costs, 
maintains a balanced maturity profile and diversifies the 
Lufthansa Group’s portfolio of creditors. ↗ C15 Maturity  
profile of borrowings, p. 45. 
Aim is to return to investment grade rating
Before the coronavirus crisis, the rating agencies Standard  
& Poor’s and Moody’s both rated the Lufthansa Group as 
investment grade (31 December 2019: Standard & Poor’s: 
BBB, Moody’s: Baa3). The spread of the coronavirus and its 
impact caused both agencies to downgrade their rating, 
however. Standard & Poor’s now rates the Lufthansa Group 
as BB– and Moody’s as Ba2. Scope Ratings gives the 
Lufthansa Group a rating of BBB–, which continues to be 
investment grade.
T010  DEVELOPMENT OF RATINGS
Rating/outlook
2020
2019
2018
2017
2016
Standard & Poor’s 
BB–/ 
negative
BBB/ 
stable
BBB–/
positive
BBB–/ 
stable
BBB–/
negative
Moody’s 
Ba2/ 
negative
Baa3/ 
stable
Baa3/ 
stable
Baa3/ 
stable
Ba1/ 
stable
Scope Ratings 
BBB–/
negative
BBB/ 
stable
BBB–/
positive
BBB–/
positive
BBB–/
stable
In the long term, the Group aims to receive an investment 
grade rating from all the main rating agencies. Investment 
grade ratings for the Company’s debt ensure low funding 
costs and financial flexibility as a result. The conditions for an 
investment grade rating are a return to a positive operating 
result, lower net debt and a stronger equity base.
Gearing, measured by the ratio of Adjusted net debt to 
Adjusted EBITDA, should be reduced to a figure of less than 
3.5. With Adjusted net debt, the ratio takes into account 
both traditional net debt (including the financial obligations 
arising from Group leases, primarily for property and aircraft) 
and pension provisions.
At year-end 2020, the ratio was not applicable since EBITDA 
was negative. In the previous year the figure was 2.8. 
T011  ADJUSTED NET DEBT/ADJUSTED EBITDA
 
2020  
in €m
2019  
in €m
Change  
in %
Net indebtedness  1)
9,675
6,415
51
	
Pension provisions
9,531
6,659
43
Adjusted net debt
19,206
13,074
47
	
Adjusted EBIT
– 5,451
2,026
 
	
Depreciation  
and amortisation 
2,561
2,692
– 5
Adjusted EBITDA
– 2,890
4,718
 
Adjusted net debt/ 
Adjusted EBITDA
not  
meaningful
2.8
 
1)	 In order to calculate net indebtedness, here 50% of the hybrid bond issued in 2015 
(EUR 247m) has been discounted. Calculation of net indebtedness ↗ p. 48.
Structured risk management minimises finance risks 
The Group’s financial stability is also ensured by means of 
integrated risk management. Hedging fuel, exchange rate 
and interest rate risks minimises the short-term financial risks 
for the Lufthansa Group. The hedges smooth price fluctua-
tions by means of rule-based processes.
The significant fall in capacity in the reporting year meant 
that fuel was overhedged. A steep fall in the oil price caused 
hedging losses that could not be recouped by correspondingly 
lower fuel expenses. Since there were no hedged items, these 
losses were presented in the financial result. In response, the 
Lufthansa Group is considering adjusting its fuel hedging 
strategy. ↗ Opportunities and risk report, p. 71ff., Notes to the 
consolidated financial statements, Note 45, p. 205ff.
LUFTHANSA GROUP ANNUAL REPORT 2020
24
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Goals and strategies

Fleet and route network
Operating fleet to be reduced by 150 aircraft as a result of the coronavirus  
pandemic.  |  Retirements and new procurements drive moderni­sation.  |   
Fleet strategy aims to standardise and reduce number of aircraft models.   
|  Route network strongly influenced by coronavirus pandemic.
FLEET
T012  GROUP FLEET – NUMBER OF COMMERCIAL AIRCRAFT 
Lufthansa German Airlines including regional airlines and Germanwings (LH), SWISS including Edelweiss (LX), Austrian Airlines (OS),  
Brussels Airlines (SN), Eurowings (EW) and Lufthansa Cargo (LCAG) as of 31 Dec 2020
Manufacturer/type
LH 
 
 
 
LX 
 
 
 
OS 
 
 
 
SN 
 
 
 
EW 
 
 
 
LCAG 
 
 
 
Group  
fleet 
 
 
of which 
lease 
 
 
Change  
compared  
with  
31 Dec 
2019
Scheduled 
for retire-
ment 3) 
 
Tempo­
rarily  
decom-
missioned 
 
Airbus A220
 
29
 
 
 
 
29
 
 
  
Airbus A319
69
 
7
19
11
 
106
32
– 7
 
Airbus A320
102
32
29
16
56
 
235
36
+ 10
– 40  4) 
 
Airbus A321
69
11
6
 
5
 
91
2
+ 3
 
 
Airbus A330
26 1)
16
 
10
 
 
52
10
– 1
– 4
 
Airbus A340
34
9
 
 
 
 
43
 
 
– 9
– 10
Airbus A350
17
 
 
 
 
 
17
1
+ 2
 
 
Airbus A380
14
 
 
 
 
 
14
 
 
– 6
– 8
Boeing 747
29
 
 
 
 
 
29
 
– 3
– 2
 
Boeing 767
 
 
6
 
 
 
6
 
 
– 3
 
Boeing 777
 
12
6
 
 
 
18
2
 
 
 
Boeing 777F
 
 
 
 
 
13 2)
13
4
+ 2
 
 
Boeing MD-11F
 
 
 
 
 
5
5
 
– 3
– 5
 
Bombardier CRJ
35
 
 
 
 
 
35
 
 
– 7
 
Bombardier Q Series
 
 
8
 
13
 
21
13
– 9
– 21
 
Embraer
26
 
17
 
 
 
43
 
 
 
 
Total aircraft
421
109
79
45
85
18
757
100
– 6
– 97
– 18
1)	 Partly operated by Brussels Airlines (SN). 
2)	Partly operated by AeroLogic, of which two aircraft attributed pro rata.
3)	Without wet leases (– 33).
4)	Airbus A320 family; dependent on negotiations with aircraft manufacturers on planned deliveries.
Reduction of the operating fleet
At the end of 2020, the Lufthansa Group fleet comprised 
757 aircraft. The average age of the aircraft in the fleet was 
12.5 years (previous year: 12.1 years).
The fleet shrank year-on-year by six aircraft. A total of 22 new 
aircraft were added to the fleet, compared with 28 retire-
ments. Fleet additions included 18 new aircraft (two Boeing 
777Fs, two Airbus A350-900s, three A321neos and eleven 
A320neos) and four used A320ceos. In contrast, 19 aircraft 
were sold in 2020 (three Boeing MD-11Fs, three B747s, four 
A320s, two A319s and seven Bombardier Q Series aircraft) 
and leases were terminated for nine aircraft. 
This means that the first steps were taken in financial year 
2020 to reduce the operating fleet, including aircraft operated 
by non-Group airlines on behalf of the Lufthansa Group, by 
150 aircraft. This measure will help adjust the number of 
flights and the capacity of the fleet to the market, which is 
expected to stay smaller in the longer term as a result of the 
crisis.
In addition to phasing out the Group’s own aircraft, wet lease 
agreements with external partners were not renewed or  
were terminated in the 2020 financial year. Expiring dry lease 
contracts will not be renewed for the time being.
LUFTHANSA GROUP ANNUAL REPORT 2020
25
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Fleet and route network

This reduction in the size of the fleet will be achieved primar-
ily through the early retirement of older aircraft types. For 
example, the fleet reductions include three B767s at Austrian 
Airlines, three A330-200s at Brussels Airlines, three A319s at 
SWISS, five A321s at Eurowings, seven Bombardier CRJs at 
Lufthansa Cityline, and the entire sub-fleets of A340-600s 
(17 aircraft) and A380s (14 aircraft) at Lufthansa German  
Airlines. The A340-600 sub-fleets and the eight A380s 
remaining after the agreed sale of six aircraft in 2022 and 
2023 have been fully decommissioned for several years. The 
decision was also taken to immediately sell individual aircraft, 
in particular seven A340-600s, five Boeing 747-400s and 
prospectively 40 aircraft of the Airbus A320 family.
Lufthansa Cargo’s five remaining MD-11F freighters will also 
be sold, but depending on the development of the freight 
market, there may still be flexibility to operate up to three 
MD-11Fs in the first half-year of 2021. 
In addition to the aircraft scheduled for permanent decom-
missioning, an additional 350 or so aircraft from all Group 
airlines had been temporarily decommissioned by the end  
of 2020. This involved parking the aircraft at various airports  
in Europe and abroad. The locations were selected with  
a view to keeping costs as low as possible while maintaining 
technical capacity. This will ensure the prompt reintegration 
of the aircraft into the operational fleet, if necessary, in order 
to maintain flexibility. 
Ongoing fleet modernisation drives cost efficiency  
and supports reduced emissions
Due to the crisis, ongoing discussions on optimising the 
delivery schedule are being held with all aircraft manufacturers. 
These discussions have resulted in extensive postponements 
of planned deliveries with the aircraft manufacturers to allo-
cate planned capital expenditure over a longer period of time.
T013  FLEET ORDERS LUFTHANSA GROUP
 
Fixed orders 
Deliveries 1) 
Additional 
options
Long-haul fleet
 
 
 
Airbus A350
26
2023 to 2029
10
Boeing 787
20
2022 to 2025
20
Boeing 777
20
2023 to 2025
24
Boeing 777F
1
2024
1
Short-haul fleet
 
 
 
Airbus A220
1
2021
30
Airbus A320
69
2021 to 2026
17 2)
Airbus A321
40
2021 to 2026
 
Total aircraft
177
2021 to 2029
102
1)	 Partly subject to negotiation.
2)	Airbus A320 family.
At year-end 2020, there were 177 aircraft on the Lufthansa 
Group’s order list. There are also options to buy a further 102 
aircraft. The Lufthansa Group is expecting to take delivery  
of up to twelve aircraft (eleven aircraft of the A320neo family 
and one A220) in financial year 2021. 
Fleet strategy aims to standardise and reduce  
number of aircraft models
Aircraft from Airbus and Boeing make up the majority of the 
Lufthansa Group fleet. Aircraft from Bombardier and Embraer 
are also deployed on short-haul routes. 
As part of the fleet strategy, the number of aircraft models  
in operation is being scaled back continuously across the 
Group in order to minimise complexity. The order placed in 
2019 for 20 new A350-900s and 20 new B787-9s continues 
to constitute the foundation for a fundamental modernisation 
and optimisation of the long-haul fleet. In the short term,  
a conscious commitment will be made to deploy the most 
efficient aircraft types to serve the current route network,  
in particular new B777-300ERs as well as A350-900s and 
A320neo family aircraft. 
By no later than the middle of the decade, the number of 
long-haul aircraft operated by the Group will be reduced 
from 14 to 8. The complete retirement of the B747-400s, 
B777-200s, A340-600s, A340-300s, A330-200s, B767-300s 
and MD-11F will be offset by the introduction of the new 
B787-9s. The Group expects significant cost savings from 
these measures, especially in the areas of crew training, 
maintenance and operations. 
The Lufthansa Group continues to own  
a significant share of the fleet
Overall, around 87% of the total fleet is owned by the 
Lufthansa Group, and about 13% is leased. More than 87% of 
the owned fleet is unencumbered. This includes 361 aircraft 
in companies that were pledged as part of the state stabili-
sation measures. Of these, 323 aircraft were pledged as col-
lateral for the KfW loan. These aircraft can only be pledged 
as collateral under financing arrangements whose proceeds 
are used to repay the state stabilisation measures. 
The number of aircraft owned provides a high degree  
of operational flexibility. In order to respond flexibly to  
fluctuations in demand and adjust capacity at short notice, 
depreciated aircraft owned by the Lufthansa Group can at 
short notice remain in service for longer or be retired before 
their planned phase-out. The aircraft can also be used as 
collateral in financing activities. 
LUFTHANSA GROUP ANNUAL REPORT 2020
26
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Fleet and route network

ROUTE NETWORK
Route network severely affected by coronavirus crisis 
As part of their multi-hub strategy, the Network Airlines offer 
their customers a wide range of flights via their global hubs 
in Frankfurt, Munich and Zurich as well as the national hubs 
in Vienna and Brussels. It is complemented by the route  
networks of the alliance and joint venture partners, which 
offer extensive transfer connections. Eurowings provides  
a comprehensive range of direct connections, particularly 
from German-speaking countries.
The global spread of the coronavirus had a severe impact  
on the Lufthansa Group’s route network during the course  
of financial year 2020. The resulting expansion of travel 
restrictions led to a drastic decrease in the number of con-
nections offered, particularly in the months of April, May and 
November. During this time, the Lufthansa Group fulfilled  
its social responsibility and maintained a minimum flight  
program throughout. In order to optimize the consolidation 
of the greatly reduced passenger flows, traffic was primarily 
routed via the Frankfurt and Zurich hubs, and the number of 
connecting flights from the wider network was reduced to a 
small number of flights per day. In addition, Lufthansa Group 
airlines have operated hundreds of repatriation flights to  
fly travellers home from around the world. Passenger aircraft 
were also used on some routes exclusively to transport air-
freight, primarily medical products. 
The number of flights on offer was increased again over the 
summer, with a pronounced recovery in demand for European 
short and medium-haul tourist destinations in particular. 
Flights to many long-haul destinations were also resumed; 
here, high demand for airfreight capacity also influenced the 
number of flights. With the close of the summer travel season, 
the resurgence of infections and the resulting increase in 
travel restrictions, the number of flights again declined from 
the end of the third quarter, although not to the same extent 
as at the beginning of the second quarter. To protect the 
liquidity of the Lufthansa Group, only flights with a positive 
cash contribution were operated. By the end of the reporting 
year, 70% of the originally planned destinations were served, 
despite a significant reduction in frequency of flights. 
Rebuilding the route network from the hubs,  
with a focus on tourism
The Lufthansa Group aims to provide its customers with its 
usual broad range of flights again as quickly as possible. 
What happens next in the coronavirus pandemic will remain 
critical to the pace of increase in available capacity. The 
expansion of the route network is expected to start from  
the hubs, with the initial focus remaining on connecting as 
many destinations as possible before increasing frequencies. 
The tourist routes are expected to have the fastest recovery. 
In a second stage, more point-to-point connections will 
resume again. 
The tourism segment continues to gain in importance.  
With the Eurowings and Edelweiss airlines and the capacity 
offered under the Eurowings Discover brand, the Lufthansa 
Group is well positioned to expand its share in this segment 
and to reintegrate old and new tourist destinations into its 
flight timetables, even in the short term. 
LUFTHANSA GROUP ANNUAL REPORT 2020
27
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Fleet and route network

Employees
Extensive measures are being implemented to reduce personnel costs as a  
result of the coronavirus pandemic.  |  Multiple crisis agreements concluded.  |   
Structural reduction of around 27,000 full-time positions already partially  
implemented.  |  Number of employees down by 20%.
Lufthansa Group introduces short-time work and concludes 
crisis agreements with the collective bargaining partners
The Lufthansa Group implemented short-term measures in 
2020 to reduce staff costs and counteract the effects of the 
coronavirus pandemic. In particular, short-time work agree-
ments were negotiated with works councils and collective 
bargaining partners from March 2020, while short-time work 
and similar instruments were extensively used in Germany 
and the Group’s other home markets. This led to a significant 
educereduction in staff costs in 2020. ↗ Earnings position,  
p. 38ff.
In addition, crisis agreements were concluded for almost all 
other groups of employees in all the main companies. 
In Germany, the Lufthansa Group has concluded crisis agree-
ments with the independent flight attendants’ organisation 
(UFO), the Vereinigung Cockpit pilots’ union and ver.di, the 
ground staff union. 
A package of measures to deal with the economic impact of 
the crisis on Deutsche Lufthansa AG was agreed with UFO 
on 24 June 2020. This will generate cost savings of more 
than half a billion euros by the end of 2023. 
The package of measures includes the suspension of pay 
increases, a reduction in flight hours with a corresponding 
decrease in pay, and a temporary reduction in contributions 
to Company pension plans. Furthermore, there was a pack-
age of voluntary measures and severance payments. These 
measures include unpaid leave, voluntary measures to reduce 
working hours further and assisted early retirement.
Because of the crisis package, the Company assumes that  
it can avoid terminating the contracts of the 22,000 cabin 
crew of Deutsche Lufthansa AG for operational reasons for 
the duration of the crisis.
The first short-term crisis agreement was concluded with  
the Vereinigung Cockpit pilots’ union on 19 August 2020. It 
applied until the end of the reporting year, covering the pilots 
of Lufthansa German Airlines, Lufthansa Cargo, Lufthansa 
Aviation Training and a subgroup of Germanwings pilots.
The measures mainly cover a reduction in the income  
supplement for short-time working pay and in employer  
contributions to the pension fund. Redundancies for opera-
tional reasons were ruled out until 31 March 2021.
The short-term agreement was superseded by another wage 
agreement arranged in principle on 23 December 2020, 
which continues and expands the measures agreed in August. 
In particular, the use of short-time work was also made pos-
sible for 2021, the reduction in working hours was continued 
with an equivalent salary adjustment and scheduled wage 
increases were suspended. Redundancies for operational 
reasons are now ruled out for the aforementioned pilots until 
31 March 2022. Savings of more than half a billion euros 
were achieved for the period August 2020 to March 2022.
Lufthansa agreed on an initial crisis package with the ver.di 
trade union on 10 November 2020. 
The package of measures, with a volume of more than 
EUR 200m, is helping to overcome the economic effects of 
the crisis. The measures primarily apply to the approximately 
24,000 ground staff covered by collective bargaining agree-
ments at Deutsche Lufthansa AG, Lufthansa Technik AG and 
Lufthansa Cargo AG. 
Cost savings have already been immediately realised through 
the elimination of the Christmas bonus for 2020. It was also 
agreed that in 2021, there will be no holiday or Christmas 
bonus including supplements, that the holiday entitlement 
will be reduced in line with the short-time working rate and 
that no compensation reviews will take place. In addition, 
short-time work will be maintained consistently and the  
supplement for short-time working pay will be reduced from 
90% to 87% for 2021. In exchange, redundancies were ruled 
out until 31 March 2022 and a new wage agreement on  
partial retirement was signed.
SWISS and the kapers cabin crew union agreed on 6 Novem-
ber 2020 on a package of measures to deal with the corona-
virus crisis that will run until the end of 2023. This includes 
measures to reduce costs as well as to reduce surplus staff 
and includes a variety of offers such as voluntary early retire-
ment and new opportunities for part-time work. Thanks to 
these measures, the cabin crew will contribute to a reduction 
in personnel costs of around 10% by the end of 2023.
LUFTHANSA GROUP ANNUAL REPORT 2020
28
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Employees

On 21 and 22 May 2020, Austrian Airlines reached crisis 
agreements with flight and ground staff. It was agreed that 
short-time work would be used for a longer period of time 
until 2022. The end of the short-time work period will be  
followed by a pro rata salary waiver on the side of the 
employees. This is expected to generate annual savings of 
up to EUR 80m.
On 26 June 2020, Brussels Airlines also reached an agreement 
with its labour union partners for flight crews and ground 
employees to implement structural measures. This made it 
possible to retain 75% of the approximately 4,000 jobs, 
reduce the remaining jobs in a socially responsible way and 
avoid redundancies. New employment contracts were also 
negotiated with all groups of employees.
In addition, Lufthansa CityLine had concluded crisis agree-
ments with collective bargaining partners for cockpit, cabin 
and ground staff by the end of 2020. These include the 
extension of short-time work until the end of 2021, a reduction 
in contributions to Company pension plans and other meas-
ures to lower payroll costs as well as protection against dis-
missal. The agreement for cabin staff is valid until the end of 
2021, while the agreements for cockpit and ground staff will 
last into 2023. 
Finally, on 14 December 2020, Eurowings and the ver.di trade 
union concluded a crisis collective bargaining agreement  
for ground staff which includes protection against dismissal 
until the end of December 2021. In exchange, employees at 
Eurowings Aviation and Eurowings Technik have agreed to a 
pro rata salary waiver and a reduction in annual leave entitle-
ment for 2021. At the start of 2021, Eurowings and ver.di also 
concluded a crisis agreement for cabin crew. ↗ Events after 
the reporting period, p. 37.
Number of employees decreases at the end of 2020 
At year-end 2020, the Lufthansa Group had 110,065 employ-
ees worldwide (previous year: 138,353). This meant that the 
number of employees decreased by 28,288, or 20%. Adjusted 
for the companies affected by the sale of the LSG group’s 
European business, which had 8,817 employees at the end 
of 2019, the decline was 15%. Employment came to 92,502 
full-time equivalents at the end of the year. This represents 
a decline of 26,427, or 22% (previous year: 118,928).
In Germany, there were 64,058 employees: this is 9,494, or 
13%, fewer than in the previous year (previous year: 73,552). 
This represents 58% of the total workforce (previous year: 
53%). Adjusted for the companies affected by the sale of the 
LSG group’s European business, which had 6,405 employees 
in Germany at the end of 2019, the decline was 5%. 
The number of employees outside Germany fell by 18,794 or 
29% to 46,007 (previous year: 64,801).
As of the reporting date, the average age of the workforce 
was 42.4 years (previous year: 41.6). Average seniority was 
13.9 years (previous year: 12.1 years). 34% of employees 
worked part-time in the reporting year (previous year: 29%). 
Fluctuation came to 19% (previous year: 13%). The increase 
resulted particularly from the fluctuation at the LSG group. 
At year-end, 1,320 apprentices were in training for the  
more than 25 occupations offered by the Lufthansa Group 
worldwide (previous year: 1,430).
C07 EMPLOYEES BY BUSINESS SEGMENTS
in %
NETWORK AIRLINES
52
Catering 12
MRO 21
Additional Businesses 
and Group Functions 8
Eurowings 3
Logistics 4
138,353
135,534
129,424
124,306
C06 NUMBER OF EMPLOYEES
 
as of 31 Dec
2020
110,065
2019
2020
2018
2017
2016
C08 EMPLOYEES BY REGION
 
in %
GERMANY
58
South America 2
North/Central  
America 10
Rest of Europe 23
Asia/Pacific 6
Middle East /Africa 1
LUFTHANSA GROUP ANNUAL REPORT 2020
29
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Employees

Reduction of around 27,000 full-time positions planned
Beyond the redundancies already carried out and the crisis 
agreements concluded with the various labour union partners, 
additional measures to restructure the Lufthansa Group and 
its associated companies will be necessary. As part of the 
ReNew restructuring programme, the Group’s workforce will 
be structurally adjusted to the market decline caused by the 
crisis, with the elimination of 27,000 full-time positions accord-
ing to the latest plans. The number of management positions 
across the Group will also be reduced by at least 20%.
The headcount reduction target for the business units abroad 
had already been achieved by year-end 2020. In Germany, by 
contrast, approximately 10,000 jobs are still to be cut or the 
corresponding staff costs reduced. In 2021, too, short-time 
work and the crisis agreements concluded with the trade 
unions are expected to help reduce staff costs significantly 
compared with the pre-crisis level. Voluntary programmes as 
well as part-time working and partial retirement opportunities, 
severance offers and staff fluctuation are also intended to 
reduce headcount. Dismissals for operational reasons are 
ruled out for the duration of the crisis agreements.
The negotiations on long-term cost-saving measures, in  
particular with the ver.di trade union for ground staff covered  
by collective bargaining agreements and with the Vereinigung 
Cockpit pilots’ union, are continuing. In parallel, talks on the 
balancing of interests at the Company level are ongoing. The 
Lufthansa Group aims to conclude long-term, economically 
viable agreements with its collective bargaining partners.  
These enable sustainable success, as well as predictability 
and security for both the Company and its employees. If no 
agreements are reached with the respective trade unions, 
redundancies are expected to be carried out on the basis of 
the balancing of interests at the Company level. ↗ Group 
strategy, p. 17ff.
Human resources management provides  
crisis-management support for employees
Coping with the coronavirus crisis places high demands  
on employees and leads to enormous stress. In this respect, 
in the 2020 financial year, the Group’s human resources 
management aimed to provide employees with the best pos-
sible support in coping with the crisis. An important aspect 
of achieving this was to create a high level of transparency 
about upcoming restructuring measures and to offer timely 
and continuous information. 
The results of the Company-wide employee survey con-
ducted once again in the reporting year served as a point  
of reference in overcoming the crisis. The strategic fields of 
action identified in previous years will be pursued further.  
A satisfying work-life balance, a holistic approach with respect 
to equal opportunities and diversity in all dimensions, and 
intensive talent management remain key action areas for 
realising the Lufthansa Group’s aim of a fair partnership  
with its employees. ↗ Combined non-financial declaration/ 
Employee concerns, p. 103ff.
Research and development
The Lufthansa Group and its companies work continuously  
– both individually and across segments – on innovative  
services and products. Most of these activities are run  
separately in the individual segments since they focus on 
different areas. ↗ Business segments, p. 51ff.
The Lufthansa Group’s passenger airlines are focusing on 
further improvements to the customer’s travel experience 
along the entire travel chain. In the 2020 financial year, the 
focus was particularly on measures to improve travel safety 
in connection with the outbreak of the coronavirus. In 
November 2020, for example, Lufthansa German Airlines 
and SWISS introduced Star Alliance Biometrics biometric 
facial recognition at check-in for selected flights. This increases 
the quality of service and health and safety for customers by 
allowing them to pass through the security checkpoints and 
boarding gates without having to take off their face masks.
Lufthansa Cargo is focusing on the digitalisation of customer 
interfaces in order to network digitally with all the players  
in the transport chain, from booking to delivery. Lufthansa 
Technik is expanding its portfolio in the field of intelligent 
maintenance management with data-based products and 
services like the AVIATAR software platform. 
Innovation and digitalisation are being advanced by the 
Lufthansa Group as well as in close collaboration with the 
Lufthansa Innovation Hub. It works on new digital business 
models, partnerships and strategic investments along the 
entire travel and mobility chain.
LUFTHANSA GROUP ANNUAL REPORT 2020
30
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Employees, Research and development

Legal and regulatory factors
The Lufthansa Group is subject to numerous national and 
European regulations. These regulations have an impact on 
costs and – if they do not cover non-European competitors – 
the competitiveness of the Company. 
Legislation in the framework of the European Green Deal 
(EGD) is particularly relevant in this context. However, laws on 
data and consumer protection and on infrastructure topics, 
such as air traffic taxes, aviation security expenses, take-off 
and landing rights and night-flight bans, as well as regulations 
in connection with the coronavirus pandemic are having a 
sustained impact on the Lufthansa Group as well as on the 
entire aviation sector.
In connection with the coronavirus pandemic, there are  
many national and international regulations that impose 
wide-ranging restrictions on air traffic. For example, global 
border closures, stricter measures to contain the spread  
of the virus (for example, contact bans, minimum distance  
on board, quarantine regulations) and constantly changing 
administrative hurdles upon entry increase the risk of the 
restriction of usable traffic rights. Non-standardised corona-
virus testing practices also result in restrictions on market 
access.
The EGD decisively regulates aviation climate policy at the 
European level. The European Emissions Trading Scheme 
(EU-ETS) is a core element of this regulation. If this scheme 
should continue to apply only to flights within the EU after the 
upcoming revision, without being adapted to the CORSIA 
global CO₂ compensation scheme, the resulting double  
regulation would put a burden on European aviation on an 
international comparison. The introduction of a quota for 
sustainable aviation fuel (SAF) under discussion in the 
framework of the EGD may also impose a financial burden 
and, depending on the implementation, lead to a distortion 
of competition, as competitors’ traffic could be diverted  
via non-European hubs where these requirements do not 
apply. The air traffic tax was recently increased at the federal  
level in Germany, partly in response to the debate on climate  
protection. There is also a draft of a national quota for  
power-to-liquid fuels (as a special form of SAF), for which 
there is still no harmonisation with a European quota.
The draft published by the European Commission in Sep-
tember 2020 on the revised regulation of the joint European 
airspace (Single European Sky) is intended to make air traffic 
control in Europe more efficient. This offers the potential  
to not only reduce carbon emissions and save fuel, but also 
to avoid flight delays.
European air passenger rights will also remain an important 
issue due to the significant financial burdens. The current 
regulation is subject to different interpretations by national 
courts and is creating ambiguity in its application for passen-
gers and airlines alike. The EU Commission’s proposed revision 
of the regulation in 2012 is likely to be further delayed.
The basic rule on the use of take-off and landing rights 
(slots) is that slots can be reallocated if they have been used 
less than 80% of the time in a flight period. This rule was  
initially suspended by authorities worldwide until March 2021 
due to the slump in air traffic caused by the coronavirus.  
This makes it possible to maintain network structures that 
have been built up over decades and to promote a new start 
in air traffic. Slot rules in all relevant countries will again be 
adapted to the pandemic in summer 2021. 50% of the slot 
series can be returned in the EU, and airlines must use 50% 
of the remaining slots in order not to lose them. Theoretically, 
this covers the eventuality that airlines use only 25% of their 
existing slots.
LUFTHANSA GROUP ANNUAL REPORT 2020
31
COMBINED MANAGEMENT REPORT
Principles of the Group  →  Legal and regulatory factors

Economic report
Macroeconomic situation
Economic development declines in all regions of the world as a result of the  
coronavirus crisis.  |  Decline in Germany less severe than in other European 
countries.  |  No clear trend in exchange rate developments.  |  Interest rates at 
historic lows.  |  Oil prices decline and remain volatile.
World economy falls sharply in 2020 due to  
coronavirus pandemic
The global economy contracted by 3.9% in the reporting year 
due to the coronavirus pandemic (previous year: growth of 
2.6%). This negative trend was observed in all global regions. 
In Europe, the economy shrank by 6.7% (previous year: growth 
of 1.5%). The output of the German economy declined by 
5.3% (previous year: growth of 0.6%). 
T014  GDP DEVELOPMENT
in %
20201)
2019
2018
2017
2016
World
– 3.9
2.6
3.2
3.4
2.8
Europe
– 6.7
1.5
2.1
2.9
2.0
	
Germany
– 5.3
0.6
1.3
2.9
2.1
North America
– 3.7
2.1
3.0
2.4
1.7
South America
– 7.1
0.9
1.6
2.0
– 0.3
Asia/Pacific
– 1.4
4.1
4.8
5.2
5.0
	
China
2.1
6.1
6.7
6.9
6.8
Middle East
– 6.9
0.5
0.5
0.7
5.1
Africa
– 4.1
3.1
3.1
3.6
1.8
Source: Global Insight World Overview as of 15 Jan 2021.
1)	 Forecast.
No clear trend in exchange rate developments
The euro turned in a mixed performance against the other 
major currencies in 2020. The average exchange rate against 
both the US dollar and the Chinese renminbi was 2% higher 
than the previous year. The euro also gained 1% against the 
pound sterling. The euro remained almost unchanged against 
the Japanese yen, whereas it fell by 4% year-on-year against 
the Swiss franc. 
T015  CURRENCY DEVELOPMENT EUR 1 in foreign currency
 
2020
2019
2018
2017
2016
 
USD
1.1399
1.1192
1.1800
1.1194
1.1062
JPY
121.75
122.01
130.33
125.46
120.05
CHF
1.0704
1.1122
1.1548
1.1022
1.0899
CNY
7.8683
7.7320
7.8083
7.5955
7.3491
GBP
0.8888
0.8769
0.8848
0.8745
0.8168
Source: Bloomberg, annual average daily price.
Short and long-term interest rates continue to fall
The negative short and long-term interest rate trend continued 
in 2020. Interest rates again fell to a historical low. 
T016  INTEREST RATE DEVELOPMENT in %
Instrument
2020
2019
2018
2017
2016
 
6-month Euribor 
Average rate
– 0.37
– 0.30
– 0.27
– 0.26
– 0.17
6-month Euribor  
Year-end level
– 0.53
– 0.32
– 0.24
– 0.27
– 0.22
10-year euro swap 
Average rate
– 0.14
0.26
0.96
0.81
0.53
10-year euro swap  
Year-end level
– 0.26
0.21
0.81
0.89
0.66
Source: Bloomberg.
The discount rate, which is particularly important for measur-
ing pension obligations and which is derived from the aver-
age return on a basket of investment-grade corporate bonds, 
came to 0.8%, which is also lower than the previous year’s 
figure of 1.4%.
LUFTHANSA GROUP ANNUAL REPORT 2020
32
COMBINED MANAGEMENT REPORT
Economic report  →  Macroeconomic situation

Oil price down on previous year’s average
The oil price declined and was very volatile in 2020. With 
prices between USD 19.33/barrel and USD 68.91/barrel, the 
average for 2020 was USD 43.20/barrel, which is 33% lower 
than the previous year. As of year-end 2020, a barrel of Brent 
Crude cost USD 51.80 (year-end 2019: USD 66.00/barrel). 
The jet fuel crack, the price difference between crude oil and 
kerosene, moved between USD – 8.32/barrel and USD 16.36/ 
barrel in 2020. On average over the year, it traded at USD 2.56/ 
barrel and thus 84% lower than in the previous year. The 
price at year-end 2020 was USD 3.43/barrel (year-end 2019: 
USD 16.49/barrel). 
Sector developments
Global passenger traffic significantly affected by the outbreak of the  
coronavirus crisis.  |  Airfreight volume also declined with strongly rising  
average yields.  |  Sector earnings suffer massively from coronavirus  
pandemic.  |  MRO and airline catering markets also decline.
Global passenger traffic hit hard by the  
coronavirus pandemic
The global spread of the coronavirus and the ensuing travel 
restrictions had a significant negative impact on the demand 
for air travel. Passenger airline traffic temporarily came to  
an almost complete standstill worldwide. Air traffic on Asian 
routes was first affected in February 2020 after the outbreak 
of the virus in China. This trend progressed rapidly in March, 
with air traffic in Europe, the Middle East and North America 
increasingly impacted. Global passenger traffic then came  
to a nearly complete standstill in April and May. During this 
period, the connections on offer were mainly limited to return 
flights and domestic services, plus a few international con-
nections. The June to August summer months saw a slight 
recovery as a result of the gradual lifting of travel restrictions. 
However, after the end of the summer travel season and with 
the number of infections rising significantly again, passenger 
numbers fell significantly again from September onwards. 
This slack demand persisted for the rest of the year after 
widespread travel restrictions were re-established in Europe 
as well. The airlines reacted to this development by once 
again significantly reducing the capacity on offer. 
The total number of revenue passenger-kilometres sold 
worldwide declined by 66% in the reporting year according 
to figures published by the International Air Transport Asso-
ciation (IATA) (previous year: +4%). Airlines from the Middle 
East reported the largest decline in revenue passenger- 
kilometres, at 72%. In the same period, airlines from Europe 
posted a 70% decline. According to the Federal Association 
of the German Aviation Industry (BDL), sales for airlines in 
Germany fell overall by 76%.
Average yields in global passenger traffic fell by 8.0% in 
financial year 2020 according to the IATA (previous year: 
decline by 3.0%).
C09 PRICE DEVELOPMENT OF CRUDE OIL AND KEROSENE
 
in USD/t
2020
2016
2017
2018
2019
800
700
600
500
400
300
200
100
0
Source: Lufthansa, based on market data.
ICE Brent
Kerosene
LUFTHANSA GROUP ANNUAL REPORT 2020
33
COMBINED MANAGEMENT REPORT
Economic report  →  Macroeconomic situation, Sector developments

T017  SALES PERFORMANCE IN THE AIRLINE INDUSTRY 2020
in % compared  
with previous year
Passenger- 
kilometres
Cargo tonne- 
kilometres
 
Europe
– 70
– 16
North America
– 65
1
Central and South America
– 62
– 21
Asia/Pacific
– 62
– 15
Middle East
– 72
– 10
Africa
– 69
1
Global
– 66
– 11
Source: IATA Air Passenger/Air Freight Market Analysis (12/2020).
Airfreight traffic declines by less than  
passenger traffic worldwide
The global market for airfreight declined less significantly 
than passenger transport in the reporting year. Following the 
global spread of the coronavirus, demand for airfreight initially 
declined and reached its low point in April 2020. This devel-
opment was driven by the significant decline in world trade 
and the collapse of global supply chains. Countering this 
trend, especially at the beginning of the pandemic, was the 
increased need for transport of medical and protective equip-
ment. Starting in May, market demand improved significantly 
again. However, the freight capacity on offer did not recover 
to the same degree, as a large proportion of the belly capaci-
ties of passenger aircraft were not available for airfreight  
due to the greatly reduced passenger flows. This imbalance 
between rising demand and significantly reduced capacity 
caused average yields in global airfreight traffic to go up by 
30.0% according to IATA (previous year: decline by 5.0%).
According to IATA, global airfreight volumes in 2020 fell 11% 
(previous year: decline by 3%). Cargo airlines from Central 
and South America reported the fastest decline at 21%.  
European providers saw a decline of 16%.
Massive decline in earnings expected for the  
global airline industry
The global airline industry is expected to see a significant 
decline in earnings due to the strong negative development 
of demand in passenger traffic. The IATA forecasts a net  
loss of USD 118bn for the 2020 financial year (previous year: 
net profit of USD 26bn). On a regional basis, the highest  
net losses of USD 46bn are expected in the North America 
region (previous year: net profit of USD 17bn). European  
airlines are also forecast to generate a net loss of USD 27bn 
(previous year: net profit of USD 7bn).
T018  EARNINGS DEVELOPMENT IN THE AIRLINE INDUSTRY
in USD bn
2020
2019
 
Europe
– 27
7
North America
– 46
17
Central and South America
– 5
– 1
Asia/Pacific
– 32
5
Middle East
– 7
– 2
Africa
– 2
0
Industry
– 118
26
Source: IATA Industry Statistics (11/2020).
Many airlines were dependent on government support in  
this unprecedented crisis situation. In addition to general 
support such as short-time working, the individual states also 
adopted specific rescue measures for airlines. Nonetheless, 
some airlines had to file for insolvency in the year under 
review. The continuing strained situation could still lead to 
further market consolidation.
MRO and airline catering markets also impacted by the 
coronavirus pandemic
Demand for aircraft maintenance, repair and overhaul (MRO) 
services also fell significantly in the 2020 financial year.  
The market environment suffered from a significant decline 
in capacity utilisation, especially in engine maintenance and 
in the components business. Analyses by consultancy firm 
ICF indicate that, according to current figures, the MRO market 
slumped by around 33% during the 2020 financial year. From 
a regional perspective, market volume fell by 36% in the 
EMEA region (Europe/Middle East/Africa), by 34% in Asia 
and by 27% in the Americas. 
The economic impacts of the coronavirus pandemic have 
also drastically changed the airline catering industry. With 
the crisis-related decline in passenger numbers in air travel, 
particularly in the long-haul business, demand for in-flight 
catering services also fell. This was compounded by service 
restrictions related to hygiene strategies that minimise  
contact between crews and passengers. The pandemic has 
subsequently accelerated the digitalisation of pre- and  
post-flight and in-flight services. The pre-order and in-flight 
retail trend continued to increase, especially for short-haul 
traffic, Economy Class and leisure travel. 
LUFTHANSA GROUP ANNUAL REPORT 2020
34
COMBINED MANAGEMENT REPORT
Economic report  →  Sector developments

Course of business
The Lufthansa Group’s business performance has been severely impacted  
by the coronavirus pandemic.  |  Capacity is significantly reduced due to the 
impact of the crisis.  |  Measures to reduce costs and maintain liquidity are being 
implemented.  |  Lufthansa Group result drops significantly.
OVERVIEW OF THE COURSE  
OF BUSINESS
Effects of the coronavirus pandemic put significant strain 
on business at the Lufthansa Group
The effects of the coronavirus pandemic have been a signifi-
cant burden on the Lufthansa Group’s business in 2020, in 
particular the introduction of travel restrictions in most traffic 
regions and the resulting collapse in demand. For the full 
year, capacity (available seat-kilometres) was 69% below the 
level of the previous year.
To mitigate the effects of the coronavirus pandemic, the 
Lufthansa Group initiated extensive measures in the course of 
the reporting year to reduce costs and investment spending 
and to maintain liquidity. Among other things, a large part  
of the fleet of Lufthansa Group airlines was temporarily 
decommissioned and short-time working was introduced  
for a majority of the employees. Crisis agreements reached 
with the trade unions further reduced staff costs. Other  
key cost-cutting measures included terminating wet leases, 
postponing maintenance and servicing work on the fleet  
that is not safety-relevant, renegotiating supply contracts, 
reducing marketing activities and deferring projects that  
are not crucial for business. 
Cash outflows were cut by means of strict working capital 
management and a drastic reduction in the originally 
planned capital expenditure. As the crisis progressed, the 
Group nevertheless required external financing that could 
not be obtained to a sufficient degree on the market. Stabili-
sation measures and loans of up to EUR 9bn were therefore 
agreed with the Economic Stabilisation Fund (WSF) in the 
Federal Republic of Germany and with the governments of 
Switzerland, Austria and Belgium which secure the existence 
of the Lufthansa Group. 
With the launch and the ongoing implementation of its 
restructuring programme ReNew, the Lufthansa Group is 
adapting to the new market conditions and laying the foun-
dations for repaying the funds from the stabilisation package. 
As part of the programme, two bonds were successfully 
issued at the end of the reporting year. This strengthened 
the Lufthansa Group’s liquidity by EUR 1.6bn. 
Traffic revenue for the Lufthansa Group airlines fell by  
68% year-on-year to EUR 9,078m in financial year 2020. 
Revenue of EUR 13,589m was 63% down compared with  
the previous year.
Operating expenses fell by 44% in total to EUR 20,846m, 
primarily due to the volume-related decline in the cost of 
materials and services, particularly for fuel, fees and charges, 
the introduction of short-time working for large parts of the 
workforce and other measures to reduce fixed costs. 
Adjusted EBIT fell accordingly to EUR – 5,451m (previous 
year: EUR 2,026m). The Adjusted EBIT margin amounted to 
– 40.1% (previous year: 5.6%). All of the operating segments 
reported negative earnings performance, with the exception 
of the Logistics segment, which posted a record result in  
the reporting year.
Net result attributable to shareholders of Deutsche Lufthansa 
AG fell to EUR – 6,725m (previous year: EUR 1,213m). It was 
burdened by impairment losses on the fleet and goodwill as 
well as the negative changes in the market value of fuel 
hedging instruments.
Cash flow from operating activities declined in financial year 
2020 to EUR – 2,328m (previous year: EUR 4,030m). Adjusted 
free cash flow fell to EUR – 3,669m despite a significant 
decrease in capital expenditures (previous year: EUR 203m).
LUFTHANSA GROUP ANNUAL REPORT 2020
35
COMBINED MANAGEMENT REPORT
Economic report  →  Course of business

Its equity ratio fell by 20.5 percentage points to 3.5%  
(31 December 2019: 24.0%). Net indebtedness of EUR 9,922m 
was 49% higher than at year-end 2019 (31 December 2019: 
EUR 6,662m). At the end of the 2020 financial year, the Group 
had available liquidity of EUR 10.6bn. This includes EUR 5.7bn 
in state stabilisation funds and loans which have not yet 
been utilised.
SIGNIFICANT EVENTS
Lufthansa Group receives state stabilisation aid  
and loans of up to EUR 9bn
The WSF approved a stabilisation package for Deutsche 
Lufthansa AG on 25 May 2020. The package consists of sta-
bilisation measures and loans of up to EUR 9bn. Additional 
support provided by Switzerland, Austria and Belgium will  
be offset against the stabilisation package for Deutsche 
Lufthansa AG. ↗ Financing, p. 43ff.
The shareholders of Deutsche Lufthansa AG approved the 
capital measures and the equity investment of WSF in the 
amount of 20% of the issued capital of Deutsche Lufthansa AG 
at an Extraordinary General Meeting on 25 June 2020.
Lufthansa Group decides on restructuring programme
The Executive Board of Deutsche Lufthansa AG adopted  
the first three packages of the Group-wide restructuring  
programme ReNew on 7 April 2020, 7 July 2020 and  
21 September 2020. ↗ Group strategy, p. 17ff.
The programme provides for a capacity reduction of 150 air-
craft across the Group from the middle of the decade. To 
achieve this, older long-haul aircraft and others are being 
decommissioned ahead of schedule. ↗ Fleet and route network, 
p. 25ff.
Surplus staff capacity due to the planned reduction in flight 
capacity currently comes to approximately 27,000 FTE. 
Adjustments to the long-term number of employees at the 
airlines will be made in line with market developments.  
The number of management positions will be reduced by  
at least 20%. ↗  Employees, p. 28ff.
A stronger customer focus and a business model consistently 
based on sustainability and long-term value creation are core 
elements of the Company strategy for the future. The pooling 
of flight operations continues to make progress, including 
long and short-haul leisure traffic hubs in Frankfurt and 
Munich. ↗ Group strategy, p. 17ff.
Lufthansa Group and trade unions conclude  
crisis agreements
In the course of the year, the Lufthansa Group concluded  
crisis agreements with the Vereinigung Cockpit pilots’ union, 
the independent flight attendants’ organisation (UFO) and 
ver.di, the ground staff union. ↗  Employees, p. 28ff.
Personnel changes and reallocation of responsibilities  
in the Executive Board
On 4 April 2020, Ulrik Svensson resigned his post as Chief 
Financial Officer of Deutsche Lufthansa AG for health reasons 
with effect from 6 April 2020. With effect from 30 June 2020, 
Thorsten Dirks also resigned from the Executive Board of 
Deutsche Lufthansa AG as the member in charge of the Digital 
and Finance function. A new division of responsibilities was 
then approved for the Executive Board. ↗ Business activities 
and Group structure, p. 15f. 
On 21 September 2020, the Supervisory Board of Deutsche 
Lufthansa AG decided ahead of schedule to renew the  
contract with Harry Hohmeister, responsible for the Com-
mercial Passenger Airlines function, for three more years until 
30 June 2024. 
On 10 November 2020, the Supervisory Board of Deutsche 
Lufthansa AG appointed Remco Steenbergen to the Executive 
Board of the Company. He took responsibility for the finance 
function with effect from 1 January 2021. His contract is 
valid for three years until 31 December 2023.
Change in the Supervisory Board of Deutsche Lufthansa AG
Angela Titzrath and Michael Kerkloh were appointed by the 
court as new members of the Supervisory Board of Deutsche 
Lufthansa AG on 2 September 2020. Monika Ribar and  
Martin Koehler resigned to make way for this change.
On the employee representative side, Christina Weber  
and Christian Hirsch left the Supervisory Board of the Com-
pany. They were replaced by Jürgen Jennerke (by court 
appointment) and Birgit Spineux. ↗ Report of the Supervisory 
Board, p. 7ff. 
Moody’s and Standard & Poor’s downgrade rating  
for Lufthansa Group 
The rating agencies Standard & Poor’s and Moody’s lowered 
the credit rating of the Lufthansa Group to non-investment 
grade in several steps due to the crisis. In contrast, Scope 
Ratings reaffirmed the investment grade rating. ↗ Financial 
strategy and value-based management, p. 21ff.
LUFTHANSA GROUP ANNUAL REPORT 2020
36
COMBINED MANAGEMENT REPORT
Economic report  →  Course of business

Deutsche Lufthansa AG successfully issues two bonds
On 10 November 2020, Deutsche Lufthansa AG successfully 
issued an unsubordinated and unsecured convertible bond 
with a total volume of EUR 600m and an interest rate of 2.0%. 
On 24 November 2020, an unsecured five-and-a-half-year 
euro bond with a total volume of EUR 1bn and an interest rate 
of 3.0% was also issued. ↗ Financing, p. 43ff.
LSG group’s European business sold to gategroup
On 2 December 2020, the sale of LSG group’s European 
business to gategroup was finalised after the buyer  
fulfilled the conditions imposed by the EU Commission.  
↗ Catering business segment, p. 67ff. 
EVENTS AFTER  
THE REPORTING PERIOD
Eurowings and ver.di reach crisis agreement
On 12 January 2021, Eurowings and the trade union ver.di 
reached a crisis agreement for cabin crew. Under the agree-
ment, employees are protected against dismissal until  
31 December 2021. In exchange, reductions in Christmas  
and holiday bonuses were agreed, among other things. 
Lufthansa issues another bond and repays KfW loan
Deutsche Lufthansa AG again successfully issued a bond 
with a total volume of EUR 1.6bn on 4 February 2021. The 
first tranche has a volume of EUR 750m and pays interest  
of 2.875% p.a. over a term of four years. The second tranche 
of EUR 850m matures in seven years and pays interest at 
3.75% p.a. 
Together with the funds of approximately EUR 2bn raised in 
the second half of 2020, the Lufthansa Group has thereby 
secured the refinancing of the financial liability of EUR 2.6bn 
due in 2021 and repaid the KfW loan of EUR 1bn ahead of 
schedule on 11 February 2021. 
EU Parliament adopts new slot rules
On 10 February 2021, the European Parliament passed a reso-
lution amending the slot rules for summer 2021 in response 
to the pandemic. The regulation stipulates that airlines can 
return up to 50% of their slot series in full before the season 
begins and that they only have to operate half the remaining 
slot series in order to secure them for the coming season.  
Based on its capacity outlook (↗ Forecast, p. 118ff.), the 
Lufthansa Group expects that it will be able to obtain all of 
the slots for which it has rights, including beyond the 2021 
summer season. 
LUFTHANSA GROUP ANNUAL REPORT 2020
37
COMBINED MANAGEMENT REPORT
Economic report  →  Course of business

Earnings, assets and financial position
Earnings performance severely impacted by the coronavirus crisis.  |  Revenue 
falls by 63%.  |  Adjusted EBIT of EUR – 5,451m.  |  Capital expenditure reduced 
by 64%.  |  Decline in Adjusted free cash flow limited to EUR – 3,669m.  |  Net 
debt up by EUR 9,922m.  |  EUR 10.6bn liquidity available.
EARNINGS POSITION
Revenue and income
T019  REVENUE AND INCOME
 
2020 
in €m
2019 
in €m
Change  
in %
 
Traffic revenue
9,078
28,136
– 68
Other revenue
4,511
8,288
– 46
Total revenue
13,589
36,424
– 63
Changes in inventories and  
work ­performed by the entity  
and capitalised
175
685
– 74
Other operating income  1)
1,830
1,830
–
Total operating income
15,594
38,939
– 60
1)	 Without fixed asset write-ups and book gains.
Traffic severely affected by coronavirus crisis;  
traffic revenue down by 68%
Traffic figures of Lufthansa Group Airlines declined significantly 
as a result of the coronavirus crisis. Passenger numbers fell 
by 75% in the 2020 financial year compared with the previous 
year. Sales (revenue passenger-kilometres) were down by 
77%, capacity (available passenger-kilometres) was cut by 
69%. The passenger load factor fell by 19.4 percentage points 
to 63.2%.
The Lufthansa Group’s cargo business was particularly affected 
by the loss of belly capacities on passenger aircraft. Capacity 
(available cargo tonne-kilometres) fell by 39% cent, and sales 
(revenue cargo tonne-kilometres) declined by 31%. However, 
the cargo load factor of 69.6% was 8.2 percentage points 
higher than in the previous year, supported by the market-wide 
decline in available capacity.
Traffic revenue for Lufthansa Group airlines declined by  
68% to EUR 9,078m due to the lower traffic (previous year: 
EUR 28,136m). 
Further information on the regional breakdown of traffic  
revenue for the Network Airlines, Eurowings and Logistics 
segments can be found in the chapters ↗ Business segments, 
p. 51ff. 
Other revenue fell by 46% due to the crisis
Other revenue fell year-on-year by 46% to EUR 4,511m  
(previous year: EUR 8,288m). This was mainly due to the 
decline in revenue due to the crisis in the MRO (– 38% to 
EUR 2,724m) and Catering (– 59% to EUR 1,064m) segments 
as well as in the Additional Businesses and Group Functions, 
including AirPlus and Lufthansa Aviation Training. The airlines 
contributed EUR 411m to other revenue. This corresponds  
to a decline of 44% compared with the previous year, in  
particular due to lower revenue from customer loyalty pro-
grammes, handling services and in-flight sales. 
Revenue down year-on-year by 63%,  
operating income down 60%
Revenue, which consists of traffic revenue plus other revenue, 
fell by 63% in financial year 2020 to EUR 13,589m (previous 
year: EUR 36,424m). 
Further information on regional distribution of revenue can 
be found in the ↗ Notes to the segment reporting, p. 198ff.
Changes in inventory and other capitalised internal expenses 
fell by 74% to EUR 175m due to the significant decline in 
business activities (previous year: EUR 685m).
Other operating income remained unchanged at EUR 1,830m 
(previous year: EUR 1,830m).
Total operating income declined by 60% to EUR 15,594m in 
2020 (previous year: EUR 38,939m).
C10 BUSINESS SEGMENTS’ SHARE OF GROUP EXTERNAL REVENUE
 
in %
MRO 20
Logistics 20
46 Network Airlines
4 Eurowings
Additional Businesses 
and Group Functions 2
Catering 8
LUFTHANSA GROUP ANNUAL REPORT 2020
38
COMBINED MANAGEMENT REPORT
Economic report  →  Earnings, assets and financial position

Expenses
T020  EXPENSES
 
 
2020  
 
in €m
2019  
 
in €m
Change  
 
in %
Share of  
operating  
expenses in %
 
Cost of materials and services
8,453
19,827
– 57
41
	
of which fuel
1,875
6,715
– 72
9
	
of which fees and charges
1,796
4,523
– 60
9
	
of which external services MRO
1,139
1,911
– 40
5
	
of which charter expenses
469
814
– 42
2
Staff costs  1)
6,405
9,111
– 30
31
Depreciation  2)
2,561
2,692
– 5
12
Other operating expenses  3)
3,427
5,494
– 38
16
	
of which indirect staff costs and external staff
543
1,201
– 55
3
	
of which rental and maintenance expenses
603
742
– 19
3
Total operating expenses
20,846
37,124
– 44
100
1)	 Without past service costs/settlement ↗ T021, p. 40.
2)	Without impairment losses ↗ T021, p. 40.
3)	Without book losses and write-downs on assets held for sale ↗ T021, p. 40.
Cost of materials and services falls by 57% on the back  
of crisis-related decline in consumption volumes
The cost of materials and services for the Lufthansa Group 
was 57% down in financial year 2020 compared with the  
previous year at EUR 8,453 (previous year: EUR 19,827m).
Within the cost of materials and services, fuel expenses 
decreased by 72% to EUR 1,875m. The change is primarily 
based on the crisis-related decline in consumption volumes, 
which were 67% lower than in the previous year. The lower 
market price for kerosene only had a limited impact due to 
hedging. The average price for kerosene, including fuel 
hedging, was USD 572.61/tonne in 2020. Fuel prices fell 5% 
after hedging compared with the previous year. The develop-
ment of the US dollar, in contrast, had no overall impact  
on the development of fuel costs over the course of the year. 
Fuel costs included a negative result of price hedging of 
EUR 204m (previous year: a negative earnings result of  
EUR 39m). 
Expenses for other raw materials, consumables and  
supplies and purchased merchandise were down by 43%  
at EUR 2,330m due to lower volumes.
Expenses for fees and charges decreased at a below-average 
rate compared with traffic figures. At EUR 1,796m, they were 
60% below the level of the previous year.
At EUR 1,139m, expenses for external MRO services were 
40% below the previous year’s level due to the decline in 
flight operations. The performance of maintenance work, 
which continued to be necessary even on parked aircraft, 
prevented an even greater decline.
The 42% decrease in charter expenses to EUR 469m partly 
relates to the cargo business, where some external capacity 
was used during the reporting year. This resulted in a lower 
decrease in expenses compared with the overall traffic figures.
Operating staff costs fall by 30% due to short-time 
working and reduced headcount
Operating staff costs fell by 30% in financial year 2020  
to EUR 6,405m (previous year: EUR 9,111m), particularly due 
to the effects of short-time working, the reduction in the 
average number of employees and the profit-share payment 
which was lower than last year. The decline came to 13% 
without the effects of short-time working.
Depreciation and amortisation down by 5%
Depreciation and amortisation fell year-on-year by 5% to 
EUR 2,561m (previous year: EUR 2,692m). Depreciation  
of aircraft, reserve engines and engine overhauls fell by 8% 
to EUR 1,923m (previous year: EUR 2,084m).
Other operating expenses down by 38%
Other operating expenses went down by 38% to EUR 3,427m 
(previous year: EUR 5,494m), mainly due to lower selling 
expenses, a decline in other costs directly linked to business 
activities, and reduced marketing expenses. By contrast, 
impairment losses on receivables went up. 
Operating expenses down by 44% overall
Overall, operating expenses for the Lufthansa Group fell  
by 44% year-on-year to EUR 20,846m (previous year: 
EUR 37,124m).
LUFTHANSA GROUP ANNUAL REPORT 2020
39
COMBINED MANAGEMENT REPORT
Economic report  →  Earnings, assets and financial position

Earnings performance
Adjusted EBIT of EUR – 5,451m
Adjusted EBIT for the Lufthansa Group fell year-on-year to 
EUR – 5,451m (previous year: EUR 2,026m).
The Adjusted EBIT margin fell by 45.7 percentage points to 
– 40.1% (previous year: 5.6%). 
Adjusted EBIT in the Network Airlines business segment  
fell to EUR – 4,674m (previous year: EUR 1,776m). Eurowings 
reported a fall in Adjusted EBIT to EUR – 703m (previous 
year: EUR – 122m). Adjusted EBIT for the Logistics segment 
increased to EUR 772m (previous year: EUR 1m). Adjusted 
EBIT in the MRO business segment fell to EUR – 383m (pre-
vious year: EUR 463m). The Catering business segment 
recorded a fall in Adjusted EBIT to EUR – 284m (previous 
year: EUR 128m). The other Group companies, which under 
IFRS 8 do not require separate reporting, and the Group 
functions reduced the Group’s operating Adjusted EBIT by  
a total of EUR – 314m (previous year: EUR – 227m).
 
T021  RECONCILIATION OF RESULTS
2020
2019
in €m
Income  
statement
Reconciliation  
Adjusted EBIT
Income  
statement
Reconciliation  
Adjusted EBIT
 
Total revenue
13,589
–
36,424
–
Changes in inventories and work performed by the entity and capitalised
175
–
685
–
Other operating income
1,897
–
1,889
–
	
of which book gains et al.
–
– 38
–
– 20
	
of which write-ups on capital assets
–
– 30
–
– 38
Total operating income
15,661
– 68
38,998
– 58
Cost of materials and services
– 8,453
–
– 19,827
–
Staff costs
– 6,436
–
– 9,121
–
	
of which past service costs/settlement
–
31
–
10
Depreciation
– 4,389
–
– 2,776
–
	
of which impairment losses
–
1,828
–
84
Other operating expenses
– 3,472
–
– 5,585
–
	
of which impairment losses on assets held for sale 
–
6
–
51
	
of which expenses incurred from book losses
–
39
–
39
Total operating expenses
– 22,750
1,904
– 37,309
184
Profit/loss from operating activities
– 7,089
–
1,689
–
Result from equity investments
– 264
–
168
–
Impairment loss on investments accounted for using the equity method
–
66
–
43
EBIT
– 7,353
–
1,857
–
Total amount of reconciliation Adjusted EBIT
–
1,902
–
169
Adjusted EBIT
–
– 5,451
–
2,026
Amortisation
–
2,561
–
2,692
Adjusted EBITDA
–
– 2,890
–
4,718
C11  DEVELOPMENT OF REVENUE, ADJUSTED EBIT in €m 
AND ADJUSTED EBIT MARGIN in %
 
 Revenue 
 Adjusted EBIT
 Adjusted EBIT margin
ADJUSTED EBIT 2020
– 5,451
8.3
35,579
35,542
31,660
1,752
2,969
2,836
2,026
5.5
8.0
36,424
5.6
13,589
2017
2018
2016
2019
2020
– 40.1
LUFTHANSA GROUP ANNUAL REPORT 2020
40
COMBINED MANAGEMENT REPORT
Economic report  →  Earnings, assets and financial position

EBIT falls to EUR – 7,353m
Based on EBIT, Adjusted EBIT includes clearly defined, 
non-plannable earnings components as a key performance 
indicator for better comparability. The adjustments relate 
exclusively to write-downs and write-backs, earnings from 
the disposal of non-current assets and effects of changes  
in pension plans. 
Year-on-year, EBIT fell in financial year 2020 to EUR – 7,353m 
(previous year: EUR 1,857m). The difference to Adjusted EBIT 
was therefore EUR – 1,902m (previous year: EUR – 169m).
The adjustments include depreciation and amortisation of 
EUR 1,475m on aircraft and right-of-use assets for a total  
of 115 aircraft that were transferred to long-term parking 
mode and which are no longer planned to return to service  
or which are held for sale. This affected Lufthansa German 
Airlines (14 Airbus A380s, five Boeing 747s, 17 A340s, two 
leased A330s, eleven A320s and 14 A319s, some of them 
leased), Austrian Airlines (three B767s, 13 Dash 8-400s), 
Brussels Airlines (right-of-use assets for two A330s and 
eight A319s) and Eurowings (right-of-use assets for 15 Dash 
8-400s, five A321s and one right-of-use asset A319). In 
Lufthansa Cargo’s freight operations, a total of five MD-11s 
were offered for sale as planned. Depreciation of reserve 
engines accounted for another EUR 40m.
Impairment losses of EUR 222m related mainly to goodwill at 
the business entities LSG USA, LSG Korea and Eurowings. 
Due to the deterioration in the business outlook caused by 
the crisis, impairment losses of EUR 66m were recognised 
on investments in the MRO business segment. Property, 
plant and equipment of the flight training operations as well 
as of African catering units were also impaired in the amount 
of EUR 31m due to the impact of the crisis on the forecast 
business development. 
When the share transfers took effect, the European com­
panies of the catering business were sold to gategroup on  
2 December 2020. Write-backs on assets held for sale  
during the reporting year and results from disposals resulted 
in a positive effect totalling EUR 41m. 
Expenses from changes to pension plans of EUR 31m mainly 
relate to measurement effects from the temporary suspension 
offered by the Company of the clause defining the average 
retirement age for pilots in the context of transitional benefits 
at Deutsche Lufthansa AG. A corresponding agreement has 
not yet been reached on a change to the wage settlement as 
part of an overall agreement.
The result from operating activities declined year-on-year  
to EUR – 7,089m (previous year: EUR 1,689m). 
Financial result falls to EUR – 1,542m
The financial result fell year-on-year to EUR – 1,542m (previous 
year: EUR 171m). 
The result from equity investments included in this figure 
came to EUR – 264m (previous year: EUR 168m). The decline 
was due to negative results from joint ventures and associated 
companies, particularly in the Network Airlines, Eurowings 
and Lufthansa Technik segments.
Net interest fell by 6% to EUR – 334m (previous year: 
EUR – 315m), essentially because of increased debt.
Other financial items declined to EUR – 944m (previous year: 
EUR 318m), particularly as a result of the negative develop-
ment of the market value of fuel hedges which are recognised 
in the financial result due to the need to discontinue hedging 
relationships (EUR 779m). In addition, ineffectiveness in 
exchange rate hedging to be recognised in profit or loss due 
to the postponement of capital expenditure on aircraft as well 
as the market valuation of the convertible bond issued in the 
reporting year had a negative impact on the financial result.
The relief from income taxes in the amount of EUR 1,865m  
is related to the recognition of deferred taxes for negative 
earnings in financial year 2020 (previous year: tax expense  
of EUR 615m). The tax ratio was just 22%, mainly due to 
deferred taxes not being recognised for companies with  
a history of losses and the negative result from equity invest-
ments not being subject to tax. 
Including earnings attributable to minority interests of 
EUR 41m (previous year: EUR – 32m), the net profit for the 
period attributable to the shareholders of Deutsche Lufthansa 
AG was EUR – 6,725m (previous year: EUR 1,213m).
Earnings per share amounted to EUR – 12.51 (previous year: 
EUR 2.55). ↗ Notes to the consolidated financial statements, 
Note 16, p. 164.
T022  PROFIT BREAKDOWN OF THE LUFTHANSA GROUP
 
2020  
in €m
2019  
in €m
Change  
in %
 
Operating income
15,661
38,998
– 60
Operating expenses
– 22,750
– 37,309
– 39
Profit from operating  
activities
– 7,089
1,689
 
Financial result
– 1,542
171
 
Profit/loss before  
income taxes
– 8,631
1,860
 
Income taxes
1,865
– 615
 
Profit/loss after  
income taxes
– 6,766
1,245
 
Profit/loss attributable  
to minority interests
41
– 32
 
Net profit/loss attributable 
to shareholders  
of Deutsche Lufthansa AG
– 6,725
1,213
 
LUFTHANSA GROUP ANNUAL REPORT 2020
41
COMBINED MANAGEMENT REPORT
Economic report  →  Earnings, assets and financial position

Dividend payments are excluded until the stabilisation 
measures are completed
The stabilisation measures of the Economic Stabilisation Fund 
(WSF) preclude the payment of dividends until the loans  
and silent participations have been repaid in full and all the 
shares of the Company held by the WSF have been disposed 
of. Until then, free cash flow will be used primarily to repay 
borrowings, including government stabilisation measures.  
In the long term, shareholders are expected to once again 
participate directly in the Company’s success. ↗ Financial 
strategy and value-based management, p. 21ff.
Long-term earnings reduced by the coronavirus crisis
The Lufthansa Group’s business model is exposed to economic 
cycles and other external factors. Their influence varies from 
one segment to another. 
In previous years, the airlines in the Lufthansa Group in  
particular were able to continuously improve their cost  
position and take steps to respond more flexibly to changes 
and challenges in the economic environment. However, this 
development was interrupted in the reporting year by the 
significant impact of the coronavirus crisis. 
FINANCIAL POSITION
Capital expenditure
Investment volume reduced by 64%
In response to the crisis, the Lufthansa Group succeeded  
in reducing capital expenditure at short notice, primarily  
by restructuring payment plans for capital expenditure on 
aircraft. Gross capital expenditure (not including equity 
investments) declined by 64% to EUR 1,273m (previous year: 
EUR 3,559m).
Primary investment in down payments and final payments 
for aircraft, aircraft components, and aircraft and engine 
overhauls went down by 67% to EUR 983m (previous year: 
EUR 2,998m). This accounts for 77% of total capital ex- 
penditure. 
Capital expenditure for other items of property, plant and 
equipment and for intangible assets, known collectively as 
secondary investment, decreased by 45% to EUR 266m 
(previous year: EUR 488m). Of the total, EUR 186m (previous 
year: EUR 332m) was on property, plant and equipment, such 
as technical equipment and machinery, and on operating and 
office equipment. EUR 80m was invested in intangible assets, 
such as licences and software (previous year: EUR 156m). 
Financial investments (not including equity investments)  
of EUR 24m (previous year: EUR 73m) mainly related to cash 
outflows for loans granted to affiliated, non-consolidated 
companies.
Network Airlines accounted for the bulk of capital expenditure 
with EUR 958m (– 65% year-on-year). Capital expenditure at 
Eurowings came to EUR 106m (– 17%). ↗ Fleet, p. 25f. 
Capital expenditure of EUR 222m (– 22%) in the Logistics 
segment consisted mainly of down payments and final pay-
ments for cargo aircraft. Capital expenditure of EUR 152m 
(– 51%) in the MRO business segment was mainly for the  
purchase of reserve engines and to finance joint ventures and 
other property, plant and equipment. Capital expenditure of 
EUR 28m (– 78%) in the Catering segment consisted mainly 
of replacement investments in catering facilities. 
Cash flow
Cash flow from operating activities down to EUR – 2,328m
Due to the crisis, cash flow from operating activities fell 
year-on-year to EUR – 2,328m due to lower pre-tax earnings 
(previous year: EUR 4,030m).
The decline was lower than for pre-tax earnings, however, due 
to the non-cash components of earnings. These included in 
particular impairment losses of EUR 1,828m on non-current 
assets (previous year: EUR 84m) and valuation effects from 
financial derivatives of EUR 334m. The valuation effects from 
financial derivatives resulted primarily from ineffectiveness 
due to the realisation and subsequent conclusion of invest-
ment hedging transactions in the reporting year and the post-
ponement of planned capital expenditure, as well as from  
the market valuation of the convertible bond issued, which was 
recognised in profit or loss. The discontinuation of advance 
income tax payments as a result of the decline in earnings, the 
deferral of payments from other taxes and levies (EUR 918m), 
the realisation of exchange rate hedges with positive market 
values (EUR 428m) and repo agreements with emission  
certificates (EUR 275m) also supported the development.
C12  PRIMARY, SECONDARY AND  
FINANCIAL INVESTMENTS in €m 1)
 
 Primary investments 
 Secondary investments
 
 Financial investments
INVESTMENTS
1,273
1)  Excluding acquisition of shares.
24
983
266
2020
73
2,998 
488
48
1,696
464
34
2,194
3,474
2016
2,910
428
136
2017
3,303 
406
2018
3,757
2019
3,559
LUFTHANSA GROUP ANNUAL REPORT 2020
42
COMBINED MANAGEMENT REPORT
Economic report  →  Earnings, assets and financial position

Changes in working capital caused a cash outflow of  
EUR 683m (previous year: cash inflow of EUR 490m). This 
stemmed primarily from the EUR 2,007m decrease in obliga-
tions for unused flight tickets, which was mainly due to the 
refund of cancelled tickets (EUR 3,851m) and the significant 
drop in new bookings. Liabilities to providers also fell by  
EUR 1,673m. The significant reduction in trade and other 
receivables including contract assets (EUR – 2,204m), the 
reduction in inventories, and payments received on account 
of MRO service contracts partially offset the outflows.
Adjusted free cash flow down to EUR – 3,669m
Gross capital expenditure (without acquisitions of equity 
interests) for the Lufthansa Group came to EUR 1,273m. This 
included the primary, secondary and financial investment 
listed above. This was offset by the reduction in repairable 
spare parts for aircraft of EUR 276m (previous year: increase 
of EUR 231m). Expenditures of EUR 39m were made for 
acquisitions of equity interests (previous year: EUR 107m). 
The disposal of assets resulted in a cash outflow of EUR 49m 
(previous year: inflow of EUR 136m). The disposal of the 
companies of LSG group’s European business resulted in  
a decrease in cash and cash equivalents (proceeds from the 
disposal less cash and cash equivalents sold) of EUR – 218m. 
Interest and dividend income fell by 61% to EUR 123m (pre­
vious year: EUR 313m). This brought total net cash used for 
investing activities to EUR 962m, which was 72% down on 
the year (previous year: EUR 3,448m).
After deducting this net cash used for investing activities, 
free cash flow for the financial year 2020 was negative at 
EUR – 3,290m (previous year: EUR 582m).
Adjusted free cash flow includes cash outflows for leases 
(repayment portion) as shown in cash flow for financing 
activities. It decreased to EUR – 3,669m (previous year: 
EUR 203m). The lease payments included in this figure came 
to EUR 379m in the reporting year (previous year: EUR 379m). 
Financing
Lufthansa Group receives stabilisation aid  
and loans of up to EUR 9bn
The Lufthansa Group has agreed on stabilisation measures 
with the Economic Stabilisation Fund (WSF) of the Federal 
Republic of Germany and with the governments of Switzerland, 
Austria and Belgium to mitigate the financial consequences  
of the coronavirus pandemic and to maintain the solvency of 
the Company. The stabilisation package negotiated includes 
stabilisation aid and loans totalling up to EUR 9bn.
The WSF provides financing in the form of silent participa-
tions totalling up to EUR 5.7bn in the assets of Deutsche 
Lufthansa AG. Of this amount, approximately EUR 4.7bn 
(known as Silent Participation I) is classified as equity under 
IFRS regulations. In this amount, Silent Participation I is 
unlimited in time and can be terminated by the Company in 
whole or in part. The equity and grant-based stabilisation 
funds in Belgium and Austria amounting to EUR 153m reduced 
the maximum amount available to EUR 4.5bn. The remuner-
ation on Silent Participation I is 4% p.a. for 2020 and 2021.  
In subsequent years, the remuneration will increase up to 
9.5% p.a. from 2027. Silent Participation I was not utilised in 
the reporting year.
WSF is making a further EUR 1.0bn available to Deutsche 
Lufthansa AG as Silent Participation II. This participation  
has a term of up to six years at the same remuneration as 
Silent Participation I and is classified as a liability within the 
meaning of IFRS regulations. 
6,000
4,000
2,000
0
– 2,000
– 4,000
1)  Without acquisition of equity investments.
2) Since 2018: Adjusted free cash flow.
– 2,328
1,273
C13 CASH FLOW AND  CAPITAL EXPENDITURE in €m
  Cash flow from operating activities  
  Capital expenditure (gross) 1) 
 (Adjusted) Free cash flow 2)
2016
2017
2018
2019
2020
– 3,669
€ 9.0b
C14 OVERVIEW STABILISATION MEASURES
 
in €b
   1.0 Syndicated KfW loan
  2.0 State-guaranteed loans CH, AT, BE
 1.0 Silent Participation II
 4.5 Silent Participation I
  0.2  Grants and profit participation  
rights AT, BE
 0.3 Direct equity 
Debt
Equity 
LUFTHANSA GROUP ANNUAL REPORT 2020
43
COMBINED MANAGEMENT REPORT
Economic report  →  Earnings, assets and financial position

The WSF subscribed to shares by way of a capital increase 
and built up a 20% stake in the issued capital of Deutsche 
Lufthansa AG. The subscription price was EUR 2.56 per share, 
so the cash contribution came to around EUR 306m. The 
WSF may also increase its share in the issued capital to 25% 
plus one share in the event of a takeover of the Company  
by converting part of Silent Participation II.
In addition, in the event of non-payment of remuneration by 
the Company, a further portion of Silent Participation II is to 
be convertible into a further shareholding of 5% of the issued 
capital at the earliest from 2024 and 2026, respectively. The 
second conversion option, however, only applies to the extent 
that the WSF has not previously increased its shareholding  
in connection with the above-mentioned takeover case. 
Conversion should also be possible for dilution protection. 
Subject to the full repayment of the silent participations by 
the Company and a minimum sale price of EUR 2.56 per share 
plus an annual increase in value of 12%, the WSF undertakes 
to sell its shareholding in full at the market price by 31 Decem-
ber 2023. The obligation shall continue after this date in  
the event of full repayment of the Silent Participation, if the 
shareholding has not yet been disposed of in full. 
Finally, the stabilisation measures are supplemented by a 
syndicated credit facility of EUR 1bn with the participation of 
KfW and private banks with a term of three years. The shares 
in Austrian and Maltese aircraft leasing companies, which 
operate a total of 323 aircraft in the Group, were pledged as 
collateral.
Conditions relate in particular to the waiver of future dividend 
payments and restrictions on management remuneration  
and on acquisitions. In addition, two seats on the Supervisory 
Board were filled in agreement with the German government, 
one of whom became a member of the Audit Committee. 
Except in the event of a takeover, the WSF undertakes not  
to exercise its voting rights at the Annual General Meeting  
in connection with the usual resolutions of ordinary Annual 
General Meetings.
Additional commitments made by the Federal Republic of 
Germany to the European Commission oblige the Group to 
station up to four aircraft at both its Frankfurt and Munich 
airports, and to transfer up to 24 take-off and landing rights 
(slots) to a competitor – meaning three take-off and three 
landing rights per aircraft per day. No slot transfers took place 
in this context in the reporting year.
With the governments of Switzerland, Austria and Belgium, 
the Lufthansa Group approved aid packages totalling  
EUR 2.2bn; this sum will be offset against the stabilisation 
measures agreed with the WSF as well as with KfW and  
private banks. All packages include certain site-specific 
agreements.
The Swiss federal government guaranteed credit lines of 
CHF 1.5bn (approximately EUR 1.4bn) for the two Swiss  
airlines in the Lufthansa Group, SWISS and Edelweiss. The 
shares in the Swiss companies concerned were pledged  
as security for the loans. Deutsche Lufthansa AG also con-
tributed through a subordinated loan of CHF 500m. 
The Austrian federal government and the Lufthansa Group 
reached an agreement on a coronavirus aid package worth 
EUR 600m for Austrian Airlines. In this context, the govern-
ment is guaranteeing bank loans of up to EUR 300m. The loan 
is secured by rights of lien on a total of 38 aircraft. A sub­
ordinated loan of EUR 150m was also granted, which is not 
repayable if certain conditions are met. The conditions for 
corresponding recognition in profit or loss have since been 
met. Deutsche Lufthansa AG participated with an equity 
contribution of EUR 150m.  
The Belgian government and the Lufthansa Group have  
concluded an agreement on a EUR 287m loan from the  
Belgian state to Brussels Airlines and a EUR 3m participation 
certificate, which will be supplemented by an equity contri-
bution of EUR 170m from Deutsche Lufthansa AG. The loan 
is collateralised by the shares of Deutsche Lufthansa AG in 
Brussels Airlines.
Stabilisation measures and external financing  
guarantee liquidity
By the end of the reporting year, the Lufthansa Group  
companies had utilised a total of EUR 3.3bn from the  
stabilisation measures. As a result, the Lufthansa Group had 
further not needed stabilisation measures of EUR 5.7bn at 
its disposal as of 31 December 2020, which it has not yet 
drawn on.
In Germany, Silent Participation II was made by the WSF  
in the amount of EUR 1,000m and a further EUR 1,000m of 
the KfW syndicated loan was drawn down. The latter was 
repaid in February 2021. ↗ Events after the reporting period, 
p. 37f. A further EUR 306m was received from the WSF from 
the capital increase. In Austria, the hybrid loan from the Aus-
trian Treasury of EUR 150m and a syndicated loan totalling 
EUR 300m were disbursed. The conditions for the waiver of 
repayment of the hybrid loan provided for in the agreement 
have been fulfilled in the meantime. In Switzerland, CHF 475m 
(EUR 438m) of the credit line guaranteed by the Swiss fed-
eral government has been drawn down so far. In Belgium, 
EUR 130m of the credit facility agreed with the Belgian  
government and the participation certificate of EUR 3m 
were disbursed.
LUFTHANSA GROUP ANNUAL REPORT 2020
44
COMBINED MANAGEMENT REPORT
Economic report  →  Earnings, assets and financial position

In addition, the LSG group and Lufthansa Technik received 
payments totalling USD 244m in the USA under the Corona-
virus Aid, Relief and Economic Security Act (CARES), partly 
as loans and partly as grants.
In addition to government stabilisation measures, the main 
external financial instruments included aircraft financing 
vehicles and unsecured funding, such as borrower’s note 
loans and traded bonds. Furthermore, the Lufthansa Group 
has bilateral credit lines with a large number of banks. As  
of 31 December 2020, these credit lines came to EUR 763m 
(previous year: EUR 774m) and, in contrast to the previous 
year, were fully utilised. 
In 2020, a total of nine aircraft financing vehicles and  
borrower’s note loans secured by aircraft were concluded for 
four Airbus A350s and three aircraft from the A320 family. 
This enabled funds amounting to a total of EUR 425m to be 
raised. These financing deals are repaid continuously over 
the approximately five to twelve-year term of the respective 
contracts.
In November 2020, the Lufthansa Group issued a convertible 
bond with a total volume of EUR 600m. The bond issue, with 
a denomination of EUR 100,000, bears interest at 2.0% per 
annum. The issue was oversubscribed by more than six times. 
Unless previously converted, the bonds will be redeemed  
at their nominal value on 17 November 2025. Investors also 
have the option of converting the bond into new and/or 
existing registered shares of Lufthansa AG. The initial con-
version price was set at EUR 12.96, which corresponds to  
a conversion premium of 40.0% above the reference share 
price of EUR 9.2545.
The EMTN programme (Euro Medium Term Note Programme 
or Debt Issuance Programme) was renewed in November 
2020. The programme enables the Group to issue bonds on 
the capital market at very short notice. It is listed on the  
Luxembourg stock exchange.
In November 2020, the Lufthansa Group made use of the 
favourable conditions on capital markets to issue a EUR 1bn 
bond under the EMTN programme. The bond matures on  
29 May 2026 and pays interest of 3.0% per annum. The issue 
was oversubscribed by around four times.
The terms of both bonds underline the great confidence 
enjoyed by the Lufthansa Group, also as a borrower.
In November 2020, Deutsche Lufthansa AG also decided not 
to exercise the first right to call its EUR 500m hybrid bond, 
which matures on 12 August 2075 and carries an interest rate 
of 5.125%. The right of termination can be exercised again  
as of 12 February 2026. Furthermore, the coupon will be reset 
on 12 February 2021.
In financial year 2020, the Lufthansa Group concluded or 
extended several short-term borrower’s note loans for some 
EUR 400m, issued money market paper for EUR 350m and 
commercial paper for EUR 385m.
3,000
2,500
2,000
1,500
1,000
500
0
C15 MATURITY PROFILE OF BORROWINGS
 
 
as of 31 Dec 2020 in €m
 Other  1)
  State aid 2)
   Aircraft finance 
(secured)
 Credit lines
 Commercial paper
  Borrower’s note loans
  Hybrid bond
  Convertible bond
 Straight bond
1) Mainly bilateral loans; does not include operating lease payments.
2)  Predominantly repayment of EUR 1bn KfW in 2023 and scheduled repay EUR 300m Austrian state aid,  
CHF 475m Swiss state aid and EUR 130m Belgian state aid.
2021
2022
2023
2024
2025
2026
2027
2028
LUFTHANSA GROUP ANNUAL REPORT 2020
45
COMBINED MANAGEMENT REPORT
Economic report  →  Earnings, assets and financial position

There were no significant off-balance sheet financing  
activities in the reporting year.
This funding is essentially offset by the scheduled repay-
ment of five borrower’s note loans and short-term funding 
(EUR 782m), as well as the repayment of aircraft financing 
and leasing (EUR 893m). 
Interest and dividend payments came to EUR 244m (previous 
year: EUR 592). 
The balance of financing activities resulted in a net cash 
inflow of EUR 5,076m (previous year: outflow of EUR 161m).
Liquidity
Available liquidity of EUR 10.6bn
Liquidity (total of cash and current securities) rose year-on-
year by 61% to EUR 5,458m, especially due to payments 
from the stabilisation packages and measures to increase 
liquidity (previous year: EUR 3,385m). Of this amount,  
EUR 4,330m was available centrally and a further EUR 639m 
at the foreign Group airlines as of the reporting date. Another 
EUR 489m was held largely by other Group companies.  
As of 31 December 2020, EUR 5,657bn of the government  
stabilisation funding and loans had not yet been utilised from  
a Group perspective. As of year-end 2020, the Company 
therefore had around EUR 10.6bn of available liquidity, both 
centrally and in the foreign Group airlines. 
T023  ABBREVIATED CASH FLOW STATEMENT OF THE LUFTHANSA GROUP
 
2020 
in €m
2019 
in €m
Change  
in %
 
Profit/loss before income taxes
– 8,631
1,860
 
Depreciation and amortisation/reversals
4,552
2,837
60
Net proceeds on disposal of non-current assets
9
20
– 55
Net interest/result from equity investments
598
147
307
Income tax payments
81
– 1,009
 
Significant non-cash expenses/income
212
– 134
 
Change in trade working capital
– 683
490
 
Change in other assets and liabilities
1,534
– 181
 
Cash flow from operating activities
– 2,328
4,030
Investments and additions to repairable spare parts
– 1,036
– 3,897
– 73
Purchase/disposal of shares/non-current assets
– 49
136
 
Dividends and interest received
123
313
– 61
Net cash from/used in investing activities
– 962
– 3,448
– 72
Free cash flow
– 3,290
582
Purchase/disposal of securities/fund investments
– 1,380
– 419
229
Capital increase
306
–
–
Transactions with minority interests
–
1
– 100
Non-current borrowing and repayment of non-current borrowing
5,014
430
1,066
Dividends paid
– 21
– 414
– 95
Interest paid
– 223
– 178
25
Net cash from/used in financing activities
5,076
– 161
Changes due to currency translation differences
– 33
– 5
560
Cash and cash equivalents as of 1 Jan 
1,431
1,434
0
Cash and cash equivalents as of 31 Dec 
1,804
1,431
26
Less cash and cash equivalents from companies held for sale as of 31 Dec
–
16
 
Cash and cash equivalents from companies not cassified as held for sale as of 31 Dec
1,804
1,415
27
LUFTHANSA GROUP ANNUAL REPORT 2020
46
COMBINED MANAGEMENT REPORT
Economic report  →  Earnings, assets and financial position

NET ASSETS
The Group’s total assets as of 31 December 2020 decreased 
by 7% on year-end 2019 to EUR 39,484m (31 December 
2019: EUR 42,659m).
Non-current assets were down by 6% at EUR 29,444m  
(31 December 2019: EUR 31,374m). This accounts for 75% of 
total assets (31 December 2019: 74%). Current assets fell  
by 11% to EUR 10,040m (31 December 2019: EUR 11,285m). 
Their share of total assets was 25% (31 December 2019: 26%). 
Shareholders’ equity declined by 86% to EUR 1,387m  
(31 December 2019: EUR 10,256m). Altogether, non-current 
funding accounted for 63% of total assets, unchanged from 
the previous year. Non-current financing covered 84% of 
non-current assets (31 December 2019: 85%). Current funding 
was unchanged at 37% of total assets.
Assets
Non-current assets down by 6%
Non-current assets fell by 6% year-on-year to EUR 29,444m 
(31 December 2019: EUR 31,374m). The change was essen-
tially due to write-downs on non-current assets and the decline 
in the market values of hedging instruments, which were 
partly offset by the increase in deferred income tax assets.
Current assets down 11% year-on-year
Current assets fell by 11% to EUR 10,040m (31 December 
2019: EUR 11,285m). The decline in current trade and other 
receivables as well as inventories resulting from the effects 
of the crisis was partially offset by the increase in cash and  
cash equivalents, including current securities, resulting from 
net borrowing and cash inflows recognised directly in equity.
Assets held for sale of EUR 134m mainly related to 40 aircraft 
held for sale. In the previous year, the assets of the disposal 
group of the companies of LSG group’s European business 
represented the majority of the assets held for sale. These 
assets were derecognised with the completion of the disposal 
in December 2020.
Shareholders’ equity and liabilities
Shareholders’ equity down by 86%; equity ratio  
down to 3.5%
Shareholders’ equity fell by 86% on year-end 2019 to 
EUR 1,387m (31 December 2019: EUR 10,256m), primarily 
because of the net loss and the negative valuation effects for 
pensions and derivatives recognised directly in equity, partly 
offset by the capital increase of EUR 306m from the WSF.
The equity ratio fell by 20.5 percentage points compared with 
year-end 2019 to 3.5% (31 December 2019: 24.0%).
T024  DEVELOPMENT OF EARNINGS, EQUITY, EQUITY RATIO  
AND RETURN ON EQUITY
 
 
2020
2019
2018
2017
2016
Profit/loss after 
income taxes  1)
€m
– 6,766
1,245
2,196
2,374
1,803
Equity  1)
€m
1,387
10,256
9,573
9,110
7,149
Equity ratio  1)
%
3.5
24.0
25.1
25.5
20.6
Return on equity  1)
%
– 487.8
12.1
22.9
26.1
25.2
1)	 Including minority interests.
Aircraft and reserve engines 43.0
Shareholders’ equity 24.0
40.1
3.5
Other non-current assets 30.5
Non-current liabilities 38.5
34.5
59.4
Liquid funds and securities 8.0
Current liabilities 37.5
13.8
37.1
Other current assets 18.5
11.6
C16 BALANCE SHEET STRUCTURE
in %
SHAREHOLDERS’ EQUITY AND LIABILITIES in €m
39,484
ASSETS in €m
39,484
Assets
Shareholders’ equity and liabilities
42,659 €m
42,659 €m
2020
2020
2019
2019
– 20.5
– 2.9
+ 20.9
+ 4.0
+5.8
– 0.4
– 6.9
LUFTHANSA GROUP ANNUAL REPORT 2020
47
COMBINED MANAGEMENT REPORT
Economic report  →  Earnings, assets and financial position

Non-current liabilities and provisions up by 43%
Non-current provisions and liabilities were up by 43% to 
EUR 23,438m (31 December 2019: EUR 16,417m), due par-
ticularly to the increase in borrowings and pension liabilities. 
Non-current borrowing of EUR 12,252m was 46% higher than 
at year-end 2019 (31 December 2019: EUR 8,396m). The 
increase stemmed mainly from utilising the loans from the 
state stabilisation packages (including fees) in the amount 
of EUR 2,935m as well as other central borrowings in the 
amount of EUR 3,773m. ↗ Financing, p. 43ff.
Pension liabilities rose by 43% to EUR 9,531m (31 December 
2019: EUR 6,659m), largely due to the decrease in the inter-
est rate of 0.6 percentage points to 0.8% which was used to 
discount pension obligations and the negative performance 
of plan assets.
Current liabilities and provisions down by 8%
Current provisions and liabilities were down by 8% year-on-
year to EUR 14,659m (31 December 2019: EUR 15,986m), 
primarily due to the decrease in liabilities from unused flight 
tickets and trade payables, offset by the increase in current 
borrowings and derivative financial instruments.
Liabilities in connection with assets held for sale in the  
previous year related to the disposal group for the European 
catering companies, which have since been disposed of.
Net indebtedness up by 49% on the previous year
Net indebtedness of EUR 9,922m was 49% higher than at 
year-end 2019 (31 December 2019: EUR 6,662m).
Adjusted net debt, the sum of net indebtedness and pension 
provisions less 50% of the hybrid bond issued in 2015, was 
up by 47% on the end of 2019 to EUR 19,206m (31 December 
2019: EUR 13,074m).
T025  CALCULATION OF NET INDEBTEDNESS
 
2020  
in €m
2019  
in €m
Change  
in %
 
Liabilities to banks
4,938
2,110
134
Bonds
2,907
1,094
166
Lease liabilities (IFRS 16)  1)
2,291
2,386
– 4
Other non-current borrowing
5,232
4,440
18
15,368
10,030
53
Other bank borrowing
14
17
– 18
Group indebtedness
15,382
10,047
53
Cash and cash equivalents
1,806
1,415
28
Securities
3,654
1,970
85
Net indebtedness
9,922
6,662
49
Pension provisions
9,531
6,659
43
Net indebtedness  
and pensions
19,453
13,321
46
1)	 Without former financial lease liabilities in accordance with IAS 17 which are 
included in other non-current borrowing.
LUFTHANSA GROUP ANNUAL REPORT 2020
48
COMBINED MANAGEMENT REPORT
Economic report  →  Earnings, assets and financial position

Comparison with original forecast and overall statement 
by the Executive Board on the economic position
Revenue and Adjusted EBIT at the Lufthansa Group declined significantly due  
to the crisis, in line with the original forecast.  |  Lufthansa Cargo posts record 
result.  |  Main KPIs develop in line with forecasts.
COMPARISON WITH ORIGINAL 
FORECAST
Revenue and Adjusted EBIT at the Lufthansa Group 
declined significantly in line with forecast
The Lufthansa Group prepared and announced its guidance 
for the 2020 financial year with the publication of the Annual 
Report 2019 on 19 March 2020 – at the beginning of the 
coronavirus crisis. The uncertainty concerning the course of 
the pandemic, the imposition of travel restrictions and the 
impact of the pandemic on customer confidence and demand 
for air travel meant that it was not possible to provide a 
detailed forecast for 2020. This did not change in the course 
of 2020.
In March, the Lufthansa Group forecast a significant decline 
in revenue and Adjusted EBIT for financial year 2020 com-
pared with the previous year. This forecast was confirmed, 
with a 63% decline in revenue and a decrease in Adjusted 
EBIT to EUR – 5,451m (previous year: EUR 2,026m). 
The Lufthansa Group expected a decline in capacity, measured 
in available seat-kilometres, compared with the previous 
year. This was also confirmed, with a 69% decline in the ratio.
Lufthansa Cargo achieves revised forecast for  
Adjusted EBIT margin
At the time of publication of the Annual Report 2019, the 
Lufthansa Group did not expect developments in the indi-
vidual business segments – Network Airlines, Eurowings, 
Logistics, MRO, Catering and Additional Businesses and 
Group Functions – to deviate from the forecast for the Group 
as a whole.
With the publication of the 1st Interim Report 2020, the 
Lufthansa Group adjusted its forecast for the Logistics seg-
ment. Due to significantly higher average yields compared 
with the previous year as a result of the elimination of belly 
capacities in passenger aircraft, the Lufthansa Group was 
now forecasting a higher Adjusted EBIT margin than in the 
previous year. With the publication of the 3rd Interim Report 
2020, the forecast was once again refined due to the positive 
development of the result. Since then, the Lufthansa Group 
has expected a double-digit Adjusted EBIT margin for the 
Logistics segment. This forecast was confirmed, with an 
Adjusted EBIT margin of 28.0%.
Main KPIs of the Lufthansa Group are developing  
in line with forecasts
The Lufthansa Group forecast a significant decline in capital 
expenditure and Adjusted free cash flow for financial year 
2020 compared with the previous year. These forecasts were 
confirmed by a 64% decline in gross capital expenditure  
and a decrease in adjusted free cash flow to EUR – 3,669m 
(previous year: EUR 203m).
The Lufthansa Group expected an increase in debt compared 
with the previous year. This was also confirmed, with a 49% 
increase in net indebtedness. The Lufthansa Group expected 
the ratio of net indebtedness, including the effect of pension 
provisions, to Adjusted EBITDA to increase compared with 
the previous year. Because of the decline in EBITDA, this key 
figure was not meaningful at the end of the year.
The forecast of a significant decline in Adjusted ROCE was 
confirmed. This key figure was down 23.3 percentage points 
year-on-year.
LUFTHANSA GROUP ANNUAL REPORT 2020
49
COMBINED MANAGEMENT REPORT
Economic report  →  Comparison with original forecast and overall statement by the Executive Board on the economic position

Forecast for specific carbon emissions was not achieved
The Lufthansa Group expected a decrease in specific carbon 
emissions compared with the previous year. With an increase 
in carbon emissions per passenger-kilometre of 14%, this 
forecast was not achieved. This was caused by the fall in the 
passenger load factor due to the pandemic and the many 
changes to the route network, with comparatively more 
short-haul and fewer long-haul flights.
T026  DEVELOPMENT OF SIGNIFICANT KPIS
 
 
Result
2019 1)
Forecast for
2020 1)
Result  
2020
Revenue 
 
€m
36,424
significantly  
below  
previous year
13,589
Adjusted EBIT 
 
€m
2,026
significantly  
below  
previous year
– 5,451
Available  
seat-kilometres
million
359,567
below  
previous year
109,828
Capital expenditure 
(gross) 
€m
3,559
significantly  
below  
previous year
1,273
Adjusted  
free cash flow
€m
203
below  
previous year
– 3,669
Net indebtedness 
€m
6,662
above  
previous year
9,922
Adjusted net debt/
Adjusted EBITDA
 
2.8
above  
previous year
not  
meaningful
Adjusted ROCE 
 
%
6.6
significantly  
below  
previous year
– 16.7 
Specific  
CO₂ emissions
grammes
92.2
below  
previous year
105.2 
1)	 As stated in the Annual Report 2019.
OVERALL STATEMENT BY  
THE EXECUTIVE BOARD ON  
THE ECONOMIC POSITION 
2020 was an exceptionally demanding year for the Lufthansa 
Group. This year was defined by the outbreak of the corona-
virus pandemic, which had a significant impact on the 
course of business and the economic development of the 
Lufthansa Group. 
Decreased demand due to international travel restrictions 
resulted in a 63% drop in revenue and an Adjusted EBIT of 
EUR – 5,451m in the reporting year. Lufthansa Cargo was  
the only carrier to achieve a positive result, ultimately the 
highest in the company’s history, due to the significant 
decline in capacity in the market and the corresponding 
increase in average yields.
In response to the challenges posed by the coronavirus,  
a variety of measures were initiated in the reporting year to 
reduce costs and decrease cash outflows. The state stabili-
sation package of up to EUR 9bn was agreed to secure the 
Company’s solvency. The Company’s liquidity has developed 
more favourably than expected since the stabilisation meas-
ures were agreed, although the market environment became 
gloomier again from the autumn onwards, contrary to the 
original expectation. 
The Group has introduced the ReNew restructuring programme 
in response to the changes in the airline industry caused by 
the crisis. Key measures have already been implemented, 
including the renewal and reduction in the size of the fleet by 
150 aircraft and the elimination of around 27,000 full-time 
equivalents as things currently stand. 
The Executive Board is confident that the continued imple-
mentation of the restructuring programme and the realignment 
will enable the Lufthansa Group to emerge from this crisis 
stronger than its competitors and to maintain and further 
expand its position as one of Europe’s leading airline groups. 
However, the consequences of the crisis will continue to 
impact the entire industry for a long time. ↗ Forecast, p. 118ff.
LUFTHANSA GROUP ANNUAL REPORT 2020
50
COMBINED MANAGEMENT REPORT
Economic report  →  Comparison with original forecast and overall statement by the Executive Board on the economic position

Business segments
Network Airlines business segment
The Network Airlines segment comprises Lufthansa German Airlines, SWISS, 
Austrian Airlines and Brussels Airlines.  |  Focus on reducing costs and ensuring 
liquidity.  |  Earnings significantly affected by coronavirus pandemic.
T027  KEY FIGURES NETWORK AIRLINES
 
 
2020 
2019 1) 
Change  
in %
 
Revenue
€m
6,622
25,078
– 74
	
of which  
traffic revenue
€m
5,488
23,055
– 76
Adjusted EBITDA
€m
– 2,860
3,703
 
Adjusted EBIT
€m
– 4,674
1,776
 
EBIT
€m
– 6,099
1,724
 
Adjusted  
EBIT margin
% 
– 70.6
7.1
– 77.7 pts
Adjusted ROCE
%
– 27.9
10.9
– 38.8 pts
EACC
€m
– 5,102
781
 
Segment capital 
expenditure
€m
958
2,738
– 65
Employees  
as of 31 Dec 
number 
57,363
60,913
– 6
Average number  
of employees
number 
59,191
60,594
– 2
1)	 Previous year’s figures have been adjusted.
Business activities
Network Airlines offer their customers a high-quality 
product
The Network Airlines segment comprises Lufthansa German 
Airlines, SWISS, Austrian Airlines and Brussels Airlines. The 
airlines offer their customers a premium experience, with 
high-quality products and services. The multi-hub strategy 
offers passengers a comprehensive route network along with 
the greatest possible flexibility for their journey. 
Since the beginning of the 2020 fiscal year, Germanwings 
(whose passenger flight operations have since been discon-
tinued), the Eurowings long-haul business, and Brussels  
Airlines (which will be more highly integrated in the Network 
Airlines group from now on) have been managed by the  
Network Airlines and have therefore been allocated to this 
segment.
Commercial joint ventures with leading international airlines 
continue to make connections more attractive for customers, 
partly by adding new destinations to the route network. 
Commercial joint ventures exist with United Airlines and  
Air Canada on routes between Europe and North America, 
and with All Nippon Airways (ANA), Singapore Airlines and 
Air China on routes between Europe and Japan as well as 
Singapore and China respectively. In addition, numerous 
code-share agreements exist. 
At the beginning of the financial year, the line maintenance 
business of Lufthansa Technik was transferred to Deutsche 
Lufthansa AG. It will now carry out the work itself and is 
incorporated in the Network Airlines business segment.
The previous year’s figures were taken into account to reflect 
these changes in the composition of the segment.
Course of business  
and operating performance
Course of business significantly affected by  
the coronavirus pandemic
The performance of the Network Airlines was largely deter-
mined by the effects of the coronavirus pandemic over  
the course of the 2020 financial year. Flight capacity was 
significantly reduced as soon as the crisis broke out, and a 
large part of the fleet was temporarily retired. At times, the 
Network Airlines only operated a minimum flight programme. 
Austrian Airlines and Brussels Airlines completely suspended 
flight operations between 18 and 21 March respectively and 
14 June 2020. 
LUFTHANSA GROUP ANNUAL REPORT 2020
51
COMBINED MANAGEMENT REPORT
Business segments  →  Network Airlines business segment

All Network Airlines carried out numerous repatriation flights 
on behalf of their governments to fly travellers home from  
all over the world – sometimes even while their regular flight 
operations were suspended. Passenger aircraft were also 
used for cargo flights in order to transport urgently needed 
medical equipment.
After the flight programme had been gradually expanded 
again starting in June 2020, international air traffic dwindled 
beginning in September 2020 with the end of the summer 
travel period, rising infection figures and increasing travel 
restrictions. Available capacity was reduced again towards the 
end of the reporting period in line with changes in demand. 
At year-end, it was at around 25% of last year’s level.
Focus on reducing costs and ensuring liquidity
As a result of the coronavirus crisis, restructuring programmes 
and methods to reduce costs, secure liquidity and increase 
profitability are being implemented by the Network Airlines. 
In addition to the consistent reduction in operating costs  
– partly by reducing the fleet – key levers include the intro-
duction of short-time work as well as adjustments to the 
number of employees at the airlines and in administration,  
in line with future demand.
Network Airlines fleet to be scaled back and  
continuously modernised
As a result of the coronavirus outbreak, the Network Airlines 
fleet will be reduced. Among other things, this will entail the 
early retirement of long-haul aircraft that are older or less 
efficient than the rest of the fleet. This comprises the entire 
Airbus A380 and A340-600 sub-fleets, which will be trans-
ferred to long-term parking mode or definitively decommis-
sioned. 
At the same time, the fleet will continue to be modernised. 
Deploying modern aircraft models reduces costs, fuel con-
sumption, and CO₂ and noise emissions. Furthermore, the 
standardisation of the fleet and the reduction in the number 
of aircraft types also reduces complexity, which then results 
in further cost savings. ↗ Fleet, p. 25f.
Safety and health of passengers has top priority
The health and safety of passengers and employees has  
the highest priority for the Network Airlines. This means that 
all processes throughout the travel chain are continuously 
reviewed to ensure passenger safety. A key aspect of the 
hygiene concept is the mandatory wearing of face masks 
throughout the flight, from boarding to disembarking. 
Lufthansa German Airlines and Austrian Airlines carried out a 
pilot project to use rapid antigen tests on all passengers on 
selected flights between Munich and Hamburg and between 
Vienna and Hamburg. Boarding passes were only activated 
and access to the gate provided once a negative result was 
obtained. If corresponding international agreements are 
reached, this could in future enable international travel with-
out the need for mandatory quarantine periods.
Customers are offered a high degree of flexibility
In order to give their customers maximum flexibility during 
the coronavirus crisis, the Network Airlines are offering many 
rebooking options. Refunds for flights that were cancelled 
due to the pandemic were paid significantly faster as the 
year progressed.
The Network Airlines also guarantee that its passengers  
will have a return flight on all European routes irrespective  
of the fare booked, thereby providing additional security. In 
addition, passengers have the option of including additional 
coronavirus insurance services in their existing insurance 
packages. These include coverage of medical costs or a 
compensation allowance in the event that they are obliged to 
stay in quarantine. Potential medical emergency repatriation 
can also be covered.
Service optimisation on the ground and in the air
In accordance with customer needs, the Network Airlines are 
focusing on the “New Premium” strategic vision to optimise 
their products and services along the entire travel chain. In the 
reporting year, customer-focused activities were restricted 
due to the outbreak of the coronavirus. The emphasis was 
initially on steps to improve health and safety and make flight 
bookings more flexible. However, additional product devel-
opments and innovative services were also driven forward.
LUFTHANSA GROUP ANNUAL REPORT 2020
52
COMBINED MANAGEMENT REPORT
Business segments  →  Network Airlines business segment

T028  TRENDS IN TRAFFIC REGIONS  
Network Airlines 
Net traffic revenue 
external revenue
Number of  
passengers
Available  
seat-kilometres
Revenue  
seat-kilometres
Passenger  
load factor
 
2020  
in €m
Change  
in %
2020  
in thousands
Change  
in %
2020  
in millions
Change  
in %
2020  
in millions
Change  
in %
2020 
in %
Change  
in pts
 
Europe
2,116
– 75
22,988
– 74
32,049
– 67
20,117
– 74
62.8
– 15.1
America
1,385
– 80
2,810
– 79
36,172
– 70
21,869
– 79
60.5
– 24.9
Asia/Pacific
695
– 81
1,424
– 81
18,696
– 74
11,524
– 81
61.6
– 23.6
Middle East /
Africa
554
– 72
1,897
– 74
12,651
– 65
8,451
– 71
66.8
– 13.9
Not assignable
738
– 61
–
–
–
–
–
–
–
–
Total traffics
5,488
– 76
29,119
– 75
99,568
– 69
61,961
– 77
62.2
– 20.4
For example, Lufthansa German Airlines and SWISS have 
been using the biometric face recognition Star Alliance 
Biometrics at check-in for selected flights since November 
2020. Special infrastructure was set up at the hubs in Frank-
furt and Munich, which increases service quality at both sites. 
Miles & More customers who agree to take part in Biometrics 
can enjoy contactless access to the safety checks and 
boarding gates without removing their face masks, which 
also represents an important contribution to health and 
safety during the coronavirus pandemic. 
Traffic severely affected by the coronavirus pandemic
Traffic at the Network Airlines declined in the 2020 financial 
year due to the outbreak of the coronavirus. The Network 
Airlines carried 29 million passengers, which is a decline of 
75% year-on-year (previous year: 118 million). Capacity in the 
reporting year was down by 69% compared with the previous 
year, and the number of flights was reduced by 67%. Sales 
fell by 77%. The passenger load factor was 20.4 percentage 
points lower than the previous year’s level, at 62.2% (previous 
year: 82.6%). After adjustment for exchange rates, yields 
contracted by 2.9% due to the crisis. Traffic revenue declined 
by 76% to EUR 5,488m due to the lower traffic (previous year: 
EUR 23,055m). The picture was similar in all traffic regions. 
T029  TRAFFIC FIGURES NETWORK AIRLINES
 
 
2020 
2019 1) 
Change  
in %
Flights
number
310,023
945,621
– 67
Passengers
thousands
29,119
118,328
– 75
Available  
seat-kilometres
millions
99,568
326,420
– 69
Revenue  
seat-kilometres
millions
61,961
269,578
– 77
Passenger load  
factor
%
62.2
82.6
– 20.4 pts
1)	 Previous year’s figures have been adjusted.
Revenue and earnings development
Revenue down year-on-year by 74% due to the crisis 
Revenue in the Network Airlines business segment fell  
by 74% year-on-year to EUR 6,622m due to lower traffic  
figures (previous year: EUR 25,078m). Operating income  
of EUR 7,616m was 71% down on the year (previous year: 
EUR 26,092m). Constant currency unit revenues (RASK) fell 
by 9.1% due to the lower load factors and lower yields. 
T030  OPERATING FIGURES NETWORK AIRLINES  1)
 
2020  
 
 
in € cent
2019 1)
 
 
in € cent
Change 
 
 
in %
Exchange- 
rate adjusted  
change  
in %
Yields
7.7
7.9
– 2.4
– 2.9
Unit revenue 
(RASK)
7.2
7.8
– 8.2
– 9.1
Unit cost (CASK) 
without fuel  
and emissions 
trading expenses
10.3
5.5
86.4
85.4
1)	 Previous year’s figures have been adjusted.
Expenses reduced by 50%
Operating expenses in the Network Airlines business seg-
ment fell by 50% to EUR 12,258m due to lower volumes  
and structural measures taken (previous year: EUR 24,362m).  
By contrast, constant currency unit costs (CASK) without 
fuel and emissions trading expenses rose by 85.4%. The sig-
nificant reduction in available capacity could not be matched 
in full by corresponding cuts in costs. 
LUFTHANSA GROUP ANNUAL REPORT 2020
53
COMBINED MANAGEMENT REPORT
Business segments  →  Network Airlines business segment

T031  OPERATING EXPENSES NETWORK AIRLINES
 
2020 
in €m
2019 4)
in €m
Change 
in %
 
Cost of materials and services
5,101
13,843
– 63
	
of which fuel
1,570
5,847
– 73
	
of which fees 
1,316
3,613
– 64
	
of which charter
143
346
– 59
	
of which MRO services
1,126
1,820
– 38
Staff costs  1)
3,340
4,801
– 30
Depreciation and  
amortisation  2)
1,814
1,927
– 6
Other operating expenses  3)
2,003
3,791
– 47
Total operating expenses
12,258
24,362
– 50
1)	 Without past service costs/settlement.
2)	Without impairment losses.
3)	Without book losses.
4)	Previous year’s figures have been adjusted.
The cost of materials and services was 63% down on the 
previous year at EUR 5,101m (previous year: EUR 13,843m). 
At the same time, fuel costs sank by 73% to EUR 1,570m 
(previous year: EUR 5,847m). Expenses for fees and charges 
declined by 64% to EUR 1,316m (previous year: EUR 3,613m). 
Staff costs fell by 30% to EUR 3,340m (previous year:  
EUR 4,801m), with a 2% reduction in the average number of 
employees. The introduction of short-time working and cost 
cuts based on crisis agreements with various trade unions 
played a role in this. ↗  Employees, p. 28ff.
Depreciation and amortisation fell by 6% to EUR 1,814m 
(previous year: EUR 1,927m). 
Other operating expenses went down by 47% to EUR 2,003m 
(previous year: EUR 3,791m).
Adjusted EBIT down to EUR – 4,674m as a result of the 
coronavirus pandemic
Adjusted EBIT fell accordingly to EUR – 4,674m (previous year: 
EUR 1,776m). The Adjusted EBIT margin fell by 77.7 percentage 
points to – 70.6% (previous year: 7.1%). 
EBIT decreased to EUR – 6,099m (previous year: EUR 1,724m). 
The difference to Adjusted EBIT stems mainly from write-
downs of EUR 1,385m on the fleet. ↗ Earnings position, p. 38ff. 
Segment investment down 65% on the year
Segment capital expenditure fell in the reporting year by 
65% to EUR 958m, mainly due to the restructuring of pay-
ment plans for capital expenditure on aircraft (previous year: 
EUR 2,738m).
LUFTHANSA GERMAN AIRLINES
T032  KEY FIGURES LUFTHANSA GERMAN AIRLINES  1)
 
 
2020 
2019 2)
 
Change  
in % 
 
Revenue
€m
4,104
16,634
– 75
Adjusted EBITDA
€m
– 2,297
2,450
 
Adjusted EBIT
€m
– 3,386
1,227
 
EBIT
€m
– 4,702
1,168
 
Adjusted  
EBIT margin
% 
– 82.5
7.4
– 89.9 pts
Employees  
as of 31 Dec 
number 
37,741
39,582
– 5
Average number  
of employees
number
38,670
39,381
– 2
Flights
number 
192,216
565,703
– 66
Passengers
thousands
17,996
72,470
– 75
Available  
seat-kilometres
millions
64,480
212,948
– 70
Revenue  
seat-kilometres
millions
40,064
175,762
– 77
Passenger  
load factor
%
62.1
82.5
– 20.4 pts
1)	 Including regional partners.
2)	Previous year’s figures have been adjusted.
C17  NETWORK AIRLINES:  
DEVELOPMENT OF REVENUE, ADJUSTED EBIT in €m 
AND ADJUSTED EBIT MARGIN in %
  
  Revenue 
 Adjusted EBIT 
 Adjusted EBIT margin
ADJUSTED EBIT 2020
– 4,674
6,622
– 70.6
23,317
22,549
21,864
1,555
2,296
9.8
7.1
10.8
25,078
2,429
1,776
2020
2017
2018
2016
2019
7.1
LUFTHANSA GROUP ANNUAL REPORT 2020
54
COMBINED MANAGEMENT REPORT
Business segments  →  Network Airlines business segment

Lufthansa German Airlines is the largest airline in Germany.  
It has hubs at the two biggest German airports in Frankfurt 
and Munich and offers its customers a premium product 
with transfer connections to the entire world. The regional 
airlines Lufthansa CityLine and Air Dolomiti are also part of 
Lufthansa German Airlines. Since early 2020, Germanwings, 
whose passenger flight operations have since been discon-
tinued, and the Eurowings long-haul business have been 
managed by Lufthansa German Airlines.
Lufthansa German Airlines fleet to be reduced  
and restructured
Lufthansa German Airlines has decided to significantly  
scale back its fleet as a result of the coronavirus pandemic. 
In particular, this entails the retirement of larger four-engine 
aircraft, which are less fuel-efficient.
Six Airbus A380s, five Boeing 747-400s and seven A340-
600s were withdrawn from service on long-haul routes. The 
remaining eight A380s and ten A340-600s were transferred 
to long-term parking mode and decommissioned. In the short-
haul network, five A319s and eleven A320s were retired, and 
right-of-use assets for another nine A319s and two A330s 
were written off. ↗ Fleet, p. 25f.
Steps to increase efficiency are being implemented
Lufthansa German Airlines has implemented extensive 
measures to strengthen its cost position. In addition to 
reducing the fleet, further expenses were quickly trimmed  
to a level that is absolutely necessary for operation. Staff 
expenses, which are one of the largest cost items at Lufthansa 
German Airlines, were reduced significantly through the 
introduction of short-time working and crisis agreements 
with the trade unions. ↗  Employees, p. 28ff. 
Passenger flight operations at Germanwings were also  
discontinued in the course of the year as part of the harmo-
nisation of flight operations.
Successful start for the Lufthansa New Tomorrow 
restructuring programme
Lufthansa German Airlines has implemented the Lufthansa 
New Tomorrow restructuring programme in response to the 
coronavirus crisis. Alongside short-term cost-cutting meas-
ures to immediately improve liquidity, long-term structural 
changes are being put into place. The focus is on measures 
to reduce staff costs (negotiation of crisis contributions, vol-
unteer programmes) and make savings in MRO (cancellation 
of external services) and ground operations (expansion of  
automation and flexible working time models), as well as  
in IT and infrastructure. In addition, the ground and in-flight 
products (introduction of a new in-flight sales concept)  
are be adapted to the requirements of the current market 
environment and new approaches devised to generate addi-
tional income. 
Lufthansa German Airlines honoured for safety  
and innovation
Instead of handing out its prestigious World Airline Awards, 
Skytrax provided “Covid-19 Airline Safety Ratings” during  
the reporting year. Lufthansa German Airlines was one of the 
first airlines worldwide to receive a 4-star rating.
Lufthansa German Airlines was also voted “Europe’s Leading 
Airline 2020” at the World Travel Awards. Lufthansa German 
Airlines also won the German Innovation Prize in the category 
Future Digital Inflight Experience.
Passenger numbers and load factor severely affected  
by the coronavirus pandemic 
As a result of the coronavirus pandemic, Lufthansa German 
Airlines barely carried 18 million passengers, a year-on-year 
decline of 75% (previous year: 72 million). Capacity was 
reduced by 70% year-on-year and sales fell by 77%. The pas-
senger load factor was 20.4 percentage points lower than 
the previous year’s level, at 62.1% (previous year: 82.5). 
Yields fell by 4.9% after adjusting for exchange rates. Traffic 
revenue developed significantly negative and declined by 
77% to EUR 3,465m (previous year: EUR 15,169m). 
Revenue and earnings weaker due to crisis
Revenue at Lufthansa German Airlines fell year-on-year  
by 75% to EUR 4,104m in the reporting year (previous year: 
EUR 16,634). Operating income went down by 73% to 
EUR 4,709m (previous year: EUR 17,304m). 
Operating expenses of EUR 8,063m were 50% down on the 
year (previous year: EUR 16,122m), primarily as a result of the 
volume-related decline in the cost of fuel by 74%; the fees 
and charges, which were lower by 65%; and the staff costs, 
which were down by 30%. 
Adjusted EBIT fell accordingly to EUR – 3,386 (previous  
year: EUR 1,227). The Adjusted EBIT margin therefore fell by  
89.9 percentage points to – 82.5% (previous year: 7.4%). EBIT 
decreased to EUR – 4,702m (previous year: EUR 1,168m). The 
difference to Adjusted EBIT stems mainly from write-downs 
of EUR 1,293m on the fleet.
LUFTHANSA GROUP ANNUAL REPORT 2020
55
COMBINED MANAGEMENT REPORT
Business segments  →  Network Airlines business segment

SWISS
T033  KEY FIGURES SWISS  1)
 
 
2020 
2019 
Change  
in %
 
Revenue
€m
1,732
5,144
– 66
Adjusted EBITDA
€m
– 242
959
 
Adjusted EBIT
€m
– 689
558
 
EBIT
€m
– 695
572
 
Adjusted  
EBIT margin
% 
– 39.8
10.8
– 50.6 pts
Employees  
as of 31 Dec 
number 
10,055
10,531
– 5
Average number  
of employees
number
10,349
10,361
–
Flights
number 
54,835
167,119
– 67
Passengers  2)
thousands
5,677
21,531
– 74
Available  
seat-kilometres  2)
millions
21,489
63,321
– 66
Revenue  
seat-kilometres  2)
millions
13,069
53,116
– 75
Passenger  
load factor
%
60.8
83.9
– 23.1 pts
1)	 Including Edelweiss Air.
2)	Previous year’s figures have been adjusted.
SWISS is the biggest airline in Switzerland. With its sister 
company Edelweiss Air, it offers its customers a first-class 
product and a global route network. The separately managed 
Swiss WorldCargo division uses the belly capacities of SWISS 
aircraft to offer comprehensive airport-to-airport services  
for high-value goods and sensitive freight worldwide. 
Extensive restructuring programme launched
As soon as the pandemic began, SWISS initiated a large 
number of cost-cutting measures and introduced short-time 
working throughout the company, suspending non-essential 
projects and investment until further notice. 
In order to secure its future viability and competitiveness  
and to repay its government-guaranteed bank loan as quickly 
as possible, SWISS launched an extensive restructuring pro-
gramme. SWISS is using the socially responsible instruments 
of a hiring freeze, attractive part-time work on reduced pay 
and early retirement to reduce its staff costs. In combination 
with natural fluctuation, this will enable around 1,000 jobs to 
be cut within two years. A package of measures was agreed 
with the labour union partners for cabin crew and ground 
staff. Negotiations with pilot representatives on crisis contri-
butions were broken off in early February without initial 
results. ↗  Employees, p. 28ff. 
The size of the fleet is also to be adjusted by postponing 
delivery of the short and medium-haul aircraft on order.  
↗ Fleet, p. 25f. 
Securing Switzerland’s connections to the world
Although the operating environment was extremely chal-
lenging, SWISS served a total of more than 150 destinations 
and thus fulfilled its mission of connecting Switzerland to 
the world. It was mainly thanks to consistently high freight 
demand that SWISS was able to offer a comparatively broad 
long-haul portfolio. 
Dieter Vranckx is the new CEO of SWISS
Dieter Vranckx has been the new Chief Executive Officer of 
SWISS since 1 January 2021. He succeeded Thomas Klühr, 
who left the company at year-end 2020 for personal reasons. 
Dieter Vranckx was previously Chief Executive Officer of 
Brussels Airlines.
Awards demonstrate high quality standards
SWISS was again voted Best Airline for Business Travellers  
in Europe by the magazine Business Traveller. At the World 
Travel Awards, SWISS also took first place in the category 
“Europe’s Leading Airline – First Class 2020”.
Passenger numbers and load factor down  
due to coronavirus crisis
The number of passengers carried decreased by 74% to  
5.7 million (previous year: 21.5 million). SWISS responded  
to the collapse in demand by cutting capacities by 66%. 
Sales were down by 75%; the passenger load factor was  
23.1 percentage points lower than the previous year’s level, 
at 60.8% (previous year: 83.9%). Performance in yields was 
slightly negative, contracting by 0.1% on a constant-currency 
basis. Traffic revenue fell by 73% to EUR 1,249m (previous 
year: EUR 4,559m). 
Revenue and earnings development negative 
Revenue at SWISS fell by 66% to EUR 1,732m in the report-
ing year (previous year: EUR 5,144m). Operating income  
of EUR 1,915m was 64% down on the year (previous year: 
EUR 5,356m). 
Operating expenses saw a mostly volume-related decline  
of 46% to EUR 2,604m, (previous year: EUR 4,798m). This 
was primarily caused by the 68% reduction in fuel costs, the 
57% reduction in fees and charges and the 29% reduction in 
staff costs.
Adjusted EBIT fell accordingly, to EUR – 689m (previous 
year: EUR 558m). The Adjusted EBIT margin therefore fell  
by 50.6 percentage points to – 39.8% (previous year: 10.8%). 
EBIT decreased to EUR – 695m (previous year: EUR 572m).
LUFTHANSA GROUP ANNUAL REPORT 2020
56
COMBINED MANAGEMENT REPORT
Business segments  →  Network Airlines business segment

AUSTRIAN AIRLINES
T034  KEY FIGURES AUSTRIAN AIRLINES
 
 
2020 
2019 
Change  
in %
 
Revenue
€m
460
2,108
– 78
Adjusted EBITDA
€m
– 162
188
 
Adjusted EBIT
€m
– 321
19
 
EBIT
€m
– 381
15
 
Adjusted  
EBIT margin
% 
– 69.8
0.9
– 70.7 pts
Employees  
as of 31 Dec 
number
6,443
6,989
– 8
Average number  
of employees
number
6,689
7,022
– 5
Flights
number
42,310
139,230
– 70
Passengers  1)
thousands
3,114
14,613
– 79
Available 
seat-kilometres  1)
millions
7,127
28,508
– 75
Revenue 
seat-kilometres  1)
millions
4,412
23,043
– 81
Passenger  
load factor
%
61.9
80.8
– 18.9 pts
1)	 Previous year’s figures have been adjusted.
Austrian Airlines is Austria’s largest airline. It offers its  
customers a global route network and a high-quality product.
Restructuring programme aims to cut costs  
and safeguard liquidity
The existing restructuring programme at Austrian Airlines 
was tightened again as a result of the pandemic.
This will also entail reducing the Austrian Airlines fleet from 
79 at present to around 60 aircraft. In this context, a decision 
was taken in the reporting year to retire three Boeing 767-300s 
and 13 Bombardier Dash 8-400s early; implementation has 
already begun. From summer 2021, all A319 aircraft are also 
to be retired and transferred to Lufthansa German Airlines.  
↗ Fleet, p. 25f.
Further measures to secure liquidity and cut costs were 
implemented, including short-time working, the renegotiation 
of agreements with providers and other stakeholders, and 
structural measures. Austrian Airlines agreed with flight  
and ground staff on a crisis contribution of up to EUR 80m 
per year. ↗  Employees, p. 28ff. 
Executive Board of Austrian Airlines  
positioned for the future
The Executive Board of Austrian Airlines was restructured in 
the reporting year and reduced to three members.
Chief Executive Officer is Alexis von Hoensbroech, whose 
contract was renewed on 09 October 2020 for another five 
years until July 2026. Alexis von Hoensbroech also took over 
the position of Chief Financial Officer on 1 January 2021 from 
Andreas Otto, who served in that capacity until year-end 
2020. The position of Chief Financial Officer was carried out 
by Wolfgang Jani until 31 August 2020.
Michael Trestl has been the new Chief Commercial Officer  
of Austrian Airlines since 1 January 2021. Michael Trestl was 
previously Head of Network Management at SWISS. 
The position of Chief Commercial Officer was held in parallel 
by Andreas Otto until 31 January 2021. Andreas Otto left  
the company on 31 January 2021. 
Chief Operating Officer Jens Ritter will leave Austrian Airlines 
as an extended Executive Board member as of 31 March 2021. 
He is followed by Francesco Sciortino, currently Managing 
Director and Accountable Manager of Germanwings.
Passenger numbers and load factor far below  
previous year’s level due to the crisis 
With 3.1 million passengers, Austrian Airlines transported 
79% fewer customers than the previous year (previous year: 
14.6 million). Capacity had to be cut by 75% and sales were 
down by 81%. The passenger load factor was 18.9 percentage 
points lower than the previous year’s level, at 61.9% (previous 
year: 80.8%). Yields rose by 2.9% after adjusting for exchange 
rates. Traffic revenue fell by 80% to EUR 390m (previous 
year: EUR 1,941m). 
Coronavirus crisis has a severe impact on earnings 
performance at Austrian Airlines
Revenue for Austrian Airlines came to EUR 460m in the 
2020 financial year, a decrease of 78% on the previous year 
(pre­vious year: EUR 2,108m). Operating income went down 
by 69% to EUR 671m (previous year: EUR 2,182m). This 
includes income of EUR 150m in emergency aid granted by 
the Austrian government. 
Operating expenses saw a mostly volume-related decline  
of 54% to EUR 992m in 2020 (previous year: EUR 2,164m). 
In particular, fuel costs were down by 77% and fees and 
charges by 69%. Beyond this, there were positive effects 
from the various cost-cutting measures. 
Adjusted EBIT at Austrian Airlines sank accordingly to  
EUR – 321m in 2020 (previous year: EUR 19m). The Adjusted 
EBIT margin fell by 70.7 percentage points to – 69.8% (pre­
vious year: 0.9%). EBIT came to EUR – 381m (previous year: 
EUR 15m). The difference to Adjusted EBIT stems mainly from 
write-downs on the fleet of EUR 59m due to the coronavirus 
pandemic.
LUFTHANSA GROUP ANNUAL REPORT 2020
57
COMBINED MANAGEMENT REPORT
Business segments  →  Network Airlines business segment

BRUSSELS AIRLINES
T035  KEY FIGURES BRUSSELS AIRLINES
 
 
2020 
2019 
Change  
in %
 
Revenue
€m
414
1,473
– 72
Adjusted EBITDA
€m
– 171
110
 
Adjusted EBIT
€m
– 293
– 27
– 985
EBIT
€m
– 332
– 32
– 938
Adjusted  
EBIT margin
% 
– 70.8
– 1.8
– 69.0 pts
Employees  
as of 31 Dec 
number
3,124
3,811
– 18
Average number  
of employees
number
3,483
3,830
– 9
Flights
number
21,280
81,540
– 74
Passengers
thousands
2,362
10,285
– 77
Available 
seat-kilometres
millions
6,487
21,994
– 71
Revenue  
seat-kilometres
millions
4,428
17,929
– 75
Passenger  
load factor
%
68.3
81.5
– 13.2 pts
Brussels Airlines is Belgium’s national airline. From its hub in 
Brussels, the airline offers flights to destinations worldwide, 
with a focus on the African continent.
Brussels Airlines intensifies its restructuring programme
Brussels Airlines intensified its existing restructuring pro-
gramme as a result of the coronavirus outbreak. This forms 
the basis for the airline’s sustainable future. 
As part of the Reboot Plus programme, the fleet was reduced 
by 30% and the number of employees by 25%. Right-of-use 
assets for two Airbus A330-200s and eight Airbus A319s were 
written off as part of the fleet restructuring. ↗ Fleet, p. 25f.
In addition to these structural changes, Brussels Airlines  
initiated further short and long-term measures to reduce  
variable and fixed costs in order to counteract the effects  
of the coronavirus crisis. Above all, these included an agree-
ment with the labour union partners for flight and ground  
staff under which 75% of the approximately 4,000 jobs were 
retained, remaining jobs were reduced in a socially responsible 
way, and redundancies were avoided wherever possible. New 
collective bargaining agreements were were also negotiated 
with all groups of employees. ↗  Employees, p. 28ff. 
Peter Gerber is the new CEO of Brussels Airlines
Peter Gerber has been the new Chief Executive Officer  
of Brussels Airlines since 1 March 2021. He was previously 
Chairman of the Executive Board and CEO of Lufthansa 
Cargo. Peter Gerber succeeds Dieter Vranckx, who became 
the new Chief Executive Officer of SWISS on 1 January 2021.
Passenger numbers and load factor severely affected by 
the coronavirus pandemic 
With 2.4 million passengers, Brussels Airlines transported 
77% fewer customers than in the previous year (previous 
year: 10.3 million). Capacity had to be cut by 71% and sales 
were down by 75%. The passenger load factor was 13.2 per-
centage points lower than the previous year’s level, at 68.3% 
(previous year: 81.5%). Yields rose by 1.0% after adjusting  
for exchange rates. Traffic revenue fell by 72% to EUR 384m 
(previous year: EUR 1,386m).
Adjusted EBIT down significantly due to coronavirus crisis
Revenue at Brussels Airlines fell by 72% to EUR 414m in 2020 
due to the coronavirus crisis (previous year: EUR 1,473m). 
Operating income of EUR 456m was 71% down on the year 
(previous year: EUR 1,555m). 
Operating expenses saw a mostly volume-related decline of 
53% to EUR 749m (previous year: EUR 1,582m). In particular, 
expenses for fuel and fees and charges were 74% and 68% 
down on the previous year, respectively. This more than off-
set the effect of the recognition of provisions and costs of 
EUR 47m already incurred for restructuring measures. 
Adjusted EBIT at Brussels Airlines decreased to EUR – 293m 
in 2020 (previous year: EUR – 27m). The Adjusted EBIT  
margin fell by 69.0 percentage points to – 70.8% (previous 
year: – 1.8%). EBIT decreased to EUR – 332m (previous year: 
EUR – 32m). The difference to Adjusted EBIT stems mainly 
from write-downs of EUR 33m on right-of-use assets for  
aircraft.
LUFTHANSA GROUP ANNUAL REPORT 2020
58
COMBINED MANAGEMENT REPORT
Business segments  →  Network Airlines business segment

Eurowings business segment
Eurowings focuses on European direct traffic.  |  Coronavirus pandemic  
weighs heavily on business.  |  Restructuring programme tightened.  |   
Earnings down significantly on previous year.
T036  KEY FIGURES EUROWINGS 
 
 
2020 
2019 1)
 
Change  
in %
 
Revenue
€m
598
2,311
– 74
	
of which  
traffic revenue
€m
579
2,307
– 75
Adjusted EBITDA 
€m
– 504
111
 
Adjusted EBIT
€m
– 703
– 122
– 476
EBIT
€m
– 802
– 126
– 537
Adjusted  
EBIT margin
% 
– 117.6
– 5.3
– 112.3 pts
Adjusted ROCE
% 
– 43.4
– 5.8
– 37.6 pts
EACC
€m
– 653
– 160
– 308 
Segment capital 
­expenditure
€m
106
127
– 17
Employees  
as of 31 Dec 
number
3,088
3,432
– 10
Average number  
of employees
number 
3,203
3,666
– 13
1)	 Previous year’s figures have been adjusted.
Business activities
Eurowings focuses on the market for European direct traffic 
The Eurowings business segment includes the flight opera-
tions of Eurowings and Eurowings Europe, as well as the 
equity investment in SunExpress. Germanwings, the long-haul 
business of Eurowings, and Brussels Airlines were allocated 
to the Network Airlines at the beginning of the 2020 financial 
year. The figures for the previous year have been adjusted 
accordingly. The flight operation of SunExpress Germany 
was closed in the course of the year due to the effects of  
the pandemic.
With Eurowings, the Lufthansa Group has an innovative 
offering for price-sensitive and service-oriented customers 
in the structural growth segment of European direct traffic. 
Eurowings is a key partner of tour operators given the number 
of tourist destinations in its portfolio.
Course of business  
and operating performance
Course of business at Eurowings significantly influenced 
by the outbreak of coronavirus
The spread of the coronavirus temporarily caused Eurowings 
to significantly reduce its flight programme. Capacity was 
increased again from June 2020 to meet increasing demand 
for flights in the summer months. Eurowings focused on 
inner-German routes and tourist flights within Europe. When 
travel warnings resumed, resulting in lower demand at the 
end of the summer travel period, capacity was reduced once 
more. At the end of the reporting year, capacity was around 
15% of the previous year’s level.
Restructuring programme prepares Eurowings  
for the post-crisis period 
The restructuring programme at Eurowings was intensified 
as a result of the pandemic. The programme aims to adapt 
the organisation to the new market conditions and to exploit 
the opportunities arising through the redistribution of the 
market in the crisis. It also aims to sustainably boost the 
attractiveness and popularity of the Eurowings brand. 
Changes to structures and processes will increase the pro-
ductivity of flight operations and create competitive cost 
structures in all areas.
A large number of structural measures have already been 
successfully implemented in 2020. Flight capacity in Germany 
has been bundled into one flight operations centre. The fleet 
was reduced by retiring older aircraft and making Airbus 
A320 aircraft standard. ↗ Fleet, p. 25f. 
To reduce staff costs, short-time working was introduced 
and a hiring freeze imposed. The number of managers is  
to be reduced by 25%. Adjustments to technical structures 
and the renegotiation of contracts with system partners  
also enabled savings in operating costs and project budgets. 
In addition, Eurowings reached a crisis agreement with the 
ver.di trade union for flight attendants and ground staff.  
↗  Employees, p. 28ff. 
LUFTHANSA GROUP ANNUAL REPORT 2020
59
COMBINED MANAGEMENT REPORT
Business segments  →  Eurowings business segment

Focus on safe travel and flexibility for customers
Health and safety have the highest priority at Eurowings.  
For this reason, the airline has taken extensive measures to 
further improve health precautions along the entire travel 
chain. These include comprehensive new hygiene standards 
for passengers, from the airport to their arrival at their  
destination. Customers have the opportunity to book a free 
middle seat before they start their journey.
Eurowings has also introduced more flexible and customer- 
friendly rebooking options. Furthermore, customers can book 
a package for increased travel security, consisting of travel 
cancellation insurance, travel health insurance and travel 
interruption insurance.
Eurowings under new management
Jens Bischof became the CEO of Eurowings as of 1 March 
2020. He was previously the Chief Executive Officer of  
SunExpress. He succeeds Thorsten Dirks in this function. 
Oliver Schmitt left the management of Eurowings as of  
31 December 2020. His responsibilities have been assumed 
by Jens Bischof.
Jens Ritter, currently Chief Operating Officer and member  
of the executive committee of Austrian Airlines, will become 
the Chief Operating Officer of Eurowings as of 1 April 2021. 
He succeeds Michael Knitter, who is leaving Eurowings at his 
own request at the end of March 2021.
Prize received for digital customer services
Eurowings Digital won the Best Digital Lab Award 2020 from 
the business magazine Capital. The accolade particularly 
reflects the development of innovative, smart services that 
accompany passengers throughout their journey.
Traffic negatively affected by the coronavirus crisis 
The number of passengers at Eurowings fell by 73% to 7.2m 
(previous year: 27.0m). Capacity was reduced by 68%. Sales 
fell by 72%. The passenger load factor was 9.2 percentage 
points lower than the previous year’s level, at 73.1% (previous 
year: 82.3%). Yields fell by 15.6% after adjusting for exchange 
rates. Traffic revenue fell by 75% to EUR 579m (previous 
year: EUR 2,307m).
T037  TRAFFIC FIGURES EUROWINGS
 
 
2020 
2019 1) 
Change  
in %
Flights
number
71,829
232,461
– 69
Passengers
thousands
7,235
26,971
– 73
Available 
seat-kilometres
millions
10,260
32,383
– 68
Revenue 
seat-kilometres
millions
7,501
26,639
– 72
Passenger  
load factor
%
73.1
82.3
– 9.2 pts
1)	 Previous year’s figures have been adjusted.
Revenue and earnings development
Revenue down year-on-year by 74% due to the crisis
Revenue in the Network Airlines business segment fell by 
74% to EUR 598m in 2020 due to lower traffic (previous 
year: EUR 2,311m). Operating income of EUR 745m was 70% 
down on the year (previous year: EUR 2,487m). Constant 
currency unit revenues (RASK) went down year-on-year by 
15.2% as a result of the crisis.
T038  OPERATING FIGURES EUROWINGS
 
2020  
 
 
in € cent
2019 1)
  
 
in € cent
Change 
 
  
in %
Exchange- 
rate adjusted  
change  
in %
Yields
6.6
7.9
– 15.6
– 15.6
Unit revenue 
(RASK)
6.5
7.5
– 13.2
– 15.2
Unit cost (CASK) 
without fuel  
and emissions 
trading expenses
11.0
6.1
78.8
76.9
1)	 Previous year’s figures have been adjusted.
Expenses down 49% below previous year’s level
Operating expenses in the Eurowings segment saw a mostly 
volume-related decline of 49% to EUR 1,346m in the report-
ing year, mainly due to restructuring activities such as the 
termination of external wet leases and reductions in fixed 
costs (previous year: EUR 2,633m). Constant currency unit 
costs (CASK) without fuel and emissions trading expenses rose 
by 76.9% year-on-year, driven by the significant crisis-related 
capacity reduction which could only be partly matched by 
corresponding cost savings. 
LUFTHANSA GROUP ANNUAL REPORT 2020
60
COMBINED MANAGEMENT REPORT
Business segments  →  Eurowings business segment

T039  OPERATING EXPENSES EUROWINGS
 
2020 
in €m
2019 4)
in €m
Change  
in % 
 
Cost of materials and services
699
1,861
– 62
	
of which fuel
129
532
– 76
	
of which fees
234
625
– 63
	
of which charter expenses
102
376
– 73
	
of which MRO services
146
139
5
Staff costs  1)
176
259
– 32
Depreciation  
and amortisation  2)
199
233
– 15
Other operating expenses  3)
272
280
– 3
Total operating expenses
1,346
2,633
– 49
1)	 Without past service costs/settlement.
2)	Without impairment losses.
3)	Without book losses.
4)	Previous year’s figures have been adjusted.
The cost of materials sank year-on-year by 62% to EUR 699m 
(previous year: EUR 1,861m). There was a 76% volume and 
price-related decline in fuel expenses to EUR 129m (previous 
year: EUR 532m). At EUR 234m, expenses for fees and charges 
were 63% lower than a year ago (previous year: EUR 625m). 
As a result of the termination of external wet leases, charter 
expenses were reduced substantially by 73% to EUR 102m 
(previous year: EUR 376m).
Staff costs declined by 13% due to the restructuring pro-
gramme and the introduction of short-time working, while 
the average number of employees fell by 32% to EUR 176m 
(previous year: EUR 259m). 
Depreciation and amortisation fell by 15% to EUR 199m, 
mainly due to lower expenses for right-of-use assets for 
leased aircraft (previous year: EUR 233m). 
Other operating expenses fell in the 2020 financial year by 
3% to EUR 272m (previous year: EUR 280m). Lower sales, 
marketing and distribution costs due to reduced capacity, as 
well as lower legal and advisory costs, offset the write-downs 
on receivables following the insolvency of wet lease partner 
Luftfahrtgesellschaft Walter (LGW) and restructuring costs 
for Germanwings.
Adjusted EBIT of EUR – 703m down significantly  
due to coronavirus pandemic and non-recurring effects
Earnings in the reporting year were largely defined by the 
coronavirus pandemic. Cost improvements as part of the 
restructuring programme could not make up for the 74% 
decline in revenue. As a result, Adjusted EBIT fell in the 
financial year to EUR – 703m (previous year: EUR – 122m). 
The Adjusted EBIT margin fell by 112.3 percentage points to 
– 117.6% (previous year: – 5.3%).
EBIT decreased to EUR – 802m (previous year: EUR – 126m). 
The difference to Adjusted EBIT is essentially due to write-
downs of EUR 57m on goodwill and of EUR 37m on right-of-
use assets for 15 Dash 8-400s, five Airbus A321s and one 
A319 which are no longer planned to resume flight operations. 
Segment capital expenditure down 17% on the year
Segment investments fell by 17% to EUR 106m (previous 
year: EUR 127m). Investment was mainly in engine overhauls.
C18  EUROWINGS: DEVELOPMENT OF REVENUE, ADJUSTED EBIT in €m 
AND ADJUSTED EBIT MARGIN in %
  
  Revenue 
 Adjusted EBIT 
 Adjusted EBIT-Marge
ADJUSTED EBIT 2020
– 703
2,060
4,041
– 104
2016
2017
– 5.0
1.5
4,098
2018
– 5.6
2,311
598
2019
2020
– 5.3
– 117.6
– 231
– 122
60
LUFTHANSA GROUP ANNUAL REPORT 2020
61
COMBINED MANAGEMENT REPORT
Business segments  →  Eurowings business segment

Logistics business segment
Lufthansa Cargo is one of Europe’s leading freight airlines.  |  Digital sales  
channels strengthen market position.  |  Focus on sustainable reductions to  
cost base.  |  Infrastructure for transport of temperature-sensitive goods to be 
expanded.  |  Lufthansa Cargo achieves record result despite lower capacity.
T040  KEY FIGURES LOGISTICS
 
 
2020 
2019 
Change  
in %
 
Revenue 
€m
2,757
2,478
11
	
of which  
traffic revenue
€m
2,596
2,318
12
Adjusted EBITDA
€m
950
161
490
Adjusted EBIT
€m
772
1
 
EBIT
€m
717
– 33
 
Adjusted  
EBIT margin
% 
28.0
0.0
28.0 pts
Adjusted ROCE
% 
26.2
0.0
26.2 pts
EACC
€m
445
– 102
 
Segment capital 
­expenditure
€m
222
286
– 22
Employees  
as of 31 Dec 
number
4,373
4,539
– 4
Average number  
of employees
number 
4,436
4,543
– 2
Business activities
Lufthansa Cargo is one of Europe’s leading freight airlines
In addition to Lufthansa Cargo AG, the Lufthansa Group’s 
logistics specialists, the Logistics segment includes the  
airfreight container management specialist Jettainer group, 
the time:matters subsidiary, which specialises in particularly 
urgent consignments, the subsidiary Heyworld, which spe-
cialises in tailored solutions for the e-commerce sector, and 
the equity investment in cargo airline AeroLogic. Lufthansa 
Cargo also has equity investments in various handling  
companies and smaller companies involved in aspects of 
digitalising the sector.
The focus of Lufthansa Cargo’s operations lies in the air-
port-to-airport airfreight business. Its product portfolio 
encompasses standard and express freight as well as highly 
specialised products. These include the transport of live ani-
mals, valuable cargo, post and dangerous goods, as well as 
meeting growing market demand for the carriage of temper-
ature-sensitive goods. The company has specialised infra-
structure at Frankfurt Airport to handle these goods, including 
the Animal Lounge and the Lufthansa Cargo Cool Centre.
The Lufthansa Cargo freighter fleet consisted of nine Boeing 
777F and five Boeing MD-11F aircraft as of year-end. Due  
to the coronavirus pandemic, the bulk of belly capacities at 
Lufthansa German Airlines, Brussels Airlines, Austrian Airlines, 
Eurowings long-haul routes and SunExpress were not availa-
ble in the 2020 financial year. Normally, around half the 
freight volume at Lufthansa Cargo is transported in the belly 
capacities of passenger aircraft that are operated by these 
companies.
In addition, the AeroLogic joint venture in Leipzig operates  
17 B777 freighters on behalf of its two shareholders, Lufthansa 
Cargo and DHL Express. Lufthansa Cargo is responsible for 
marketing the capacities of four of these freighters.
Lufthansa Cargo also has successful international partner-
ships with the cargo divisions of All Nippon Airways, Cathay 
Pacific and United Airlines.
Course of business  
and operating performance
Lufthansa Cargo responds to the challenges of the 
coronavirus pandemic with flexibility
The ongoing coronavirus pandemic posed the airfreight 
industry with numerous challenges in 2020. Lufthansa Cargo 
was able to offset the decreased capacity due to reduced 
belly capacities by means of flexible network planning, the 
temporary use of converted passenger aircraft and deferral 
of the retirement of the MD11-fleet. Capacity reductions across 
the industry also meant that significantly higher average 
prices and load factors were reported. Sales also fell as a 
result of the significantly lower capacity.
Leading position to be further developed through digitali-
sation and exploitation of new market opportunities
Additional digital services should help Lufthansa Cargo to 
build on its leading position in the airfreight industry. In 
2020, the focus was partly on further development of digital 
distribution channels. The company’s in-house online sales 
channel, eBooking, was renewed in November 2020 and 
simplifies the booking process significantly. The booking 
platform cargo.one, in which Lufthansa Cargo holds an equity 
stake, performed well in the reporting period. 
LUFTHANSA GROUP ANNUAL REPORT 2020
62
COMBINED MANAGEMENT REPORT
Business segments  →  Logistics business segment

Cost-cutting programme results in structural  
improvements to the cost base 
Many measures that are intended to deliver sustainable  
savings were developed as part of the ProFlex cost-cutting 
programme. A large number of these measures have already 
been successfully initiated. The programme aims to perma-
nently reduce the cost base at Lufthansa Cargo by EUR 70m 
per year in terms of operating and staff costs. 
Fleet is being modernised and standardised
In the reporting year, two more B777F aircraft joined the 
Lufthansa Cargo fleet and three MD-11F freighters were 
retired from service. The fleet modernisation will be com-
pleted in 2021 when the remaining MD-11F freighters are 
retired. Lufthansa Cargo will then operate a uniform fleet of 
highly efficient B777F cargo aircraft. ↗ Fleet, p. 25f. 
Development of ground infrastructure for the transport  
of temperature-sensitive pharmaceutical products
Lufthansa Cargo is expanding its infrastructure for the trans-
port of temperature-sensitive pharmaceutical products. 
Pharma hubs were opened in Chicago and Munich during 
the reporting period. With its pharma hub in Frankfurt, the 
largest of its kind in Europe, and some 30 CEIV Pharma-  
certified stations worldwide, Lufthansa Cargo operates one 
of the world’s largest airline pharmaceutical networks. This is 
supplemented by many other stations for temperature-con-
trolled cargo. Lufthansa Cargo is therefore ideally prepared 
for the rapid intercontinental distribution of coronavirus  
vaccines and other highly sensitive pharmaceutical products. 
Restructuring of the Executive Board of Lufthansa Cargo
Dorothea von Boxberg has been the new Chief Executive 
Officer of Lufthansa Cargo since 1 March 2021. Previously, 
she was the Lufthansa Cargo Executive Board member 
responsible for global sales, network planning and product 
development. Dorothea von Boxberg was preceded by  
Peter Gerber, who has been the new Chief Executive Officer 
of Brussels Airlines since 1 March 2021. 
Dorothea von Boxberg’s successor as Chief Commercial 
Officer is Ashwin Bhat, who previously managed the freight 
business at SWISS. 
Traffic revenue up with lower capacity
Capacity at Lufthansa Cargo fell overall by 36% in 2020. Belly 
capacities declined due to the effects of the coronavirus pan-
demic, whereas freighter capacities were increased slightly. 
Sales volume was down 27% year-on-year as a result. Scarce 
capacities meant the cargo load factor rose by 7.8 percentage 
points to 69.1% (previous year: 61.3%). Yields rose by 57.1% 
after adjusting for exchange rates. Traffic revenue went up  
by 12% to EUR 2,596m for pricing reasons (previous year: 
EUR 2,318m).
T041  TRAFFIC FIGURES AND OPERATING FIGURES LOGISTICS
 
 
2020 
2019 
Change  
in %
Available cargo  
tonne-kilometres
millions
9,350
14,507
– 36
Revenue cargo  
tonne-kilometres
millions
6,461
8,899
– 27
Cargo load factor
%
69.1
61.3
7.8 pts
Yields  1)
€ cent
40.2
26.0
54.6  1)
1)	 Exchange rate-adjusted change: 57.1%.
Asia/Pacific and the Americas remain Lufthansa Cargo’s 
main traffic regions. The two regions account for nearly 90% 
of capacity and sales. Capacity and sales decreased in all the 
traffic regions. The cargo load factor improved in all traffic 
regions, as did yields. Traffic revenue fell in the Europe and 
Middle East/Africa traffic regions, whereas it rose in the 
Americas and Asia/Pacific traffic regions.
T042  TRENDS IN TRAFFIC REGIONS  
Lufthansa Cargo
Net traffic revenue 
external revenue
Available  
cargo tonne-kilometres
Revenue  
cargo tonne-kilometres
Cargo  
load factor
 
2020 
in €m
Change  
in %
2020  
in millions
Change  
in %
2020  
in millions
Change  
in %
2020 
in %
Change  
in pts
 
Europe
185
– 2
492
– 39
254
– 22
51.7
11.5
America
1,111
15
4,332
– 36
2,916
– 26
67.3
9.3
Asia/Pacific
1,171
23
3,998
– 29
2,971
– 25
74.3
4.4
Middle East /Africa
129
– 40
528
– 60
320
– 55
60.5
6.1
Total
2,596
12
9,350
– 36
6,461
– 27
69.1
7.8
LUFTHANSA GROUP ANNUAL REPORT 2020
63
COMBINED MANAGEMENT REPORT
Business segments  →  Logistics business segment

Revenue and earnings development
Revenue up year-on-year by 11% due to pricing
Revenue at Lufthansa Cargo rose by 11% to EUR 2,757m in 
2020 (previous year: EUR 2,478m). Higher yields due to 
capacity reductions across the industry were responsible for 
the increase. Operating income went up by 9% to EUR 2,826m 
(previous year: EUR 2,581m).
Expenses down by 21%
Operating expenses declined by 21% to EUR 2,082m in the 
reporting year (previous year: EUR 2,621m). 
T043  OPERATING EXPENSES LOGISTICS
 
2020  
in €m
2019 
in €m
Change  
in %
 
Cost of materials and services
1,300
1,778
– 27
	
of which fuel
174
337
– 48
	
of which fees
250
297
– 16
	
of which charter expenses
660
897
– 26
	
of which MRO services
98
119
– 18
Staff costs  1)
377
406
– 7
Depreciation and  
amortisation  2)
178
160
11
Other operating expenses  3)
227
277
– 18
Total operating expenses
2,082
2,621
– 21
1)	 Without past service costs/settlement.
2)	Without impairment losses.
3)	Without book losses.
The cost of materials sank year-on-year by 27% to EUR 1,300m 
(previous year: EUR 1,778m). There was a 48% volume and 
price-related decline in fuel expenses as a result of the mod-
ernisation of the fleet, to EUR 174m (previous year: EUR 337m). 
Charter expenses declined by 26% to EUR 660m due to the 
absence of belly capacities on passenger aircraft. This also 
meant a reduction in belly expenses paid to Group companies 
(previous year: EUR 897m). 
Staff costs went down by 7% to EUR 377m in 2020 (previous 
year: EUR 406m). This was largely due to the 2% decline in 
the average number of employees, the initial effects of the 
ProFlex cost-cutting programme, and the introduction of 
short-time work in Germany and similar measures in other 
countries.
Depreciation and amortisation rose year-on-year by 11% to 
EUR 178m (previous year: EUR 160m). 
Other operating expenses fell by 18% to EUR 227m, mainly 
due to lower travel, project, and consulting expenses (previous 
year: EUR 277m).
Lufthansa Cargo reports record earnings of EUR 772m
Adjusted EBIT increased accordingly by EUR 771m to EUR 
772m (previous year: EUR 1m). This was the best result in the 
company history of Lufthansa Cargo.
Segment capital expenditure down 22% on the year
Investment in the Logistics segment declined in the reporting 
period by 22% to EUR 222m, mainly due to lower advance 
payments for aircraft (previous year: EUR 286m). 
C19  LOGISTICS: DEVELOPMENT OF REVENUE, ADJUSTED EBIT in €m 
AND ADJUSTED EBIT MARGIN in %
  
  Revenue 
 Adjusted EBIT 
 Adjusted EBIT margin
ADJUSTED EBIT 2020
772
2,084
2,524
263
– 50
2016
2017
– 2.4
10.4
2,713
2018
9.9
2,478
2,757
2019
2020
0.0
28.0
268
1
LUFTHANSA GROUP ANNUAL REPORT 2020
64
COMBINED MANAGEMENT REPORT
Business segments  →  Logistics business segment

MRO business segment
Lufthansa Technik is the leading global provider of maintenance, repair and  
overhaul services for civil commercial aircraft.  |  Focus on containing the effects 
of the pandemic.  |  International growth selectively pursued.  |  Revenue and 
earnings down significantly year-on-year due to the pandemic.
T044  KEY FIGURES MRO
 
 
2020 
2019 1)
 
Change  
in % 
 
Revenue 
€m
3,747
6,572
– 43
	
of which with 
companies of the 
Lufthansa Group
€m
1,023
2,194
– 53
Adjusted EBITDA
€m
– 186
654
 
Adjusted EBIT
€m
– 383
463
 
EBIT
€m
– 508
472
 
Adjusted  
EBIT margin
% 
– 10.2
7.0
– 17.2 pts
Adjusted ROCE
% 
– 6.3
6.4
– 12.7 pts
EACC
€m
– 572
126
 
Segment capital 
­expenditure
€m
152
313
– 51
Employees  
as of 31 Dec 
number 
22,745
23,855
– 5
Average number  
of employees
number
23,519
23,077
2
Fully consolidated 
companies
number 
25
25
–
1)	 Previous year’s figures have been adjusted.
Business activities
Lufthansa Technik is the world’s leading MRO provider
Lufthansa Technik is the world’s leading independent provider 
of maintenance, repair and overhaul services (MRO) for civilian 
commercial aircraft. The Lufthansa Technik group comprises 
36 plants offering technical aviation services worldwide. The 
company also holds direct and indirect stakes in 63 compa-
nies. Lufthansa Technik AG serves more than 800 customers 
worldwide, including OEMs, aircraft leasing companies and 
operators of VIP jets, as well as airlines. About one-third of 
its business is with Group companies and two-thirds of its 
business is with external customers.
Lufthansa Technik’s range of services comprises eight divisions: 
aircraft maintenance, aircraft overhaul, engine maintenance, 
component maintenance, aircraft systems, development  
and manufacture of cabin products, development of digital 
products, and initial equipment and servicing of VIP aircraft.  
The portfolio covers a variety of differently structured prod-
ucts and product combinations, from the repair of individual 
components to consultancy services and the fully integrated 
supply of entire fleets.
Course of business  
and operating performance
Coronavirus crisis puts a significant burden  
on MRO business
The coronavirus crisis has had a considerable impact on the 
MRO business. Flight hours have declined significantly across 
the industry, and the economic pressure on airlines that led  
to the grounding and retiring of aircraft had a strong impact 
on Lufthansa Technik. 
Comprehensive cost-cutting measures to safeguard 
continued viability
Short-term, emergency measures such as the introduction of 
short-time working, recruitment freezes, extensive reductions 
in operating costs and the cancellation or postponement of 
investment projects have been initiated to contain the impact 
of the coronavirus crisis.
Significant cost reductions are required so the company can 
secure a strong long-term position in the independent MRO 
market and become more competitive. Structures are also 
being streamlined. Rather than the previous eight divisions, 
there will only be five in future: component maintenance,  
aircraft maintenance and overhaul, digital solutions technical 
flight operations, engine maintenance and production, and 
modification and special aircraft. 
Lufthansa Technik meets growing demand for crisis 
products and digital services 
Lufthansa Technik is responding flexibly to the coronavirus 
pandemic and expanding its range in line with new demand 
for crisis products. Many projects are under way that will 
convert various types of passenger aircraft into freighters.  
In addition, considerably more parking and storage services 
have been provided to aircraft maintenance customers in  
the course of the coronavirus crisis.
LUFTHANSA GROUP ANNUAL REPORT 2020
65
COMBINED MANAGEMENT REPORT
Business segments  →  MRO business segment

The coronavirus pandemic has led to greater demand for dig-
ital MRO services so that physical maintenance inspections 
can be organised more cheaply and reliably in future. One 
Lufthansa Technik product is its proprietary independent 
AVIATAR platform. AVIATAR supports customers in real-time 
with the management of complex fleet operations and helps 
to diagnose errors in individual components, thus supporting 
the digital transformation of air traffic. United Airlines joined 
the platform with more than 600 aircraft towards the end  
of the reporting year. 
Lufthansa Technik is expanding its network for innovative, 
targeted engine servicing 
Lufthansa Technik is driving its growth selectively, depend-
ing on demand. The global network for innovative, targeted 
engine servicing was expanded to include a fifth site in  
Dublin, Ireland. The high demand for best-possible cost con-
trols in engine and engine component maintenance will be 
served even better in future. 
Important contracts to be renewed and signed
Lufthansa Technik serviced 4,529 aircraft under exclusive 
contracts in 2020. In the financial year, the company won  
16 new customers and signed 515 contracts with a volume of 
EUR 2.3 bn. 
Restructuring of the Executive Board of Lufthansa Technik
The Executive Board of Lufthansa Technik was restructured 
at the end of the reporting year and reduced from four to three 
members. Executive Board members Constanze Hufenbecher 
and Antonio Schulthess left the Company as of 31 Decem-
ber 2020. As of 1 January 2021, Chief Executive Officer 
Johannes Bußmann took over the new, combined Finances 
and Human Resources function on an interim basis until  
the Supervisory Board has decided on a new appointment. 
Revenue and earnings development
Revenue down by 43% due to the coronavirus crisis 
Revenue in the MRO business segment fell year-on-year by 
43% to EUR 3,747m in 2020 as a result of the effects of the 
coronavirus crisis (previous year: EUR 6,572m). A significant 
decline in Europe, Lufthansa Technik’s most important sales 
market, played a key role. 
Intra-Group revenue fell, particularly in the engine business. 
External revenue decreased, particularly in the areas of com-
ponent and engine maintenance. Total operating income  
of EUR 4,184m was 39% down on the year (previous year: 
EUR 6,828m).
Expenses reduced by 30%
Operating expenses declined by 30% to EUR 4,502m in the 
reporting period as a result of lower volumes and cost-cutting 
measures (previous year: EUR 6,425m).
T045  OPERATING EXPENSES MRO
 
2020 
in €m
2019 4)
in €m
Change  
in %
 
Cost of materials and services
2,372
3,902
– 39
	
of which other raw materials,  
consumables and supplies
1,609
2,478
– 35
	
of which external services
763
1,424
– 46
Staff costs  1)
1,113
1,448
– 23
Depreciation and  
amortisation  2)
197
191
3
Other operating expenses  3)
820
884
– 7
Total operating expenses
4,502
6,425
– 30
1)	 Without past service costs/settlement.
2) Without impairment losses.
3) Without book losses.
4) Previous year’s figures have been adjusted.
The cost of materials saw a mostly volume-related decline  
of 39% to EUR 2,372m (previous year: EUR 3,902m). This 
includes crisis-related write-downs on materials of EUR 158m. 
Staff costs of EUR 1,113m were 23% down on the previous year 
(previous year: EUR 1,448m). The introduction of short-time 
working was mainly responsible for the change. 
Depreciation and amortisation rose by 3% to EUR 197m  
(previous year: EUR 191m).
Adjusted EBIT down to EUR – 383m as a result of the crisis 
Adjusted EBIT fell accordingly to EUR – 383m (previous  
year: EUR 463m). The Adjusted EBIT margin contracted by 
17.2 percentage points to – 10.2% (previous year: 7.0%). EBIT 
came to EUR – 508m at the end of the reporting year (previous 
year: EUR 472m). The difference to Adjusted EBIT stems 
mainly from write-downs on the carrying amounts of joint 
ventures and replacement engines. 
Segment capital expenditure down by 51% 
Segment capital expenditure in the MRO segment was 
reduced by 51% to EUR 152m (previous year: EUR 313m), 
mainly due to lower investment in reserve engines.
C20  MRO: DEVELOPMENT OF REVENUE, ADJUSTED EBIT in €m 
AND ADJUSTED EBIT MARGIN in %
  
  Revenue 
 Adjusted EBIT 
 Adjusted EBIT margin
ADJUSTED EBIT 2020
– 383
5,144
5,404
415
411
2016
2017
7.7
8.0
6,105
2018
7.3
6,572
3,747
2019
2020
7.0
– 10.2
466
463
LUFTHANSA GROUP ANNUAL REPORT 2020
66
COMBINED MANAGEMENT REPORT
Business segments  →  MRO business segment

Catering business segment
The LSG group offers a broad product portfolio related to in-flight service.  |   
European business sold to gategroup.  |  Focus on safeguarding liquidity  
and strategic realignment.  |  Revenue and earnings development hit hard by  
the coronavirus crisis.
T046  KEY FIGURES CATERING 
 
 
2020 
2019 
Change  
in % 
 
Revenue 
€m
1,305
3,360
– 61
	
of which with 
­companies of the 
Lufthansa Group
€m
241
737
– 67
Adjusted EBITDA
€m
– 167
247
 
Adjusted EBIT
€m
– 284
128
 
EBIT
€m
– 431
98
 
Adjusted  
EBIT margin
% 
– 21.8
3.8
– 25.6 pts
Adjusted ROCE
% 
– 17.3
6.4
– 23.7 pts
EACC
€m
– 375 
10
 
Segment capital 
­expenditure
€m
28
127
– 78
Employees  
as of 31 Dec  1) 
number 
13,227
35,636
– 63
Average number  
of employees  1)
number
25,288
35,904
– 30
Fully consolidated 
companies
number 
83
119
– 30
1)	 Previous year’s figures have been adjusted.
Business activities
Strong brand portfolio offers extensive range of products 
and services 
The LSG group offers a comprehensive range of products, 
concepts and services related to in-flight service. It operated 
with four independent expert brands in the reporting year: 
LSG Sky Chefs, Retail inMotion, SPIRIANT and Evertaste. 
As the strongest revenue driver in the LSG group, LSG Sky 
Chefs offers classical catering for airlines, as well as lounge 
management. After the sale of the European companies,  
it still works for more than 300 airlines with 139 facilities in 
46 countries. 
Retail inMotion, a Dublin-based global specialist for in-flight 
sales concepts and technology, significantly expanded its 
customer base in 2020. Retail inMotion is expected to be a 
clear growth area for the LSG group, particularly due to its 
digital competences. 
SPIRIANT is an expert in the development, purchasing and 
supply of in-flight service equipment, whereas Evertaste 
provides convenience food for global retailers and the travel 
industry. 
The SCIS subsidiary provides security services in North 
America. Retail markets are operated under the Ringeltaube 
brand at airports in Germany. 
LSG group’s European business sold to gategroup
The Lufthansa Group and gategroup signed a sales agree-
ment for the companies of LSG group’s European business 
on 6/7 December 2019. The European Commission approved 
the sale on 3 April 2020 subject to conditions. Once these 
conditions had been fulfilled by the purchaser, gategroup, 
the sale was closed on 2 December 2020.
In addition to the European catering facilities, the contract 
covers the lounge business and the European activities  
of the convenience food specialist Evertaste, the SPIRIANT 
equipment business and the Ringeltaube retail outlets. 
Also part of the sales agreement is a long-term catering  
contract with Lufthansa German Airlines for the hubs in 
Frankfurt and Munich. The Lufthansa Group will retain a 
minority interest in the two facilities in Frankfurt and Munich, 
which provide the in-flight service there for Lufthansa German 
Airlines flights. This will ensure a seamless handover of the 
catering business and a successful start to the partnership.
The planned sale of the LSG group’s international activities 
was postponed due to the coronavirus crisis. The LSG group 
is preparing to resume sales activities as part of its strategic 
and organisational realignment as soon as conditions permit.
LUFTHANSA GROUP ANNUAL REPORT 2020
67
COMBINED MANAGEMENT REPORT
Business segments  →  Catering business segment

Course of business  
and operating performance
Restructuring project for securement of liquidity  
and strategic realignment 
The LSG group is adapting to the structural changes in the 
market resulting from the coronavirus pandemic.
Immediately following the outbreak of the crisis, the LSG group 
significantly reduced its expenses and closely monitored  
the collection of its receivables. Measures including project 
stops, hiring freezes and the introduction of short-time work-
ing were also taken to cut costs and investment spending. 
In addition to the short-term cost-cutting measures, the 
Executive Board of the LSG group quickly launched a three-
part project to safeguard its long-term liquidity and to 
re-evaluate the strategic position of the LSG group. 
The restructuring activities aim to reduce administrative costs 
and other overhead by around 30%. A network analysis of all 
catering facilities was also initiated with the aim of adapting 
their organisational structure and business activities to 
future market volumes and customer needs. In this context, 
the group closed some plants, such as the one in Salt Lake 
City, Utah, USA, and withdrew from some markets, such as 
those in Turkey and South Africa. The number of employees 
of the LSG group outside Europe was temporarily halved  
at the end of the reporting year. Moreover, a reorganisation 
of the LSG group, which provides for the loss of more than 
30% of management positions, was put into effect as of  
1 November 2020.
LSG group to focus on three product lines in future
The LSG group has changed its strategic focus in parallel 
with its ongoing cost-cutting and restructuring programme. 
In future, it will concentrate on three product lines: classical 
catering and convenience retail, in-flight retail sales, and IT 
and platform solutions. An element of these IT and platform 
solutions are new business models and pilot projects such as 
home delivery, which are intended to reduce the company’s 
dependence on the airline business. With this new strategy, 
the LSG group is deliberately expanding its existing skills and 
combining them in new ways. It is also growing its customer 
portfolio and thus increasing capacity utilisation in its facilities 
in order to reduce existing excess capacities.
New business models and contract renewals strengthen 
position as quality leader 
Despite the ongoing coronavirus pandemic, the LSG group 
was able to renew or sign key new catering contracts in all 
regions in 2020, including with American Airlines, Atlas Air, 
Azul, British Airways, Delta Airlines, Emirates, Etihad, Hawaiian 
Airlines, United Airlines and Westjet. Retail inMotion also 
continued its positive performance, signing a contract for 
the development and management of an innovative in-flight 
sales concept for Lufthansa German Airlines, SWISS and 
Austrian Airlines. The pandemic opened up new business 
opportunities in the retail sector for some LSG Sky Chefs 
facilities, with new contracts signed with ArkFoods, Hello 
Fresh and Home Chef at various stations. 
Changes to structure of LSG group Executive Board
Jochen Müller, Chief Operating Officer of the LSG group, 
retired on 30 June 2020. The Executive Board of the LSG 
group took this opportunity to adapt the company’s organi-
sational structure to current market developments and to 
streamline it. As a result, from July onwards, the Executive 
Board of the LSG group only consisted of two members. 
Revenue and earnings development
Revenue down year-on-year by 61% due to the pandemic
Revenue in the Catering segment fell by 61% in financial  
year 2020 to EUR 1,305m (previous year: EUR 3,360m). The 
decline stems mainly from the sharp decline in passenger 
numbers at the LSG group’s global customers due to the 
coronavirus crisis. Other operating income increased by 51% 
to EUR 143m thanks to grants under the Coronavirus Aid, 
Relief and Economic Security Act (CARES Act) (previous year: 
EUR 95m). Total operating income declined by 58% to 
EUR 1,448m (previous year: EUR 3,455m).
Expenses reduced by 49%
Operating expenses went down by 49% to EUR 1,698m in 
the reporting year (previous year: EUR 3,355m). 
T047  OPERATING EXPENSES CATERING
 
2020  
in €m
2019  
in €m
Change  
in %
 
Cost of materials and services
545
1,441
– 62
Staff costs 1)
742
1,290
– 42
Depreciation and  
amortisation 2)
117
119
– 2
Other operating expenses 3)
294
505
– 42
Total operating expenses
1,698
3,355
– 49
1)	 Without past service costs/settlement.
2)	Without impairment losses.
3)	Without book losses.
LUFTHANSA GROUP ANNUAL REPORT 2020
68
COMBINED MANAGEMENT REPORT
Business segments  →  Catering business segment

The cost of materials and services was 62% down on the 
year at EUR 545m (previous year: EUR 1,441m).
Staff costs were reduced by 42% to EUR 742m (previous 
year: EUR 1,290m). The average number of employees was 
30% lower.
Depreciation and amortisation went down by 2% to 
EUR 117m (previous year: EUR 119m).
Adjusted EBIT down to EUR – 284m
Adjusted EBIT for the Catering segment declined accordingly 
to EUR – 284m (previous year: EUR 128m). The Adjusted EBIT 
margin fell by 25.6 percentage points to – 21.8% (previous 
year: 3.8%). 
EBIT decreased to EUR – 431m (previous year: EUR 98m). 
The difference to Adjusted EBIT stems mainly from the 
write-down of EUR 157m on goodwill for LSG North America 
and LSG Sky Chefs Korea Co Ltd. 
Segment capital expenditure reduced by 78%
Segment capital expenditure was 78% down on the year at 
EUR 28m (previous year: EUR 127m) and consisted mainly of 
essential replacement investments.
Additional Businesses and Group Functions
AirPlus continues to expand corporate payment business.  |  Restructuring  
at Lufthansa Aviation Training.  |  Lufthansa Systems has success in the field of 
digital transformation.  |  Earnings of Group Functions improve.
T048  KEY FIGURES ADDITIONAL BUSINESSES  
AND GROUP FUNCTIONS
 
 
2020 
2019 
Change  
in %
 
Total operating 
income
€m 
2,041
2,732
– 25
Adjusted EBITDA
€m 
– 190
– 120
– 58
Adjusted EBIT
€m
– 314
– 227
– 38
EBIT
€m
– 363
– 221
– 64
Segment capital 
expenditure
€m 
48
107
– 55
Employees  
as of 31 Dec  1) 
number
9,269
9,978
– 7
Average number  
of employees  1)
number 
9,570
10,000
– 4
1)	 Previous year’s figures have been adjusted.
Additional Businesses and Group Functions include the 
Group’s service and financial companies, above all AirPlus, 
Lufthansa Aviation Training and Lufthansa Systems, as well 
as the Group functions for the Lufthansa Group.
AirPlus offers corporate payment solutions
Lufthansa AirPlus Servicekarten GmbH (AirPlus) is a leading 
international provider in the global market for payment and 
billing services. Under the AirPlus International brand, it offers 
solutions in over 60 countries worldwide. The company served 
more than 48,000 corporate customers in total in 2020.
C21  CATERING: DEVELOPMENT OF REVENUE, ADJUSTED EBIT in €m 
AND ADJUSTED EBIT MARGIN in % 
  
  Revenue 
 Adjusted EBIT 
 Adjusted EBIT margin
ADJUSTED EBIT 2020
– 284
3,219
3,217
3,194
104
66
115
128
2.1
3.3
3.6
3,360
3.8
1,305
2017
2018
2016
2019
2020
– 21.8
LUFTHANSA GROUP ANNUAL REPORT 2020
69
COMBINED MANAGEMENT REPORT
Business segments  →  Catering business segment, Additional Businesses and Group Functions

Whereas the Business Travel Management segment suffered 
from lower volumes in 2020 as a result of global restrictions 
to contain the coronavirus pandemic, the strategic expansion 
of activities in the corporate payment sector demonstrates 
significant success. The new AirPlus Virtual Cards for Procure-
ment reported a very positive performance and were already 
in use by companies in eleven countries at year-end. The use 
of these digital cards is transforming purchasing and billing 
processes; they are the first product on the new AirPlus IT 
platform to be rolled out in 2021. Furthermore, all AirPlus 
corporate cards were successfully migrated to cutting-edge 
systems during the reporting year. In this context, a new 
globally uniform online portal was launched for corporate 
customers and cardholders.
The Adjusted EBIT of AirPlus came to EUR – 146m in the 
reporting year due to lost revenue as a result of the coronavirus 
pandemic (previous year: EUR 2m).
Lufthansa Aviation Training implements  
sustainable strategies 
Lufthansa Aviation Training GmbH (LAT) is one of the leading 
flight training companies, providing vocational and professional 
training for cockpit and cabin crew at twelve training centres. 
LAT’s customer portfolio includes the companies in the 
Lufthansa Group as well as more than 180 national and 
international airlines.
The coronavirus pandemic has serious negative implications 
for LAT. There will be no need to train junior pilots in its pilot 
school for the foreseeable future. The Future One EFA Pilot 
School project is intended to maintain in-house training 
facilities and at the same time implement a sustainable flight 
school strategy which reflects the increasing volatility  
in demand for pilots. This will guarantee that the Lufthansa 
Group airlines have an adequate supply of pilots after the 
end of the coronavirus crisis. In the reporting year, the Pilot 
Training and Safety & Service units were marked by cancella-
tions and lower order volumes from both Lufthansa Group 
airlines and external customers. With its Smart Start pro-
gramme, LAT is defining new ways to become a cost-effective 
and sustainable training organisation.
A number of long-term projects were also completed in the 
reporting year: the LAT Training Center at Zurich Airport was 
completed, and the LAT-operated helicopter simulator went  
into service. A second A350 simulator is also ready for service 
at the base in Munich. 
Adjusted EBIT for LAT fell in the financial year to EUR – 29m 
(previous year: EUR 4m). 
Lufthansa Systems continues to grow digital  
transformation business
Lufthansa Systems was again able to defend its position in 
the international airline IT market, despite the difficult market 
environment caused by the coronavirus pandemic. Flexible 
solutions that can adapt quickly to crises make the company 
a pioneer in the field of digital transformation for its more 
than 350 airline customers. This enabled it to win additional 
new customers and bring numerous projects to a successful 
close in the reporting year. Within the Lufthansa Group, 
Lufthansa Systems contributed to the harmonisation of the 
IT environment. 
Including all of its equity investments, the IT company  
generated Adjusted EBIT of EUR 17m in the reporting period 
(previous year: EUR 4m).
Earnings of Group Functions improve
The results for the Additional Businesses and Group Func-
tions business segment are largely determined by the Group 
Functions, whose earnings reflect the currency hedging and 
financing activities carried out by Deutsche Lufthansa AG on 
behalf of the companies in the Group. The result is therefore 
heavily exposed to exchange rate movements. 
Total operating income for the Group Functions fell by 19% to 
EUR 1,274m (previous year: EUR 1,571m). Operating expenses 
of EUR 1,425m were 22% down on the year (previous year: 
EUR 1,824m). Adjusted EBIT improved by 40% to EUR – 151m 
(previous year: EUR – 253m). The improvement is largely due 
to lower operating and staff costs as a result of the crisis as 
well as lower exchange rate losses.
Result for Additional Businesses and Group Functions 
below previous year
Total operating income for Additional Businesses and  
Group Functions sank by 25% to EUR 2,041m (previous year: 
EUR 2,732m). Operating expenses were reduced by 21% to 
EUR 2,361m (previous year: EUR 2,971m). Adjusted EBIT fell 
by 38% to EUR – 314m (previous year: EUR – 227m).
LUFTHANSA GROUP ANNUAL REPORT 2020
70
COMBINED MANAGEMENT REPORT
Business segments  →  Additional Businesses and Group Functions

Opportunities and risk report
The management of opportunities and risks is integrated into all business  
processes.  |  Risks are identified early and are managed and monitored  
proactively.  |  Opportunities are exploited selectively.
OPPORTUNITIES AND  
RISK MANAGEMENT
Opportunity management process
For the highly dynamic global airline industry, opportunities 
can arise both externally – from new customer wishes,  
market structures, ongoing consolidation or changes in the 
regulatory environment – and internally – from new products, 
innovations, quality improvements and competitive differen-
tiation.
Employees and managers in the Lufthansa Group identify 
opportunities in the course of day-to-day processes and 
market observation. Opportunity management is also an 
integral part of the annual strategy and planning process. 
Scenario analyses and accurate return calculations are used 
to precisely examine opportunities and the associated risks. 
Opportunities that, in an overall assessment, are considered 
advantageous for the development of the Lufthansa Group 
are pursued and implemented by means of defined steps. 
They are managed by established planning and forecasting 
processes as well as by projects. Opportunities of relevance 
to the whole Group are incorporated into Group strategy,  
↗ Group strategy, p. 17ff. The individual operating segments also 
identify specific opportunities, ↗ Business segments, p. 51ff.
Objectives and strategy of the risk management system
Risk management at the Lufthansa Group aims to fully identify 
material risks, to present and compare them transparently 
and to assess and manage them. Risk owners are obliged  
to monitor and manage risks proactively and to include rele-
vant information in the planning, steering and control pro-
cesses. The Group guidelines on risk management adopted 
by the Executive Board define all the binding methodological 
and organisational standards for dealing with opportunities 
and risks.
Structure of the risk management system
The scope of consideration covered by the Lufthansa Group’s 
risk management system comprises all of the airlines in the 
Lufthansa Group, the MRO, Logistics and Catering segments, 
as well as Lufthansa Aviation Training, AirPlus, Miles & More, 
Lufthansa Global Business Services, the IT companies and 
the Delvag Group.
 ↗ C22 Risk management in the Lufthansa Group shows the 
different functions involved.
C22 RISK MANAGEMENT IN THE LUFTHANSA GROUP
Line managers (Risk owners)
report
reports
Executive Board  
Deutsche Lufthansa AG
Supervisory Board /  
Audit Committee
Internal Audit
Auditors
Risk controlling  
in Group companies
Group risk  
management
Risk management  
officers for  
Group companies
Risk Management 
Committee
Bilateral talks
Group-wide standards,  
uniform procedures
Unified integration  
in planning and  
management processes
Performing an 
 independent  
audit function
LUFTHANSA GROUP ANNUAL REPORT 2020
71
COMBINED MANAGEMENT REPORT
Opportunities and risk report

The Supervisory Board’s Audit Committee monitors the 
existence and the effectiveness of the Lufthansa Group’s risk 
management.
The Risk Management Committee ensures, on behalf of the 
Executive Board, that business risks are always identified  
at an early stage, evaluated and managed across all functions 
and processes. It is also responsible for improving the effec-
tiveness and efficiency of risk management. Appointments 
to and the responsibilities of the committee are defined in 
internal regulations.
The Corporate Controlling department has functional 
responsibility for ensuring that the risk management system 
is standardised across the Group. It reports directly to the 
CFO. Group risk management is responsible for implement-
ing uniform standards and methods, for coordinating and 
continuously refining the risk management process and for 
all risk management reporting in the Lufthansa Group.
The managing directors or management boards of all the 
companies covered by the risk management system also 
appoint risk managers. They are responsible for implement-
ing the Group guidelines within their own companies and  
are in close, regular dialogue with the Lufthansa Group’s risk 
management function. In addition, they ensure that risk-rele-
vant information is agreed with the planning and forecasting 
processes in their company (risk controlling).
Managers with budgetary and/or disciplinary responsibility 
are designated as risk owners. Their role is to implement  
risk management for their area. The identification, evaluation, 
monitoring and management of risks are therefore funda-
mental aspects of every management role. The “principles of 
risk management” stipulate that the occurrence of predictable 
risks that have not been reported in the past is considered  
to be a serious management error.
The Internal Audit department carries out internal, independent 
system audits focusing on the effectiveness, appropriate-
ness and cost-effectiveness of the risk management system 
practised in the Lufthansa Group.
During its annual audit of the financial statements, the auditor 
examines the system for the early identification of risks in 
place at Deutsche Lufthansa AG with regard to statutory 
requirements. In 2020, the review came to the conclusion 
that all statutory requirements were met in full.
Stages of the risk management process
The closed and continuous risk management process, which 
is supported by IT, begins with the identification of current 
and future, existing and potential opportunities and risks 
from all material internal and external areas. The Lufthansa 
Group defines opportunities and risks as the possible positive 
or negative deviations from a forecast figure or a defined 
objective. The risks identified are checked for plausibility  
by the companies’ risk coordinators and gathered together  
in the Group’s risk portfolio. The risk portfolio documents the 
systematic entirety of all individual risks and constitutes the 
quality-assured result of the identification phase. As the risk 
landscape is dynamic and subject to change, the identifica-
tion of risks is a continuous task for the risk owners.
Risk owners are obliged at least once a quarter to verify that 
the risks for which they are responsible are complete and up 
to date. They also evaluate the extent to which circumstances 
involving risk have already been included in the forecast 
results and to what extent there are additional opportunities 
or risks of achieving a better or worse result than the one 
forecast. They actively manage opportunities and risks by 
means of risk mitigation instruments and measures.
On this basis, the Executive Board is regularly informed 
about the current risk situation of the Lufthansa Group and 
of the operating segments. The Executive Board reports 
annually to the Audit Committee on the performance of  
the risk management system, the current risk situation of  
the Lufthansa Group and on significant individual risks and 
their management. In the event of significant changes to 
previously or recently identified top risks, mandatory ad hoc 
reporting processes have been defined in addition to these 
standard reports.
Evaluation methodology in the risk management process
Once the risks have been identified, all the individual risks 
are measured according to uniform measurement principles. 
Risks are generally evaluated on a net basis, i.e. taking 
implemented and effective management and monitoring 
instruments into account. A methodological distinction is 
made between qualitative and quantitative risks. Regardless 
of the risk type, objective criteria or figures derived from  
past experience are used for the evaluation wherever possible. 
Risk measurement thus forms the basis for consolidating 
similar individual risks into an aggregate risk. Suitable instru-
ments for risk management are defined with the aim of pro-
actively limiting the risk position. Continuous risk monitoring 
identifies changes in individual risks and any required adjust-
ments to risk management at an early stage. Steps necessary 
to manage and monitor risks are initiated as required. Steps, 
in this sense, mean clearly defined activities with a fixed 
duration, responsibility and time frame, which serve to 
develop control instruments. 
LUFTHANSA GROUP ANNUAL REPORT 2020
72
COMBINED MANAGEMENT REPORT
Opportunities and risk report

Qualitative risks are mostly long-term developments with 
potentially adverse consequences for the Lufthansa Group. 
As concrete information is often not available, these risks 
cannot or cannot yet be quantified. In the context of qualita-
tive risks, risk management amounts to a strategic approach 
to uncertainty. Qualitative risks are often identified in the form 
of “weak signals”. In order to evaluate such risks as system-
atically as possible in spite of this, estimates are made about 
their significance and their magnitude. Significance describes 
the potential impact of the individual risk – for example, on 
the Group’s reputation, business model or earnings. The  
estimate of magnitude assesses how pronounced or intense 
the (weak) signals are that indicate a potential risk to the 
Lufthansa Group or a specific company. ↗ C23 Lufthansa risk 
evaluation for qualitative and quantitative risks shows the  
different categories used.
Quantitative risks are those whose potential effect on earnings 
can be estimated. A distinction is made between different 
probabilities of occurrence. The extent of loss is given as the 
potential monetary impact on the planned Adjusted EBIT. 
Depending on the type of risk, this may relate either to rela-
tively infrequent event risks, such as an airspace closure, or to 
risks from deviations from planned business developments, 
due to fuel price volatility, for instance. Quantitative risks 
therefore form the basis for the overarching verification of 
potential deviations from plans and forecasts. The thresholds 
for classifying the monetary Adjusted EBIT effect are defined 
centrally for the Lufthansa Group and for the Group companies 
according to standardised criteria.
The individual qualitative and quantitative risks are divided 
into classes A, B, C, D and other risks to assess their mate­
riality. In accordance with DRS 20, all quantitative A and B 
risks as well as all qualitative A and B risks that are at least  
of a “substantial” significance and a “high” magnitude count 
as material risks for the Lufthansa Group. ↗ C23 Lufthansa 
risk evaluation for qualitative and quantitative risks.
Risks for the Lufthansa Group that meet this materiality  
criterion are presented in a table in the order of their signifi-
cance for the Lufthansa Group in the section ↗ Opportunities 
and risks at an individual level, p. 74ff., and are described  
in detail below. In some cases, equivalent risks are shown 
here in a more aggregated form than that used for internal 
management purposes. Unless stated otherwise, all the  
segments in the Lufthansa Group are exposed to a greater  
or lesser degree to the risks described.
Inclusion of CSR Directive Implementation Act  
in risk management
In accordance with the CSR Directive Implementation Act 
(CSR-RUG), the Lufthansa Group’s risk management also 
covers aspects relevant to CSR (environmental, employee 
and social concerns, as well as human rights, anti-corruption 
measures, bribery and the supply chain) and their risks for 
external stakeholders. Risks are reported in the combined 
non-financial declaration in line with CSR-RUG if they would 
have a severely adverse impact on the Company and their 
occurrence is highly likely. In 2020, the CSR content was 
updated to include mitigating instruments and measures. As 
in the previous year, none of the CSR risks were so material 
that they were described at an individual level. 
Internal Control System for monitoring the  
risk management process
The risk management process in the Lufthansa Group is 
monitored by an internal control system (ICS). This entails 
systematically reviewing the effectiveness of control meas-
ures for material risks as part of the Lufthansa Group’s ICS. 
The relevant risks are selected annually. The review includes 
an assessment of the structure and the functionality of  
the Lufthansa Group’s ICS. Reporting on the results of the 
review forms part of the report to the supervisory boards of 
the individual companies on the effectiveness of the ICS, 
and to the Audit Committee of the Deutsche Lufthansa AG 
Supervisory Board on an overall basis.
Magnitude /
Probability of occurence
Significance /
Extent of damage in €m
C23  LUFTHANSA RISK EVALUATION FOR QUALITATIVE AND  
QUANTITATIVE RISKS
 
 A risks 
 B risks 
 C risks 
 D risks
extreme / 
≥ 50%
high / 
30 – 50%
medium / 
20 – 30%
low / 
10 – 20%
negligible / 
2 – 10%
immaterial /
25 – 50
low /
50 – 125
moderate /
125 – 250
substantial /
250 – 500
critical /
≥ 500
LUFTHANSA GROUP ANNUAL REPORT 2020
73
COMBINED MANAGEMENT REPORT
Opportunities and risk report

OPPORTUNITIES AND RISKS  
AT AN INDIVIDUAL LEVEL
The table below shows the top risks for the Lufthansa Group. 
It encompasses all quantitative A and B risks, as well as 
qualitative risks with a rating of at least “substantial” and 
“high” in the order of their significance. Detailed explana-
tions can be found in the following sections.
Macroeconomic opportunities and risks
Uncertain economic environment
The Lufthansa Group’s forecast for the year 2021 is based  
on the expectation that future macroeconomic conditions 
and sector developments will correspond to the description 
given in the ↗ Forecast, p. 118ff. If the global economy  
performs better than forecast, this is expected to have a 
positive effect on the Lufthansa Group’s business. Future 
revenue and earnings for the Lufthansa Group may, in this 
case, exceed the current forecast. As a global company, the 
Lufthansa Group can also benefit from positive developments 
outside its own core market. Conversely, however, it cannot 
be ruled out that unforeseen unfavourable macroeconomic 
or regulatory changes could have a negative impact on the 
medium-term financial performance of the Lufthansa Group. 
Risks with potential effects on global economic growth,  
and thereby for the Lufthansa Group’s sales, primarily arise 
from the further course of the global coronavirus pandemic, 
increasingly protectionist economic policies or an increasing 
risk of armed conflict in some areas of the world. 
In spite of the Brexit agreement between the EU and the UK, 
there are still uncertainties regarding the medium-term eco-
nomic impact of Brexit, for example on demand for air travel to 
and from the UK or on possible disruptions to supply chains.
Crises, wars, political unrest or natural disasters
The still critical security situation, particularly in the Middle 
East and North Africa but also in Europe and Germany, as well 
as the latent risk of terrorist attacks on air traffic and aviation 
infrastructure could have concrete effects on business  
operations and on the safety of the Lufthansa Group’s flight 
operations, customers and employees. Potential financial 
losses could result from primary effects, such as not being 
able to fly to individual destinations, but also from significant 
secondary effects, including a fall in passenger numbers, 
higher insurance premiums, higher fuel costs due to airspace 
closures or more stringent statutory security requirements.
 
T049  TOP RISKS LUFTHANSA GROUP
 
Significance
Magnitude
Trend
Description
 
Quantitative risks
 
 
 
 
Fuel price movements
critical
extreme
→
↗ p. 79
Earnings risks
critical
extreme
→
↗ p.76
Cyber- and IT risks
critical
high
→
↗ p. 82
Breaches of compliance requirements and data protection regulations
critical
medium
→
↗ p. 83
Exchange rate losses on pension fund investments
critical
negligible
→
↗ p. 80
Crises, wars, political unrest or natural disasters
substantial
high
→
↗ p. 74f.
Risks from state aid 
substantial
negligible
new
↗ p. 80
Non-achievement of the continuous improvement assumption
moderate
extreme
↓
↗ p. 81
Exchange rate movements
moderate 
extreme
↓
↗ p. 80
Downgrade to a single-B rating
moderate
high
new
↗ p. 80
Qualitative risks
Pandemic diseases
critical
extreme
↑
↗ p. 75
Political risks in the context of the coronavirus pandemic
critical
extreme
new
↗ p. 77f.
Flight operations risks
critical
negligible
→
↗ p. 82
Human resources
substantial
high
→
↗ p. 81
Provider default risk
substantial
high
new
↗ p. 81
Infrastructure risk
substantial
high
new
↗ p. 77
Strategic fleet sizing
substantial
high
neu
↗ p. 77
Increased noise legislation
substantial
high
→
↗ p. 78
Regulatory risks resulting from climate change
substantial 
high
→
↗ p. 78
Digital transformation – market entry of new competitors (LHT) 1)
critical
medium
↓
↗ p. 77
Contaminated foods (LSG group) 1)
critical
low
→
↗ p. 82
1)	 Risk evaluation on segment level.
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Because of its strong symbolic effect, civil aviation is still  
a potential target of terrorist attacks. At the same time,  
military conflicts between states could also pose significant 
risks, especially if they take place in the short term and out-
side clearly defined borders. Flights over areas of conflict 
continue to require comprehensive risk assessment and 
management, because there is a risk to civil aviation from 
complex anti-aircraft systems, especially in the hands of 
non-state forces, and increased military activity makes it 
more difficult to use and coordinate airspace. The demands 
made of the security functions of international companies 
are rising continuously in view of the political environment 
and the continuous development of new technology. In this 
context, particular mention should be given to the greater 
availability and use of unmanned aircraft (drones) and the 
various challenges they present. Increasing security regula-
tions due to a higher amount of threats, as well as a tighten-
ing of entry requirements for passengers around the world, 
could lead to further restrictions in international air traffic 
and thereby to adverse effects for the air transport industry. 
Finally, the current coronavirus pandemic is expected to have 
a negative effect on the overall security situation and state 
stability. In addition to the escalation or acceleration of  
existing conflicts, there is also growing pressure on internal 
resources and established conflict resolution mechanisms  
at the same time.
In order to analyse, track and manage these risks, the 
Lufthansa Group carries out comprehensive monitoring of 
the global security situation and current events – including 
natural disasters – that may affect the Lufthansa Group. The 
Lufthansa Group prepares comprehensive security analyses 
on an ongoing basis in order to assess developments in 
advance and so to draw up preventive scenarios in the event 
of any disruptions. It can draw on an extensive network of 
national and international security services and specialised 
security advisers to do so. The necessary security measures 
depend on the probability and consequences of the event.
To evaluate security-relevant events in the context of the 
regional environment, the Lufthansa Group uses a quality 
management system, which helps with the continuous eval-
uation of local security procedures, both in existing operations 
and with new destinations. In order to guarantee compliance 
with national, European and international aviation security 
legislation and the Lufthansa Group’s own security stand-
ards, these sites are inspected regularly in the course of risk 
audits for aviation security and country risks. This also takes 
into account any indirect effects of the current coronavirus 
pandemic. If necessary, deficits are compensated for by 
additional measures that may affect all relevant functional 
areas. In addition, perceptions of Germany, and of Switzerland, 
Austria, Belgium or the European Union in certain regions of 
the world and the profile of the Lufthansa Group compared 
with other, particularly exposed Western airlines are taken into 
account when choosing infrastructure and processes abroad.
Pandemic diseases
Risks exist around the world from the transmission of patho-
gens from animals to humans, from humans to humans and 
by other means. Epidemics, pandemics or other causes such 
as bioterrorism could cause high rates of disease in various 
countries, regions or continents. In the short, medium and 
long term, this could drastically reduce the number of passen-
gers travelling by air due to a fear of contagion, as is currently 
being dramatically demonstrated by the pandemic spread  
of the coronavirus. Furthermore, it is possible that staff are 
not willing to fly to the countries concerned for fear of infec-
tion and that local employees want to leave these countries. 
A high prevalence of sickness among employees may endan-
ger operations. Official travel restrictions to prevent the 
transmission of pathogens may also result in operational 
constraints. 
The Lufthansa Group permanently reviews information from 
the World Health Organisation (WHO), the US and European 
Centres of Disease Control, the Robert Koch Institute in  
Germany and other institutions in order to identify risks of  
an epidemic or pandemic as early as possible. To this end, 
we have our own employees trained in medical intelligence  
who make use of various early warning systems. Employees 
receive detailed information, risk groups are given personal 
protective equipment and preventive vaccination campaigns 
against influenza run throughout the Lufthansa Group every 
year. Since the beginning of the coronavirus pandemic,  
the Lufthansa Group has implemented a comprehensive 
safety plan for the prevention of infections for passengers 
and employees.
The Lufthansa Group has factored the economic impact of 
the coronavirus into its financial forecast. However, it is not 
yet possible to make a final assessment of the further course 
of the pandemic, the virus containment measures, especially 
with regard to travel restrictions, and the short-term impact 
of the pandemic on demand. There is therefore a risk that the 
economic impact of the coronavirus pandemic will be worse 
than forecast.
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Sector-specific opportunities and risks
Market growth and competition
The growth of the aviation sector is highly dependent on  
the global political situation and correlates with macroeco-
nomic development. In the past, the airline industry was on  
a long-term growth path with above-average growth rates, 
especially in regions such as Asia/Pacific. Structural changes 
in demand in connection with the coronavirus pandemic, 
infrastructure limitations, the influence of the climate debate 
and continued digitalisation are expected to significantly 
reduce market growth in the coming years. Cost competition, 
which is already prevalent in many segments of the airline 
market, will intensify further as a result of the changed market 
environment.
The Lufthansa Group has implemented a large number of 
measures in order to be able to react flexibly to changes in the 
market and in competition. This includes the implementation 
of structural cost-cutting measures and the continued flexi-
bilisation of the cost structure, for example by increasing the 
proportion of leased aircraft, flexible working time models  
or more-flexible supplier contracts. In addition, products and 
services are being developed to further increase relevance  
to the customers in a highly competitive environment. These 
measures will be aligned with the required cost savings. 
Market consolidation
In recent years, an increased trend towards consolidation in 
the fragmented European airline sector has been apparent. 
The dynamics of consolidation are expected to change in the 
wake of the coronavirus crisis, as market exits are not taking 
place or financial resources for takeovers are not available due 
to government support measures. While acquisition-based 
market consolidation is, for the time being, not playing a  
significant role in the context of crisis management, the 
Lufthansa Group continues to strive to actively drive market 
consolidation through other forms of cooperation.
Converging business models and new  
customer requirements
In the European market, the convergence of the business 
models of low-cost carriers and full-service airlines continues. 
This is resulting in increasing cost pressure in the full-service 
airline segment, which is being countered by the use of new 
technologies, the efficient use of resources and new products 
that customers want and are prepared to pay for. This is why 
the Lufthansa Group is concentrating both on cutting unit 
costs and on offering high-quality products for demanding 
customer segments in markets with strong purchasing power.
The Lufthansa Group’s positioning also involves the endeav-
our to satisfy customers’ wishes for sustainable products  
and sustainable production as well as an individualised travel 
experience. The Lufthansa Group invests continuously in 
employees and systems in this area. So, the Network Airlines 
aspire to provide every customer with the right product at 
the right time. Eurowings Digital GmbH drives the develop-
ment of innovative products and services for travellers,  
especially in the form of software solutions and mobile  
applications in the low-cost segment.
Products and services are also increasingly being developed 
with sustainability in mind, and, for example, the use of dis-
posable plastic articles is being steadily reduced. Passengers 
are also given the opportunity to offset the CO₂ emissions 
generated by their flight via the Lufthansa Group platform 
Compensaid, which is incorporated into the booking process.
Aviation Services
The Lufthansa Group is broadly positioned with its service 
companies. Lufthansa Cargo is pursuing growth opportunities 
by developing innovative products, digitalisation and airfreight 
joint ventures. Lufthansa Technik focuses on adapting its 
portfolio of services and its capacity in a changed aviation 
market environment after the coronavirus. The service portfolio 
will be strengthened with a focus on digitalisation and the 
expansion of partnerships with original equipment manufac-
turers (OEMs). Increased efficiency and future-oriented 
technologies in the repair and asset management core busi-
ness segment will help secure competitive advantages in  
the long term.
Earnings risks
There are revenue risks for the entire Lufthansa Group. Since 
the outbreak of the coronavirus pandemic, country-specific 
entry bans and travel warnings have had a particularly strong 
influence on flight capacity, customer booking behaviour  
and revenue development. Over the course of the pandemic,  
it has become apparent that markets are often closed and  
reopened at very short notice and for a period that is initially 
unspecified. This makes it enormously difficult to forecast 
revenue and increases risk. Consequently, the development 
of bookings and revenues is continuously monitored. In addi-
tion to the factors mentioned above, risks can still result from 
price fluctuations, excess capacities, economic fluctuations, 
current market and competitive developments, geopolitical 
changes and unforeseen global events. These challenges  
will be addressed in the short term, in particular by adjusting 
capacity. Sales, product, capacity and cost-cutting measures 
are also taken. In the long term, unit costs are improved sys-
tematically and sustainably by continuous efficiency gains 
and as the result of segment-specific restructuring projects.
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Risks from strategic fleet sizing
The strategic sizing of the Group fleet determines the  
available capacity and therefore also a large part of the fixed  
costs and future capital expenditure. Due to the demand  
and competition risks mentioned above, there is a risk of 
oversizing that is not commercially viable, resulting in a 
decline in earnings.
As part of the annual strategy and planning process, the 
Lufthansa Group regularly reviews the planned fleet develop-
ment over the next ten years and takes decisions on the  
allocation of aircraft to the various airlines in the Lufthansa 
Group and the planned capacity for the next four years. 
Fleet planning is also reviewed and adjusted during the year 
as needed. The fleet may be reduced through the sale and 
parking of aircraft. Similarly, aircraft orders may be cancelled 
or delivery postponed in negotiations with aircraft manufac-
turers, and lease agreements may be terminated. Due to the 
impact of the coronavirus crisis, the Lufthansa Group’s fleet 
will be reduced by 150 aircraft through the postponement  
of new deliveries, the termination of lease agreements, long-
term parking and sales. 
Infrastructure costs at airports and in air traffic control
Airports and air traffic control organisations are currently 
recording high levels of losses due to grounded air traffic. 
The fact that this infrastructure is essentially financed by the 
users means that there is a risk that the losses incurred in 
the crisis years and to some extent in the following years will 
be passed on to the airlines by the system partners, which 
will increase costs accordingly.
The air traffic infrastructure is financially burdened by the 
coronavirus crisis to such an extent that the state must  
provide relief for the system as a whole. Lufthansa German 
Airlines and the other German airlines, as well as the airports, 
air traffic control and aviation associations are lobbying  
political decision makers to provide this relief in the form of 
compensation for losses, among other things.
Risks from digital transformation and market entry  
of new competitors in the Lufthansa Technik segment 
The post-coronavirus pandemic market environment will be 
marked by MRO overcapacity, as global aircraft movements 
continue to be significantly below available capacity. Sustain-
able business success requires a competitive cost structure, 
despite the consolidation that is to be expected. There is an 
increased risk of insolvency for airline customers if government 
support is not sufficient to bridge the coronavirus crisis.
The market position of the original equipment manufacturers 
(OEMs) results in barriers to entry for independent providers 
of aircraft MRO services, especially for new aircraft models, 
and makes it more difficult to gain access to licences and 
intellectual property. OEMs will use competitive advantages 
in the aftermarket to compensate for the reduced volume of 
new business. Expanding and maintaining their market position 
in this environment is a key challenge for MRO providers.
Digital platforms are also becoming increasingly important for 
the planning, management and awarding of physical mainte-
nance, repair and overhaul (MRO) fulfilment and jeopardise 
the direct contractual and customer relations between the 
MRO provider and the airline. As part of this digital transfor-
mation, new competitors are trying to enter the market with 
data-based services and digital capabilities. Access to and 
control over this data play an overarching role for gaining 
control over costs and competence in the MRO award process 
and predictability.
Lufthansa Technik manages these risks using efficiency and 
restructuring programmes, strict management of accounts 
receivable, strategically important partnerships and an 
expanded performance profile of the AVIATAR digital platform.
Opportunities and risks from the  
regulatory environment
Political decisions at national and European level continue  
to have a strong influence on the international aviation sector. 
This is particularly the case when countries or supranational 
organisations unilaterally intervene in the competition within 
a submarket, for example, by way of regional or national taxes, 
emissions trading, fees and charges, restrictions or subsidies. 
The Lufthansa Group campaigns actively to influence these 
developments in the appropriate boards and forums and in 
cooperation with other companies and industry associations.
Political risks in the context of the coronavirus pandemic
In connection with the current coronavirus pandemic,  
a number of political risks continue to exacerbate the eco-
nomically tense situation. Based on sometimes divergent 
decisions by national governments and the EU Commission 
on entry regulations, far-reaching restrictions have been 
imposed on air traffic. For example, global border closures, 
stricter measures to contain the spread of the coronavirus  
(for example, contact bans, minimum distance on board, 
quarantine) and constantly changing administrative hurdles  
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upon entry increase the risk of the restriction of usable  
traffic rights. The pandemic poses the risk that states will 
seal themselves off due to the spread of the coronavirus  
and reduce agreed international air traffic to a minimum. 
Non-standardised testing practices also result in restrictions 
on market access. For example, there is currently no regu­
lation on available testing capacities and the determination  
of the time of testing, i.e. on departure or arrival. In addition, 
no robust data is available on the acceptance and type of 
testing procedures available. As vaccines continue to be 
approved, there is an opportunity for air traffic to experience 
stronger growth again in the future as the population 
becomes increasingly immunised.
In addition, slots may be lost worldwide due to flight cancel-
lations caused by the crisis. The basic rule on the use of 
take-off and landing rights is that slots can be reallocated  
if they have been used less than 80% of the time in a flight 
period. This rule was initially suspended by authorities world-
wide until March 2021 due to the slump in air traffic caused 
by the coronavirus. This makes it possible to maintain net-
work structures that have been built up over decades and  
to promote a new start in air traffic. Slot rules in all relevant 
countries will again be adapted to the pandemic in summer 
2021. 50% of the slot series can be returned in the EU, and 
airlines must use 50% of the remain-ing slots in order not 
to lose them. Theoretically, this covers the eventuality that 
airlines use only 25% of their existing slots. 
The Lufthansa Group therefore advocates, in dialogue with 
German, European and international policymakers, for risk-
based reductions in entry restrictions, the synchronisation  
of testing practices and a worldwide suspension of the  
slot-use rule. The Lufthansa Group also supports public 
authorities in the development of hygiene concepts that can 
be implemented on board. 
Greater regulatory efforts in connection with  
the climate debate
The debate about the role of aviation in climate change 
increases the risk that CO₂ emissions will be subject to more 
rigorous pricing in future. Air traffic within the EU is already 
part of the EU Emissions Trading Scheme (EU ETS), which has 
been associated with the Swiss Emissions Trading Scheme 
since the beginning of 2020. However, there is a risk of rising 
costs or additional requirements in the course of the revision 
of the European Emissions Trading Directive since, for exam-
ple, the lowering of the emissions cap and the future alloca-
tion of free emissions rights are being discussed. Both may 
increase the Lufthansa Group’s ETS costs in future financial 
years beyond 2021.
The harmonisation of EU-ETS and CORSIA also has not  
yet been clarified, and the risk of double regulation persists. 
The ETS has already led to a distortion of competition, which 
would be exacerbated by the aforementioned measures.  
The introduction of a SAF (Sustainable Aviation Fuel) quota 
is also planned at European level as well as at the federal 
level in Germany. In Germany, this means an additional PtL 
(Power-to-Liquid) quota. This would not only increase fuel 
costs for the Lufthansa Group, but would also lead to further 
distortion of competition, as competitors could circumvent 
this by tankering, i.e. carrying fuel on outward flights in excess 
of their requirements, or by operating multi-sector flights 
(transfers at non-European hubs).
In future, the regulation will also take into account the 
“non-CO₂ climate impact of aviation”, such as condensation 
trails and nitrogen oxide emissions. Operational measures 
may also reduce climate impact. However, research in this 
area has only just begun. As a result, the focus of regula- 
tion will remain on CO₂ for the time being. In addition to 
wide-ranging measures to limit CO₂ emissions, such as the 
continuous renewal of its fleet and the expansion of voluntary 
carbon offset options, the Lufthansa Group participates in 
the public debate – sometimes together with other European 
airlines and industry associations – and endeavours to prevent 
any regulations that could distort competition. ↗ Combined 
non-financial declaration, p. 86ff.
Increased noise legislation
Stricter noise standards may apply to airlines or airports. They 
may cause, for example, higher costs for retrofitting aircraft, 
bans on specific aircraft models, higher charges or higher 
monitoring expenses. The still outstanding revision of the 
directive on environmental noise at European level is relevant 
here. The limits set in the Aircraft Noise Abatement Act were 
reviewed at the federal level as scheduled in 2017. The Act 
has not yet been amended. Although the latest results of 
noise research do not show any significant changes in health 
risks, the way in which noise is perceived as a nuisance by 
those affected has changed radically, even when noise levels 
at airports are stable. Further lobbying in this area is therefore 
expected to result in more restrictive noise legislation. 
In November 2017, the Lufthansa Group, Fraport, Condor,  
the Board of Airline Representatives in Germany (BARIG) and 
the government of Hesse came to a voluntary agreement  
on noise limits at Frankfurt Airport. Approximately 80% of the 
noise limit was utilised in 2019 (1% less than in 2018) so this 
framework continues to provide opportunities for growth and, 
as long as the limit is not exceeded, will not adversely affect 
the operating licence. Introducing a voluntary noise limit  
in Frankfurt could have an effect on other sites in Germany.
The Lufthansa Group develops coordinated strategies by 
means of targeted communications in collaboration with trade 
associations and other industry stakeholders. It is involved in 
research projects looking at active noise abatement measures  
↗ Combined non-financial declaration, p. 86ff., and closely 
monitors research into the effects of noise.
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Financial opportunities and risks
Financial market developments represent opportunities and 
risks for the Lufthansa Group. Positive changes in fuel prices, 
exchange rates and interest rates can result in lower expenses 
and/or higher income compared with the assumptions used 
for planning and forecasting. 
System of financial risk management for fuel prices, 
exchange rates and interest rates
Financial and commodity risks are systematically and centrally 
managed for the entire Group on the basis of internal guide-
lines. The derivative financial instruments used serve to hedge 
underlying transactions. Here, the Lufthansa Group works 
with partners that have at least an investment grade rating 
equal to Standard & Poor’s BBB rating or a similar long-term 
rating. All hedged items and hedging transactions are tracked 
in treasury systems so that they can be valued and monitored 
at any time. The functions of trading, settlement and con-
trolling of financial risk are strictly separated at an organisa-
tional level. 
The executive departments and Financial Risk Controlling 
ensure compliance with these guidelines. The current hedg-
ing policies are also discussed regularly in management 
board meetings across the business areas. The Supervisory 
Board is regularly informed of the amounts of risk. ↗ Notes 
to the consolidated financial statements, Note 45, p. 205ff.
Fuel price movements
In 2020, the oil price was on average 33% lower than in the 
previous year. There has been no year-on-year change in the 
risk of price fluctuations.
In the reporting year, the Lufthansa Group consumed around 
3.7 million tonnes of kerosene. At around EUR 1,875m,  
fuel expenses constituted a major item of expense for the 
Lufthansa Group in 2020. Severe fluctuations in fuel prices 
can have a significant effect on earnings. A change in the 
fuel price of +10% (– 10%) at year-end 2021 would increase 
(decrease) the earnings of the Lufthansa Group by EUR 183m 
(EUR – 117m) after hedging. 
The Lufthansa Group uses rules-based fuel hedging with  
a time horizon of up to 24 months. This is aimed at reducing 
fluctuations in fuel prices. Limited protection against higher  
prices is accepted in exchange for maximising the benefits 
derived from any fall in prices. The Lufthansa Group uses 
standard financial market instruments in fuel hedging. Hedges 
are mainly in crude oil for reasons of market liquidity. The 
instruments used will be settled by payments and will not 
result in physical deliveries. 
Fuel price hedging was suspended over large periods of 2020, 
and no further fuel price hedges were entered into due to the 
coronavirus pandemic and its impact on the predictability  
of fuel demand. As a result of the capacity adjustments, the 
fuel hedging concluded was in part not matched by any 
underlying transactions. Earnings from fuel price hedges not 
allocated to hedging are shown in the financial result.
As of 31 December 2020, there were crude oil and kerosene 
hedges for 2021 in the form of futures and options that rep-
resented around 36% of the Group’s fuel consumption in 
2019, the year before the crisis. For 2022, the hedging level 
on the basis of 2019 fuel consumption was around 1%. As 
fuel is priced in US dollars, fluctuations in the euro/US dollar 
exchange rate can also have a positive or a negative effect 
on reported fuel prices. US dollar exposure from planned fuel 
requirements is included in currency hedging.
Lufthansa price in USD/bbl
C24 HEDGED OIL PRICE LUFTHANSA GROUP 2021 1)
 
in USD/bbl (as of 31 Dec 2020)    Market price 
 Lufthansa price
Market price in USD/bbl
120
100
80
60
40
20
50
40
20
30
60
80
70
90
100
120
110
1) Including fuel price hedges not allocated to hedging.
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Exchange rate movements
Foreign exchange risks for the Lufthansa Group arise in  
particular from international ticket sales and the purchasing 
of fuel, aircraft and spare parts. All subsidiaries report their 
planned currency exposure over a time frame of at least  
24 months. At Group level, a net position is aggregated  
for each currency to take advantage of “natural hedging”. 
Twenty-three of the foreign currencies are hedged because 
their exposure is particularly relevant to the Lufthansa Group.  
↗ Notes to the consolidated financial statements, Note 45,  
p. 205ff.
Rating downgrade
Due to the enormous impact of the coronavirus pandemic, 
the rating agencies lowered the Lufthansa Group’s credit  
rating over the course of 2020. The rating agency Standard & 
Poor’s currently assigns Lufthansa a non-investment-grade 
rating of “BB –”, while Moody’s likewise rates Lufthansa in the 
non-investment-grade range with “Ba2”. The rating agency 
Scope, on the other hand, assigns Lufthansa an investment- 
grade rating of “BBB –”. All ratings are currently assigned  
a “negative outlook”. 
Further downgrades by the rating agencies would likely  
have negative effects on the Company’s ability to finance 
itself on the capital market. These effects include a reduced 
market capacity for borrowing capital and increased financ-
ing costs. Measures to strengthen liquidity and ongoing 
communication with the rating agencies should help avoid 
further downgrades.
Exchange rate losses on pension fund investments
Pension fund investments are subject to price fluctuations on 
international capital markets. However, the broad diversifica-
tion across many asset classes (including global equities and 
fixed-income securities) does reduce the overall investment 
risk to capital investments. Significant market volatility is 
expected to continue in view of persistent uncertainties such 
as the ongoing coronavirus crisis, the US trade war with China 
and Brexit. Thanks also to the existing hedging mechanisms, 
the risk of significant losses is still considered to be low.  
↗ Financial strategy and value-based management, p. 21ff. 
Further information on opportunities from changes to retire-
ment benefits ↗ Human resources, p. 81.
Risks arising from state aid and liquidity risks
To offset the severe revenue losses resulting from the coro-
navirus pandemic, the Lufthansa Group has taken advantage 
of government support from Germany, Belgium, Austria  
and Switzerland in order to secure the necessary liquidity of 
the Lufthansa Group. ↗ Financing, p. 43ff.
The loan agreements concluded with the KfW and syndicate 
banks for the state aid from the Swiss government in this 
context include the financial covenant of maintaining a spec-
ified minimum liquidity for each company. Breach of financial 
covenants would result in termination of the loans granted.
At the Lufthansa Group, the Treasury department checks  
the status of the available liquidity reserves on a daily basis. 
A forecast for the coming months is also prepared as part of 
the monthly forecast process, so that any potentially critical 
liquidity situation can be responded to at an early stage with 
appropriate countermeasures. If necessary, financing meas-
ures will be initiated to ensure compliance with financial and 
commercial obligations.
Counterparty risks
The transactions completed in the course of financial 
management give rise to default risks. The counterparty 
default risk is continuously assessed using a system of  
counterparty limits.
In addition, the transactions completed in the normal course 
of the companies’ business give rise to further default risks 
for receivables. This counterparty risk is also assessed contin-
uously on the basis of a risk assessment methodology.
In the context of the current crisis, the monitoring periods 
were significantly shortened and a Group-wide integrated 
reporting system with adjusted value limits was implemented 
in order to keep the risks of default on customer receivables 
as low as possible. In addition to the measures implemented 
in the individual business segments, a Group-wide Credit 
Risk Committee has been formed, which takes decisions in 
advance on coordinated preventive measures such as calling 
in collateral, limiting transactions or making advance payments 
to individual counterparties, based on close monitoring.  
↗ Notes to the consolidated financial statements, Note 39,  
p. 192ff.
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Company-specific opportunities  
and risks
Failure to achieve assumed improvement in the  
scope of ReNew
The Lufthansa Group is striving to achieve significant improve-
ments in efficiency and the cost base in all business units 
within the framework of its restructuring programme ReNew 
and the associated Group-wide programme ReStructure. The 
planning process included intensive discussions with all of 
the business units on the potential for improvement that had 
been incorporated into the planning. All business units enter 
the identified measures into a Group-wide tracking system. 
The current scope of measures and progress in implementation 
are discussed in monthly performance dialogues with each 
business unit. This is discussed with the Executive Board 
across the Group. Risks can arise despite intensive tracking 
at both business unit and Group level. For one thing, it can 
become apparent in the course of implementation that  
the expected effects are smaller than initially assumed; for 
another, the possibility exists that not enough additional 
potential can be identified during the year, making it impos-
sible to achieve the agreed targets in full. In order to take 
early countermeasures, the volume of identified measures  
is compared against the targets on a monthly basis.
Human resources
INTERNAL AND EXTERNAL LABOUR DISPUTES
Many employees are on short-time work in view of the  
drastically reduced number of flights currently offered by  
the Lufthansa Group. This also applies to employees of non- 
airline subsidiaries. Strikes would have little effect in this 
environment and are likely to meet with little public under-
standing. For 2021, the risk of strikes is considered to be  
low, both for the Group and in the airline industry as a whole.
COOPERATION BETWEEN WORKS COUNCILS AND LABOUR UNIONS
The success of structural measures depends heavily on 
effective cooperation with co-determination within the 
Company. The coronavirus pandemic has made it necessary 
to introduce short-time work across the Company. It has  
also highlighted the need for organisational restructuring, 
including a possible reduction in staff through a redundancy 
programme. Given the current tense economic situation, 
these measures must be taken quickly. The risk consists in 
an only partial or not timely agreement with the works coun-
cils. The same applies to the collective bargaining partners 
with which employee contributions to overcoming the crisis 
are negotiated.
EMPLOYEE COMMITMENT
More than half of the Lufthansa Group’s workforce is on 
short-time work at least one day a week. This situation is 
expected to continue as demand for flights will not return  
to pre-crisis levels in 2021. As a result, the (pro rata) loss of 
work could lead to a weakening of how closely employees 
identify with the Company. Employees who are not on short-
time work are working under significantly changed condi-
tions. In some cases, variable remuneration components and 
special payments were cancelled and wages were reduced 
as employee contributions to overcoming the crisis in order 
to secure jobs. Finally, the build-up of restructuring and 
transformation pressures can potentially lead to a loss of 
confidence and a lack of orientation. There is the risk that 
important sources of knowledge will quit the Company 
because of the current remuneration outlook and the worsened 
prospects. In order to maintain employee commitment, the 
Lufthansa Group tries to communicate the need for these 
measures by being completely transparent. Selected talents 
are given particularly intensive support and are prioritised in 
being given opportunities to work on restructuring projects. 
STAFF STRUCTURE
Differences between strategic HR requirements, the existing 
competences of employees and how they are distributed 
across the companies in the Lufthansa Group constitute  
a structural HR risk. The Lufthansa Group addresses this risk 
by means of strategic human resources planning, drawing  
up a skills model and offering training courses for all the 
employees in the Group.
Human resources risks have shifted from risks related  
to collective bargaining to more individual risks at present. 
Provider default risk
The economic impact of the coronavirus pandemic also affects 
providers of the Lufthansa Group, in particular those that are 
heavily dependent on the air transport industry. Disruptions 
in supply chains and the potential failure of providers due to 
insolvency pose the risk of disruptions in the supply of goods 
and services. Purchasing at the Lufthansa Group regularly 
identifies providers that are critical for business continuity. 
Regular exchanges with identified providers are conducted 
in an attempt to counter the risk of any supply disruptions in 
a timely manner. This includes the targeted use of appropriate 
tools, such as supply chain financing or adjusted payment 
terms, to strike a balance between achieving working capital 
targets while supporting the most vulnerable parts of the 
supply chain.
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Flight operations risks
The airlines in the Lufthansa Group are exposed to potential 
flight and technical operating risks. 
One of these is the risk of not being able to carry out regular 
flight operations for technical or external reasons. Another 
risk is the risk of an accident, with the possibility of damage 
to people and property; it is divided into environmental  
factors (for example, weather or bird strike), technical factors 
(for example, engine failure), organisational factors (such as 
contradictory instructions) and the human factor.
The direct impact of the ongoing coronavirus pandemic  
was continuously monitored as part of Safety & Compliance 
Monitoring Management. Any potential risks were proactively 
identified, mitigation measures were developed and their 
implementation is being monitored as part of the correspond-
ing audit activities.
The companies in the Lufthansa Group search for these dan-
gers systematically and in a forward-looking manner in order 
to manage the resulting risk by means of suitable counter-
measures and to increase the level of flight safety further. 
For example, every single flight made by an airline in the 
Lufthansa Group is routinely analysed using the parameters 
recorded in the flight recorder (black box) in order to identify 
any peculiarities at an early stage and to act on them, such 
as in the context of training courses, for example. Other 
sources of information, e.g. accidents and hazardous situa-
tions around the world that come to light, are also analysed 
and the results are integrated into prevention measures, 
such as training courses, where relevant. The safety manage-
ment systems are continuously improved and refined.
The sustained implementation of uniform flight safety stand-
ards across the entire Lufthansa Group is also supported  
by further progress on harmonising the IT environment in the 
course of safety management. Ongoing dialogue between 
the airlines in the Lufthansa Group provides an opportunity 
to consolidate information gained in an operational setting 
and factor it into the development of the corresponding 
standards. A standardised platform for the analysis of flight 
data relevant to flight safety is currently being implemented.
Operating risks in Catering
In the Catering segment, it is vital that food is produced  
to the highest quality and in accordance with all hygiene and 
food safety standards. Standardised quality management 
systems are used to identify potential quality defects at an 
early stage. Furthermore, the LSG group invests continuously 
in its production facilities and equipment as well as in modern 
technology. The modernisation process is supported by 
intensive training courses as well as learning and problem- 
solving workshops in the individual companies.
Cyber and IT risks
Cyber-risks are all risks to which computer and information net-
works, ground and flight infrastructure as well as all IT-enabled 
commercial and production processes are exposed to sabo-
tage, espionage or other criminal acts. If established security 
measures fail, the Lufthansa Group may suffer reputational 
damage and be obliged to make payment on the basis of 
contractual and statutory claims by customers, contract 
partners and public authorities. A loss of income is also con-
ceivable if operating systems should fail.
The business processes in the Lufthansa Group are sup-
ported by IT components in virtually all areas. The use of IT 
inevitably entails risks for the stability of business processes 
and for the availability, confidentiality and integrity of  
information and data, and such risks ultimately cannot be 
fully eliminated. 
Cyberattacks are on the rise worldwide, independently of  
the coronavirus crisis. These activities are also increasingly 
being conducted with a high degree of professionalism.  
This is borne out by the Group’s own experience of security 
incidents and by information from other companies and public 
agencies. At the same time, the digitalisation of business 
processes in the Lufthansa Group is increasing, meaning  
that the potential effects of cyberattacks may continue to 
escalate. As a result, cyber-risks will become a greater and 
greater potential risk for the Lufthansa Group in the foresee-
able future.
The Lufthansa Group monitors the global IT security situation 
on an ongoing basis. Based on this monitoring, the Executive 
Board has in recent years adopted measures to strengthen 
the IT security of the Lufthansa Group, which have been 
implemented in numerous projects. Technological tools have 
been introduced to prevent cyberattacks, processes have 
been adapted to changing risk scenarios and the changed 
way of working from home, organisational changes have 
been made and awareness campaigns have been carried out. 
Since the end of 2018, a multi-year programme has been 
underway to increase the cyber-resilience of the Lufthansa 
Group. As part of the cyber-security programme adopted by 
the Executive Board, measures in various core areas are 
being implemented across the Group and numerous projects 
carried out. This also includes preparing the airlines of the 
Lufthansa Group for the next generation of e-enabled aircraft 
to mitigate new digitalisation-related risks. The measures 
focus on risk-oriented implementation in IT systems and pro-
cesses taking the partners and providers of the Lufthansa 
Group into account. Initial results from the programme are 
already showing a positive contribution to reducing risks.
IT risk and IT security processes are organised across seg-
ments. The status of IT risks and IT security is compiled 
annually, consolidated at Group level and discussed by the 
Risk Management Committee for the Lufthansa Group. The 
risk and security management systems and selected other 
measures are also reviewed regularly by the Internal Audit 
department.
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The Lufthansa Group sources most of its IT infrastructure 
from external service providers. The operational and commer-
cial risks that by nature accompany this kind of outsourcing 
are assessed and managed on a continuous basis.
Risks of breaching data protection regulations
Protecting the privacy of its customers, employees, share-
holders and providers has always been an important and 
self-evident concern for the Lufthansa Group. With a view  
to meeting the requirements of the General Data Protection 
Regulation (GDPR), all Group companies within the scope  
of the GDPR have put in place appropriate governance struc-
tures and processes in accordance with the requirements  
of the Group’s data protection policy to identify and manage 
potential risks from breaches of the extensive legal require-
ments. Customers regularly exercise their rights to access 
and erasure of data.
Risks involved in exchanging data with the United Kingdom 
were initially avoided through the conclusion of a trade  
and cooperation agreement between the EU and the United 
Kingdom. If the European Commission does not come to  
a decision on the adequacy of data protection in the United 
Kingdom before the deadline, all data flows between the  
EU and the United Kingdom will have to be adapted to the 
EU rules for data transfers to third countries.
Compliance risks
Compliance refers to the observance of legally binding 
requirements, and is intended to ensure that the Company, 
its executive bodies and its employees act in accordance 
with the law. The effectiveness of the compliance programme 
is therefore vital to the Lufthansa Group. 
 https://investor- 
relations.lufthansagroup.com/en/corporate-governance.html.
The Lufthansa Group is active in many countries and is there-
fore subject to various legal norms and jurisdictions with  
different, and sometimes hard to interpret, legal frameworks, 
including for criminal law on corruption. In addition, all activi-
ties not only have to be judged against local criminal law,  
the laws applicable in the sales area and the local cultural 
customs and social conventions, but also against extraterri-
torial regulations like the US Foreign Corrupt Practices Act 
(FCPA) and the UK Bribery Act. Any infringements are inves-
tigated rigorously; they may result in criminal prosecution  
for the individuals involved and could expose the Company 
to hefty fines. There would also be reputational damage that 
is difficult to measure and the Company would be put at  
a distinct disadvantage when competing for public tenders. 
The Lufthansa Group has put processes in place that are 
intended to identify specific compliance risks and, in particu-
lar, to prevent corruption.
The Lufthansa Group is also exposed to risks arising from 
competition and antitrust law. They stem, in particular, from 
the fact that the Lufthansa Group also operates in highly  
oligopolistic markets, has a strong position in some markets, 
cooperates with competitors in alliances, the legal parame-
ters may change and that in some of its segments the pro-
viders, competitors and clients are the same legal person. 
The Lufthansa Group’s Competition-Compliance function 
addresses the risks of collusive behaviour and provides 
employees with extensive training.
The Lufthansa Group, in particular Deutsche Lufthansa AG 
as a publicly listed company, is also exposed to risks from 
capital market compliance. Since July 2016, the EU Market 
Abuse Regulation (MAR) and many other national and  
European regulations have codified bans on insider trading 
and market manipulation, the obligation to make ad hoc 
announcements as well as other obligations relating to capital 
markets. These regulations are directly applicable in Germany. 
However, in some cases, it is still difficult to predict and  
to put into practice the interpretation of these new European 
rules, particularly concerning ad hoc announcements and 
administrative practices. The Lufthansa Group takes many 
organisational precautions to comply with the provisions of 
the MAR. The Group uses special software to compile insider 
lists, for instance, and to publish any ad hoc announcements, 
and it has the corresponding policies, information letters  
and process descriptions at hand. In addition, the Group 
Compliance Office conducts training courses as needed for 
individuals specifically affected by the laws applicable to 
insider trading and market abuse. Matters relating to the law 
on ad hoc announcements are also always discussed with 
external experts. 
Despite the existence of a compliance management system 
and its risk-mitigating activities, individual breaches, the 
related investigations by public authorities and penalties 
cannot be ruled out completely, particularly in the fields of 
integrity, competition and capital market compliance.
Litigation, administrative proceedings and arbitration
The Lufthansa Group is exposed to risks from legal, adminis-
trative and arbitration proceedings in which it is currently 
involved or which may take place in the future. Due to the 
possible restricting effect, the risks have not been quantified 
in accordance with DRS 20 No. 154. It cannot be ruled out 
that the outcome of these proceedings may cause significant 
damage to the business of the Lufthansa Group or to its net 
assets, financial and earnings position. Appropriate provisions 
have been made for any financial losses that may be incurred 
as a result of legal disputes. More information on provisions 
for litigation risks and contingent liabilities can be found in the 
Notes to the consolidated financial statements ↗ Note 36,  
p. 188ff., and ↗ Note 46, p. 220ff.
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Furthermore, the Lufthansa Group has taken out liability 
insurance for an amount that the management considers 
appropriate and reasonable for the industry in order to defend 
itself against unjustified private third-party claims and to 
settle such claims it considers justified. Even in such cases, 
however, this insurance cover does not protect the Lufthansa 
Group against possible damage to its reputation. Such legal 
disputes and proceedings may also give rise to expenses in 
excess of the insured amount, expenses not covered by the 
insurance or those which exceed any provisions previously 
recognised. Finally – and depending on the type and extent 
of future losses – it cannot be guaranteed that the Lufthansa 
Group will continue to obtain adequate insurance cover on 
commercially acceptable terms in the future.
There are insurance contracts in place for Germanwings and 
Deutsche Lufthansa AG as well as for other Lufthansa Group 
companies, covering various liability claims in connection 
with the Germanwings accident on 24 March 2015. The same 
applies to the lawsuits filed against Germanwings, Deutsche 
Lufthansa AG and other Group companies. The Lufthansa 
flying school in Arizona (formerly Airline Training Center  
Arizona, Inc. (ATCA), now Lufthansa Aviation Training USA, 
Inc. (LAT US)), has also been sued for material and non- 
material damages. The lawsuit was originally filed in the USA, 
where it was dismissed. It is now being pursued in Germany 
before the Essen regional court. In the lawsuit, the claimants 
argued, among other things, that the flying school doubted 
the co-pilot’s mental stability but still trained him nonetheless. 
The litigation was later extended to Deutsche Lufthansa AG 
and alleges organisational deficits and individual errors in the 
medical treatment of the co-pilot. Moreover, parallel proceed-
ings were opened – only against Deutsche Lufthansa AG – 
before the Frankfurt regional court. The Essen regional court 
dismissed the claim outright, and in the appeal before the 
Hamm higher regional court, only putative claims against 
Deutsche Lufthansa AG are still being pursued. The lawsuits 
are still considered to have little chance of success. Com­
panies in the Lufthansa Group may still be faced with costs, 
however, since in France at least, public prosecution and 
judicial investigations into the case are still under way. ↗ Notes  
to the consolidated financial statements, Note 46, Legal risks,  
p. 220f. Legal costs are incurred here. Costs have already 
been incurred and others may follow for investigations and 
voluntary payments to the dependants of the victims of  
the accident.
Ryanair has appealed to the European Court of Justice 
against the decisions by the European Commission approv-
ing stabilisation measures for companies in the Lufthansa 
Group. Stabilisation measures for Deutsche Lufthansa AG, 
Austrian Airlines and Brussels Airlines SA/NV are affected.  
The Lufthansa Group believes the chances of success are 
slim. If the appeals are successful, however, the decisions by 
the European Commission would be declared null and void. 
If the respective public-sector agencies are prevented from 
continuing to grant the stabilisation measures, the funds 
concerned would have to be cancelled and repaid. 
The Lufthansa Group is subject to tax legislation in many 
countries. Changes in tax laws and case law, as well as  
different interpretations as part of tax audits/external wage 
tax audits can result in risks and opportunities affecting  
tax expenses, income, claims and liabilities. The Corporate 
Taxation department identifies, evaluates and monitors tax 
risks and opportunities systematically and at the earliest 
stage possible, and initiates steps to mitigate the risks as 
necessary.
OVERALL STATEMENT ON  
OPPORTUNITIES AND RISKS
The coronavirus crisis represents a profound turning point for 
air traffic and consequently for the Lufthansa Group as well. 
Global air traffic is not expected to return to its pre-coronavirus 
level until the mid-2020s. Against this background, the over-
all risk position of the Lufthansa Group has also changed. 
In an environment characterised by travel restrictions and 
flight cancellations, the Lufthansa Group’s most significant 
risk is now liquidity risk. To maintain liquidity, the Lufthansa 
Group has drawn on state aid and is in a position to counter 
the risk by raising additional funds. In this difficult environ-
ment, the Lufthansa Group continues to rely on its ability to 
adjust its capacities and resources flexibly to changing market 
conditions and to use this flexibility to seize opportunities  
for the Company’s long-term development. 
The implementation risks from the ReNew programme that 
the Lufthansa Group is using to make adjustments to the 
changed market conditions described above, as well as  
the risks of declining average yields and price increases,  
particularly at airlines, continue to be mitigated by means  
of systematic risk management.
Generally speaking, the Executive Board remains convinced 
that the opportunities and risk management system is effec-
tive. It continues to strive for a balance between opportunities 
and risks. The Executive Board does not currently consider 
that the continued existence of the Company is at risk.
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DESCRIPTION OF THE ACCOUNTING- 
RELATED INTERNAL CONTROL  
SYSTEM AND RISK MANAGEMENT 
SYSTEM IN ACCORDANCE WITH 
SECTION 289 PARAGRAPH 4 AND 
SECTION 315 PARAGRAPH 4 HGB
The Lufthansa Group’s Internal Control System (ICS) covers 
all the principles, procedures and steps intended to ensure 
effective, economical and accurate accounting and compli-
ance with the relevant legal regulations. It is based on the 
COSO framework (Committee of the Sponsoring Organiza-
tions of the Treadway Commission).
Overall responsibility for the Internal Control System required 
to manage risk lies with the Executive Board of Deutsche 
Lufthansa AG, which defines the scope and the format of the 
systems in place based on the specific requirements of the 
Lufthansa Group.
The Corporate Audit department of Deutsche Lufthansa AG 
as well as the decentralised internal audit departments at 
Delvag Versicherungs-AG and Lufthansa AirPlus Servicekarten 
GmbH are embedded in the internal monitoring system for 
the Lufthansa Group and act independently of business pro-
cesses. In addition, the effectiveness of those areas of the 
Internal Control System relevant to financial reporting are 
reviewed by the auditors as part of a risk-oriented approach to 
their audit. The Audit Committee of the Deutsche Lufthansa 
AG Supervisory Board monitors the effectiveness of the 
Internal Control System and risk management system on the 
basis of Section 107 Paragraph 3 German Stock Corporation 
Act (AktG).
The objective of the Internal Control System for accounting 
processes is, by making checks, to provide a reasonable 
degree of certainty that the financial statements and the 
consolidated financial statements of Deutsche Lufthansa AG 
comply with the rules, despite the risks identified.
The following preventative and investigative checks are 
embedded in the accounting process:
—	 IT-supported and manual cross-checks,
—	 functional separation,
—	 dual signatures and
—	 monitoring checks.
Operational accounting processes are carried out locally  
at the Group companies and also using the Group’s own  
and external shared service centres. Expert opinions for 
determining the amount of pension provisions are prepared 
by external consultants.
Corporate Accounting is functionally responsible for preparing 
the consolidated financial statements and draws up binding 
regulations for the Group companies that pertain to form, 
content and deadlines. The Lufthansa Group’s accounting 
guidelines are updated regularly and define uniform account-
ing policies for the domestic and foreign companies included 
in the Lufthansa consolidated financial statements in accord-
ance with International Financial Reporting Standards (IFRS). 
For Deutsche Lufthansa AG and other German companies in 
the Group, a guideline defines rules for drawing up individual 
financial statements in line with the German Commercial 
Code (HGB). This ensures that standardised Group account-
ing practices are applied to the recognition, measurement 
and presentation of balance sheet items, with as little room 
for discretion as possible. The formal requirements relate to 
the mandatory use of a standardised and complete set of 
reporting forms and a uniform account framework for the 
Group. Individual financial statements that contain errors are 
selected and restated as necessary at company or Group 
level on the basis of control mechanisms already defined in 
the SAP SEM-BCS consolidation software and/or by system-
atic plausibility checks. The consolidation system dictates 
the different deadlines for various elements of the reporting 
package and verifies centrally that they are adhered to during 
the preparation process. 
The IT systems used for accounting are protected against 
unauthorised access by special security precautions.
By means of the organisational, control and monitoring struc-
tures defined for the Lufthansa Group, the Internal Control 
System and risk management system as it relates to account-
ing ensures that all matters affecting the Company are cap-
tured, processed and evaluated, and are presented adequately 
in the Group’s financial reporting. In particular, the use of 
individual discretion, faulty checks, criminal acts by those 
involved and other circumstances may compromise the 
effectiveness and reliability of the Internal Control System 
and risk management system in place. This means that even 
the Group-wide application of these systems cannot guaran-
tee with complete certainty that facts are presented correctly, 
fully and promptly in the consolidated financial statements. 
These statements only relate to Deutsche Lufthansa AG and 
the major subsidiaries included in the consolidated financial 
statements of Deutsche Lufthansa AG.
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Combined non-financial declaration
Lufthansa Group wants to live up to its role as a leading airline group, also in terms  
of sustainability.  |  Corporate responsibility is an integral part of the corporate  
culture.  |  The combined non-financial declaration focuses on the aspects of  
environmental concerns, customer concerns, employee concerns, anti-corrup-
tion and bribery, human rights, social concerns, responsible production and  
sustainability in the supply chain as an interdisciplinary topic.  |  Declaration is 
based on the GRI Standards 2016.
About this combined non-financial declaration
In accordance with CSR Directive Implementation Act 
(CSR-Richtlinie-Umsetzungsgesetz – CSR-RUG) which came 
into force on 19 April 2017, Deutsche Lufthansa AG is again 
publishing a combined non-financial declaration for the 
financial year 2020 in accordance with Sections 315b and 
315c German Commercial Code (HGB) in conjunction with 
Sections 289b to 289e HGB. Deutsche Lufthansa AG pub-
lishes a non-financial declaration at Company level and  
a non-financial Group declaration together as a combined 
non-financial declaration. It combines aspects and reporting 
on the following key issues: environmental concerns, customer 
concerns, employee concerns, anti-corruption and bribery, 
human rights, social concerns, responsible production and 
sustainability in the supply chain as an interdisciplinary topic. 
In addition, measures and initiatives taken by the Lufthansa 
Group that demonstrate the Company’s wide-ranging commit-
ment to corporate responsibility are described in the com-
bined management report. References to these passages  
are made in this declaration. In its Group risk management 
system, the Lufthansa Group also takes into consideration 
impacts on non-financial factors and circumstances.  
↗ Opportunities and risk report, p. 71ff. 
The non-financial declaration is based on GRI Standard 2016.  
↗ T050 GRI Content Index, p. 115.
The Lufthansa Group plans to publish further information in 
2021 in accordance with the recommendations of the Task 
Force on Climate-related Financial Disclosures (TCFD) initiated 
by the Financial Stability Board.
Taking into account the measures and concepts described 
and using the net method, there are currently no indications 
of risks that would have a severe negative impact on these 
material aspects and that are highly likely to occur. Unless 
otherwise stated, the disclosures made here relate to the group 
of consolidated companies referred to in the consolidated 
financial statements. Unless stated otherwise, the disclosures 
reflect the perspective of both the Group and Deutsche 
Lufthansa AG. This combined non-financial declaration  
was subject to a voluntary limited assurance engagement 
in accordance with ISAE 3000 (revised). ↗ Independent 
Auditor’s Limited Assurance Report regarding the Non-Finan-
cial Statement. 
References to disclosures outside the combined manage-
ment report are additional information and do not form part 
of the combined non-financial declaration.
Disclosures on the business model
The Lufthansa Group is a global aviation group with a total of 
532 subsidiaries and equity investments. The business model 
of the Lufthansa Group is described in detail in the combined 
management report. ↗ Principles of the Group, p. 15ff. 
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Sustainability is firmly established within the Company
Responsible conduct in compliance with legislation is a key 
element of the Lufthansa Group’s corporate culture and is 
firmly embedded in the Group strategy. Since 2002, the 
Company has applied the principles of the UN Global Com-
pact for sustainable and responsible corporate governance. 
In addition, it supports the Sustainable Development Goals 
(SDGs) of the Agenda 2030, as adopted by the UN member 
states in 2015. In order to contribute towards achieving the 
SDGs, the Company is concentrating on the seven SDGs 
where it can reduce its negative impact and increase its  
positive effect due to its business model: 
SDG 4:	 Quality education 
SDG 5:	 Gender equality 
SDG 8:	 Decent work and economic growth 
SDG 9:	 Industry, innovation and infrastructure
SDG 12:	 Responsible consumption  
and production 
SDG 13:	 Climate action
SDG 17:	 Partnerships for the goals
An overview of the goals and comments on Lufthansa  
Group activities to support them can be found in ↗ T051, 
Sustainable Development Goals, p. 116f. 
The Code of Conduct, which has been binding for all bodies, 
managers and employees of the Lufthansa Group since 2017, 
was supplemented by a Supplier Code of Conduct in 2019.  
In this Supplier Code of Conduct, the Lufthansa Group lays 
out its position that it also expects business partners and 
suppliers to adhere to the principles as a fundamental aspect 
of the business relationship. The standards at its core are not 
only the basis for responsible conduct and fair competition, 
but also seek to identify legal and reputational risks at an early 
stage and avoid them. The Lufthansa Group has published 
the Code of Conduct on its website. 
Value-based management is also an integral element of  
sustainable corporate governance for the Lufthansa Group. 
The concept and the associated performance indicators are 
described in detail in the chapter ↗ Financial strategy and 
value-based management, p. 21ff. Variable management 
remuneration is also linked to non-financial factors such as 
specific CO₂ emissions. ↗ Remuneration report.
The Lufthansa Group’s sustainability management  
is rated above-average
On 8 December 2020, as in the previous year, the Lufthansa 
Group’s commitment to climate protection, focusing on CO₂ 
management, was awarded a B within the Climate-Scoring 
of the non-profit rating organisation CDP (Carbon Disclosure 
Project). This rating remains better than the industry average. 
The comprehensive and transparent CO₂ description, divided 
into Scope 1, 2 and 3, received an A score for each section. The 
full report is available from CDP and on the Lufthansa Group 
website. Since 2015, the Group has been part of the MSCI 
Global Sustainability Index prepared by MSCI, a US index 
provider. It tracks companies that are particularly committed 
to sustainability. As in the previous year, the Lufthansa Group 
received a rating of BBB from MSCI. In the Sustainalytics 
rating, the Lufthansa Group improved from 29.0 to 23.6 points 
in the reporting year. Due to its CO₂ relevance Lufthansa Group 
remains in the “medium risk” group, where it is also far above 
average in the “Airlines” subcategory in second place out  
of 71. Sustainalytics rates the management of the Lufthansa 
Group as strong in terms of the main ESG aspects. The rating 
agency Vigeo Eiris (Moody’s) also has a positive view of the 
Group’s environmental management. The Group is slightly 
above the industry average in the Vigeo Eiris rating with 43 
out of 100 points. ISS ESG rates the Lufthansa Group C+ 
and also puts it well above the average for the industry.
The highest monitoring body in the area of sustainable man-
agement is the Supervisory Board. In the reporting year, the 
Group Executive Committee (GEC), chaired by the Chairman 
of the Executive Board and CEO, determined the focus and 
further development of sustainability-related activities within 
the Lufthansa Group. 
C25 SUSTAINABILITY RATINGS
BBB
B
C+
43
Score on 100
23.6
Medium Risk
 
as of 31 Dec 2020
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The GEC is a senior management level entity and consists  
of the Executive Board of Deutsche Lufthansa AG, the CEOs 
of the segment parent companies, the senior executives of 
the Network Airlines and the heads of the Group’s Strategy, 
Controlling and Communications departments. Individual 
managers are responsible for implementing concrete activities 
and projects. On 1 January 2020, the Executive Board was 
expanded to include the function Customer, IT & Corporate 
Responsibility. This established responsibility for the Com­
pany’s environmental, climate and social impact directly at 
the Executive Board level.
Materiality analysis forms basis for determining  
material aspects 
Continuous dialogue with stakeholders delivers an important 
contribution to refining the sustainability strategy of the 
Lufthansa Group. The results of a wide-ranging stakeholder 
survey conducted in October 2018 were reviewed by the 
management in November 2018 in accordance with Section 
289c (3) HGB. These results, together with a verification of 
materialities that was performed in 2020, again formed the 
basis for selecting the aspects and concerns to be covered 
in this combined non-financial declaration. According to the 
analysis, environmental concerns, customer concerns and 
employee concerns remain particularly important for the busi-
ness of the Lufthansa Group. Furthermore, the materiality 
analysis shows that the fight against corruption and bribery, 
respect for human rights and responsible production includ-
ing sustainable supply chains are of great relevance to the 
Lufthansa Group. 
One new material topic concerns the steps taken to contain 
the coronavirus pandemic.
Company is making its contribution towards containing 
the coronavirus pandemic
The Lufthansa Group and in particular its logistics subsidiary 
Lufthansa Cargo often have a particularly important role to 
play in responding to crises and natural disasters, because it 
is only by air that aid workers and equipment can be trans-
ported over great distances. Airfreight is also vital for day-to-
day supplies and helps to strengthen global trade. For these 
reasons, the airlines in the Lufthansa Group took an early 
decision to maintain relevant flight connections for the trans-
port of passengers and freight even at the height of the  
crisis and despite wide-ranging travel restrictions. This made 
it possible to repatriate stranded passengers and deliver 
urgently needed goods. Lufthansa Cargo started working 
with Lufthansa German Airlines and Austrian Airlines in April 
to increase global airfreight capacities, which had quickly 
become scarce, partly by using passenger aircraft that had 
been modified at short notice for this purpose and were 
dubbed “preighters”. By mid-year they had enabled the trans-
port of billions of protective masks and other equipment 
urgently needed to fight the pandemic. At the same time, 
Lufthansa Cargo started preparing early for transporting vac-
cines, postponing the retirement of several MD-11F freights 
planned for late 2020 in order to secure sufficient cargo 
capacities.
C26 ASPECTS, ISSUES AND PERFORMANCE INDICATORS
Environmental concerns 
Aspects
Employee  concerns 
Customer concerns 
Climate protection
Issues
Operational stability
Attractiveness as an employer
Interdisciplinary 
topics 2)
• Responsible production and sustainability in the supply chain 
• Containment of coronavirus pandemic
Social concerns 1)
Fighting corruption and bribery 
Respect for human rights
1) Immaterial as defined in Section 289c Paragraph 3 German Commercial Code (HGB), voluntary presentation at specific request of addressees.
2) Interdisciplinary topics representated qualitative in the non-financial declaration.
Aspects 
Issues
Integral part of the Lufthansa Group  
Compliance Management System
Important part of the corporate culture –  
embedded in the Code of Conduct
Corporate citizenship
help alliance gGmbH
CO₂ emissions
Departure punctuality
Engagement Index
Performance  
indicators
Active noise abatement
Product and services
Percentage of aircraft that meet the  
10dB criterion of ICAO Chapter 4
Net Promoter Score
Transformation capacity
Waste avoidance
Health and safety at work
Health Index
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Environmental concerns
Concepts 
Climate protection and active noise abatement are 
cornerstones of the environmental strategy;  
waste prevention is another key area of action 
The material environmental impacts of flight operations are 
primarily climate effects due to the CO₂ emissions produced 
by burning kerosene and the noise caused by aircraft taking 
off and landing. In addition, waste is produced during every 
flight which must be reduced or recycled wherever possible. 
For many years, the Lufthansa Group has taken steps to  
minimise the environmental impact of its business opera-
tions. This is consistent with customer demands and its own 
economic interests, since resource consumption and emis-
sion-related fees all represent costs for the Company. 
To this end, the Lufthansa Group follows a strategic environ-
mental programme that is applied in all areas of the Group. 
Its main fields of action are the reduction of emissions, active 
noise abatement, energy and resource management, invest-
ment in research and the successive establishment of environ-
mental management systems. 
Environmental protection activities coordinated  
and managed in-house
The Executive Board function Customer, IT & Corporate 
Responsibility was responsible for defining, agreeing and 
adopting the overarching environmental management targets 
and activities in 2020. In addition, all larger subsidiaries 
have their own environmental departments, an environmental 
officer or a coordinator. The environmental officers and coor-
dinators generally meet once a year for the Group Environ-
mental Forum. It was in this year that networking in the context 
of the Group Environmental Forum was replaced by bilateral 
exchanges. This exchange offers the environmental experts 
in the Lufthansa Group an opportunity to identify potential 
synergies and to discuss and evaluate new ideas, activities 
and projects concerned with environmental protection. 
New and planned legislation and its effects on the Lufthansa 
Group are also actively addressed. The Lufthansa Group 
plays an active role in the corresponding boards and forums, 
along with other companies and associations such as IATA, 
A4E, BDL and econsense. ↗ Opportunities and risks from the 
regulatory environment, p. 77f.
The Lufthansa Group has been operating a central environ-
mental database for several years. One of its functions is  
to collect and process information and data that is relevant 
to the environment – such as on CO₂ emissions – so this 
information can be employed in business decisions. This was 
significantly expanded in the reporting year, particularly to 
more systematically record the energy consumption from 
ground activities and the resulting carbon emissions of all 
relevant business units and sites, and to simplify the verifica-
tion processes. In addition, a process was established in the 
reporting year that enables the Group’s kerosene consumption 
to be sent directly to the Lufthansa Group’s central data 
warehouse for further analysis.
Lufthansa Group airlines have certified environmental 
management system
The environmental management system of Lufthansa German 
Airlines in Munich has been EMAS validated and ISO 14001 
certified since 2018. Environmental aspects of the Lufthansa 
Group’s flight operations are coordinated across all its sites. 
Preparations for EMAS validation started at the Lufthansa 
German Airline base in Frankfurt in 2020, but were deferred 
as a result of the coronavirus pandemic. Lufthansa CityLine 
was the first airline in the world with an independently certi-
fied environmental management system. Since then, the 
Munich-based airline regularly receives certification based 
on the demanding EMAS EU environmental standards. Air 
Dolomiti successfully passed the audit for ISO 14001 certifi-
cation in 2020 and is currently preparing for the EMAS  
validation in 2021. 
Lufthansa Cargo has been certified according to the environ-
mental management standard ISO 14001 at its location in 
Frankfurt since 2008 and worldwide since the end of 2015. 
The subsidiaries Jettainer and time:matters have also been 
included in the environmental management system since 
2014 and 2017 respectively. The environmental management 
system supports the implementation of Lufthansa Cargo’s 
environmental strategy. Continual improvements are achieved 
by means of ambitious environmental targets, above all in 
particularly energy and resource-intensive areas such as flight 
operations, freight handling and facility management. 
Lufthansa Technik coordinates its sustainability activities 
in a unified environmental management system
The Lufthansa Technik group has managed its sustainability 
activities within a uniform environmental management  
system since 1996. The environmental management sys-
tem is certified under ISO 14001 and provides a stable 
organisational basis for implementing the regularly updated 
environmental strategy, ensuring compliance with relevant  
legislation and actively managing opportunities and risks.
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In order to ensure that progress is continuous, the system  
is accompanied by binding environmental targets, a regular 
review by the Executive Board and a firm implementation 
in a process-based, integrated management system. The 
ISO 14001 certification has been continually expanded to all 
new locations since 2012. Certification was completed in  
the reporting year for the engine overhaul plant in Wroclaw, 
Poland.
The Lufthansa Technik group supports the sustainability  
performance of its customers by means of innovative service 
and product developments, also to reduce kerosene consump-
tion in flight operations and so cut costs and CO₂ emissions. 
Examples include the development of its proprietary cleaning 
process Cyclean and the application of coatings known as 
sharkskin to make aircraft more aerodynamic. ↗ Climate 
protection/Technological progress, p. 91f. 
The operation of efficient production systems and networks 
is another material area of the Lufthansa Technik group’s  
environmental strategy. With the help of ambitious environ-
mental targets adopted by the Executive Board in late 2018, 
the aim is to optimise the Lufthansa Technik group’s sites 
continuously until 2025.
—	 Reduction of CO₂ footprint in global production network 
by an additional 25% 
—	 Increase proportion of renewable energy to 50% 
—	 Improve recycling ratio to 75% by making more efficient 
use of resources 
Another of the Lufthansa Technik group’s aims is to reduce 
the use of substances that are particularly harmful to human 
health and the environment by 25%. A new maintenance  
process for fire extinguishers (EFFECT – Extremely Fast Fire 
Extinguisher Check and Test) was introduced in 2020, for 
example. This significantly reduces environmental risks and 
processing time, because there is no longer any need to 
remove, store and process the halon used to suppress the 
fire, which damages the ozone layer. 
Performance against sustainability targets is reported annually 
to the Management Board of Lufthansa Technik.
CLIMATE PROTECTION
Targets 
Lufthansa Group supports climate protection goals of  
the aviation sector and reinforces its own targets 
According to the International Energy Agency (IEA), CO₂ 
emissions from air traffic currently account for around 2.8% 
of global carbon emissions from burning fossil fuels.
The aviation sector started making voluntary commitments 
to reduce emissions as early as 2009, via its trade associa-
tions IATA and the Air Transport Action Group (ATAG). The 
Lufthansa Group was closely involved in setting the target  
of continuous efficiency improvements of 1.5% until 2020, 
carbon-neutral growth from 2020 and a reduction of 50% in 
net emissions compared with 2005 by 2050.
IATA is currently reviewing its targets for the global aviation 
industry. Above and beyond the currently agreed targets,  
it aspires to make global air traffic carbon neutral by the year 
2060. The existing climate goals mentioned above will also 
remain in place.
Via the European airline association (A4E), the Lufthansa Group 
is also involved in the Destination 2050 study – an initiative 
by five European air transport associations (A4E, ACI EUROPE, 
ASD, CANSO and ERA) which began in summer 2019. The 
study investigates the potential for reducing emissions in  
the action areas of technology, operations and infrastructure, 
sustainable aviation fuel (SAF) and market-based mecha-
nisms, to determine how they can contribute to achieving the 
emissions targets for European air transport. The focus is on 
significant reductions by 2030 and achieving carbon neutrality 
by 2050. The aim is to never exceed the level of emissions 
recorded in 2019. The study is to be published in 2021.
Policymakers and industry are also working towards the  
long-term goal of making flights from and to Europe carbon 
neutral by the middle of the century as part of the EU pact. 
Significant reductions should already be achieved by 2030.
As befits its pioneering role, the Lufthansa Group has also 
defined its own carbon reduction targets, which in some 
cases are more demanding. This means the Lufthansa Group’s 
carbon footprint should be reduced by half by 2030 compared 
with 2019, with carbon neutrality the objective for 2050.  
Measures
Achieving these goals requires focused political and financial 
mechanisms. In this context, the Lufthansa Group has for 
many years supported research to contribute to a better 
understanding of climate effects. 
Four-pillar strategy defines climate protection measures
The targets mentioned above can only be met through  
cooperation and by combining various activities of different 
players, such as manufacturers, airports, air traffic control 
authorities, airlines and policymakers. As early as 2007,  
IATA divided its emission-reduction activities into four action 
areas in its four-pillar climate protection strategy for the  
airline industry. This strategy and these action areas also 
form the basis for the Lufthansa Group’s activities to improve 
fuel efficiency and reduce CO₂ emissions. 
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1. TECHNOLOGICAL PROGRESS 
Fleet renewal is currently the key driver for reducing CO₂ 
The most important driver for reducing CO₂ emissions  
from flight operations is investing continuously in modern,  
particularly fuel-efficient aircraft and engine technologies. 
Alongside alongside 4 used aircraft, 18 new aircraft went into 
service with the Lufthansa Group airlines in 2020, including 
more Airbus A320neos, A321neos, A350s and Boeing 777Fs, 
which are powered by modern engines. The A350-900 air-
craft is one of the latest and most environ­mentally friendly 
long-haul aircraft in the world and is much quieter than  
comparable aircraft types. A total of 28 older aircraft were 
removed from the Group fleet in exchange.
Measures to technically modify the existing fleet are also 
constantly examined and implemented where appropriate.  
In February 2020, Lufthansa Technik completed the trial, 
which began in late 2019, of a new surface coating developed 
jointly with BASF Coatings GmbH. This functional foil is known 
as sharkskin due its microscopic ribbing, and it reduces air 
resistance. For a Boeing 747, it enables fuel savings of more 
than 400 tonnes, which represents a reduction of almost 
1,300 tonnes of CO₂ emissions per aircraft per year. The plan 
to apply it to the entire fleet of Boeing 747-400s at Lufthansa 
German Airlines has been postponed due to the pandemic. 
The intention is to also have the foil authorised for other  
aircraft types and to market it more widely. 
Aircraft with alternative means of propulsion not based on 
fossil fuels are currently still in development. Airbus estimates 
that aircraft using hydrogen-based propulsion technology 
could be authorised for commercial use on flights of less than 
2,000 km from 2035.
Lufthansa Group uses partnerships to drive research projects 
on sustainable aviation fuel
In the past decade, the Lufthansa Group has been closely 
involved with the research, testing and use of sustainable 
aviation fuel (SAF), i.e. synthetic kerosene made using renew-
able energy sources. In 2011 the Lufthansa Group carried  
out pioneering work with the world’s first long-term trial of 
bio-kerosene in regular flight operations. Later, the company 
performed fundamental research into how alternative and 
conventional kerosene mix and made selective use of novel 
synthesis methods. 
Since then, the Lufthansa Group has worked in partnerships 
to drive key technologies for producing sustainable aircraft 
fuels. The focus is on synthetic kerosene based on waste 
materials, ligneous biomass and renewable electrical energy 
(power-to-liquid – PtL). In 2019, for instance, the Lufthansa 
Group signed a letter of intent with Raffinerie Heide on future 
supplies of PtL fuel to Hamburg Airport. Among other things, 
the Lufthansa Group also supports the Lausitz power-to-X 
centre of excellence. Another partnership was begun in the 
reporting year with ETH Zurich and its two spin-offs Synhelion 
and Climeworks. The experts at ETH Zurich have developed 
innovative methods for removing CO₂ from the atmosphere 
and, together with water and with the help of concentrated 
sunlight, convert it into a synthesis gas that can be used to 
generate fuel.
C27 THE FOUR PILLARS FOR CLIMATE PROTECTION 
Technological progress
Improved infrastructure
Operational measures
Economic measures
Innovation in aircraft and  
engine technology
Alternative fuels
Efficient aircraft sizes
Optimum flight routes and speeds
Global market-based system  
of emissions reduction (CORSIA)
Voluntary compensation option
Better use of airspace
Needs-based  
airport infrastructure
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In addition, the Lufthansa Group is still involved with the 
cross-sector Powerfuel initiative coordinated by the German 
Energy Agency (dena). It aims to build an international alli-
ance to develop the future strategic importance of synthetic 
renewable fuels, to jointly advance a global market for these 
fuels and to accelerate their market development.
“Green hydrogen” is vitally important for synthetic fuels. This 
is why the Lufthansa Group is taking part in the HySupply 
initiative launched by the Federation of German Industries 
and acatech. The aim is to develop a supply chain for green 
hydrogen from Australia. 
The World Economic Forum also supports the market launch 
of SAF. The Lufthansa Group is a member of the working 
group Clean Skies for Tomorrow. 
The importance of SAF for reducing emissions from air traffic 
has been recognised at the European level. As part of its 
Green Deal, the EU is currently preparing special legislation 
(RefuelEU Aviation) dealing exclusively with sustainable  
aircraft fuels, which is intended to bring them to market by 
means of a progressively rising blending ratio. The Lufthansa 
Group is closely involved in the consultations for these  
legislative processes. 
Work is taking place in Germany on a PtL roadmap for the 
aviation sector to be published in 2021. This joint strategy 
involves the federal and regional governments, the aviation 
and fuel industries and equipment manufacturers, and it is 
coordinated by the Federal Association of the German Aviation 
Industry and the Federal Transport Ministry. The Lufthansa 
Group has made an active contribution to the project in order 
to help shape demonstration projects, production at scale 
and market launch of PtL fuels. 
Lufthansa Group actively involves customers in  
the transformation 
By involving its customers as well, the Lufthansa Group 
wants to accelerate the transformation of the industry. The 
offset platform Compensaid, which the Lufthansa Innovation 
Hub launched in 2019, was refined and integrated into the 
flight booking process for all Lufthansa Group airlines in 2020. 
It can be used by travellers to substitute SAF for the fossil 
fuel required for their flight. 
This principle was transferred to cargo flights for the first 
time in November 2020. Lufthansa Cargo and DB Schenker 
completed a cargo flight that was 100% carbon neutral. This 
entailed feeding the volume of SAF that corresponds to the 
fuel requirement for this flight into the fuel supply system at 
Frankfurt Airport and notionally allocating it all to this flight. 
At the same time, the emissions caused by the SAF itself 
(e.g. production, logistics) were also offset.
2. IMPROVED INFRASTRUCTURE 
Single European airspace should reduce emissions
The fundamental modernisation and harmonisation of tech-
nologies, processes and standards in the European airspace 
are necessary to realise the significant potential of airspace 
infrastructure for greater efficiency. In autumn 2020, the 
European Commission started SES2+ (Single European  
Sky 2+) consultations, with the aim of incorporating findings 
that had been previously identified by various committees.  
In line with the European Commission’s current Green Deal, 
the aim is to reduce fuel consumption and thereby sustainably 
lower CO₂ emissions, and to achieve significant improve-
ments in aviation punctuality and reliability for passengers. 
The Lufthansa Group was actively involved in drafting a dec-
laration by the airline industry through the Airlines for Europe 
(A4E) association and Lufthansa representatives, and the 
Group has for years expressly supported the efforts of the EU 
to create a reliable and efficient EU airspace. 
Parts of these new measures are based on the results of  
the European SESAR (Single European Sky ATM Research) 
programme. This is a key milestone in the harmonisation  
and modernisation of European aviation infrastructure. The 
goal of this programme is to develop, test and implement 
Europe-wide new technologies, procedures and standards 
that contribute to harmonizing and optimizing European  
air traffic management. The Lufthansa Group has supported 
SESAR for many years with the clear expectation that meas-
urable operational improvements in air traffic management 
are implemented. The implementation of these technologies 
in daily operations is jointly coordinated by the members of 
the industry consortia SESAR Deployment Manager (SDM). 
The Lufthansa Group is a member of these consortia and 
provides local experts. Across Europe, the SDM currently 
coordinates 343 projects. The various airlines in the Lufthansa 
Group and Lufthansa Systems are also actively involved as  
IT providers for SESAR research and demonstration projects. 
Intermodal transport to be expanded
Almost the only purpose of very short flights is to bring pas-
sengers to and from longer flights from the Lufthansa Group’s 
hubs in Frankfurt, Munich, Zurich, Vienna and Brussels. Since 
the 1980s, the Lufthansa Group has been developing ways 
of combining the various means of transport (air, rail and road) 
intelligently, a concept known as intermodality, to reduce the 
environmental impact of return trips to the hub. 
To encourage intermodal transport, a partnership was estab-
lished with rail operator Deutsche Bahn in 2001 and has 
since been intensified, with significant progress made in  
the reporting year. Joint capacity on existing routes was 
expanded, and three additional destinations were added: 
Leipzig, Hanover and Basel. Lufthansa German Airlines can  
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now enable its customers in 17 cities to complete the journey 
to and from their flight on an climate friendly ICE train, with 
over 120 connections a day. Other opportunities for coopera-
tion are currently being developed with Deutsche Bahn. As 
there is no long-distance rail connection at Munich Airport, 
the Lufthansa Group is investigating the use of comfortable 
buses on selected routes. Two more destinations, Lugano 
and Geneva, were introduced at the Zurich hub in 2020 in 
cooperation with the Swiss rail operator SBB. In Vienna,  
a connection to Graz was added to the joint programme with 
Austrian Railways, and the existing connection to Salzburg 
was expanded significantly.
3. OPERATIONAL MEASURES 
The Lufthansa Group’s operational measures for climate pro-
tection comprise the use of efficiently sized aircraft and the 
optimisation of load factors, as well as reviewing and intro-
ducing new flight procedures, determining optimal routes 
and speeds and monitoring the many activities to save fuel.
More efficient concepts for take-off and landing  
are being implemented and the digitalisation of approach  
technologies advance
In 2020, the coronavirus pandemic enabled joint initiatives 
with German air traffic control (DFS) to reduce emissions. 
Periods of low traffic were used to test alternative flight pro-
cedures (vertical flight profile) and flight routes (horizontal 
flight management) and identify their potential savings. The 
intention is to continue using these procedures when traffic 
picks up again. 
In April and May 2020, DFS and the Lufthansa Group devel-
oped and implemented a concept for more efficient flight 
profiles on the approach to the Frankfurt and Munich airports. 
The Efficient Flight Profile concept (EFP) supports a contin-
uous descent, which enables lower fuel consumption and 
carbon emissions when landing compared with standard 
approaches. At the same time, these approach profiles reduce 
noise levels in the vicinity of the airport. This concept is the 
partners’ response to the drastic decline in air traffic caused by 
the coronavirus pandemic. With it, they are taking advantage 
of the opportunity to optimise flight operations, particularly 
at Germany’s busiest airports in Frankfurt and Munich.
The EFP concept makes it possible to already plan optimised  
flight paths to these airports from distances of more than 
200 miles. It means that aircraft are cleared for a direct flight 
from the upper airspace to their destination with up to half an 
hour earlier. This is only possible through close cooperation 
between the air traffic control authorities involved.
Analysis has shown that the Lufthansa Group alone has 
reduced its CO₂ emissions by up to 2,000 tonnes per month 
since the EFP concept was introduced. 
DFS introduced another shorter take-off path to the west from 
Dusseldorf Airport on 13 August 2020. The experts at the 
Lufthansa Group were chiefly responsible for developing this; 
they wanted not only to support the DFS with implementation 
of the EU requirement for greater use of area navigation pro-
cedures, but also to use the new route to reduce kerosene 
consumption and the related emissions. Planning took place  
in close coordination with the Noise Abatement Commission 
and representatives of people living in the local communities. 
The new procedure reduces the flight path by around 2.7 km, 
which means fuel consumption goes down by around 40 tonnes 
and CO₂ emissions by 130 tonnes per year.  
These new departure routes will be introduced as part of  
the European SESAR implementation project RNP Based 
Departure Operations. Modern satellite navigation technology 
is also used, which enables the ideal line to be followed  
with even greater precision and makes the definition of flight 
paths more flexible.
The effects of the new departure routes on flight noise were 
analysed as part of the Lufthansa Group research project 
EffFlug, aimed at generating efficiency gains in flight opera-
tions. A new method was developed in this context for  
counterbalancing and improving the effects of noise on the 
communities concerned. ↗ Active noise abatement, p. 95f.
The Lufthansa Group completed the project Augmented 
Approaches to Land 2 in 2020, which tested the new approach 
technology known as Ground-Based Augmentation System 
(GBAS) in Frankfurt and Bremen for approaches in low visi-
bility. The system is a prime example of how approach technol-
ogy is being digitalised. Among other things, it enables more 
flexible approaches to reduce fuel consumption and aircraft 
noise. GBAS allows for smaller gaps between successive air-
craft as they make the final approach to the airport in poor 
visibility. One day, the system could replace the established 
instrument landing system (ILS) that is standard today.
Numerous projects to save fuel significantly reduce  
carbon emissions  
In financial year 2020, 34 fuel-saving projects were under 
way across the Group. These projects comprise activities 
relating to performance and procedures, weight reduction, 
flight route optimisation and technical developments. In 
addition to the reductions achieved in recent years, they made 
it possible to permanently avoid another 52.6 thousand tonnes 
of CO₂ emissions in the reporting year. The quantity of kero-
sene saved amounted to around 16.7 thousand tonnes – this 
is equivalent to approximately 196 return flights between 
Munich and New York with an Airbus A350-900 aircraft. 
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4. ECONOMIC INSTRUMENTS 
Economic measures to protect the environment are vitally 
important as long as sustainable aircraft fuel is not available 
in sufficient quantities. 
Mandatory offsets of CO₂ emissions
The Carbon Offsetting and Reduction Scheme for Inter­
national Aviation (CORSIA), which was concluded with the 
International Civil Aviation Organization (ICAO) in October 
2016, seeks to offset growth-related CO₂ emissions in inter-
national air traffic using climate protection projects from 
2021 onwards. In June 2020, the ICAO adopted a resolution 
confirming that carbon emissions in 2019 are the sole bench-
mark for determining relevant industry growth in the course 
of the CORSIA pilot phase. On the basis of this regulatory 
change, the Lufthansa Group assumes that it will not have  
to make any carbon offsets under CORSIA for the year 2021. 
Whether and how many CORSIA offsets will be required in 
future depends primarily on how fast air traffic recovers 
between the states participating in the CORSIA pilot phase. 
The EU Emissions Trading Scheme (EU ETS) for air traffic has 
managed and limited CO₂ emissions by way of certificate 
trading since 2012. All flights carried out by the Lufthansa 
Group within the European Economic Area (EEA) are subject 
to this system. Combining the EU ETS with the emissions 
trading scheme for Switzerland (CH ETS) means that as of 
January 2020 emissions certificates also have to be provided 
for flights between Switzerland and the EEA and for flights 
within Switzerland. The companies in the Lufthansa Group 
emitted some 3.2 million tonnes of CO₂ under EU ETS and 
CH ETS in the reporting year. For 2020, the companies in the 
Lufthansa Group were allocated around 4.1 million emissions 
certificates by national authorities. For further information on 
the provisions recognised in connection with the obligation 
to submit CO₂ emissions certificates to the competent 
authorities, we refer to ↗ Notes to the consolidated financial 
statements, Note 36, p. 188ff.
The European Emissions Trading Scheme is currently being 
revised, and the Lufthansa Group is also involved in this  
process. The project aims to harmonise CORSIA and EU ETS 
in order to avoid double regulation. However, it is crucial that 
the revision puts an end to the unfair competition caused  
by regionally limited emissions trading at the expense of 
European airlines. This results from the unequal treatment of 
feeder flights for long-haul traffic. Airlines with a hub in the 
EEA have to take part in the EU ETS, whereas airlines with  
a hub outside the EEA are exempt. The latter have almost 
unrestricted market access, however. 
Voluntary carbon offsets with myclimate and Compensaid
In addition to the mandatory economic instruments, there 
are also ways of offsetting carbon emissions voluntarily.  
The Lufthansa Group has partnered with the well-known  
carbon offset provider myclimate and with Climate Austria 
for Austria for more than ten years. With the “Corporate Value 
Fares” programme offered to corporate customers by the 
Network Airlines in the Lufthansa Group, the emissions of 
flights within Europe are automatically offset via myclimate. 
The Lufthansa Group itself has been offsetting the carbon 
emissions of all employees’ business flights around the world 
since 2019. Private customers and employees of the Lufthansa 
Group also have the option of offsetting their emissions via 
the Compensaid platform, which enables the purchase of 
low-carbon sustainable fuels (SAF) and project-based offsets. 
The Lufthansa Group only uses certificates for its carbon  
offsets that meet the highest quality standards (CDM Gold 
Standard and Plan Vivo). Austrian Airlines and its partner  
Climate Austria also use some of the funds for national offset 
projects that have been certified by the Austrian Environ-
ment Ministry.
Lufthansa Group aircraft collect data for climate research
In addition to the activities in the four-pillar strategy, the 
Lufthansa Group has been involved in various research pro-
jects examining the atmosphere and the climate since 1994. 
In cooperation with its research partners from the Karlsruhe 
Institute of Technology and Forschungszentrum Jülich,  
it has equipped selected passenger aircraft with measuring 
instruments that collect information about the condition  
of the atmosphere on regular scheduled flights. This data is 
used by some 300 organisations around the world. It helps 
scientists to acquire new knowledge about climate change 
and the composition of the atmosphere and to detect long-
term changes. For example, the data from more than 15 years 
of continual measurements on board Lufthansa Group aircraft 
improved the researchers’ understanding of where and when 
cold and humid air masses occur in which contrails can form. 
In the first half of 2020, the research aircraft collected impor-
tant data with which scientists are currently investigating the 
impact of the global lockdown on air quality and the climate. 
The climate impact of aviation contrails was quantified  
by well-known research institutes for the first time in 2020. 
These findings will be used for further research into mitiga-
tion measures, and for informing the political debate. The 
Lufthansa Group will be actively involved in this as well.
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Performance indicator 
Absolute CO₂ emissions fall to 11.4 million tonnes  
due to the pandemic; specific CO₂ emissions  
per passenger-kilometre higher at 105.2 grammes
Absolute CO₂ emissions of Lufthansa Group aircraft in 2020 
amounted to 11.4 million tonnes (previous year: 33.1 million 
tonnes). ↗ T001 Key figures Lufthansa Group. Due to the pan-
demic, carbon emissions per freight tonne-kilometre increased 
to 880 grammes (previous year: 870 grammes). Specific CO₂ 
emissions per passenger-kilometre were higher than the pre-
vious year at 105.2 grammes (previous year: 92.2 grammes). 
The main drivers of this development were the lower pas-
senger load factor, which declined to 60.8% on average  
(previous year: 82.0%) relative to the Lufthansa Group’s own 
fleet (without wet leases), and the many changes to the route 
network. Wide-ranging travel restrictions resulting from the 
pandemic caused short-haul flights to go up as a percentage 
of total capacity at the Group airlines. In relation to the route, 
short-haul flights emit more CO₂ than long-haul flights.  
↗ Financial strategy and value-based management, p. 21ff.
ACTIVE NOISE ABATEMENT
Targets
Aircraft noise to be reduced at source
The Lufthansa Group has numerous ongoing activities and 
measures intended to achieve a noticeable reduction in air-
craft noise. The primary goal is to sustainably reduce aircraft 
noise at its source and to develop optimised flight procedures 
together with system partners. This is based on involvement 
in research and development projects where ideas for new 
noise abatement measures are tested (measure 3).
Measures
Active noise abatement includes measures from five areas
Since 2001, the Lufthansa Group has played an active and 
continuous role in research projects and noise abatement 
activities organised by dialog forums. Active noise abate-
ment measures at the Lufthansa Group cover the following 
five areas:
1. INVESTMENTS IN MODERN AND THUS QUIETER AIRCRAFT
The best method of reducing aircraft noise at the source is  
the modernisation of the fleet. The Lufthansa Group modern-
ises its fleet continuously. Aircraft that went into service in 
2020, including Airbus 350-900s, A320neos, A321neos and 
Boeing 777Fs, have modern engines and are much quieter 
than comparable aircraft types. ↗ Fleet, p. 25f. and Climate 
protection/Technological progress/Fleet renewal, p. 91.
2. NOISE-REDUCING TECHNOLOGIES FOR THE EXISTING FLEET
In addition to modernising the fleet, retrofitting existing  
aircraft also results in measurable noise reduction. At the 
beginning of 2014, Lufthansa German Airlines became the 
first airline worldwide to start operations with a new Airbus 
A320 equipped with noise-reducing vortex generators, thus 
setting an industry standard. Aircraft with vortex generators 
are up to four decibels quieter on their approach and so the 
Company pays lower noise charges in Frankfurt than for 
comparable aircraft without these components. In the mean-
time, all aircraft in the A320 family at Lufthansa German  
Airlines and SWISS have been fitted with vortex generators. 
At Austrian Airlines, only one of the five new aircraft added in 
2018 still has to be upgraded. This is planned for 2021. Retro-
fitting the remaining Eurowings A320 aircraft with vortex 
generators is due to be completed in the second quarter of 
2021. The modification will be carried out in the course of 
routine technical maintenance cycles.
C28 ACTIVE NOISE ABATEMENT
Investments  
in quieter aircraft 
 
Noise-reducing  
technologies for the 
existing fleet 
Participation  
in noise research 
 
Dialogue with  
residents near  
airports and  
other stakeholders
Development of  
optimised flight  
procedures  
and flight routes
Introduction of the latest 
aircraft, such as the Airbus 
A320neo and A350-900
Retirement of older models
Retrofitting of noise- 
reducing vortex generators 
to the existing fleet
Cooperation with system 
partners
Development and testing  
of new methods
Use of new navigation  
technology
Continuous collaboration 
and exchange with partners 
from research and industry
Development and analysis 
of new noise-reduction 
measures
Continuous exchange  
with residents, as in the  
Airport and Regional Forum 
(FFR)
Active participation to  
aircraft noise commissions
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3. PARTICIPATION IN NOISE RESEARCH
For many years, the Lufthansa Group has been involved in 
noise research initiatives such as the one on increasing the 
efficiency of flight operations (EffFlug), which is funded by the 
German Federal Ministry for Economic Affairs. This involve-
ment continues despite the crisis in the airline industry caused 
by the coronavirus pandemic. Working with experts from the 
German Aerospace Center (DLR), the Lufthansa Group con-
tinues to look for noise sources that can be eliminated. In the 
past, measuring flights were performed just for this purpose. 
Now noise is measured with the help of standard measure-
ment data from the airports. Such a process was tested in 
2019, in which noise measurements from airports were syn-
chronised with the corresponding flight data from a Lufthansa 
approach and then analysed for anomalies by flight noise 
experts from the DLR.
Since 2019, the Low Noise Augmentation System (LNAS) 
developed by the DLR has been tested by the Lufthansa 
Group in a broad study. The LNAS uses aircraft data to deter-
mine recommendations for optimal configuration and speed. 
The aim is to examine whether approaches can be made more 
efficient and quieter while observing safety regulations.  
With the support of the Environment and Neighbourhood 
House (UNH) which is part of the Forum Airport and Region 
in Frankfurt (FFR), the Lufthansa Group has fitted 86 Airbus 
A320 aircraft with the system and gained numerous volun-
teer pilots for testing. Fewer LNAS flights took place than 
planned in 2020 due to the crisis, so the research period was 
extended to include 2021.
This intensive research and development work forms the 
basis of successful active noise abatement and makes a 
major contribution to optimising the existing fleet and flight 
operations.
4. DEVELOPMENT OF OPTIMISED FLIGHT PROCEDURES AND  
FLIGHT ROUTES IN COOPERATION WITH SYSTEM PARTNERS 
Optimising the vertical flight profile (flight procedures) and 
horizontal flight management (flight routes) also contributes 
to reducing noise. The Lufthansa Group is active in many 
ways in this area, with Deutsche Flugsicherung (German air 
traffic control) as well as international partners. ↗ Climate 
protection, p. 90ff.
Another aim of the EffFlug research and development pro-
ject was to develop a methodology for supporting German  
air traffic control with the development of new flight routes 
and analyses of flight noise. The new procedure was suc-
cessfully applied for the first time to optimise the departure 
route from Dusseldorf. ↗ Climate protection/Operational 
measures, p. 93.
5. DIALOGUE WITH RESIDENTS NEAR AIRPORTS AND  
OTHER STAKEHOLDERS
In addition to technical and operating procedures, the 
Lufthansa Group also takes part in various discussion forums 
with people living near airports, including in Frankfurt and 
Vienna, such as the Noise Abatement Alliance in Frankfurt. 
Its members include the Hesse state government, Fraport AG, 
Deutsche Lufthansa AG representing the Lufthansa Group, 
the Airport and Region Forum, German air traffic control and 
the airline association BARIG. The focus of these activities  
is on optimising flight procedures. 
The Lufthansa Group also works in some of the aircraft noise 
commissions (Fluglärmkommissionen) required in Germany 
by the Air Traffic Act (Luftverkehrsgesetz).
Performance indicator
99.5% of the operational Group fleet meet standard  
for aircraft noise
Improvements in noise abatement from modernising the 
operational Group fleet can be seen in the number of aircraft 
that meet or exceed the ten-decibel criterion set by the ICAO 
Chapter 4 standard. This standard defines noise limits and 
stipulates that all civil aircraft newly licensed after 2006 must 
cumulatively fulfil the older Chapter 3 noise limits by a margin 
of ten decibels or more. As of 24 October 2020 (end of the 
summer flight schedule), 99.5% of the aircraft – virtually the 
Group’s entire operating fleet – fulfilled this criterion.
The necessary data is to be added to the Group’s fleet data-
base to ensure faster and more flexible analysis in future.  
The first preparatory steps were taken in 2020.
WASTE PREVENTION
Lufthansa Group supports environmental sustainability 
goals in product and service design 
The Lufthansa Group has set targets for reducing waste,  
especially in terms of plastic. In 2019, the Network Airlines 
initiated the Smart Plastic Reduction project. This follows 
the waste hierarchy outlined in Directive 2008/98/EC: 
Reduce – Reuse – Recycle – Replace. Due to airline-specific 
conditions, the relevant and respective national regulations 
for handling international catering waste must still be 
adhered to. 
In addition, the Network Airlines started a programme in 
2019 to improve the sustainability of the products available 
in-flight and in the lounges. The measures are planned to  
be implemented by the end of 2021. 
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Targets
Lufthansa Group supports a variety of initiatives to 
comprehensively reduce waste 
The Network Airlines aimed to achieve early conformity with 
the requirements of EU Directive 2019/904 regarding the 
future ban on single-use plastics. For 2020, the plan was to 
avoid or replace 144 million items (disposable plastic stirrers 
and disposable plastic cutlery) in the existing in-flight service 
programme. The coronavirus pandemic significantly altered 
the conditions for achieving this target, however. Restrictions 
were put in place on services on board, including not serving 
hot drinks and disposable plastic stirrers, in order to reduce 
contact with passengers. The drastic curtailment of the flight 
programme and the corresponding reduction in consumption 
anticipated for 2020, of 71% on average for long-haul routes 
and 67% for short-haul routes, meant that the range and 
stocks of these articles at the Network Airlines was extended 
accordingly. Since disposable plastic articles that are already 
in stock will be used and not thrown away, the shift to sus-
tainable alternatives will be delayed by several months, 
depending on the item. 
The Network Airlines are also pursuing the goal set out in  
the European strategy for plastics in the circular economy of 
exclusively using recyclable plastic packaging on in-flight 
products or completely avoiding packaging made of petrole-
um-based single-use plastics by 2030. This includes reducing 
annual consumption by a further 226 million plastic items 
compared with the base year 2019. 
Measures
The Lufthansa Group pools measures to reduce plastic 
waste in Smart Plastic Reduction project
The measures in the Smart Plastic Reduction project cover 
an annual volume of around 370 million individual items 
(consumption in base year 2019). Various players along the 
value chain, such as manufacturers, catering partners, cabin 
crew and waste disposal companies, are involved to ensure 
the reduction is efficient. For example, over 50% of the  
plastic items used on long-haul flights in base year 2019 are 
intended to be reduced or replaced by more sustainable 
alternatives by the end of 2021. 
1. REDUCE 
By consistently reducing unsustainable packaging, the  
aim is to significantly reduce the amount of packaging 
required for the logistics of products used on board. How-
ever, country-specific hygiene rules have been changing 
constantly since the coronavirus pandemic started and have 
to be implemented at short notice, so some changes made 
in the reporting year have had to be revoked. 
2. REUSE
Reusable products, particularly in mobile on-board equip-
ment (e.g. reusable crockery/cutlery), are a firmly established 
element of product concepts. The potential for switching 
from single-use to reusable products is examined regularly 
when products are modified. The load is adjusted if neces-
sary when considering available storage space on board, 
weight, service times during the flight and the number of 
items required. Examples include the use of reusable metal 
cutlery in Economy Class at Lufthansa German Airlines and 
SWISS on long-haul routes, the reusable coffee cups in 
Economy Class at Lufthansa German Airlines and the reusable 
bento boxes on SWISS flights. Changes being made to pro-
cesses for reloading unused items (such as sugar sachets, 
unopened snacks and unused items in the amenity kits) in 
cooperation with the catering partners were suspended at 
the beginning of the coronavirus pandemic.
3. RECYCLE 
Processes for increasing the use of recyclable products  
are being developed and implemented in collaboration with 
suppliers, caterers, cleaning and disposal services. Since  
the beginning of 2019, Austrian Airlines has been using recy-
clable plastic cups that are recycled in a patented process 
that turns them back into synthetic crude oil. Preparations, 
including official approval, are under way at Lufthansa German 
Airlines and SWISS to use only cups made of recycled PET 
(rPET) for cold beverages on board in 2021, which can be 
reused in a closed-loop system. The rPET cups are more  
stable, which makes it possible to reuse them several times 
during a flight, and thus reduce overall consumption. This 
will affect around 160 million cups per year (base year 2019).
The development of a recycling trolley intended to enable the 
separation of liquids on board and their disposal apart from 
other waste was temporarily suspended at the beginning  
of the coronavirus pandemic. The same applies to the review 
of different materials for drinks packaging to increase the 
amount of properly sorted recycling. 
4. REPLACE
Plastic items that are essential to the Network Airlines’  
product and service concepts will be gradually replaced by 
ones made from renewable resources. Stirrers and single-use 
cutlery will in future be made of bamboo rather than plastic. 
Disposable plastic stirrers were replaced by bamboo alterna-
tives at Austrian Airlines in 2019 and at SWISS in February 
2020. Lufthansa German Airlines replaced the plastic pack-
aging on blankets in Economy Class with a paper band in  
the first quarter of 2020. In some countries, such as Dubai, 
this is not currently possible due to coronavirus precautions.
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Customer concerns
Concepts
High customer satisfaction is a key success factor  
for the Lufthansa Group
Flight safety and the health of passengers always has top 
priority. In order to meet this elementary requirement, all  
airlines in the Lufthansa Group have a comprehensive safety 
management system (SMS). Every two years, independent 
experts audit the safety standards applied Group-wide in an 
IATA Operational Safety Audit (IOSA).
A clear focus on customers, operating stability, innovative 
products and services and a focus on quality are essential  
for a service provider like the Lufthansa Group. These topics 
remain a priority even when dealing with the coronavirus 
pandemic, because long-term, sustainable customer relations 
require straightforward, flexible and individual travel experi-
ences. In the reporting year, this included measures to boost 
public trust in the safety of air travel with Lufthansa Group 
airlines during the coronavirus pandemic. Another focus was 
the processing of requests for refunds, which increased  
significantly due to the many changes to flight timetables 
and cancellations.
Investments in a modern Group fleet, greater comfort on 
board, numerous innovative products – including in terms  
of sustainability – and digital services ensure that flying 
becomes more and more attractive for the customers of the 
Lufthansa Group, as well as more flexible and reliable during 
the crisis. Regular surveys of passengers help to find out  
as much as possible about their needs and to include them 
in the development of innovative new products.
Allocating the Lufthansa Group airlines to the Network  
Airlines and Eurowings segments also represents a  
customer-centric, differentiated and transparent product  
and service strategy. 
Numerous awards confirm the Lufthansa Group’s  
innovation and quality strategy
The Lufthansa Group airlines have received a number of 
awards in recent years. In the reporting year, many award 
ceremonies took place online due to the coronavirus pan-
demic. Presentation of the ATW Airline Industry Achievement 
Awards, the Travel Plus Awards and the Skytrax World Airline 
Awards was postponed to the following year. World Airline 
Awards were postponed to next year. Instead, Skytrax pub-
lished its “COVID-19 Airline Safety Rating” in the reporting 
year, whereby Lufthansa German Airlines was one of the first 
airlines in the world to receive a 4-star rating.
Lufthansa German Airlines again received several recogni-
tions at the Onboard Hospitality Awards in 2020. One was 
for the sustainability of its amenity kit. Lufthansa German 
Airlines was voted Europe’s Leading Airline 2020 at the World 
Travel Awards and SWISS took first place in the category 
Europe’s Leading Airline – First Class 2020. SWISS was also 
voted Best Airline for Business Travellers in Europe by the 
magazine Business Traveller. Lufthansa German Airlines won 
the German Innovation Prize in the category Future Digital 
Inflight Experience. The new in-flight experience platform 
was applauded for creating seamless, consistent and contex-
tualised touchpoints along the entire travel chain. 
The Lufthansa Innovation Hub won the Best Digital Lab 
Award for the third time in 2020. This was largely due to its 
development of Compensaid, a digital platform that enables 
passengers to offset the unavoidable carbon emissions 
caused by their flight or to replace fossil fuels with sustainable 
alternatives. Integrating Compensaid into the Miles & More 
app also enabled Miles & More customers to offset their  
carbon footprint directly with miles or a combination of miles 
and cash. This new function is called “mindfulflyer” and  
was developed jointly by Miles & More and the Lufthansa 
Innovation Hub.
Eurowings Digital won the Best Digital Lab Award 2020 from 
the business magazine Capital. The accolade particularly 
reflects the development of smart services with which the 
digital subsidiary of Eurowings accompanies its passengers 
throughout their journey. HORIZONT Brand Ticker also con-
firmed that Eurowings had increased its customer loyalty.
OPERATIONAL STABILITY
Passengers of Lufthansa Group airlines were affected by 
changes to flight schedules, delays and cancellations in the 
reporting year, particularly due to the coronavirus pandemic. 
Reasons included global travel restrictions, the regulations  
of local authorities and changes to operating processes to 
enable hygiene and social distancing. 
However, the significant fall in global air traffic and the lower 
load factor per flight meant that the departure punctuality  
of the Lufthansa Group airlines was significantly higher than 
in the previous year. 
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Targets
Operational stability is a prerequisite for high customer  
satisfaction. The top priority for all Lufthansa Group airlines 
is safe, punctual and reliable flight operations. Since this 
cannot be guaranteed by the airlines in the Lufthansa Group 
alone, work on solutions for further improvements in opera-
tional stability is always carried out with system partners.
Measures
Numerous measures to enable operational stability
At the start of the pandemic, the Lufthansa Group activated 
its Group Crisis Committee under the leadership of the Group 
Emergency Director. The Crisis Committee was responsible 
for shutting down virtually all flight operations in the Group 
during the first few weeks of the crisis, to as much as 3% of 
the previous year’s capacity in April 2020. The action taken 
by the Crisis Committee was based on the Lufthansa Group’s 
existing pandemic plan. The operational Crisis Committee 
was supplemented by regular exchanges with the GEC and 
with the German authorities at regional and federal level to 
make the entire decision-making process transparent.
In addition, a Group-wide programme to coordinate the 
ramp-up of flight operations was established with ReStart. 
ReStart is organised as an interdisciplinary task force. In 
addition to the central unit, there are local teams at the 
individual airlines in the Lufthansa Group. ReStart was transi-
tioned to the ReNew programme when the winter flight 
schedule began at the end of October 2020, in order to create 
the preconditions for the medium and long-term adjustment  
of flight operations to the “new normal”. 
At the monthly meetings of the Operations Boards, the Chief 
Operating Officers of all Lufthansa Group airlines provide  
the Executive Board of the Lufthansa Group with regular 
information. They also discuss results and decide on the action 
to be taken with the heads of flight operations, ground han-
dling and technical fleet management. An interdisciplinary 
performance dialogue is also in place for all Lufthansa Group 
airlines’ operations in order to establish and improve stand-
ardised processes and decisions.
The Lufthansa Group sees the testing of passengers before 
departure as an important element for enabling safe travel 
during the coronavirus pandemic. The Group initiated the 
internal Testing task force for this reason. On the basis of local, 
national and international regulations and in close coordina-
tion with the Lufthansa Group’s own medical service, this 
task force draws up standards and processes to enable the 
testing of passengers before departure. The aim is to avoid 
infections and stabilise flight-related processes.
Wide-ranging initiatives launched with system partners
Together with system partners such as airport operators  
and Deutsche Flugsicherung (German air traffic control), the 
Lufthansa Group airlines are working hard on solutions to 
ensure that the requirements of security checks, social dis-
tancing, cost-efficient infrastructure and other processes due 
to the coronavirus pandemic are met. A range of measures 
have been taken to ensure reliable and high-quality air trans-
port in Germany despite the coronavirus pandemic. Measures 
are being initiated with Deutsche Flugsicherung (German air 
traffic control) in order to, for example, improve punctuality 
by choosing shorter routes when traffic is low. 
Performance indicator
Departure punctuality significantly improved for the 
Lufthansa Group airlines
The main performance indicator for judging operational  
stability is the airlines’ departure punctuality. All flights taxi-
ing to the runway no later than 15 minutes after the planned 
departure time are defined as punctual as a common inter-
national rule. This performance indicator is monitored contin-
uously by management. In addition to daily reports from the 
hub control centres, operational performance is also discussed 
in the monthly Executive Board meetings. The punctuality  
of the Lufthansa Group airlines improved due to the reduc-
tion in the number of flights and the resulting decongestion 
of the air traffic control system. On average over the year,  
the departure punctuality of the passenger airlines in the 
Lufthansa Group rose to 88.6%, which was 12.6 percentage 
points higher than the previous year. The target for punctual-
ity of 85% was therefore achieved.
PRODUCT AND SERVICES
Strict focus on the customer is vital for a service company 
like the Lufthansa Group. For this reason, all the products 
and services along the travel chain are continuously reviewed 
– even during the coronavirus pandemic – and new, innovative 
and sustainable in-flight and ground products and services are 
developed that put the customer at their core. Digitalisation 
and sustainability aspects play an increasingly important  
role in better meeting differentiated customer needs. The 
travel experience for the customer should become even 
more convenient, especially through greater personalisation 
of the products and services along the entire travel chain.  
This includes, in particular, the flexibility to rebook flights  
and rules on goodwill gestures introduced as a result of the 
coronavirus pandemic. 
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Bundled responsibility for customer concerns ensures  
fast and effective implementation 
Responsibility for products and services is bundled centrally 
for all the Network Airlines in the Lufthansa Group. Since  
1 January 2020, it has been assigned to the Executive Board 
member for Customer, IT & Corporate Responsibility, who 
also liaises with the customer loyalty programme Miles & More 
and the Lufthansa Innovation Hub. 
The Customer Commercial Board is the central point for  
customer relations. Comprised of representatives from  
Customer, IT & Corporate Responsibility and Commercial 
Passenger Airlines, it enables regular discussions and  
decision-making on customer-related issues. 
Responsibility for the in-flight and ground products at 
Eurowings lies with the Customer Experience & Product 
department, which reports to the Commercial Director. 
Targets
Raising customer satisfaction is an integral part  
of Group strategy
Customer needs play a vital role for ensuring the long-term 
success of the Lufthansa Group. The objective of the New 
Premium vision statement is to recognise individual customer 
needs along the entire travel chain and to fulfil them as well 
as possible.
Measures
Customers are involved at an early stage of product  
and service development
The Lufthansa Group identifies the needs of its customers 
by means of surveys, which form the basis for strategic  
decisions. Customers are involved at the early conceptual 
phase of product and service design and development, as 
with the development of new seating concepts or meals, for 
instance. The Lufthansa Group’s online customer panel makes 
it possible to receive feedback on specific questions very 
quickly and to gain a better understanding of customer expec-
tations and requirements. The airlines in the Lufthansa Group 
put the New Premium strategy into practice by means of such 
active involvement in product and service improvements.
Through continuous surveys on customer satisfaction, the  
airlines in the Lufthansa Group also evaluate the acceptance  
of product enhancements and of new products and services.
Numerous hygiene measures implemented as a result  
of the coronavirus pandemic 
Aviation is one of the sectors worst affected by the corona­
virus pandemic. This makes it all the more important to  
reinforce trust in flying as a safe means of travel. This is why  
the Lufthansa Group signed the charter of the European Union 
Aviation Safety Agency (EASA) on safe flying in a pandemic. 
Its voluntary implementation of this standard represents  
a commitment to the strictest measures against infection  
in global aviation. Key standards were developed with the 
support of the Lufthansa Group. These include the obligatory 
wearing of face masks, which was initiated early on; the  
filtering of cabin air and increased ventilation of aircraft, 
including on the ground; proper cabin cleaning; staff pro­
tection; working towards digital track-and-trace procedures;  
and physical distancing, both on the ground and during 
boarding/disembarking.
Specific measures were taken along the travel chain in  
cooperation with airports. One example is the reliable rapid 
testing of passengers and local residents offered at Frankfurt 
Airport with the support of the biotech company Centogene 
starting in June 2020. Austrian Airlines started initial trials 
for rapid antigen testing in close cooperation with Vienna 
Airport in October 2020. In cooperation with Hamburg Airport, 
these trials were extended the following month to flights 
from Vienna to Hamburg. 
Eurowings was the first German airline to enable passengers 
to book a vacant middle seat next to their own from mid 
2020 onwards. 
New products and services continuously improve  
the travel experience
The Lufthansa Group invests continuously in new aircraft, 
products and services to keep improving the travel experience 
for its customers. This will continue in the years ahead. For 
instance, by 2023 Lufthansa German Airlines plans to intro-
duce a completely new Business Class featuring optimal 
sleeping comfort and more private space, along with more 
individual seating options. 
Staff at all levels are being made aware of the  
importance of customer satisfaction 
Development and training courses for customer-facing 
employees on increasing customer satisfaction are continu-
ously updated and expanded. Voluntary participation in digital 
events was made available as part of the private Stronger 
Together initiative and via LinkedIn, so that employees on 
short-time work could also benefit from these voluntary 
training sessions. The focus in the reporting year, as in the 
previous year, was on the film “Future Travel Movie” which 
introduces employees to the future of flying from the point 
of view of the customer. The “Management in Practice” pro-
gramme that encourages managers to work for one day in 
operational, customer-facing areas of the Lufthansa Group 
once a year was also continued despite the coronavirus  
pandemic. 
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Digitalisation and innovation support the development  
of new products and services
The digitalisation and innovation initiatives already under 
way were pursued further by the Lufthansa Group in the 
reporting year in order to develop new products and services. 
At the Lufthansa Innovation Hub, the Company drives the 
systematic use of the innovative online business model for 
the airlines in the Lufthansa Group and develops digital solu-
tions along the travel chain for passengers and tour operators. 
The aim is to provide customers with intuitive services right 
where the customers want them: from check-in and digital 
luggage receipts to dynamic and situation-based information 
and service offers and biometric services. 
In the reporting year, the Star Alliance completed its develop-
ment of a cross-system biometric identity and identification 
platform known as Star Alliance Biometrics. Customers in 
the Miles & More frequent flyer programme thus enjoy con-
tact-free access to the security checks and boarding gates. 
Lufthansa German Airlines and SWISS have used the plat-
form for selected flights since November 2020 and were the 
first airlines to do so. 
The partnership between Lufthansa German Airlines, SWISS 
and Google initiated in 2019 was extended to Austrian Airlines 
in the reporting year. This enables customers flying within 
the Schengen area to check in conveniently via the Google 
assistant. If a flight is cancelled, customers can now make 
another booking in just a few steps using a chatbot. This was 
made possible by adapting an existing text-based digital 
dialogue system on Facebook (chatbot) to the demands of 
the coronavirus pandemic.
The installation of broadband internet access in the Lufthansa 
Group fleet continued in the reporting year until spring 2020. 
Two Airbus A320s at SWISS were equipped with broadband 
internet access on a trial basis. All the projects to continue 
aircraft fitting were then suspended because of the corona-
virus pandemic. A total of 241 short and medium-haul aircraft 
are now equipped with broadband internet access.
During the coronavirus pandemic, Eurowings Digital created 
a website for seasonal farm workers within two weeks; this 
enabled farmers to reserve the specific number of seats they 
required. The Eurowings flight guide was also implemented. 
It provides a clear and up-to-date overview of the coronavirus 
precautions in force at Eurowings destinations and the rele-
vant conditions for entering the country. 
Other customer-focused solutions at Eurowings include the 
innovative search function that suggests alternative depar-
ture/arrival airports based on search patterns and flight prices, 
as well as the option of making a carbon offset online in the 
course of the booking process. Tickets could also be rebooked 
or cancelled online free of charge in the reporting year.
Airlines in the Lufthansa Group make flexible travel 
planning even easier for customers during the  
coronavirus pandemic 
Against the background of the pandemic, the passenger air-
lines in the Lufthansa Group have made fundamental changes 
to their fare structure that apply until the end of May 2021. 
All tickets with Lufthansa German Airlines, SWISS, Austrian 
Airlines and Brussels Airlines can be rebooked as often as 
needed without charge. This applies worldwide for new 
bookings on short, medium and long-haul routes. With the 
“No worries package” and the “Bring me home NOW” fare, 
the Network Airlines have also responded to their customers’ 
wishes during the coronavirus pandemic.
Lufthansa German Airlines, SWISS and Austrian Airlines  
have also been offering additional insurance policies since 
November 2020. The “Travel Care” insurance package 
includes compensation for the passenger if they are obliged 
to go into quarantine at their destination, as well as optional 
coverage if they have to cancel their journey before they set 
off or while travelling. “Travel Care Plus” also covers medical 
costs, including emergency repatriation if the passenger 
contracts the coronavirus. As part of an autumn campaign 
for international flights, Eurowings offered free “coronavirus 
insurance” that covered travel cancellation insurance, travel 
health insurance and travel interruption insurance. Customers 
can still book the insurance package for a fee now that the 
autumn campaign has ended.
The Lufthansa Group airlines were therefore among the  
first to offer their customers additional insurance coverage 
for their journey during the coronavirus pandemic.
Adapting to the dynamic increase in refund requests 
The travel restrictions imposed in early March 2020 meant that 
at times almost the entire flight programme was cancelled. 
This caused requests for refunds to increase exponentially. 
Furthermore, the increased complexity lead to an increase 
in time needed to process each ticket from an average of  
3 to 4 minutes to 10 to 15 minutes. As a result, the capacities 
available for processing refund requests were significantly 
overwhelmed. As a result, the Group expanded its infra­
structure and took measures to accelerate the processing. 
These included seconding numerous employees from other 
areas to provide support. The Lufthansa Group refunded 
around EUR 3.9 billion to customers in 2020, thus fulfilling 
all claims made in 2020. Constantly changing travel restric-
tions and warnings kept forcing the Lufthansa Group airlines 
to change their flight schedule, however, which unavoidably 
caused flights to be cancelled, which in turn resulted in new 
obligations to refund fares.
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Increasing demand for sustainable products and services
The Lufthansa Group is responding in various ways to  
customers’ wishes for sustainability aspects to play a greater 
role in products and services.
The main focus is for the Network Airlines to reduce single-use 
plastic and plastic packaging on board. ↗ Waste prevention/
Measures, p. 97. 
All print media was cancelled at Lufthansa German Airlines, 
SWISS and Austrian Airlines in the reporting year to reduce 
the risk of infection. Digital editions of magazines are an 
environmentally friendly alternative. More than 1,000 titles in 
57 languages from 36 countries are available.
Loading of trolleys for in-flight sales was optimised on the 
basis of customer demand, resulting in reduced weight. 
Therefore, around 300 tonnes of CO₂ were saved in the last 
five months of 2020, while maintaining the same range avail-
able to customers. This is equivalent to around 2,000 tonnes 
in normal years.
Data protection and data security play an  
increasingly important role
The secure handling of data in accordance with data pro­
tection legislation forms the basis for a trust-based relation-
ship with customers and is an increasingly important success 
factor for the Lufthansa Group. The Lufthansa Group has  
a data protection management system that is capable of 
meeting the requirements of the European General Data  
Protection Regulation (GDPR) in the Group companies. The 
Group has established an organisational structure for data 
protection that is dedicated to ensuring compliance with  
the rights of data subjects and the duties of controllers. This 
entailed creating easily reachable points of contact, both 
internally and externally, and establishing processes to fulfil 
information requests by information seekers within the 
required period, for example. Current information about the 
processing of personal data is also provided on the Group 
companies’ websites. The increasing digitalisation of business 
processes also makes it necessary to prevent cyber-risks, 
which is a priority for the Lufthansa Group. ↗ Opportunities 
and risk report, p. 71ff.
Performance indicator
Customer satisfaction improves year-on-year
The Network Airlines in the Lufthansa Group track customer 
satisfaction continually using Passenger Satisfaction Tracking 
(PST) and in-depth surveys to obtain as detailed information 
as possible about their passengers’ travel experience, espe-
cially on expectations of steps that should be taken to deal 
with the coronavirus. Customer satisfaction data is tracked 
separately for different service aspects along the entire travel 
chain. Customer satisfaction figures are usually made available 
to the responsible department and management on a monthly 
basis and used to derive measures to improve customer satis-
faction, among other things. To reflect dynamic changes in 
customer expectations since the start of the pandemic, cus-
tomer feedback has been factored into service adjustments 
at a higher frequency than before.
The leading indicator of customer satisfaction at the Network 
Airlines is the Net Promoter Score (NPS), which is based  
on the monthly analysis of around 30,000 passengers, and 
around 10,000 since April 2020. The NPS is derived from  
the passengers’ willingness to recommend. In 2020, the  
NPS for the Network Airlines was 62, or 5 percentage points 
higher than the target and the previous year’s figure of 57. 
Established hygiene and social distancing rules, the resump-
tion of services along the travel chain and exceptionally good 
punctuality had a positive impact on NPS and the overall 
satisfaction of travelling customers. However, the Network 
Airlines were not able to meet customer expectations in terms 
of the timely refund of advance payments and the availability 
of the service centre during the coronavirus pandemic.  
Eurowings also records an NPS and reports it together  
with other customer satisfaction results to the management  
and the different departments every month. The NPS was  
50 in 2020. This was higher than the target of 40 and the 
previous year’s figure (previous year: 40). The increase is  
a result of the stable operating performance and services 
adjusted to the requirements of the pandemic. The survey 
was suspended between 20 March and 8 July 2020 due to 
the pandemic. The total number of participants decreased 
year-on-year by 75%.
The NPS is part of the remuneration for the Executive Board.  
↗ Remuneration report.
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Employee concerns
Concepts
Focus on attractiveness as an employer
The success of the Lufthansa Group depends largely on the 
competence, the enthusiasm, the commitment and the ideas 
of its employees. At a time when the flight programme is 
significantly reduced due to the coronavirus pandemic, it is 
particularly important to keep employee morale high, to have 
an underlying personnel strategy and to take steps to ensure 
the company remains an attractive employer. This applies 
particularly to employees on short-time work. As soon as 
operations resume at a higher level, their dedication will be 
vital for a successful economic recovery. The criteria for 
qualifying as an attractive employer have changed funda-
mentally in the current situation and are particularly relevant 
for existing staff.
Ability to transform requires continuous training  
of staff skill sets
The ongoing changes in market conditions and the restruc-
turing through which the aviation sector is adapting to the 
altered market conditions make it necessary for employees 
to keep developing the knowledge and skills they acquired  
in their vocational training and professional careers. The 
Lufthansa Group offers administrative and operative employ-
ees extensive training opportunities, some of which are also 
available to employees on short-time work. Opportunities for 
staff to learn independently and fulfil their desire to develop 
themselves are particularly important when a career has 
been interrupted.
Employee health is a priority
As an operating company, the health of employees is particu-
larly important for the commercial success of the Lufthansa 
Group. The Occupational Safety and Medical Services & 
Health Management departments, which report directly to 
the Executive Board member for Corporate Human Resources 
and Legal Affairs, are responsible in particular for the health 
of employees. This organisational structure enabled a very 
fast and highly effective response to the global spread of  
the coronavirus. The Lufthansa Group makes great efforts to 
protect its operating and administrative employees as well 
as possible from infection.
ATTRACTIVENESS AS AN EMPLOYER
Targets
Lufthansa Group attaches great importance to be seen  
as an attractive employer – even during significantly 
reduced business operations
Attractiveness as an employer is considered from both an 
internal and an external perspective. In view of the almost 
entirely recruitment freeze due to the difficult economic situ-
ation, the perception of existing employees is mainly relevant 
for the reporting year. It is precisely in the context of the 
coronavirus pandemic that the employees in the Lufthansa 
Group make a decisive contribution to customer satisfaction 
and thus to the success of the Company. Employees who  
are on short-time work must maintain their commitment to 
the Company. This is vital to ensure a rapid and high-quality 
resumption of business operations.
Measures
New measures are required to maintain employee satisfaction 
and employer attractiveness even when business operations 
are severely restricted. This applies particularly to employees 
on short-time work. At the same time, the needs of the 
workforce as a whole are very different, since the Group 
comprises more than 172 nationalities.
Information and transparency for the workforce
Since the partial shutdown of business operations, the  
Executive Board of the Lufthansa Group has continuously 
kept the entire workforce up to date on current developments 
by means of webcasts and podcasts. The Board members 
and managing directors of the individual subsidiaries have 
also held regular live online meetings with their workforces, 
with questions from employees encouraged. The latest devel-
opments were broadcast to the entire workforce in German 
and English via the very popular intranet and a news app that 
can also be used on private devices. 
Managers were also asked to stay in permanent contact with 
their staff, regardless of whether they were working from 
home or on short-time work, in order to identify personal 
needs and concerns and respond to them. The managers were 
also able to download specific daily information on their 
mobile devices using a special app for managers.
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Various groups were set up on Yammer, an enterprise social 
network platform with exclusive access for Lufthansa Group 
employees, in order to stay in touch when working from 
home or to share information about different topics in the 
context of short-time working. These include initiatives to 
coordinate the social engagement of employees on short-
time work. Over 60,000 employees in the Lufthansa Group 
have access to the platform. 
Salary cuts and redundancies should be arranged  
in a socially responsible way
Lufthansa Group employees on short-time hours receive 
top-up payments. This reduces the net loss of salary. 
The reduction of 27,000 jobs that is currently planned is 
intended to be as socially responsible as possible. Intensive 
discussions on these subjects are held with trade unions  
and works councils on an ongoing basis. Numerous crisis 
agreements were signed with various trade unions in 2020 
to address the long-term effects of the pandemic on the 
Company’s finances. ↗ Employees, p. 28ff.
Unrestricted freedom of association is firmly anchored 
within the Lufthansa Group 
The Lufthansa Group has a long tradition of working with  
its collective bargaining partners in the works councils and 
trade unions, as well as in the Supervisory Board with its 
co-determination rules. This practice is aimed at acting  
collectively based on mutual interests. The joint search for 
solutions in the interest of the companies involved and their 
employees is based on an understanding of how valuable 
freedom of association is, forming part of the corporate cul-
ture as well as being enshrined in the German constitution.
For the Lufthansa Group, it goes without saying that no  
one suffers any positive or negative discrimination because 
they are a member of a trade union or not. Lufthansa enables 
all employees to join or form a trade union. Of approximately 
58,000 Lufthansa Group employees in Germany (as of  
31 December 2020, not including LSG Europe), some 83% 
benefit directly from collective bargaining arrangements.  
The remaining 17% are largely managers and non-tariff 
employees in senior positions. However, many of the rules 
for these non-payscale employees are also based on the  
collective bargaining agreements.
Working and employment conditions for employees  
and managers are flexible and are adapted continually
The Lufthansa Group has supported its employees to work 
flexibly for many years, both in terms of when and where 
they work. When personal interactions, including those at 
work, had to be reduced to a minimum as a result of the 
coronavirus outbreak, this was achieved very rapidly thanks 
to the existing framework for working from home and the 
widespread coverage of mobile computing devices.
Flexible working time models have been an important ele-
ment for many years in responding also as good as possible 
to private needs of employees. Job adverts, also for man-
agement positions, offer the opportunity of part-time work 
and shared leadership. This means that someone has the 
opportunity to share a management position with another 
manager who also works part time. In addition, managers 
and non-payscale employees can take sabbaticals. 
Talent retention – uniform performance and  
potential tracking
To ensure that all employees have the opportunity to shape 
their career within the Group in line with their individual talents 
and interests, there is a standard process for identifying top 
performance and high potential for most of the administrative 
staff. This was completed in 2020 for the assessment year 
2019 in many companies, despite short-time working. A struc-
tured talent retention programme has been established to 
avoid losing this talent. These employees (known as Future 
Shapers) receive close support and are involved in various 
special projects even during the pandemic.
Even though the hiring freeze in the Group meant it was 
hardly possible to maintain staff development by means  
of job rotation, promotions, or specific support for female  
managers, talented employees were approached individually 
to work on projects related to the crisis and to develop their 
skills on the job. The programmes will be reactivated when 
general business operations resume. 
Diversity and equal opportunities are key elements  
of the HR strategy
Systematic diversity makes an organisation more agile,  
more flexible and more creative, and it also emphasises the 
respect it shows for all employees.
Gender equality is promoted by a wide range of measures
The Lufthansa Group uses a broad portfolio of activities to 
make it easier for employees to combine work and family and 
to care for loved ones, as well as to increase the share of 
women in management roles. In Germany, this includes help 
in finding caregivers, a wide range of ad hoc and regular day-
care places for children in various locations, and the use of 
parent-and-child offices if a need arises. There are also many 
opportunities to get advice on the subject of caring for loved 
ones, such as the nursing care consultations that take place 
regularly. The internal development and mentoring programme 
for female team leaders aiming for a senior management 
position was also continued.
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Becoming more international
People from 172 nations work for the Group today. To become 
even more international, the Lufthansa Group is gradually 
taking a number of different measures. They include the 
introduction of a Group secondment policy for employees 
posted abroad. The Lufthansa Group also deliberately recruits 
local employees at its sites abroad. Secondments not only 
encourage know-how transfer between the regions, but also 
support employees’ individual development and help to build 
cultural competence.
Support for LGBTI concerns
One of the Lufthansa Group’s primary objectives is to pro-
mote a non-discriminatory working environment in which all 
employees can develop their talents, regardless of their sexual 
orientation and identity. To support this aim, the LGBTI 
employee network Diversifly not only acts as a contact point 
and intermediary in the event of discrimination or conflict,  
it also campaigns actively for the interests of the community. 
In addition to celebrating Christopher Street Day, which was 
organised as a virtual event this year, it also provides internal 
and external online presentations on the subject of LGBTI 
issues and sexual orientation. 
Inclusion of people with disabilities is part of  
social responsibility
For the Lufthansa Group, employment and inclusion of people 
with disabilities is not only a legal obligation, it also fulfils  
a social responsibility. This is why the Group is committed to 
treating people with disabilities fairly and considerately. Pro-
viding targeted support for their professional development  
is a matter of course for the management boards, Human 
Resources management and representatives of disabled 
employees, who meet regularly to discuss further steps to 
include people with disabilities. Other ways of supporting 
are equally driven forward, such as placing orders with work-
shops for disabled people, and the ongoing partnership with 
the National Paralympic Committee Germany.
Performance indicator
Engagement Index improves year-on-year  
despite pandemic 
The Engagement Index also provides information about  
the Company’s attractiveness as an employer. This has been 
tracked by the voluntary annual employee survey, “involve 
me!” since 2015, and enables a comparison with employers 
in many different sectors. It measures the extent to which 
employees identify with the Company, as well as their com-
mitment and willingness to recommend the Company to 
others. The survey was carried out again in 2020, despite 
and also because of the coronavirus pandemic. With the  
exception of the LSG group and Brussels Airlines, all major 
Group companies were included. Whereas a full employee 
survey was carried out the previous year, the scope of the 
survey was reduced in 2020. This alternation between com-
prehensive and shorter surveys corresponds to past practice. 
The results are measured on a scale from 1 (best) to 5 (worst). 
In the reporting year, the value of the Engagement Index  
was 2.0. Although the economic conditions are currently 
extremely challenging and a large number of employees are 
on short-time work, the target for 2020 of 2.2 was signifi-
cantly exceeded, thus confirming the previous year’s value  
of 2.0. Drivers of the improvement were Commitment (2.0) 
and Dedication (1.9) this means both aspects improved year-
on-year by a significant margin of 0.2. 
The results of the employee survey are presented to the 
Supervisory Board and the Executive Board, where they  
are discussed in workshops. As a rule, these results affect 
the targets and the remuneration of the Executive Board.  
↗ Remuneration report. 
Employer ranking reflects Lufthansa Group companies’ 
attractiveness
The ranking of German employers is done through a repre-
sentative survey of more than 200 companies carried out  
by the renowned market research institute YouGov. Before 
the coronavirus outbreak, the Lufthansa Group aimed to  
be consistently among the five most popular employees in 
Germany. During the reporting year, Deutsche Lufthansa was 
in 6th place (previous year: 3rd place). In view of the signifi-
cant economic challenges that the air transport industry is 
facing, the Lufthansa Group nevertheless believes that this 
is a good result. 
TRANSFORMATION CAPABILITY
Targets
Continuous change requires the capacity for transformation 
from employees and the Company. This is particularly impor-
tant given the enormous economic and structural challenges 
currently facing airlines worldwide. This in turn means that 
the employees must be given the corresponding competen-
cies and must always be willing and able to transform them-
selves. Initiatives dedicated to achieving these aims are the 
responsibility of several departments pooled in the Cultural 
Transformation unit, which in 2020 reported directly to the 
Executive Board member for Customer, IT & Corporate 
Responsibility. Specific departments are responsible for cul-
tural aspects of transformation, for instance, and for learning 
management for administrative employees.
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Measures
Transformation support and training established  
as routine processes
Well educated and committed employees are indispensable 
for the sustainable business success of the Lufthansa Group. 
Because it is not possible to simply draw on knowledge 
acquired at one point in time to sustain an entire career, 
employees must expand their knowledge and abilities and 
keep them up to date at all times. 
Employees are offered regular professional training courses, 
particularly in safety-related areas. At the same time, a sepa-
rate department has been created to evaluate the impact  
of the current transformation on the future roles and compe-
tence profiles of employees in all professional groups in a 
structured process, and to accompany the change process.
In this context, a process was established that is intended to 
enable administrative staff in particular to analyse the future 
viability of their own competencies, and to compare them 
with the current and future requirements of their tasks. All 
the employees in the Lufthansa Group have access to over 
15,000 innovative learning opportunities from LinkedIn 
Learning. The online learning programme can be used on a 
voluntary basis, also by employees on short-time work. 
The Lufthansa Group CAMPUS offers targeted strategic 
activities for ongoing cultural and organisational development, 
with a special focus on the challenges posed by significantly 
reduced operations. Qualification courses for managers and 
top management support a modern corporate culture of col-
laboration and assist with organisational change. Established 
partnerships with leading international business schools will 
be reactivated as business picks up again.
Routine training courses are fundamental part of the job 
for pilots and flight attendants
Regular training is obligatory for pilots and members of  
the cabin crew in the Lufthansa Group. It is provided by 
Lufthansa Aviation Training. No start of training of new pilots 
is taking place at present. 
Apprenticeship as Service Management  
Professional continues
The Service Management Professional apprenticeship for 
training Lufthansa cabin crew continued successfully in 2020, 
albeit in reduced form due to the coronavirus pandemic.  
It is recognised as an additional professional qualification by 
the Chamber of Industry and Commerce (IHK). 
380 cabin crew members had qualified as a Flight Attendant 
with Service Management Profile as of year-end 2020.  
A further 500 graduates are expected in 2021.
Developing working environments
Mobility and flexibility are key building blocks for modern 
working environments. 45,000 administrative employees of 
the Lufthansa Group have access to cloud-based Office 
software. This is an important resource that enables them to 
work from home during the coronavirus pandemic, also on  
an ad hoc basis. 
All Lufthansa Group employees are offered modern net-
working tools for communicating information and working 
together. They focus on efficient working methods across 
national borders and hierarchical levels, and empower indi-
vidual end users.
Performance indicator
Detailed survey provides comprehensive information 
about capacity for transformation 
Since 2019, the Lufthansa Group’s general and digital trans-
formation abilities can be determined by the comprehensive 
employee survey “involve me!”, which is conducted every 
year. The necessary detailed survey is carried out every two 
years; the next time in 2021. The results allow management 
to identify specific fields of action and initiate specific 
measures as a prerequisite for the Lufthansa Group’s capacity 
for transformation and prepare staff for relevant changes. 
HEALTH AND SAFETY AT WORK 
Occupational health and safety has been a core action area 
at the Lufthansa Group for several decades; it is managed 
jointly by the Occupational Safety and Medical Services & 
Health Management departments. 
Targets
Employee health and preventing work accidents  
are a top priority
The core responsibility of Medical Services & Health Manage-
ment is to maintain and improve the health and working 
capacity of the Lufthansa Group’s employees and so to safe-
guard its business activities and reliable flight operations. 
Occupational health and safety also has the goal of pre-
venting accidents at work and, if they nonetheless occur,  
of drawing the necessary conclusions from accidents to  
prevent them best possible from happening again.
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Top priority is currently the prevention of coronavirus 
infections among staff
Even before the outbreak of the coronavirus pandemic in 
Europe, Medical Services in the Lufthansa Group had been 
monitoring infections in Asia and adapting the risk assess-
ments for crews. Since then, the main aim has been to reduce 
the risk of exposure for employees to a minimum and to  
prevent staff from inadvertently infecting their colleagues. 
Measures
Medical Services managed as holistic centres of excellence
The Medical Services at Lufthansa German Airlines, SWISS 
and Austrian Airlines are holistic centres of excellence. Even 
when airline operations have been scaled back, they offer the 
full range of services for aviation and occupational medicine, 
vaccinations and travel medicine, outpatient care, a compre-
hensive social and medical advisory service and other pre-
ventive and healthcare treatments. Along with occupational 
health and aviation medical qualifications, a lot of doctors 
also have specialist qualifications (for example infectiology, 
ENT, ophthalmology, cardiology, neurology, psychiatry) that 
are used in the context of the weekly case review conferences. 
Transnational meetings are also held by the heads of the 
medical centres at Lufthansa German Airlines, SWISS and 
Austrian Airlines. 
The range of medical offers is supplemented by the opti­
misation of socio-medical counselling for occupational  
reintegration management processes. The Medical Services  
also work with employer and employee representatives to 
support the positive integration of employees with health- 
related restrictions. 
Beyond individual treatments, the Medical Services provide 
advice to decision-makers, committees and employee  
representatives concerning all issues of occupational health 
and safety.
Psychological and psychosocial factors have an important 
influence on health, safety and productivity at work. For many 
years, the Lufthansa Group has therefore offered confidential 
individual advice to employees, teams and organisational 
units, referring individuals to other services or for other treat-
ment as well as providing various psychosocial advisory  
services.
Preventive measures taken to enable occupational  
health and safety
The occupational safety function consistently implements 
preventive measures to avoid accidents, health risks and 
occupational illnesses. By means of risk assessments and 
regular safety inspections, the Group’s occupational safety  
experts review all professional activities in the Group com­
panies in Germany. The underlying standards are binding for 
all Lufthansa Group locations worldwide.
A central steering body for all issues concerning health and 
safety in the Lufthansa Group is the Occupational Safety 
Committee, which monitors the implementation of all aspects 
of health and safety across the Group. The minimum stand-
ards it endorses, such as for the resumption of business 
operations after the coronavirus lockdown, are binding for 
the entire Lufthansa Group.
Specific guidelines make managers aware of their responsi-
bility for occupational safety. Managers must deal with this 
directly when they are appointed to their position. This is 
checked in an automatic process.
The Group health and safety function also initiated a com­
pany-wide international survey to gradually improve the 
transparency of occupational health and safety in the entire 
Lufthansa Group. The survey was analysed and recommen-
dations made for individual companies in the reporting year. 
This will be fed back to the individual companies through 
their occupational safety coordinators. 
Health management helps to deal with health challenges
The aim of the Lufthansa Group’s health management is to 
bring about conditions conducive to health, to sustainably 
influence corporate culture and to support and encourage 
employees and managers to adopt healthy lifestyles.
Health officers in the individual Group companies identify 
needs specific to target groups and implement health pro-
motion offers. Group-wide interventions and the strategic 
development of health management are headed by Lufthansa 
Group Health Management. 
Numerous measures create the conditions for prevention 
of coronavirus infections
In connection with the outbreak of the coronavirus pandemic, 
the Medical Services, Group Security, Group Health & Safety 
and Human Resources Management worked with specific 
departments and managers to draw up preventive and 
hygiene strategies for various areas of the Group. These are 
continuously updated to reflect the latest risks and scientific 
evidence and are binding for all areas and all employees. 
They include specific protective measures for the different 
areas, which are followed and implemented by managers 
and staff. Among the preventive and hygiene strategies are a 
policy on the usage of rooms, detailed instructions for admin-
istration, flight operations, training and MRO, explanations of 
the different types of mask, special precautions to be taken 
on the ground and on board aircraft and the designation of  
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dedicated coronavirus protection officers. The rules and 
standards for the protection of employees against the  
coronavirus as set by the Federal Ministry of Labour and 
Social Affairs are taken into account. 
One important element in these challenging times is the  
provision of the workforce and managers with up-to-date 
information and recommendations on how to stay safe. The 
main channel for this is the Lufthansa Group intranet, where 
information of various kinds is presented, and employees  
are updated on the latest findings and their relevance for 
Lufthansa in “Corona Talks” held every two weeks.
The responsible employees at Medical Services and Group 
Health & Safety are in regular contact with external agencies 
like the Robert Koch Institute and local authorities and  
public health offices to apprise themselves of the latest 
developments, government recommendations and scientific 
findings and factor these into the Company’s own strategy. 
Crew members on specific routes have been tested regu-
larly for the coronavirus since April 2020 to meet country- 
specific quarantine and immigration requirements. This 
made it possible to maintain flight operations and avert the 
need for airborne staff to go into quarantine for overnight 
stays in other countries. 
Vaccination against influenza was offered to the entire  
workforce in Germany, Austria and Switzerland as part of  
the employer’s duty of care, which increased the level of 
individual and collective protection that is so important in  
a pandemic. Around 10,000 people accepted the offer in 
Germany. This is more than double the figure in previous 
years. Extensive internal communication had a positive impact 
on this, as did the personal commitment of the Executive 
Board members who allowed themselves to be vaccinated 
as part of the media-friendly information campaign.
Performance indicator
Health Index is the key performance indicator for  
employee health and improved year-on-year
In the reporting year, the Health Index was again tracked 
through the “involve me!” employees survey. The figure of 
2.2. was an improvement on the previous year’s 2.3. Despite 
the unusual situation confronting the Company, the subjec-
tive health of employees therefore improved. The results  
are measured on a scale from 1 (best) to 5 (worst). With the 
exception of the LSG group and Brussels Airlines, all major 
Group companies were included in the reporting year. 
Only employees on active service, i.e. those working at least 
20% of their regular hours and not completely furloughed, 
were asked about their health in an occupational context 
(26,090 responses). This ensures that the answers can be 
compared on a like-for-like basis.
The results of the survey are available to all business units 
and Group companies. They are also interpreted at this level, 
whereby Health Management employees are available to 
offer support and further advice as needed.
Fighting corruption and bribery
Concepts 
Fighting corruption and bribery is an integral part of  
the Compliance Management System
The Lufthansa Group endeavours to manage the Company 
effectively, as required by the principles of good corporate 
governance. In particular, the employees’ integrity is a pre-
requisite for the Company’s sustainable success.
Its global operations mean that the Lufthansa Group is obliged 
to comply with national anti-corruption legislation around 
the world, in some cases with extraterritorially applicable 
anti-corruption laws. Infringements may not only result in 
criminal and civil penalties for the individuals and Lufthansa 
Group companies involved, but may also result in significant 
reputational damage. Fighting corruption and preventing 
bribery is therefore material to the Lufthansa Group’s business 
operations and an integral part of its value system, which  
is laid out in the Code of Conduct that can be viewed on 
the Lufthansa Group website. 
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The Lufthansa Group has a central compliance management 
system in order to protect its employees and companies 
against breaking the law and the consequences of breaking 
the law and to apply statutory regulations correctly. It follows 
the audit standard for compliance management systems 
(IDW PS 980) and is essentially based on the following pillars: 
compliance culture, compliance targets, identification of 
compliance risks, compliance programme, compliance 
organisation, compliance communication and compliance 
monitoring. 
The Compliance Management System is continually devel-
oped and optimised, taking into consideration the specific 
risks relevant to the Lufthansa Group’s business, and we are 
increasingly looking at application possibilities for system- 
based and digital support solutions. It is currently made up 
of the following elements: Competition, Capital Markets, 
Integrity (Anti-Corruption), External Workforce, and Embargo 
and Export Compliance.
The Group-wide implementation, development and commu-
nication of the Lufthansa Group Compliance Management 
System is the responsibility of the Corporate Compliance 
Office, which is part of the central Legal department. The 
head of the Legal department and Chief Compliance Officer 
reports directly to the Executive Board member for Corporate 
Human Resources and Legal Affairs and presents two Com-
pliance Reports per year to the Executive Board and Super­
visory Board’s Audit Committee and one per year to the Super-
visory Board. The Executive Board has created a structure of 
committees, consisting of a Group Compliance Committee, 
central compliance committees in the main subsidiaries and 
local compliance committees as needed to provide support 
with steering and implementing the central Compliance 
Management System across all companies. The Corporate 
Compliance Office is supported by a worldwide network  
of compliance managers at the Group companies. The Com­
pliance Management System is monitored during audits  
that are regularly performed by the internal audit function to 
examine suitability and efficiency.
Targets
Compliance Management System aims to prevent 
unlawful conduct
The aim of the Compliance Management System is to ensure 
lawful conduct throughout the Group and so to avoid unlawful 
conduct that, in addition to reputational and financial risks, 
may also have personal consequences regarding criminal and 
labour law. ↗ Opportunities and risk report, p. 71ff. 
Measures
Anti-corruption training raises awareness
All managers and employees from relevant areas or in relevant 
functions undergo mandatory IT-based anti-corruption train-
ing every two years to raise awareness of potential risks. 
Ombudsman system enables suspected offences to be 
reported confidentially
The Lufthansa Group set up an ombudsman system in 2008 
to enable information to be provided confidentially about 
suspected criminal offences, particularly potential breaches 
of anti-corruption legislation and regulations. An external, 
independent lawyer who is not an employee of the Lufthansa 
Group acts as the ombudsman. Whistle-blowers can provide 
information to the ombudsman by phone, in writing or in  
person. The ombudsman system will be supplemented by an 
electronic whistle-blower system in 2021. 
Risk-based business partner due diligence aims to 
facilitate integrity of suppliers and service providers
Risk-based business partner due diligence is intended to 
ensure the integrity of suppliers and service providers. During 
this process, compliance screenings are conducted by the 
responsible employees in order to identify at an early stage 
any compliance risks that could arise from cooperation with 
external business partners. Depending on the result, various 
measures, including the avoidance or termination of a busi-
ness relationship may be necessary for dealings with the 
business partner. The previous parameters for business partner 
due diligence were updated in 2020. Their implementation 
across the Group began in the reporting year. It should be 
completed in 2021.
All Group companies worldwide are assessed  
for corruption risks 
All Group companies were assessed for corruption and anti-
trust risks during a compliance risk assessment carried out  
in 2018. The measures derived from the results of the risk 
assessment to prevent the identified risks from occurring 
were collected centrally and implemented in the individual 
Group companies. Ongoing implementation was delayed by 
the coronavirus pandemic. This did not impair the functional-
ity of the Compliance Management System.
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COMBINED MANAGEMENT REPORT
Combined non-financial declaration  →  Fighting corruption and bribery

Respect for human rights
Concepts
Respect for human rights is enshrined in the  
Code of Conduct
As a company that acts with integrity and responsibility, 
respect for human rights is self-evident for the Lufthansa 
Group. As a signatory of the UN Global Compact, the 
Lufthansa Group shows that it attaches great importance  
to conducting its business in line with internationally 
acknowledged principles and commitments and embedded 
respect for human rights as an integral element of its corpo-
rate culture. This is also reflected in working conditions, the 
freedom of association and assembly, rules to ensure gender 
equality and the inclusion of minorities as a matter of course. 
The Code of Conduct stipulates that the Group should always 
act in compliance with human rights, the principles of the 
UN Global Compact and acknowledged international labour 
and social standards. The Code of Conduct is published on 
the Lufthansa Group website.
In its fundamental values and guidelines, the Lufthansa Group 
expresses its commitment to the principles of the following 
internationally recognised standards:
—	 United Nations’ Universal Declaration of Human Rights
—	 Fundamental principles and core work standards of the 
International Labor Organization (ILO)
—	 Ten principles of the UN Global Compact
—	 UN’s guiding principles regarding business and  
human rights
—	 Sustainable Development Goals (SDGs)
—	 National Action Plan for Business and Human Rights (NAP)
—	 OECD Guidelines for Multinational Enterprises
—	 IATA Resolution against Trafficking in Persons.
Targets
Human rights abuses are to be avoided 
The overarching goal is to avoid human rights breaches in the 
Company and the supply chain by means of organisational 
and process-based measures. The Code of Conduct is bind-
ing for all bodies, managers and employees of the Lufthansa 
Group. With regard to protecting human rights, the Lufthansa 
Group is guided by the recommendations of the National 
Action Plan for Business and Human Rights (NAP) adopted 
by the German federal government in late 2016. With regard 
to corporate respect for human rights, the Federal Govern-
ment expects all enterprises to comply with human rights 
due diligence and to respect human rights along their supply 
and value chains. The NAP describes five core elements of 
due diligence in the field of human rights. These core elements 
comprise a policy statement, procedure for identifying actual 
or potential adverse impacts on human rights, measures and 
effectiveness audits, reporting and a grievance mechanism. 
All the measures listed below can be attributed to one of 
these core elements.
The Group’s procurement policy and Supplier Code of Con-
duct state that the Lufthansa Group expects its suppliers  
to respect human rights. Supplier contracts should contain 
obligations and provisions for terminating the contract if they 
are breached.
Measures
Human rights working group acts as a point of  
contact and influencer 
The human rights working group’s regular meetings serve to 
communicate information and develop a uniform, Group-wide 
position and strategy. In the future, the development of a 
structured media monitoring process is planned. In addition, 
selected contacts advise, support and follow up on the topic 
at the core companies in the Lufthansa Group.
C29  CORE ELEMENTS OF HUMAN RIGHTS DUE DILIGENCE
Human Rights Policy Statement
Procedures for the identification of actual  
or potential adverse impact on human rights
Measures to ward off potentially adverse impacts and review  
the effectiveness of these measures
Reporting
Grievance mechanism
1
2
3
4
5
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Combined non-financial declaration  →  Respect for human rights

International reporting obligations are also dealt with by the 
working group. As in the previous year, the Lufthansa Group 
will publish a mandatory declaration for the financial year 
2020 as required by the UK Modern Slavery Act 2015. Other 
reporting obligations, such as those under the Common-
wealth Modern Slavery Act 2018 (Australia) are reviewed, 
and any relevant disclosures are made. 
Management approach to human trafficking developed
As a signatory to the IATA Resolution against Trafficking in 
Persons, ensuring an environment that is free from modern 
slavery and human trafficking is a matter of course for the 
Lufthansa Group, however, the legal prosecution of human 
trafficking is the responsibility of governments and national 
law enforcement agencies. Nevertheless, the Lufthansa 
Group is aware of the importance of this topic and recog-
nises that as an aviation company it can play a significant 
role in identifying potential criminal offences. It has therefore 
implemented a reporting process for flagging suspected 
cases of human trafficking.
In accordance with IATA recommendations, the Lufthansa 
Group has integrated the topic into regular pilot and flight 
attendant training. These employee groups are made par-
ticularly aware of potential signs of human rights violations. 
Ongoing regular training sessions have been suspended due 
to the coronavirus pandemic. Steering and developing the 
management approach is the responsibility of the Anti-Human 
Trafficking Task Force, in which all passenger airlines in the 
Lufthansa Group and the relevant Group Functions are repre-
sented.
Targeted group-specific awareness campaigns for 
managers and employees
Based on an analysis carried out by Verisk Maplecroft, an 
advisory company, an overview was drawn up of all Group 
companies operating in countries where the risk of human 
rights abuses is particularly high. This country overview is 
regularly updated. Managers and Human Resources depart-
ments at Group companies in these countries should be 
made aware of their duty of care to avoid human rights 
abuses. A specific annex has been successively added to  
the employment contracts with these managers.
In addition, awareness is heightened by means of focused 
intranet communications to all the employees in the Group. 
This includes a statement by the Executive Board member 
for Corporate Human Resources and Legal Affairs emphasis-
ing the responsibility of the Lufthansa Group as a global 
company to respect human rights. Further information on 
this topic is available to all employees. 
Processes for reporting human rights violations  
have been implemented
The companies are obliged to identify human rights risks  
and the type and number of suspicious incidents. Individual 
complaints can be made also by third parties to the external 
ombudsman – confidentially if so desired.
Employees of the Lufthansa Group can also report to their 
manager, Human Resources management or the employee 
representative. A works agreement with regard to grievance 
procedures is already in place for all employees in Germany. 
It is already used for many different kinds of complaints and 
is also used for complaints regarding human rights violations.
“Zero tolerance” for cases of sexual harassment
Respect for one another is particularly important to the 
Lufthansa Group. This includes creating the conditions  
for a working environment for all employees that is free of 
discrimination, harassment and unequal treatment. The 
Lufthansa Group expects this principle to be reflected globally 
in the conduct of all employees towards one another. It is 
implemented by means of extensive communication and 
mandatory web-based training for managers on the General 
Act on Equal Treatment, which also addresses sexual harass-
ment in the work environment. The diverse support programme 
for employees affected by sexual harassment was evaluated 
and continued accordingly, following the incorporation of 
user suggestions.
Support for employees during the pandemic 
To overcome the coronavirus crisis, the Lufthansa Group relies 
to great extent on cooperation with employee representatives 
and on socially responsible measures. 
The Lufthansa Support Group, a unit set up by the works 
councils in the Lufthansa Group, also helps employees from 
various Group companies to avert cases of financial and  
psychological distress. 
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Combined non-financial declaration  →  Respect for human rights

Social concerns
Concepts
Lufthansa Group remains committed to social issues  
even in times of crisis
As an international aviation company, social responsibility is 
an important topic for the Lufthansa Group. This also applies 
in the particularly challenging circumstances caused by the 
global coronavirus pandemic. The focus of the activities is on 
social and humanitarian projects around the world, pooled 
and managed by the help alliance, the Lufthansa Group’s aid 
organisation. The help alliance is a non-profit entity (gGmbH) 
held by the Lufthansa Group and based in Frankfurt am Main. 
Its importance is underlined by fact that the company now 
reports to the new Executive Board member for Customer, IT 
& Corporate Responsibility. 
The coronavirus pandemic poses unprecedented challenges 
for people all over the world. In the reporting year, the effects 
of this global crisis also had a severe impact on the projects 
carried out by the aid organisations in the Lufthansa Group. 
Social restrictions and the lack of key fundraising channels 
meant that many projects could not be funded as planned. The 
help alliance responded quickly to global events; it initiated  
a coronavirus prevention and emergency aid fund as early as 
April 2020, together with other new fundraising and informa-
tion campaigns such as “Cook to help” and “#helpalliance-
LIVE”. They aimed to inform people about the organisation’s 
project work and to generate donations so that healthcare 
and food supplies could continue to be sent to the projects 
as needed and educational activities could be maintained  
as far as possible.
Targets
A contribution to sustainable social development
The aim of the Group’s charitable activities and projects is to 
make a contribution to the sustainable development of society 
that reflects the importance and size of the Lufthansa Group 
and is transparent, credible and verifiable all at the same time. 
Measures
help alliance focuses on social and humanitarian projects
The employees who work as volunteers all over the world  
are the heart of the help alliance. The help alliance combines 
proven projects initiated by employees with the power and 
network of the Lufthansa Group. 
The focus on social and humanitarian projects makes it  
possible to deploy the available funding in an efficient and 
targeted way. In the reporting year, help alliance had to scale 
back its project work significantly due to the coronavirus  
crisis. Despite great financial and logistical restrictions, one 
focus was on continuing to help as many disadvantaged 
people as possible, since they are particularly hard hit by  
the pandemic. 
In April 2020, the Lufthansa Group also launched an  
internal online community for its employees with the motto 
#StrongerTogether. Since then, most employees, even  
those working short-time, have been able to exchange vir-
tual information with colleagues about volunteering for help  
alliance projects, educational offerings and other non-work-
related topics, as well as to network for a good cause. 
#StrongerTogether has since become a central platform for 
the volunteering community within the Lufthansa Group and 
has made a vital contribution to developing local volunteer-
ing communities at Lufthansa Group sites. For the first time, 
employees also made use of virtual volunteering programmes 
such as English teaching or mentoring to advise and support 
young people, regardless of their location.
In 2020, help alliance was responsible for 39 aid projects with 
a total project volume of EUR 2.5m. 81% of the donations 
were used for educational projects. More than 40,000 disad-
vantaged people around the world received help through 
these projects.
In 2020, the Lufthansa Group covered all of the costs of 
administration, fundraising and communication. This ensures 
that 100% of all other donations are used to fund project 
work. This also applies to voluntary donations made via salary 
deduction by employees of the Lufthansa Group.
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Combined non-financial declaration  →  Social concerns

Extra help provided during the coronavirus pandemic
As a further contribution to overcoming the coronavirus crisis, 
the Lufthansa Group granted leave of absence quickly and 
without a lot of paperwork to employees with medical train-
ing, enabling them to work as volunteers in hospital facilities. 
Lufthansa Group employees provided valuable assistance to 
medical facilities in this way. In addition, companies in the 
Lufthansa Group donated products and food that was surplus 
to requirements due to the coronavirus pandemic to various 
social organisations.
Repatriation of stranded holidaymakers
Travel restrictions imposed around the world as a result of  
the coronavirus pandemic in mid-March 2020 caused an un- 
precedented wave of holidaymakers and travellers to return 
home. After a month or so, the repatriation programmes for 
various European countries and many tour operators had 
largely been completed. All the airlines in the Lufthansa Group 
supported the governments of their respective countries by 
providing repatriation flights. Some 90,000 holidaymakers 
and travellers were flown home after 13 March 2020 by airlines 
in the Lufthansa Group. 
Responsible production and  
sustainability in the supply chain 
Concepts
Responsible production and sustainability in the supply 
chain firmly established in the Company
In the opinion of the Lufthansa Group, responsible produc-
tion is a prerequisite for offering sustainable products. This 
means that, in addition to economic aspects, impacts on 
environment and society are taken into consideration during 
production processes and business activities. 
For example, an increasing number of Lufthansa Group  
companies and locations now have EMAS- or ISO-certified 
environmental management systems in place with the aim  
of continually reducing the impact on the environment from 
production and products. This includes the target of achiev-
ing carbon neutrality on the ground at locations in Germany, 
Switzerland and Austria by 2030 as well as, for instance, 
reducing disposable plastic items and expanding the range 
of sustainably produced food offered on board. 
It is also a matter of course for Lufthansa Group companies 
that the working conditions for their employees at least meet 
the statutory requirements – in many cases these minimum 
requirements are actually exceeded by internal operating 
regulations. Lufthansa Technik, for example, has an integrated 
management manual that outlines the operating require-
ments for flight safety, quality, environmental protection and 
occupational safety in production. 
Taking sustainability aspects in the supply chain into account 
is an important element of responsible production. To meet 
the standards the Lufthansa Group sets for the sustainability  
of its own production and products, the Lufthansa Group  
thus relies on close collaboration with suppliers who share 
and implement these standards wherever possible. This  
also forms part of the Lufthansa Group’s Code of Conduct, 
which is published on the Lufthansa Group website. 
The purchasing units in the Lufthansa Group are organised 
into a single reporting line. They report to the Chief Financial 
Officer. In some cases they are centralised, especially for  
airline-specific actions such as purchasing aircraft or kero-
sene, and in others, they are decentralised throughout the 
Group companies (for specific products). Reporting lines are 
based on responsibilities for different product groups and 
Group companies. Product grouping optimises positioning by 
pooling know-how. The purchasing units inform the Executive 
Board about current developments on a regular basis. In the 
reporting year, the Governance, Processes and Sustainability 
Procurement department was established to deal explicitly 
with sustainability in purchasing and the supply chain. As well 
as preparing a strategy paper, the new department began 
implementing a supplier screening process, which included  
a test phase.
Building and expanding a sustainable supply chain is of 
strategic importance to the Lufthansa Group
The process-based matrix organisation makes it easier to 
establish sustainability standards because standardised  
processes and IT systems are increasingly used. Defining 
responsibilities within the Group also ensures efficient  
collaboration. The goal is also to improve the enforcement  
of sustainability standards.
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Combined non-financial declaration  →  Social concerns, Responsible production and sustainability in the supply chain

Targets
The Lufthansa Group expects suppliers to adhere  
to guidelines
The Lufthansa Group aims for its suppliers to comply fully 
with current law, guidelines and regulations concerning fair 
competition, integrity and responsible practices.
Measures
The Group procurement policy includes the obligation  
to assume social and ecological responsibility
The obligation to assume social and ecological responsibility 
is a key element of the Group procurement policy. It is to be 
understood as an overriding specification for all procurement 
units at the Group companies. In addition, it serves as a 
handbook for buyers and all employees with contacts in the 
procurement markets. Among other considerations, it is 
expected that these obligations are included in contracts 
with suppliers:
—	 to comply with the ten principles of the  
UN Global Compact,
—	 to comply with the four basic principles of the  
International Labour Organisation (ILO),
—	 to consent to announced and unannounced audits by 
companies of the Lufthansa Group,
—	 to accept the termination of the contract in the event  
that these contractual obligations are breached.
By imposing these obligations, the Lufthansa Group endeav-
ours to ensure responsible practices by its direct suppliers 
and so to meet its own standards for corporate responsibility. 
The Lufthansa Group’s expectations of its suppliers in terms  
of social and ecological responsibility are summarised in  
the Supplier Code of Conduct, which can be found on the 
Lufthansa Group website. 
To identify the type and level of supplier risks, the procure-
ment units responsible for product groups carried out a risk 
assessment for the suppliers. The outcome is included in the 
result of Group risk management. 
In addition, risk analyses based on expenditure and country 
were also performed for all direct suppliers in 2019. Suppliers 
in “extreme risk” countries were identified based on a rank-
ing by Verisk Maplecroft, an advisory company, in order to 
develop plans for action. 
The Lufthansa Group’s sustainability commitments  
are confirmed by EcoVadis
In order to demonstrate its sustainability and responsibility 
towards its customers, the Lufthansa Group participates  
in EcoVadis, a sustainability assessment platform for global 
supply chains. In October 2019, the commitment of the 
Lufthansa Group was reconfirmed for a further year when it 
received “Silver Status”.
Summary
The aspects of corporate responsibility described in the 
non-financial declaration were significantly affected in  
the reporting year by the dramatic impact the coronavirus 
pandemic made on global air traffic and thus also on the 
Lufthansa Group. Many activities and initiatives could not  
be carried out as planned, or could only be continued in 
restricted form. 
Nevertheless, a responsible and sustainable approach to 
resources, the environment, customers, employees and sup-
pliers remains an indispensable condition for the acceptance 
of the Lufthansa Group’s business model, its attractiveness 
to its stakeholders and ultimately also for its long-term 
financial stability. 
With the activities and concepts described above, the 
Lufthansa Group aims, as ever, to strengthen the positive 
effects of its business activities and further reduce the neg-
ative impacts wherever possible in order to consolidate its 
position as a leading player in the airline industry, including 
in terms of corporate responsibility. 
This combined non-financial declaration is based on the GRI 
Standards 2016. The information in this declaration relates  
to the following disclosures and management approaches. 
LUFTHANSA GROUP ANNUAL REPORT 2020
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Combined non-financial declaration  →  Responsible production and sustainability in the supply chain, Summary

T050  GRI CONTENT INDEX
 
Disclosures refer to
 
Page
About this combined  
non-financial declaration
GRI 102– 1
Name of the organisation
↗ p. 86
GRI 102– 50
Reporting period
↗ p. 86
GRI 102– 56
External assurance
↗ p. 86
GRI 102– 16
Values, guidelines, standards and behavioural norms
↗ p. 87
GRI 102– 46
Defining report content and topic boundaries
↗ p. 88
GRI 102– 47
List of material aspects 
↗ p. 88
 
GRI 102– 55
GRI Content Index
↗ p. 115 
Environmental concerns
 
 
 
Climate protection
GRI 103– 1, 103– 2, 103– 3
Management approach 
↗ p. 89f.
 
GRI 305– 1 
Direct GHG emissions Scope 1
↗ p. 95
 
GRI 305– 4 
Intensity of the GHG emissions
↗ p. 95
 
GRI 305– 5 
Reducing GHG emissions
↗ p. 95
Active noise abatement
GRI 103– 1, 103– 2, 103– 3
Management approach 
↗ p. 95
 
Performance indicator 
Percentage of aircraft that meet the 10dB criteria  
of ICAO Chapter 4 standard
↗ p. 96
Waste prevention
GRI 103– 1, 103– 2, 103– 3
Management approach 
↗ p. 96f.
Customer concerns
 
 
 
Operational stability
GRI 103– 1, 103– 2, 103– 3
Management approach 
↗ p. 98f.
 
Performance indicator
Departure punctuality
↗ p. 99
Product and services
GRI 103– 1, 103– 2, 103– 3
Management approach 
↗ p. 99ff.
 
GRI 416– 1 
Assessment of the health and safety impacts  
of product and service categories
↗ p. 98ff.
 
Performance indicator
Net Promoter Score
↗ p. 102
Employee concerns
Attractiveness as an employer
GRI 103– 1, 103– 2, 103– 3
Management approach 
↗ p. 103f.
GRI 102-41
Collective bargaining agreements
↗ p. 104
 
Performance indicator
Engagement Index
↗ p. 105
Transformation capability
GRI 103– 1, 103– 2, 103– 3
Management approach 
↗ p. 105
Health and safety at work  
  
GRI 103– 1, 103– 2, 103– 3
Management approach 
↗ p. 106ff.
Performance indicator
Health Index
↗ p. 108
Fighting corruption and bribery  
 
GRI 103– 1, 103– 2, 103– 3
Management approach 
↗ p. 108f.
GRI 205– 1
Operations assessed for risks related to corruption
↗ p. 109
 
GRI 205– 2 
Communication and training on anti-corruption policies  
and procedures
↗ p. 109
Respect for human rights
GRI 103– 1, 103– 2, 103– 3
Management approach 
↗ p. 110f.
Social concerns
GRI 103– 1, 103– 2, 103– 3
Management approach 
↗ p. 112f.
Responsible production and  
sustainability in the supply chain
GRI 103– 1, 103– 2 
Management approach  
↗ p. 113f.
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Combined non-financial declaration  →  Summary

T051  SUSTAINABLE DEVELOPMENT GOALS (SDG)
SDG
Sub-target
Aspect/issue
Page
Activities of Lufthansa Group
4.1 –  
4.6
Social concerns 
↗ p. 112  
81% of donations to the help alliance used to  
support education
4.4
Attractiveness as an employer/ 
transformation capability
↗ p. 105f.  
Transformation support and training established  
as routine processes
5.2
Respect for human rights
↗ p. 111 
“Zero tolerance” for cases of sexual harassment
5.4
Employee concerns/ 
Attractiveness as an employer
↗ p. 104
Gender equality is promoted by a wide range of measures
5.5 
Employee concerns/ 
Attractiveness as an employer
↗ p. 104 
Special focus on support for female junior employees 
 
8.5 
Respect for human rights
↗ p. 110 
Respect for human rights is an integral part  
of the corporate culture
8.5 
Employee concerns/ 
Attractiveness as an employer
↗ p. 105 
Support for LGBTI concerns
8.5 
Employee concerns/ 
Attractiveness as an employer
↗ p. 105 
Inclusion of people with disabilities is part of social responsibility
8.5 
Employee concerns/ 
Attractiveness as an employer
↗ p. 104 
Working and employment conditions for employees and  
managers are flexible and can be adapted
8.6 
Social concerns 
↗ p. 112 
For the first time, employees also made use of virtual volunteering 
programmes such as English teaching or mentoring to advise and 
support young people, regardless of their location.
8.6 
Social concerns 
↗ p. 112 
The help alliance responded quickly to global events; it initiated  
a coronavirus prevention and emergency aid fund as early as  
April 2020, together with other new fundraising and information 
campaigns such as “Cook to help” and #helpallianceLIVE. They 
aimed to inform people about the organisation’s project work and  
to generate donations so that healthcare and food supplies could 
continue to be sent to the projects as needed and educational  
activities could be maintained as far as possible.
8.7
Respect for human rights
↗ p. 111
Management approach to human trafficking developed
8.8 
Respect for human rights 
↗ p. 111
Procedures for reporting human rights violations  
have been implemented
8.8 
Respect for human rights 
↗ p. 111
Awareness programmes for target groups  
of managers and employees
8.8
Respect for human rights
↗ p. 111
Support for employees during the pandemic 
8.8 
Responsible production and  
sustainability in the supply chain
↗ p. 114 
The Group procurement policy includes the obligation to assume 
social and ecological responsibility
8.8 
 
Responsible production and  
sustainability in the supply chain
↗ p. 114 
 
To identify supplier risks, the procurement units  
responsible for product groups carried out a risk  
assessment for the suppliers
8.8 
Employee concerns/ 
Health and safety at work
↗ p. 106ff. 
Employee health and preventing work accidents are a top priority
8.8 
Employee concerns/ 
Attractiveness as an employer
↗ p. 104 
Unrestricted freedom of association is an established feature  
of the Lufthansa Group 
9.1
Customer concerns/ 
Operational stability
↗ p. 99 
Wide-ranging initiatives launched with system partners
9.1
Customer concerns/Concepts
↗ p. 100 
Numerous hygiene measures implemented as a result  
of the coronavirus pandemic 
9.1
About this combined non-financial  
declaration/Social concerns
↗ p. 88 
↗ p. 113 
 
Maintenance of relevant flight connections for the transport of 
passengers and goods during the global coronavirus pandemic, 
such as repatriation of stranded passengers, the delivery of 
urgently needed goods such as protective masks and other  
equipment to fight the pandemic, early preparations for trans­
porting vaccines, expansion of freight capacities through the  
conversion of passenger aircraft.
9.1
Environmental concerns/ 
Active noise abatement
↗ p. 95
The best method of reducing aircraft noise  
at the source is the modernisation of the fleet
9.4 
Customer concerns/ 
Product and services
↗ p. 98 
Lufthansa Group supports environmental  
sustainability goals in product and service design
9.4 
Environmental concerns/ 
Climate protection
↗ p. 95 
Absolute CO₂ emissions fall by 65.6% due to the pandemic.  
Specific CO₂ emissions per passenger-kilometre have risen  
by 14.1% due to the lower average passenger load factor and  
the increased proportion of short-haul flights on account of  
significant travel restrictions during the pandemic.
9.5 
Environmental concerns/ 
Active noise abatement
↗ p. 96 
Optimising flight procedures and flight routes  
helps to reduce noise
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Combined non-financial declaration  →  Summary

T051  SUSTAINABLE DEVELOPMENT GOALS (SDG) (continued)
SDG
Sub-target
Aspect/issue
Page
Activities of Lufthansa Group
12.5 
Environmental concerns/ 
Waste prevention
↗ p. 96f. 
Lufthansa Group supports a variety of initiatives  
to comprehensively reduce waste
12.6 
 
Responsible production and  
sustainability in the supply chain 
↗ p. 114 
 
The Lufthansa Group’s expectations of its suppliers  
in terms of social and ecological responsibility  
are summarised in the Supplier Code of Conduct
 
13.1 
 
Environmental concerns/ 
Climate protection 
↗ p. 90ff. 
 
Continuous investment in modern, fuel-efficient aircraft  
and engine technologies, as well as investment in research  
and use of alternative fuels for air transport
13.1 
 
Environmental concerns/ 
Climate protection 
↗ p. 93 
 
Deployment of efficiently sized aircraft, better load factors,  
testing and introduction of new flight procedures, as well as  
the determination of optimal flight routes and flight speeds
13.1 – 
13.3 
Environmental concerns/ 
Climate protection 
↗ p. 94 
 
Climate action agreements (CORSIA – Carbon Offsetting and 
Reduction Scheme for International Aviation)/Opportunities  
for voluntary carbon offsets
13.2 
Environmental concerns/ 
Climate protection 
↗ p. 92f. 
 
To cut CO₂ emissions, what is required is a fundamental  
modernisation of the airspace structure and the development  
of the intermodal transport 
13.3 
About this combined  
non-financial declaration
↗ p. 87 
The Lufthansa Group’s engagement is rated by  
the international non-profit rating organisation CDP
17.15 
 
Social concerns 
 
↗ p. 113 
 
As a further contribution to overcoming the coronavirus crisis,  
the Lufthansa Group granted leave of absence quickly and  
without a lot of paperwork to employees with medical training, 
enabling them to work as volunteers in hospital facilities. 
Lufthansa Group employees provided valuable assistance to  
medical facilities in this way. 
17.16 
 
About this combined  
non-financial declaration
↗ p. 87 
 
Since 2002, the Company has applied the principles  
of the UN Global Compact for sustainable and responsible  
corporate governance
LUFTHANSA GROUP ANNUAL REPORT 2020
117
COMBINED MANAGEMENT REPORT
Combined non-financial declaration  →  Summary

Forecast
Global economic growth and the worldwide aviation industry are expected  
to recover.  |  Lufthansa Group expects a lower operating loss for 2021.
MACROECONOMIC OUTLOOK
Economic and sector-specific developments can have a  
significant influence on the operating and financial perfor-
mance of the Lufthansa Group. The following forecast for the 
course of business is therefore based on assumptions about 
the development of the wider economy and the sector. 
These assumptions are described below. The Lufthansa 
Group continually monitors the development of this operating 
environment so that it can respond as quickly and compre-
hensively as possible to any changes.
T052  GPD DEVELOPMENT  1)  
Forecast 2020 to 2024 compared with the previous year
in %
2020
2021
2022
2023
2024
 
World
– 3.9
4.4
4.1
3.2
3.1
Europe
– 6.7
3.3
4.2
2.1
1.8
	
Germany
– 5.3
2.8
4.0
1.7
1.4
North America
– 3.7
4.0
3.9
2.5
2.5
South America
– 7.1
3.9
2.9
2.5
2.5
Asia/Pacific
– 1.5
5.7
4.6
4.4
4.5
	
China
2.1
7.6
5.6
5.4
5.3
Middle East
– 6.9
4.8
4.4
3.8
3.5
Africa
– 4.1
3.7
3.1
3.4
3.5
Source: Global Insight World Overview as of 15 Jan 2021.
1)	 Forecast.
Recovery in global economic growth expected 
According to data from Global Insight, global economic growth 
of 4.4% is expected for 2021 in contrast to the decline of 3.9% 
recorded last year. Growth of 3.3% is forecast for Europe 
(previous year: – 6.7%). However, the German economy is 
expected to grow more slowly at 2.8% (previous year: – 5.3%). 
Sideways movement expected for interest  
and exchange rates
On average, analysts are expecting the euro to rise again 
slightly against the US dollar in 2021, and stay largely flat 
against other main currencies. Nonetheless, the development 
of the pandemic, the potential risk due to the high increase  
in private and public debt worldwide and a new escalation  
in the global trade conflict could result in significant swings 
on foreign exchange markets. 
In 2020, the European Central Bank loosened its monetary 
policy in the context of the coronavirus pandemic and took 
extensive steps to stabilise the banking system and financial 
markets. For 2021, the expectation is that the European  
Central Bank will maintain its negative interest rate policy and 
net bond purchases, so interest rates are likely to stay low. 
Slight fall in oil prices expected
Market participants are expecting the oil price to fall slightly 
in the medium term. As of 31 December 2020, futures  
contracts for delivery in December 2021 were trading at  
USD 50.49/barrel, and for delivery in December 2022 at 
USD 49.70/barrel.
SECTOR OUTLOOK
Passenger traffic forecast to recover slightly  
in the second half of 2021 
In its basic forecast, the International Air Transport Organisa-
tion (IATA) is predicting growth of 50% in global passenger 
traffic – per revenue passenger-kilometres – in 2021, following 
a decline of 66% in 2020. This would bring passenger traffic 
up to around 50% of its pre-crisis level. At the same time, 
the assumption is that the increased availability of coronavirus 
vaccines in the second half of the year will represent a turn-
ing point from which global passenger traffic will gradually 
recover. Air transport is expected to account for around 0.5% 
of global GDP, around half of its pre-crisis level. 
Considering the spread of virus mutations that could have  
an adverse impact on recovering demand for global air trans-
port, IATA also published a negative scenario in February 
2021 in which year-on-year growth would merely reach 13%. 
This would amount to around 38% of the pre-crisis level in 
2021. IATA is not expecting a complete return to pre-crisis 
levels until at least 2024. 
LUFTHANSA GROUP ANNUAL REPORT 2020
118
COMBINED MANAGEMENT REPORT
Forecast

In its basic forecast for 2021, IATA is expecting significant 
regional differences in growth in revenue passenger-kilometres. 
North America is therefore expected to have the fastest 
recovery, with growth of 61% (previous year: – 66%), followed 
by Asia/Pacific with 50% (previous year: – 62%), Europe with 
48% (previous year: – 70%) and the Middle East with 43% 
(previous year: – 73%). The slowest growth is forecast for 
South America with 39% (previous year: – 64%), and Africa 
with 35% (previous year: – 72%).
Financial analysts specialising in the sector predict that 
short-haul tourist traffic in the European market will recover 
fastest and most strongly. The speed of the recovery will 
depend on the further course of the pandemic; it will deter-
mine how fast travel restrictions can be loosened or lifted. 
Analysts think that the availability of effective vaccines and 
the speed at which the population can be inoculated will have 
a significant influence. The availability of rapid tests with 
which passengers can prove that they are not infected, and 
their acceptance by immigration authorities worldwide, could 
also have a positive impact on the pace of the recovery. 
Business travel and long-haul routes are expected to recover 
more slowly than tourist traffic. The assumption is that the 
growing acceptance of digital communications tools will be 
partly to the detriment of physical travel.
In terms of yields, IATA is not expecting any year-on-year 
change in 2021 (previous year: decline of 8.0%). The industry 
is expected to report a net loss of USD 38.7bn (previous year: 
USD – 118.5bn).
Airfreight set to increase again in 2021
Global airfreight – per revenue cargo tonne-kilometres – 
declined by 12% in 2020 due to the coronavirus pandemic. 
For 2021, IATA expects an increase of 13% due to the global 
economy recovery. 
Yields in the cargo business are forecast to go up by 5%  
in 2021 (previous year: 30%). 
Long-term recovery expected for Aviation Services
The latest forecasts by consultancy firm ICF predict average 
growth of 15% for the MRO market in 2021 and average 
growth of 11% p.a. in the period leading up to 2025.
The airline catering market depends heavily on air traffic. 
Revenue in 2021 will stay low as a result, with a recovery only 
expected in later years. The production overcapacities this 
has caused are increasing pricing and consolidation pressure 
in the classical catering business. The increasing in-flight 
digitisation and the potential it creates for individual passenger 
choices mean that airline caterers have to expand their digital 
competences. 
CHANGES IN BUSINESS  
AND ORGANISATION
The Lufthansa Group regularly reviews its organisational 
structure and adapts it to any changes in the business  
environment. Opportunities to increase efficiency are seized 
in all of the Lufthansa Group’s segments and are reflected  
in the planning. 
As part of the focus on our core business segment, the  
sale of LSG group’s European business to gategroup was 
completed on 2 December 2020. The international activities 
of the LSG group will also be sold as soon as conditions 
permit. Disposals of other non-airline companies, such as 
AirPlus, are also under review.
With its Group-wide restructuring and transformation pro-
gramme ReNew, the Lufthansa Group is putting the company 
on track for a viable future. After the coronavirus crisis, the 
Lufthansa Group will be smaller, leaner and more efficient. 
The workforce is to be adjusted in line with the market con-
traction caused by the pandemic and reduced by around 
27,000 full-time equivalents based on current estimates. In 
addition, the number of management positions in the Group 
is to be reduced by at least 20%.
C30 DEVELOPMENT OF SECTOR NET RESULT
 
in USD billion
2021  1)
– 38.7
27.3
26.4
37.6
2019 
2020 1)
2018
2017
1) Forecast.
Source: IATA Airline Industry Economic Performance (11/2020).
– 118.5
2021 1)
LUFTHANSA GROUP ANNUAL REPORT 2020
119
COMBINED MANAGEMENT REPORT
Forecast

In the new, more efficient organisational structure, decisions 
should be taken faster, processes sped up and collaboration 
simplified. The functional process organisation (matrix 
organisation) will be restricted to the core functions of the 
Lufthansa Group airlines. A new management model is to be 
introduced for all other areas with clearly defined decentral-
ised or centralised responsibilities, depending on the process. 
The process of making Lufthansa German Airlines an inde-
pendent organisational unit was started by creating a separate 
management board.
OUTLOOK LUFTHANSA GROUP
Financial outlook for 2021 depends largely on the  
impact of the coronavirus pandemic 
The airline industry is expected to remain more severely 
affected by the global spread of the coronavirus than other 
sectors of the economy, and to remain so longer. The Lufthansa 
Group concurs with the expectations of independent organi-
sations and experts as described in the sector outlook. It 
assumes that passenger numbers will not return to pre-crisis 
levels until at least 2024.
Uncertainty remains high 
Expectations for the sector outlook reflect a high degree  
of uncertainty. The outlook for the Company is subject to  
the same uncertainty. The Lufthansa Group assumes that 
changes in the course of the pandemic will have a material 
and direct impact on its performance. This is due mainly to 
the impact of changes on travel restrictions, which are a key 
determinant of customer demand. Customers are expected 
to continue booking at very short notice. 
Gradual expansion of flight capacities expected
At present, the Lufthansa Group assumes that the increasing 
availability of effective vaccines in particular will support 
customer demand to such an extent that flight capacities 
can be significantly expanded over the course of the year. 
The Lufthansa Group expects that this will increasingly be 
possible from the middle of the year, especially on routes to 
tourist destinations in Europe. On long-haul routes and in  
the business travel segment, the Lufthansa Group expects 
the recovery to be slower. 
Capacity outlook for Group airlines for 2021 largely 
determined by the impact of the coronavirus crisis 
In view of this considerable uncertainty, the Group airlines are 
focusing on ensuring a high degree of operational flexibility 
so as to be able to adjust flight capacities to various demand 
scenarios, also at short notice. A sufficient number of aircraft 
will be parked so that they can return to service at short notice. 
Short-time working can be reduced quickly, making it possible 
to crew these aircraft with short lead times. 
Capacity planning at the Network Airlines for 2021 is based 
on various scenarios ranging between 40% and 50% of 
pre-crisis – i.e. 2019 – capacity; available capacity at the 
start of the year will be significantly lower. Despite improving 
on the previous year, the passenger load factor is expected 
to remain significantly below its pre-crisis level. Revenue is 
nevertheless expected to improve year-on-year. The extent of 
the increase depends on how fast and how strongly demand 
recovers over the course of the year.
Capacity at Eurowings, with its higher share of short-haul 
traffic to tourist destinations, is expected to increase more 
strongly than at the Network Airlines. This means revenue is 
also expected to go up year-on-year.
Gradual recovery in revenue in MRO and Catering 
segments – year-on-year decline expected in Logistics
Revenue in the Logistics business segment is expected to  
fall in 2021 since yields are likely to normalise over the year, 
due to the market-wide increase of belly capacities com-
pared with the historically high prior-year level. Freighter 
capacity will also decline due to the decommissioning of the 
remaining MD-11 fleet.
Revenue in the MRO business segment is expected to recover 
gradually year-on-year, driven primarily by a gradual improve-
ment in capacity use in the engine and component business.
Revenue in the Catering business segment will likely profit 
from the gradual recovery in airline customer demand, but 
will remain significantly below pre-crisis levels in 2021.
Increase in Group revenue expected
Revenue for the Group as a whole is expected to go up year-
on-year. The extent of the increase will largely depend on  
the pace of recovery at the Group airlines. Revenue will none-
theless still be significantly lower than before the crisis.
Continued cost-cutting measures to reduce operating 
loss for Lufthansa Group in 2021
The further reduction of fixed costs in 2021 will be supported 
by the ongoing implementation of restructuring programmes 
in all Group companies, the use of short-time working, and 
effects of the structural measures – some of which were 
started last year – including the significant reduction in the 
workforce that has already taken place. Depreciation and 
amortisation will also be lower than last year. 
LUFTHANSA GROUP ANNUAL REPORT 2020
120
COMBINED MANAGEMENT REPORT
Forecast

Depending on the extent of the recovery in the airline busi-
ness and the progress made with restructuring, the operating 
loss for the Lufthansa Group as measured by Adjusted EBIT 
is therefore expected to be lower than in the previous year. 
The Adjusted EBIT margin is therefore also expected to be 
less negative than in the previous year. The expectation of a 
less negative Adjusted EBIT than in the previous year applies 
equally to all segments with the exception of Logistics, where 
a forecast decline in revenue is also expected to reduce 
Adjusted EBIT compared with the record figure reported in  
the previous year. Logistics will nevertheless remain highly 
profitable by historic standards.
Free cash flow expected to decline by less than last year 
The Lufthansa Group expects that net outflows from oper-
ating activities can be stopped over the course of the year,  
if capacity at Group airlines reaches at least 50% of its 
pre-crisis level. 
The Lufthansa Group expects strict working capital manage-
ment to have a positive effect on operating cash flows.  
A significant contribution will come from both the expected 
new bookings over the course of 2021 following the decrease 
last year due to the crisis, and a significantly lower volume of 
ticket refunds. This should also compensate for the absence 
of the previous year’s positive non-recurring effects and the 
payment of taxes that were deferred in 2020.
Gross capital expenditure of some EUR 1.3bn is expected, 
around the same level as the previous year. This will mainly 
be for investment in aircraft. As in the previous year, capital 
expenditure is significantly lower than originally planned, 
which is due to the postponement of aircraft deliveries and 
the associated payments.
The Lufthansa Group’s free cash flow is therefore forecast  
to have a higher value than in 2020. Net indebtedness is 
expected to increase. In view of the earnings forecast, the 
ratio of net debt including pension provisions to Adjusted 
EBITDA is not expected to be meaningful in 2021 either. 
Planned financing measures will have a positive impact on 
liquidity, however. Taking into account the liquidity available 
at year-end, the Lufthansa Group therefore assumes that 
the Company’s solvency is assured beyond the end of 2021. 
Return on capital (Adjusted ROCE) is expected to improve 
year-on-year, but in line with the earnings outlook will be 
negative again in 2021.
Reduction in carbon emissions per  
passenger-kilometre expected
The Lufthansa Group aims to continue its progress in reducing 
its environmental impacts in 2021. The expected improvement 
in the passenger load factor, effects from the permanent 
retirement of less efficient, four-engined long-haul aircraft, 
and the ongoing modernisation of the fleet are expected  
to have a positive impact on specific CO₂ emissions per  
passenger-kilometre. The Lufthansa Group therefore expects 
specific carbon emissions to decline year-on-year.
Implementation of Group strategy to enable return to 
profitability and value creation 
The Lufthansa Group is strategically refining the implemen-
tation of its ReNew restructuring programme and adjusting  
it to cope with the structural changes resulting from the 
coronavirus pandemic. This is intended to enable the Com-
pany to once again create value for its shareholders, repay 
the stabilisation measures it has received and secure its  
lasting financial stability. ↗ Goals and strategies, p. 17ff.
OVERALL STATEMENT BY  
THE EXECUTIVE BOARD ON  
THE EXPECTED DEVELOPMENT  
OF THE LUFTHANSA GROUP
The market environment remains challenging for the Lufthansa 
Group in 2021. The coronavirus pandemic will continue to 
weigh on the performance of the Lufthansa Group, though 
analysts estimate that passenger business is expected to 
recover slightly in the course of 2021. The severity of the impact 
depends primarily on the containment of the virus as well as 
the availability of vaccines, and the speed at which vaccina-
tion takes place.
Depending on the recovery of the airline business and the 
further progress made with restructuring, the Lufthansa 
Group forecasts higher revenue in 2021 than in 2020 and  
a lower operating loss than in the previous year.
The Lufthansa Group is convinced that the Company’s 
liquidity at year-end 2020, the ongoing measures to cut 
costs and reduce cash outflows, and the planned financing 
measures will safeguard its existence beyond the forecast 
period, even if its actual performance remains below the 
forecasts made in this report. 
LUFTHANSA GROUP ANNUAL REPORT 2020
121
COMBINED MANAGEMENT REPORT
Forecast

Corporate Governance
SUPERVISORY BOARD AND EXECUTIVE BOARD
Supervisory Board
Karl-Ludwig Kley  
Chairman of the Supervisory Board  
E.ON SE  
Chairman 
Christine Behle  
Deputy Chairwoman  
of the trade union ver.di  
Employee representative 1)  
Deputy Chairwoman
Alexander Behrens 
Flight attendant 
Employee representative 1) 
Jörg Cebulla
Flight captain  
Employee representative
Erich Clementi  
Deputy Chairman  
of the Supervisory Board E.ON SE  
(since 5 May 2020)
Thomas Enders 
Member in various Supervisory Boards 
(since 5 May 2020)
Herbert Hainer 
President FC Bayern München e. V. 
(until 5 May 2020)
Christian Hirsch
Information Management Consultant/ 
Works Council member  
on leave of absence – ver.di section  
Employee representative 
(until 31 December 2020)
Jürgen Jennerke  
Chairman of General Works Council  
Lufthansa Cargo/ 
Works Council member  
on leave in absence – ver.di section  
(since 8 December 2020) 
Michael Kerkloh 
Former Chairman  
of the Executive Board  
Flughafen München GmbH  
(since 2 September 2020) 2)
Carsten Knobel
Chairman of the Executive Board  
and CEO  
Henkel AG & Co. KGaA 
Holger Benjamin Koch
Senior Director Airport/ 
Industry Charges & Commercial  
Provider Management 
Employee representative
Martin Koehler
Former head of the  
Aviation ­Competence Center at  
The Boston Consulting Group 
(since 31 August 2020)
Harald Krüger 
Former Chairman  
of the Executive Board  
Bayerische Motorenwerke  
Aktiengesellschaft (BMW AG) 
(since 5 May 2020)
Martina Merz
Chairwoman of the Executive Board 
thyssenkrupp AG 
(until 5 May 2020)
Michael Nilles
Chief Digital &  
Information Officer (CDIO) 
Henkel AG & Co. KGaA 
(until 5 May 2020) 
Monika Ribar
President of Board of Directors  
Schweizerische Bundesbahnen  
SBB AG, Switzerland  
(until 31 August 2020)
Birgit Rohleder 
Teamlead IT Application 
Management Airport Services 
Employee representative 
Miriam Sapiro
Managing Director &  
Vice Chairwoman (Public Affairs), 
Sard Verbinnen & Co., USA 
Ilja Schulz 
Flight captain and member  
of the Cockpit pilots’ union  
Employee representative  1) 
Birgit Spineux  
Purser/Employee representative  
on leave in absence  
Employee representative  
(since 1 January 2021)
Astrid Stange  
Group Chief Operating Office  
AXA SA  
(since 5 May 2020)
Olivia Stelz 
Purser/Employee representative  
on leave in absence  
Employee representative
Stephan Sturm 
Chairman of the Executive Board  
Fresenius Management SE
Angela Titzrath  
Chairwoman of the Executive Board  
Hamburger Hafen und Logistik AG  
(since 2 September 2020)  2)
Christina Weber
Commercial Employee 
Employee representative 
(until 2 December 2020)
Klaus Winkler 
Engine mechanic 
Employee representative 
Matthias Wissmann 
Senior International Counsel  
WilmerHale 
(until 5 May 2020) 
Honory Chairman
Dipl.-Ing. Jürgen Weber
Former Chairman of the  
Supervisory Board  
Deutsche Lufthansa AG 
1)	 Trade union representative in accordance with Section 7 Paragraph 2 Co-determination Act (MitbestG).
2)	Member designated by the WSF in accordance with framework agreement.
LUFTHANSA GROUP ANNUAL REPORT 2020
122
COMBINED MANAGEMENT REPORT
Corporate Governance

Executive Board 
(Structure since 1 January 2021)
Carsten Spohr
Chief Executive Officer 
Thorsten Dirks
Member of the Executive Board 
IT, Digital & Innovation  
(until 30 June 2020) 
Christina Foerster
Chief Customer Officer 
Harry Hohmeister 
Chief Commercial Officer 
Detlef Kayser  
Chief Operations Officer 
Michael Niggemann 
Chief HR & Legal Officer 
Remco Steenbergen  
Chief Financial Officer  
(since 1 January 2021)
Ulrik Svensson  
Member of the Executive Board 
Finances 
(until 30 April 2020) 
MANDATES
Other mandates of the Supervisory Board members of Deutsche Lufthansa AG 
(As of 31 December 2020)
Karl-Ludwig Kley
a)	 BMW AG 3) (Deputy Chairman)
	
E.ON SE 3) (Chairman) 
Christine Behle
a)	 BREMER LAGERHAUS- 
GESELLSCHAFT 
– Aktiengesellschaft von 1877 – 3) 
(Deputy Chairwoman)  
Jörg Cebulla 
a)	 Sparda-Bank Hessen eG 
b)	 Albatros Versicherungs- 
dienste GmbH 
Erich Clementi
a) 	E.ON SE 3) (Deputy Chairman)
Thomas Enders
a)	 Knorr Bremse AG 
b)	 Linde plc.
Herbert Hainer
a)	 Allianz SE 3) 
FC Bayern München AG 
(Chairman)
b)	 Accenture plc., Ireland 3)
Jürgen Jennerke
a)	 Lufthansa Cargo AG  
(Deputy Chairman) 
Martin Koehler 
a)	 Delton Technology SE  
(Deputy Chairman)	
b)	 American Funds  
Investment-Fonds,  
managed by the  
Capital Group, USA  
FlixMobility GmbH
Harald Krüger
a)	 Deutsche Telekom AG 3)
Martina Merz
b)	 AB Volvo, Sweden 3)  
Imerys SA, France 3)  
(until 4 May 2020)  
SAF-HOLLAND SA,  
Luxembourg 3)
Michael Nilles
a)	 Lufthansa Technik AG
b)	 Medela Holding AG, Switzerland  
(Board of Directors) 
Medela AG, Switzerland  
(Board of Directors)
Monika Ribar 
b)	 Chain IQ Group AG, Switzerland
	
Schweizerische Bundesbahnen  
SBB AG, Switzerland  
(President of the Board of Directors)  
Sika AG, Switzerland 3)
Miriam Sapiro
b)	 Project HOPE, USA 
Astrid Stange
b)	 AXA Group Operations SAS  
(President of the  
Executive Committee)
	
GIE AXA 
Stephan Sturm
a)	 Fresenius Kabi AG  1) (Chairman)  
Fresenius Medical Care  
Management AG  1) (Chairman)
b)	 VAMED AG, Austria  2)  
(Deputy Chairman) 
Angela Titzrath
a)	 Evonik Industries AG 3)	
b)	 Talanx AG 3)
Christina Weber
a)	 LSG Lufthansa Service Holding AG 
Matthias Wissmann
b)	 ODDO BHF SCA
a)	Membership of supervisory boards required by law.
b)	Membership of comparable supervisory bodies at ­companies in Germany and abroad.
1)	 Group mandate in accordance with Section 100 Paragraph 2 Sentence 2 AktG.
2)	 Other group mandate.
3)	 Publicly listed company.
LUFTHANSA GROUP ANNUAL REPORT 2020
123
COMBINED MANAGEMENT REPORT
Corporate Governance

Mandates of the Executive Board members of Deutsche Lufthansa AG 
(As of 31 December 2020)
Carsten Spohr
a)	 Lufthansa Technik AG  1)  
(Chairman, until 2 April 2020)
	
Münchener Rückversicherungs- 
Gesellschaft Aktiengesellschaft  
(since 27 April 2020)
	
Thorsten Dirks
a)	 Eurowings GmbH 1)  
(Chairman, until 30 June 2020)  
Germanwings GmbH 1)  
(Chairman, until 14 January 2020)
b)	 Eurowings Europe GmbH  
(Chairman, until 29 February 2020)
	
Günes Ekspres Havacilik A.S.  
(SunExpress), Turkey  
(Deputy Chairman,  
until 31 March 2020)
	
SN Airholding SA/NV, Belgium 2) 
(Chairman, until 30 June 2020)
Christina Foerster
a)	 Eurowings GmbH 1)  
(since 14 April 2020) 
LSG Lufthansa Service Holding AG 1) 
(since 17 April 2020)
	
Lufthansa CityLine GmbH 1)  
(since 31 March 2020)
b)	 Austrian Airlines AG, Austria  
(Chairwoman, since 2 April 2020) 
	
Lufthansa AirPlus  
Servicekarten GmbH  
(Chairwoman, since 6 April 2020) 
	
SN Airholding SA/NV  
(since 6 April; Chairwoman,  
since 3 July 2020)
	
Swiss International Air Lines AG, 
Switzerland (since 4 April 2020) 
Harry Hohmeister 	
a)	 Lufthansa Cargo AG 1) (Chairman) 
b)	 Aircraft Maintenance  
and Engineering Corporation 
(AMECO), China  
Austrian Airlines AG, Austria  
(Chairman, until 2 April 2020) 
	
Günes Ekspres Havacilik A.S.  
(SunExpress), Turkey  
(since 16 July 2020)
	
Swiss International Air Lines AG, 
Switzerland (until 2 April 2020) 
Detlef Kayser	
a)	 Aerodata AG (until 31 March 2020)
	
LSG Lufthansa Service Holding AG 1) 
(Chairman) 
Lufthansa Technik AG  
(Chairman, since 2 April 2020) 1)
b)	 Austrian Airlines AG, Austria  
(Deputy Chairman,  
since 7 April 2020)  
Swiss International Air Lines AG, 
Switzerland (since 4 April 2020)  
Günes Ekspres Havacilik A.S.  
(SunExpress), Turkey  
(until 31 March 2020)
Michael Niggemann	
a)	 Lufthansa CityLine GmbH 1)  
(until 31 March 2020) 
b)	 Austrian Airlines AG, Austria  
(Deputy Chairman,  
until 7 April 2020)
Ulrik Svensson	
b)	 Lufthansa AirPlus  
Servicekarten GmbH 1)  
(Chairman, until 3 April 2020)
	
Swiss International Air Lines AG, 
Switzerland (until 31 March 2020)
a)	Membership of supervisory boards required by law.
b)	Membership of comparable supervisory bodies at ­companies in Germany and abroad.
1)	 Group mandate in accordance with Section 100 Paragraph 2 Sentence 2 AktG.
2)	 Other group mandate.
3)	 Publicly listed company.
C31 SUPERVISORY BOARD COMMITTEES
as of 31 Dec 2020
Steering Committee 
 
 
Audit Committee 
 
 
Nomination Committee 
 
 
Arbitration Committee  
in accordance with Section 27 
Paragraph 3 Co-determination Act  
(MitbestG)
Karl-Ludwig Kley, 
Chairman
Christine Behle, 
Deputy Chairwoman
Thomas Enders
Ilja Schulz
Karl-Ludwig Kley, 
Chairman
Thomas Enders
Harald Krüger 
Karl-Ludwig Kley, 
Chairman
Christine Behle, 
Deputy Chairwoman
Thomas Enders
Ilja Schulz
Stephan Sturm,  
Chairman
Alexander Behrens
Jörg Cebulla
Michael Kerkloh
Carsten Knobel
Klaus Winkler
16 meetings in 2020
Six meetings in 2020
One meeting in 2020
No meetings in 2020
LUFTHANSA GROUP ANNUAL REPORT 2020
124
COMBINED MANAGEMENT REPORT
Corporate Governance

DISCLOSURES IN ACCORDANCE 
WITH SECTION 289A PARAGRAPH 1 
HGB AND SECTION 315A  
PARAGRAPH 1 HGB
Composition of issued capital, types of shares,  
rights and duties
Deutsche Lufthansa AG’s issued capital amounts to  
EUR 1,530,221,624.32 and is divided into 597,742,822 regis-
tered shares. Each share corresponds to EUR 2.56 of the 
issued capital. The transfer of shares requires the Company’s 
authorisation (restriction of transferability). The Company 
may only withhold authorisation if registering the new share-
holder in the share register could jeopardise the maintenance 
of air traffic rights. This did not occur in financial year 2020. 
Shareholders exercise their rights and cast their votes at  
the Annual General Meeting in accordance with statutory 
regulations and the Company’s Articles of Association. Each 
share is entitled to one vote.
Voting and share transfer restrictions
To preserve international air traffic rights and air traffic rights 
to fly to various international destinations, the proportion of 
German/European shareholders must be at least 50% of the 
Company’s issued capital. If the proportion of foreign share-
holders reaches 40%, Deutsche Lufthansa AG is granted spe-
cial permission under Section 4 Paragraph 1 German Aviation 
Compliance Documentation Act (LuftNaSiG) together with 
Section 71 Paragraph 1 No. 1 German Stock Corporation Act 
(AktG) to buy back its own shares. If the proportion of foreign 
shareholders in the share register reaches 45%, the Company 
is authorised, subject to Supervisory Board approval, to 
increase issued capital by up to 10% by issuing new shares 
for payment in cash without subscription rights for existing 
shareholders (Section 4 Paragraphs 2 and 3 LuftNaSiG together 
with Section 4 Paragraph 3 of the Articles of Association). If 
the proportion of foreign shareholders approaches the 50% 
threshold, the Company is entitled to withhold authorisation 
to register new foreign shareholders in the share register 
(Section 5 Paragraph 1 of the Articles of Association). Further-
more, the Company is authorised, according to Section 5 
Paragraph 2 LuftNaSiG and subject to the approval of the 
Supervisory Board, to require the most recently registered 
shareholders to sell their shares. From the fourth day after 
this requirement has been published, the shareholders con-
cerned can no longer exercise the rights conferred by the 
shares concerned. If they do not comply with the requirement 
within four weeks, the Company is entitled after a further 
notice period of three weeks to declare the shares to be  
forfeited and to compensate the shareholders accordingly. 
On 31 December 2020, foreign shareholders held 16.2% of 
the shares in the shareholders’ register of the Company. No 
steps were taken in 2020 to limit the percentage of foreign 
shareholders. Detailed information on the German Aviation 
Compliance Documentation Act (LuftNaSiG) and the quar-
terly update on our shareholder structure can be found at 
 www.lufthansagroup.com/investor-relations.
The annual share investment programmes for employees and 
managers have time-based restrictions on trading in shares, 
particularly lock-up periods of up to four years.
Direct or indirect shareholdings with more than 10%  
of voting rights
As of 31 December 2020, the Company had received the  
following notification of direct or indirect shareholdings with 
more than 10% of voting rights:
—	 Economic Stabilisation Fund (WSF) 20.05%  
(notified on 6 July 2020)
—	 Heinz Hermann Thiele: 12.42% (notified on 13 July 2020)
Holders of shares with special controlling rights
The Company has no shares that confer special controlling 
rights. The WSF has special shareholder rights, however, 
such as veto rights over certain types of financing and 
Supervisory Board seats. Additional information about the 
special rights of the WSF can be found at ↗ https://investor- 
relations.lufthansagroup.com/en/corporate-governance/ 
stabilisierungspakete.html.
Control of voting rights for employee shares when  
control rights are exercised indirectly
Where the Company issues shares to its staff as part of its 
employee programmes, these shares are transferred to the 
employees directly. The staff beneficiaries can exercise the 
controlling rights that accrue to them from the employee 
shares directly in the same way as other shareholders, in 
accordance with statutory regulations and the provisions of 
the Articles of Association.
Statutory regulations and provisions of the Company’s 
Articles of Association on the appointment and dismissal 
of members of the Executive Board and amendments to 
the Company’s Articles of Association
The Supervisory Board appoints the members of the Executive 
Board and decides how many members there should be. The 
Supervisory Board can revoke appointments for membership 
and to the position of Chairman of the Executive Board for 
good reason. All amendments to the Articles of Association 
must be approved by resolution of an Annual General Meeting, 
with a majority of at least three quarters of the issued capital 
present. The Supervisory Board is authorised to adopt changes 
to the Articles of Association that only relate to wording (Sec-
tion 11 Paragraph 4 of the Articles of Association). Further-
more, the Supervisory Board is entitled to amend Section 4 
of the Articles of Association if authorised capital is exercised 
or expires.
LUFTHANSA GROUP ANNUAL REPORT 2020
125
COMBINED MANAGEMENT REPORT
Corporate Governance

Rights of the Executive Board to issue or repurchase shares
As of 31 December 2020, Deutsche Lufthansa AG had 
Authorised Capital A amounting to EUR 450,000,000.00 
and Authorised Capital B amounting to EUR 22,362,168.32:
A resolution passed at the Annual General Meeting on 7 May 
2019 authorised the Executive Board until 6 May 2024, sub-
ject to approval by the Supervisory Board, to increase the 
Company’s issued capital by up to EUR 450,000,000.00  
by issuing new registered shares on one or more occasions 
for payment in cash or in kind (Authorised Capital A). No use 
was made of this authorisation in the reporting period. 
A resolution passed by the Annual General Meeting on 7 May 
2019 authorised the Executive Board until 6 May 2024, sub-
ject to approval by the Supervisory Board, to increase the 
Company’s issued capital on one or more occasions by up to 
EUR 30,000,000.00 by issuing new registered shares to 
employees (Authorised Capital B) for payment in cash. Existing 
shareholders’ subscription rights are excluded. The Company 
made no use of this authorisation in the reporting period.
A resolution passed at the Annual General Meeting on 5 May 
2020 authorised the Executive Board until 4 May 2025,  
subject to approval by the Supervisory Board, to issue bearer 
or registered convertible bonds, bond/warrant packages, 
profit sharing rights or participating bonds (or combinations 
of these instruments) for a total nominal value of up to 
EUR 1,500,000,000. A convertible bond was issued for  
EUR 600,000,000 in November 2020. This used up a large 
part of the existing authorisation to grant shares to the hold-
ers or creditors of the bond, and to increase the Company’s 
share capital by up to EUR 122,417,728 by issuing up to 
47,819,425 new registered shares. The convertible bond 
issued in November 2020 entitles the bearer to convert  
up to 46,296,296 shares, increasing share capital by up to 
EUR 118,518,518. The contingent capital increase will only 
take place to the extent that the holders or creditors of  
conversion and/or option rights, or those with a conversion 
obligation from convertible bonds, bond/warrant packages, 
profit-sharing rights or participating bonds (or any combi­
nation of these instruments) issued by the Company or its 
Group companies pursuant to the authorisation given at  
the Annual General Meeting for the period 5 May 2020 to  
4 May 2025 exercise their conversion or option rights, or if 
the holders or creditors of convertible bonds meet their con-
version obligations or, if the Company exercises its option, 
Company shares are granted in lieu of payment of all or part 
of the amount in cash due, to the extent that a cash compen-
sation is not granted or the Company’s treasury shares are not 
used for settling the obligation. The new shares are entitled 
to share in profits from the beginning of the reporting year in 
which they are issued by the exercise of conversion or option  
rights, by meeting a conversion obligation, or by the issue of 
rights to sell shares. The Executive Board is authorised to 
determine the further details of the way in which the contin-
gent capital increase is to be carried out.
The Company’s contingent capital was increased by up to 
EUR 102,014,776.32, divided into up to 39,849,522 registered 
shares, by resolution of the extraordinary Annual General 
Meeting on 25 June 2020 (Contingent Capital 2020/II). The 
new shares are entitled to profits from the beginning of the 
financial year in which they are issued. Notwithstanding Sec-
tion 60 paragraph 2 of the German Stock Corporation Act 
(AktG), and to the extent permitted by law, the Executive 
Board may determine that new shares for a completed finan-
cial year also participate in the profits. The contingent capital 
increase serves to provide shares for the exercise of con­
version rights granted to the Economic Stabilisation Fund 
(WSF) as a silent shareholder in the company for Silent  
Participation II-A by resolution of the extraordinary Annual  
General Meeting on 25 June 2020 in the event of a takeover 
(as defined below). This condition ceases to apply, however, 
if the WSF sells the Silent Participation II-A to a third party 
(as defined below), so that the Silent Participation II-A can 
be converted at any time after it has been transferred to the 
third party or parties; the scope of this conversion right is 
restricted to 39,849,522 shares. A third party is any natural 
or legal person with the exception of (i) the German federal 
state or a regional state (Land) or several Länder, (ii) any other 
German regional authority and (iii) an entity or public agency 
belonging directly to the federal or a regional state. The new 
shares are issued at EUR 2.56 per share. The contingent 
capital increase will only take place to the extent that the 
WSF (or a third party after the Silent Participation II-A has 
been assigned) exercises the conversion right. The Executive 
Board is authorised to define further details of the contingent 
capital increase and its implementation with the approval  
of the Supervisory Board.
The Company’s contingent capital was increased by up  
to EUR 897,985,223.68, divided into up to 350,775,478  
registered shares, by resolution of the extraordinary general 
meeting on 25 June 2020 (Contingent Capital 2020/III).  
The new shares are entitled to profits from the beginning of 
the financial year in which they are issued. Notwithstanding 
Section 60 paragraph 2 of the German Stock Corporation 
Act (AktG), and to the extent permitted by law, the Executive 
Board may determine that new shares for a completed finan-
cial year also participate in the profits. The contingent capital 
increase serves to provide shares for the exercise of conversion 
rights granted to the WSF of the Federal Republic of Germany 
as a silent shareholder in the company for antidilution and/or 
coupon protection (each as defined below) for Silent Partici-
pation II-B by resolution of the extraordinary Annual General 
Meeting on 25 June 2020.
	
LUFTHANSA GROUP ANNUAL REPORT 2020
126
COMBINED MANAGEMENT REPORT
Corporate Governance

—	 In the event of a capital increase by the Company, “anti­
dilution” refers to cases that protect the WSF from dilu-
tion (x) of its increased equity interest of 25% plus one 
share following conversion of the Silent Participation II-A 
in the event of a takeover (as defined below), unless the 
WSF has waived its right to antidilution (as defined below), 
or (y) that protect its equity interest of 20% in the event 
of a capital increase without subscription rights, unless  
i) the WSF is offered an investment in the capital increase 
without subscription rights or ii) the WSF has waived its 
right to antidilution (as defined below).
—	  “Coupon protection” refers to cases in which the accrued 
coupon on the Silent Participation I (x) is not paid for  
any financial year up to and including 2023 and (y) if the 
accrued coupon on the Silent Participation I is again not 
paid for financial years 2024 and 2025, unless the Silent 
Participation II-A has been converted. In the case of coupon 
protection, the conversion right is limited to 5% of share 
capital after conversion in each of the cases (x) and (y).
—	 A takeover is deemed to have occurred if a decision is 
published to make a takeover offer pursuant to Section 10 
Securities Acquisition and Takeover Act (WpÜG) or if  
control is acquired pursuant to Section 35 in combination 
with Section 29 WpÜG.
—	 Antidilution is waived if the WSF i) does not exercise its 
subscription right in the course of a capital measure by the 
Company with subscription rights or ii) does not partici-
pate in the offer of a capital increase without subscription 
rights or iii) has sold one or more of the shares in its 
equity interest. 
If the conversion right is exercised to protect against dilution 
(as defined above), the new shares will be issued at the  
current market price on the conversion date, less 10%. If the 
conversion right is exercised to protect the coupon (as defined 
above), they are issued at the current market price on the 
conversion date, less 5.25%. The contingent capital increase 
will only take place if the WSF makes use of its conversion 
right. The conversion rights expire if Silent Participation II-B 
is assigned to a third party. The Executive Board is authorised 
to define further details of the contingent capital increase 
and its implementation with the approval of the Supervisory 
Board.
Deutsche Lufthansa AG is entitled to repurchase shares and 
to sell repurchased shares in those cases defined in Section 
71 AktG. In addition, the Company is authorised by resolutions 
of the Annual General Meeting on 7 May 2019 to buy back  
its own shares until 6 May 2024. The resolutions can be used, 
among other things, to issue shares for the settlement of 
employee share programmes and to expand the financing 
alternatives in the event that another company or an equity 
stake in a company is acquired. The proportion of shares 
acquired on the basis of this authorisation, along with any 
other Lufthansa shares that the Company has already acquired 
and still holds, must at no time amount to more than 10%  
of issued capital.
However, Deutsche Lufthansa AG is forbidden from buying 
back shares, unless they are shares held by the WSF, until the 
end of the stabilisation measures. 
Further information on authorised capital, contingent capital 
and share buy-backs ↗ Notes to the consolidated financial 
statements, Note 33, p. 178f.
Important Company agreements subject to a  
change-of-control clause in the event of a takeover offer
The EMTN programme operated by the Company to issue 
bonds includes a change-of-control clause, according to which 
holders of bonds issued thereunder can demand redemption 
of the bond in the event of a change of control. The change 
of control is tied to the concepts of control, which are defined 
in detail in the EMTN programme, and of a rating downgrade 
resulting from the change of control within a change-of- 
control period. Two bonds are currently outstanding under this 
programme: one for EUR 500m maturing on 6 September 
2024 and one for EUR 1,000m maturing on 29 May 2026.
In August 2015, Deutsche Lufthansa AG issued a hybrid bond 
for EUR 500m, due on 12 August 2075, which also includes 
the change-of-control clause described above. Furthermore, 
Deutsche Lufthansa AG has issued borrower’s note loans 
that include similar change-of-control clauses. As of 31 De- 
cember 2020, a total of EUR 1,903m was still outstanding.
The loan agreed with KfW and a banking consortium on  
1 July 2020 for an initial amount of EUR 3bn has a change-
of-control clause. This stipulates that a change of control 
occurs if a person or group of persons acting in concert  
(with the exception of the WSF or a state lender) acquires 
30% or more of the voting rights in the Company, and gives 
the lender the right to early repayment of the loan. 
LUFTHANSA GROUP ANNUAL REPORT 2020
127
COMBINED MANAGEMENT REPORT
Corporate Governance

In November 2020, Deutsche Lufthansa AG issued a  
convertible bond for EUR 600m, due on 17 November 2025.  
The terms of the bond include a change-of-control clause  
that adjusts the conversion price and entitles the creditors  
to early repayment of the loan in the event of a change of 
control. A change of control occurs if one or more persons 
acquire control of Deutsche Lufthansa AG or if, in the event 
of a mandatory offer for ordinary shares, a situation occurs  
in which ordinary shares collectively hold more than 50% of 
the voting rights in Deutsche Lufthansa AG.
Compensation agreements with Executive Board mem-
bers or employees in the event of a takeover offer
In the event of a change of control at Deutsche Lufthansa AG 
defined more precisely in the employment contract, the 
Executive Board members and the Company are entitled  
to terminate the contract within six months of this change  
of control.
If the contract ends because the special termination right  
is exercised or the contract is revoked amicably within six 
months of and in connection with the change of control, the 
Executive Board member is entitled to compensation for 
remuneration outstanding for the remainder of the contract. 
The termination payment may not exceed 150% of the con-
tractually agreed cap on severance pay of two years’ remu-
neration. For new and repeat appointments after 1 January 
2020, the Company will follow the recommendation of  
the German Corporate Governance Code as amended on  
16 December 2019 and also apply the cap on severance pay 
to the event of a change of control. ↗ Remuneration report.
DECLARATION ON CORPORATE 
GOVERNANCE IN ACCORDANCE 
WITH SECTION 289F HGB AND  
SECTION 315D HGB
The declaration on corporate governance required for listed 
companies in accordance with Section 289f HGB and Sec-
tion 315d HGB has been issued and made publicly available 
on the Company’s website at ↗ www.lufthansagroup.com/
corporate_governance_declaration.
Notes to the individual financial statements of Deutsche Lufthansa AG (HGB)
Revenue of Deutsche Lufthansa AG falls to EUR 4,280m  |  Net profit for the 
year of EUR – 780m  |  Total assets increase to EUR 32,272m
The financial statements of Deutsche Lufthansa AG have 
been prepared in accordance with the German Commercial 
Code (HGB), the supplementary provisions of the German 
Stock Corporation Act (AktG) and the Articles of Association, 
and have been audited by Ernst & Young GmbH Wirtschafts-
prüfungsgesellschaft, Eschborn/Frankfurt am Main. They are 
published in the Federal Gazette. The financial statements 
are permanently available online. 
 http://investor-relations.
lufthansagroup.com/en/financial-reports.html.
In this annual report, the management report for Deutsche 
Lufthansa AG has been combined with the management report 
for the Lufthansa Group. Deutsche Lufthansa AG and its 
results also include the Group headquarters with the central 
functions for Corporate Development, Finance and Con-
trolling, Communications, Public Affairs, Human Resources, 
Legal and Compliance, as well as Data Security, Safety  
and Procurement. The economic environment for Deutsche 
Lufthansa AG is essentially the same as for the Group.  
↗ Macroeconomic situation, p. 32f.; Sector developments,  
p. 33f.; Course of business, p. 35ff.
EARNINGS POSITION 
Deutsche Lufthansa AG reports a net loss for the financial 
year 2020 of EUR 780m. Its earnings position was largely 
determined by the massive restrictions to flight operations 
as a result of the pandemic and the recognition of previously 
unrealised book gains from the release of hidden reserves  
in the shares of AirTrust AG.
LUFTHANSA GROUP ANNUAL REPORT 2020
128
COMBINED MANAGEMENT REPORT
Corporate Governance, Notes to the individual financial statements of Deutsche Lufthansa AG (HGB)

Revenue and income
18 million passengers transported 
Deutsche Lufthansa AG carried 18 million passengers in 
2020, a year-on-year decline of 75% (previous year: 70 mil-
lion). Capacity fell by 69% and sales were down by 77%.  
The passenger load factor sank as a result by 20 percentage 
points to 62%. 
Operating income down by 38%
Operating income was partly defined by the significant fall in 
traffic revenue of 76% to EUR 3,502m due to the pandemic 
(previous year: EUR 14,885m). At the same time, other oper-
ating income increased by 310% to EUR 6,825m (previous 
year: EUR 1,663m). This is mainly the result of recognising  
a book gain of EUR 5,608m in connection with the capital 
contribution at AirTrust AG. 
Expenses
Operating expenses down by 38%
Operating expenses came to EUR 10,765m and were there-
fore 38% lower than in the previous year (previous year: 
EUR 17,390m). 
The decline was primarily due to the cost of materials and 
services, which fell by EUR 5,691m to EUR 5,071m, i.e. more 
than half compared with the previous year. Within the cost of 
materials and services, the two main factors were the signifi-
cant fall in fuel expenses including hedging (down by 74%  
to EUR 959m) and the 50% decline in MRO expenses to 
EUR 1,025m. The fall in fuel expenses by 77% is mainly due 
to volumes lower by 71% and a year-on-year decline of 3% in 
prices, including a negative result of price hedging. The fall  
in traffic due to the pandemic resulted in the overhedging  
of fuel expenses, which cut earnings by a further EUR 467m 
in financial year 2020.  
The costs of purchased services fell by 42% to EUR 4,050m 
(previous year: EUR 6,993m). Severely restricted flight oper-
ations due to the pandemic in financial year 2020 had a major 
impact on fees and charges, which fell year-on-year by 64% 
to EUR 719m (previous year: EUR 1,982m). 
The costs of external MRO services fell by half compared with 
the previous year to EUR 1,025m (previous year: EUR 2,042m). 
The reasons for this development were the partial transfer  
of the maintenance business of Lufthansa Technik AG to 
Deutsche Lufthansa AG, and also the fact that the number  
of engine maintenance events was significantly lower than 
the previous year due to the pandemic. Charter expenses fell 
year-on-year by 33% to EUR 417m (previous year: EUR 627m). 
The decline is due to less chartering, both in the regional 
charter concept with Lufthansa CityLine GmbH and with 
external airlines. Expenses for operating leases went up year-
on-year by 44% to EUR 1,246m (previous year: EUR 865m). 
The increase stems mainly from a provision for impending 
losses of EUR 337m because the future lease payments  
for aircraft affected by the long-term capacity reduction  
are expected to exceed their contribution to the Company’s 
success.
Staff costs fell by 27% to EUR 2,217m (previous year: 
EUR 3,049m), mainly due to refunds of EUR 430m for 
wage-replacement benefits and social security contributions 
paid in the context of short-time working. Variable salary 
components and those dependent on flight operations also 
fell significantly. 
T053  TRENDS IN TRAFFIC REGIONS OF DEUTSCHE LUFTHANSA AG
Traffic revenue 
Number of  
passengers
Available  
seat-kilometres
Revenue  
seat-kilometres
Passenger  
load factor
 
2020  
in €m
Change  
in %
2020  
in thousands
Change  
in %
2020  
in millions
Change  
in %
2020  
in millions
Change  
in %
2020  
in %
Change  
in pts
 
Europe
1,520
– 73
13,589
– 74
18,688
– 66
11,399
– 73
61
– 15
America
1,136
– 79
2,041
– 77
26,330
– 67
16,017
– 77
61
– 25
Asia/Pacific
536
– 81
1,000
– 81
12,195
– 75
7,905
– 81
65
– 20
Middle East/Africa
310
– 72
908
– 75
6,027
– 66
3,946
– 72
65
– 14
Total
3,502
– 76
17,538
– 75
63,240
– 69
39,267
– 77
62
– 20
LUFTHANSA GROUP ANNUAL REPORT 2020
129
COMBINED MANAGEMENT REPORT
Notes to the individual financial statements of Deutsche Lufthansa AG (HGB)

Depreciation, amortisation and impairment losses rose year-
on-year by 91% to EUR 1,135m (previous year: EUR 594m). 
The increase comes mainly from impairment losses on several 
mostly four-engine aircraft models which are being perma-
nently retired or transferred to long-term parking mode. 
Other operating expenses of EUR 2,342m were 22% down 
on the year (previous year: EUR 2,985m). This decline is also 
due to the impact of severely reduced flight operations due 
to the pandemic on travel expenses, sales commissions and 
expenses for computerised distribution systems.
Earnings performance
Result from operating activities down to EUR 340m
The result from operating activities fell by 38% to EUR 340m 
in financial year 2020 (previous year: EUR 546m). Operating 
income and expenses both fell by 38%. Whereas operating 
income sank to EUR 11,105m (previous year: EUR 17,936m), 
operating expenses fell to EUR 10,765m (previous year: 
EUR 17,390m). Adjusted EBIT, calculated as for the Group, 
came to EUR – 5,421m in the financial year (previous year: 
EUR 1,016m). Key reconciliation items are write-downs and 
write-ups on the carrying amounts of investments, impair-
ment losses on several aircraft and the book gain from the 
capital contribution to AirTrust AG. 
Financial result falls to EUR – 2,115m 
The financial result fell by EUR 2,194m to EUR – 2,115m  
(previous year: EUR 79m). It was made up of the result from 
equity investments of EUR – 806m (previous year: EUR 476m), 
net interest of EUR – 1,162m (previous year: EUR – 352m) and 
other financial items of EUR – 147m (previous year: EUR – 45m).
The result from equity investments includes profit and  
loss transfers of EUR – 1,146m (previous year: EUR – 221m) 
and other investment income of EUR 340m (previous year: 
EUR 697m). The significant decline is mainly due to negative 
earnings at Eurowings GmbH of EUR – 861m (previous year: 
EUR – 414m), at Lufthansa Technik AG of EUR – 631m (previ-
ous year: EUR – 310m), at LSG Lufthansa Service Holding AG 
of EUR – 266m (previous year: EUR – 144m), at Lufthansa 
Commercial Holding GmbH of EUR – 77m (previous year: 
EUR 54m), as well as to the fall in earnings at Miles & More 
GmbH to EUR 94m (previous year: EUR 115m). By contrast, 
earnings at Lufthansa Cargo AG developed to EUR 650m 
(previous year: EUR – 47m) and at Lufthansa CityLine GmbH 
to EUR – 67m (previous year: EUR – 110m). Other income from 
investments included the dividends from Austrian leasing 
companies of EUR 334m (previous year: EUR 288m). 
Net interest came to EUR – 1,162m in the financial year (pre-
vious year: EUR – 352m). It declined by EUR 651m (previous 
year: EUR 1,231m) because of a further reduction in the  
discount rate used to measure pension provisions to 2.30% 
(previous year: 2.71%). In addition, net interest was affected 
by the offsetting year-on-year market valuation for the pension 
assets used to fund retirement benefit obligations in the 
amount of EUR – 361m (previous year: EUR +1,067m). 
Impairment losses of EUR 147m on investments and current 
securities recognised in the financial result were significantly 
higher than in the previous year (EUR 45m). They stem mainly 
from write-downs on the carrying amounts of Air Dolomiti 
S.p.A. Linee Aeree Regionali Europee (EUR 117m) Crane Stra-
tegic Investment S.C.S. (EUR 10m). 
Net profit down to EUR – 780m
The operating result and financial result add up to 
EUR – 1,775m (previous year: EUR 625m). In the reporting 
year, expenses for income taxes for previous years of 
EUR 51m were offset by deferred tax income of EUR 1,065m. 
Expenses of EUR 19m were incurred in the financial year  
for other taxes. Net profit for 2020 therefore came to 
EUR – 780m (previous year: EUR 595m).
T054  INCOME STATEMENT FOR DEUTSCHE LUFTHANSA AG  
IN ACCORDANCE WITH HGB
in Mio. €
2020
2019
 
Traffic revenue
3,502
14,885
Other revenue
778
1,388
Total revenue
4,280
16,273
Other operating income
6,825
1,663
Cost of materials and services
– 5,071
– 10,762
Staff costs
– 2,217
– 3,049
Depreciation, amortisation and impairment
– 1,135
– 594
Other operating expenses
– 2,342
– 2,985
Result from operating activities
340
546
Result from other equity investments
– 806
476
Net interest
– 1,162
– 352
Impairment on investments  
and current securities
– 147
– 45
Financial result
– 2,115
79
Current income taxes
– 51
– 293
Deferred income taxes
1,065
291
Earnings after taxes
– 761
623
Other taxes
– 19
– 28
Net profit/loss for the year
– 780
595
Profit brought forward from the previous year
298
– 
Transfers to retained earnings
– 298
– 297
Distributable earnings
– 780
298
LUFTHANSA GROUP ANNUAL REPORT 2020
130
COMBINED MANAGEMENT REPORT
Notes to the individual financial statements of Deutsche Lufthansa AG (HGB)

FINANCIAL POSITION
Cash flow
Liquidity of EUR 2,021m
The significant decline of EUR 4,695m in cash flow from 
operating activities to EUR –4,279m (previous year: EUR 416m) 
due mainly to the severely restricted flight operations was 
partially offset by positive changes in working capital and 
lower tax payments. Cash flow from investing activities 
came to EUR 426m as of the reporting date (previous year: 
EUR –1,330m). Liquidity measures taken by Deutsche 
Lufthansa AG in 2020, such as the reduction of capital at 
Lufthansa Commercial Holding (EUR 2,550m) and Crane 
Strategic Investment S.C.S. (EUR 1,790m), were offset by 
capital expenditure in various securities (EUR 3,614m). Cash 
flow from financing activities came to EUR 4,760m in the 
financial year (previous year: EUR 179m) primarily due to the 
finance transactions as part of the WSF stabilisation measures 
(EUR 2,000m) and the issue of the euro bond (EUR 1,000m), 
the convertible bond (EUR 600m) and multiple borrower’s 
note loans (EUR 700m). In total, cash and cash equivalents 
increased by EUR 907m from EUR – 2,542m to EUR – 1,635m. 
Short-term securities, including the strategic liquidity held 
by Crane Strategic Investment S.C.S., rose by EUR 1,824m to 
EUR 3,656m (previous year: EUR 1,832m). Liquidity thereby 
increased overall by EUR 2,731m to EUR 2,021m (previous 
year: EUR – 710m). 
NET ASSETS
Total assets climbed by EUR 3,140m or 11% to EUR 32,272m 
(previous year: EUR 29,132m). Non-current assets account 
for 71% of total assets (previous year: 81%).
Assets
Non-current assets down by EUR 473m
Non-current assets declined by EUR 473m or 2% to 
EUR 23,037m (previous year: EUR 23,510m). Aircraft were 
down by EUR 896m compared with the previous year mainly 
due to impairment losses, mostly for four-engine aircraft 
models. Non-current financial assets rose year-on-year by 
EUR 360m. The development in non-current financial assets 
was largely due to the capital increase at Lufthansa Commer-
cial Holding GmbH and the capital contribution in connec-
tion with AirTrust AG, as well as conversely from capital 
reductions to generate liquidity also at Lufthansa Commercial 
Holding GmbH and Crane Strategic Investment S.C.S. New 
and increased loans to affiliated companies (EUR 736m) were 
offset in the financial year 2020 by repayments of EUR 1,702m.
Current assets increase by EUR 2,542m
Current assets went up by 74% to EUR 5,955m (previous year: 
EUR 3,413m). The increase stems mainly from significantly 
larger securities positions than in the previous year. By con-
trast, trade and other receivables from third parties and  
affiliated companies were lower. The latter are presented in 
Other receivables and other assets. 
T055  BALANCE SHEET FOR DEUTSCHE LUFTHANSA AG  
IN ACCORDANCE WITH HGB
in €m
31 Dec 2020
31 Dec 2019
 
Assets
 
 
Intangible assets
385
309
Aircraft
5,783
6,679
Property, plant and other equipment
69
82
Financial investments
16,800
16,440
Non-current assets
23,037
23,510
Inventories
111
108
Trade receivables
102
642
Other receivables
1,299
1,725
Securities
3,655
41
Cash and cash equivalents
788
897
Current assets
5,955
3,413
Prepaid expenses
73
60
Deferred tax assets
3,207
2,142
Excess of plan assets over provisions  
for pensions
–
7
Total assets
32,272
29,132
Shareholders’ equity and liabilities
 
 
Issued capital
1,530
1,224
Capital reserve
378
378
Retained earnings
6,498
6,200
Distributable earnings
– 780
298
Shareholders’ equity
7,626
8,100
Provisions
6,864
6,602
Bonds
2,827
1,098
Liabilities to banks
4,215
2,089
Payables to affiliated companies
4,659
6,094
Other liabilities
6,067
5,135
Liabilities and provisions
17,768
14,416
Deferred income
14
14
Total shareholders’ equity and liabilities
32,272
29,132
LUFTHANSA GROUP ANNUAL REPORT 2020
131
COMBINED MANAGEMENT REPORT
Notes to the individual financial statements of Deutsche Lufthansa AG (HGB)

Deferred tax assets up by EUR 1,065m
Deferred tax assets went up in the financial year by 50% to 
EUR 3,207m. EUR 610m of the increase in deferred tax assets 
stems from higher temporary differences, mostly in connec-
tion with pension provisions. In addition, deferred tax assets 
of EUR 455m were recognised for the first time on tax loss 
carry-forwards. 
Shareholders’ equity and liabilities
Shareholders’ equity down by EUR 474m 
Shareholders’ equity fell year-on-year by 6% due to the  
net loss for the year and came to EUR 7,626m as of the 
reporting date (previous year: EUR 8,100m). The capital 
increase as part of the WSF investment and the transfer of 
EUR 298m to retained earnings had the opposite effect. 
Since total assets also increased, the equity ratio declined 
by 4 percentage points to 24% (previous year: 28%). The 
information required according to Section 160 Paragraph 1 
No. 2 AktG on the portfolio development of treasury shares 
is provided in the Notes to the consolidated financial state-
ments ↗ Notes to the consolidated financial statements,  
Note 33, p. 178f.
Non-current liabilities increase to EUR 4,828m
The Company’s non-current liabilities rose by 67% in the 
reporting year to EUR 11,983m (previous year: EUR 7,155m). 
This is mainly due to the financial transactions as part of  
the WSF stabilisation measures, as well as the issue of two 
new bonds and new borrower’s note loans.
The increase in shareholders’ equity and non-current liabilities 
and provisions, accompanied by an increase in total assets, 
meant that non-current funding accounted for a larger pro-
portion of total assets of 61% (previous year: 52%). Non-current 
funds cover 85% of non-current assets (previous year: 65%).
Current liabilities down by EUR 1,214m
At EUR 12,663m, current liabilities were EUR 1,214m below 
last year’s figure (previous year: EUR 13,877m). This stems 
chiefly from the lower provision for unused flight documents 
and the decline in other current liabilities. By contrast, provi-
sions for taxes went up year on year. 
Net debt up by EUR 2,943m
Net indebtedness increased by EUR 2,943m or 68% to 
EUR 7,243m, mainly due to the WSF financing measures 
(silent participation and KfW loan), the issue of a euro bond, 
a convertible bond and other borrower’s note loans (previous 
year: EUR 4,300m). It was offset by a much higher securities 
position than the previous year. 
OTHER DISCLOSURES
Risk report
Business at Deutsche Lufthansa AG is subject to essentially 
the same risks and opportunities as business at the Network 
Airlines segment as presented in the consolidated financial 
statements. Deutsche Lufthansa AG is exposed to the risks 
of its equity investments and subsidiaries in proportion to its 
respective equity stakes. ↗ Network Airlines business segment, 
p. 51ff.
Supplementary report
The main events taking place after the reporting date are 
those described in the consolidated financial statements 
pertaining to the Network Airlines business segment. 
Forecast
Future business performance at Deutsche Lufthansa AG is 
subject to essentially the same factors as Lufthansa German 
Airlines as presented in the consolidated financial statements. 
Deutsche Lufthansa AG is exposed to the performance of  
its equity investments and subsidiaries in proportion to its 
respective equity stakes.
Further information on anticipated macroeconomic develop-
ments and the performance of the segments, as well as  
the assumptions on which the Group forecast is based, can 
be found in the ↗ Forecast, p. 118ff.
LUFTHANSA GROUP ANNUAL REPORT 2020
132
COMBINED MANAGEMENT REPORT
Notes to the individual financial statements of Deutsche Lufthansa AG (HGB)

CONSOLIDATED 
FINANCIAL 
STATEMENTS
134	 Consolidated income statement
135	 Statement of comprehensive income
136	 Consolidated statement of financial position
138	 Consolidated statement of changes in shareholders’ equity
139	 Consolidated cash flow statement
140	 Notes to the consolidated financial statements
	
140	
General remarks
	
157	
Notes to the consolidated income statement
	
165	
Notes to the consolidated statement of financial position
	
	
165	
Assets 
	
	
178	
Shareholders’ equity and liabilities 
	
198	
Notes to the segment reporting
	
203	
Notes to the consolidated cash flow statement
	
205	
Other disclosures
	
223	
Composition of the Group
229	 Major subsidiaries
236	 Miscellaneous equity investments
LUFTHANSA GROUP ANNUAL REPORT 2020
133

Consolidated income statement
for the financial year 2020
T056  CONSOLIDATED INCOME STATEMENT
in €m
Notes
2020
2019
Traffic revenue 
4
9,078
28,136
Other revenue 
5
4,511
8,288
Total revenue
 
13,589
36,424
Changes in inventories and work performed by entity and capitalised
6
175
685
Other operating income 1)
7
1,897
1,889
Cost of materials and services
8
– 8,453
– 19,827
Staff costs
9
– 6,436
– 9,121
Depreciation, amortisation and impairment  2)
10
– 4,389
– 2,776
Other operating expenses 3)
11
– 3,472
– 5,585
Profit/loss from operating activities
 
– 7,089
1,689
Result of equity investments accounted for using the equity method
12
– 276
88
Result of other equity investments
12
12
80
Interest income
13
83
79
Interest expenses
13
– 417
– 394
Other financial items
14
– 944
318
Financial result
 
– 1,542
171
Profit/loss before income taxes
 
– 8,631
1,860
Income taxes
15
1,865
– 615
Profit/loss after income taxes
 
– 6,766
1,245
Profit/loss attributable to non-controlling interests
 
41
– 32
Net profit/loss attributable to shareholders of Deutsche Lufthansa AG
 
– 6,725
1,213
Basic/diluted earnings per share in €
16
– 12.51
2.55
1)	 This includes EUR 36m (previous year: EUR 46m) from the reversal of write-downs on non-current receivables. 
2)	This includes EUR 19m (previous year: EUR 23m) for the recognition of write-downs on current receivables. 
3)	This includes EUR 251m (previous year: EUR 120m) for the recognition of loss allowances on receivables.
LUFTHANSA GROUP ANNUAL REPORT 2020
134
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated income statement

Statement of comprehensive income
for the financial year 2020
T057  STATEMENT OF COMPREHENSIVE INCOME
in €m
2020
2019
Profit/loss after income taxes
– 6,766
1,245
Other comprehensive income
 
 
Other comprehensive income with subsequent reclassification to the income statement
 
 
Differences from currency translation
– 107
115
Subsequent measurement of financial assets and liabilities  
at fair value without effect on profit and loss
– 29
10
Subsequent measurement of hedges – cash flow hedge reserve
– 655
258
Subsequent measurement of hedges – costs of hedging
143
476
Other comprehensive income from investments accounted for using the equity method
4
13
Other expenses and income recognised directly in equity
– 4
15
Income taxes on items in other comprehensive income
125
– 182
– 523
705
Other comprehensive income without subsequent reclassification to the income statement
 
 
Revaluation of defined-benefit pension plans
– 2,584
– 1,108
Other comprehensive income from investments accounted for using the equity method
–
–
Subsequent measurement of financial assets at fair value
1
7
Other expenses and income recognised directly in equity
–
– 1
Income taxes on items in other comprehensive income
622
345
– 1,961
– 757
 
 
 
Other comprehensive income after income taxes
– 2,484
– 52
Total comprehensive income
– 9,250
1,193
Comprehensive income attributable to non-controlling interests
48
– 31
Comprehensive income attributable to shareholders of Deutsche Lufthansa AG
– 9,202
1,162
Further details on the statement of comprehensive income can be found in ↗ Note 34, Reserves, p. 179f.
LUFTHANSA GROUP ANNUAL REPORT 2020
135
CONSOLIDATED FINANCIAL STATEMENTS
Statement of comprehensive income

Consolidated statement of financial position
as of 31 December 2020 
T058  CONSOLIDATED STATEMENT OF FINANCIAL POSITION – ASSETS
in €m
Notes
31 Dec 2020
31 Dec 2019
Intangible assets with an indefinite useful life  1)
17
1,169
1,395
Other intangible assets
18
469
547
Aircraft and reserve engines
19   22
15,842
18,349
Repairable spare parts for aircraft
20
1,823
2,270
Property, plant and other equipment
21   22
3,671
4,041
Investments accounted for using the equity method
23
403
672
Other equity investments
24  45
252
256
Non-current securities
24  45
54
53
Loans and receivables
25   45
440
469
Derivative financial instruments
45
363
906
Deferred charges and prepaid expenses
29
91
116
Effective income tax receivables
 
34
32
Deferred tax assets
15
4,833
2,268
Non-current assets
 
29,444
31,374
Inventories
26
726
980
Contract assets
27
142
277
Trade receivables and other receivables
28  45
2,843
5,417
Derivative financial instruments
45
260
459
Deferred charges and prepaid expenses
29
193
245
Effective income tax receivables
 
282
153
Securities
30  45
3,654
1,970
Cash and cash equivalents
31   45
1,806
1,415
Assets held for sale
32
134
369
Current assets
 
10,040
11,285
 
 
 
 
Total assets
39,484
42,659
1)	 Including Goodwill.
LUFTHANSA GROUP ANNUAL REPORT 2020
136
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of financial position

T059  CONSOLIDATED STATEMENT OF FINANCIAL POSITION – SHAREHOLDERS’ EQUITY AND LIABILITIES
in €m
Notes
31 Dec 2020
31 Dec 2019
Issued capital
33 
1,530
1,224
Capital reserve 
34 
378
378
Retained earnings 
34 
4,868
5,617
Other neutral reserves
34 
1,296
1,715
Net profit/loss
 
– 6,725
1,213
Equity attributable to shareholders of Deutsche Lufthansa AG
 
1,347
10,147
Non-controlling interests
 
40
109
Shareholders’ equity
 
1,387
10,256
Pension provisions
35 
9,531
6,659
Other provisions
36
558
490
Borrowings
37   45
12,252
8,396
Contract liabilities
38 
36
25
Other financial liabilities
 
86
76
Advance payments received, deferred income  
and other non-financial liabilities
39 
33
32
Derivative financial instruments
45 
457
128
Deferred tax liabilities
15
485
611
Non-current provisions and liabilities
 
23,438
16,417
Other provisions
36 
831
794
Borrowings
37   45
3,116
1,634
Trade payables and other financial liabilities
41   45
3,321
5,351
Liabilities from unused flight documents
40 
2,064
4,071
Other contract liabilities
40 
2,977
2,675
Advance payments received, deferred income  
and other non-financial liabilities
42 
1,295
382
Derivative financial instruments
45 
366
137
Effective income tax obligations
 
689
402
Liabilities in connection with assets held for sale
32
–
540
Current provisions and liabilities
 
14,659
15,986
 
 
 
 
Total shareholders’ equity and liabilities
39,484
42,659
LUFTHANSA GROUP ANNUAL REPORT 2020
137
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of financial position

Consolidated statement of changes in shareholders’ equity
as of 31 December 2020
T060  CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
in €m
Issued 
capital 
 
 
 
 
 
Capital 
reserve 
 
 
 
 
 
Fair value 
measure-
ment of 
financial 
instru-
ments 
 
Currency 
differ­
ences 
 
 
 
 
Reva­
luation 
reserve  
(due to 
business 
combina-
tions) 
Other  
neutral 
reserves 
 
 
 
 
Total  
other  
neutral 
reserves 
 
 
 
Retained 
earnings 
 
 
 
 
 
Net  
profit/ 
loss 
 
 
 
 
Equity 
attrib­
utable  
to share­
holders of 
Deutsche 
Lufthansa 
AG
Minority 
interests 
 
 
 
 
 
Total 
share­
holders’ 
equity 
 
 
 
 
As of 31 Dec 2018
1,217
343
237
388
236
324
1,185
4,588
2,163
9,496
110
9,606
Capital increases/reductions
7
35
–
–
–
–
–
–
–
42
1
43
Reclassifications
–
–
– 9
–
–
–
– 9
1,792
– 1,783
–
–
–
Dividends
–
–
–
–
–
–
–
–
– 380
– 380
– 33
– 413
Transactions with  
non-controlling interests
–
–
–
–
–
–
–
–
–
–
–
–
Earnings after taxes
–
–
–
–
–
–
–
–
1,213
1,213
32
1,245
Other expenses and income 
­recognised directly in equity
–
–
569
115
–
28
712
– 763
–
– 51
– 1
– 52
Hedging results reclassified  
from non-financial assets  
to acquisition costs
–
–
– 173
–
–
–
– 173
–
–
– 173
–
– 173
As of 31 Dec 2019
1,224
378
624
503
236
352
1,715
5,617
1,213
10,147
109
10,256
Capital increases/reductions
306
–
–
–
–
–
–
–
–
306
–
306
Reclassifications
–
–
–
–
–
–
–
1,213
– 1,213
–
–
–
Dividends
–
–
–
–
–
–
–
–
–
–
– 21
– 21
Transactions with  
non-controlling interests
–
–
–
–
–
–
–
–
–
–
–
–
Earnings after taxes
–
–
–
–
–
–
–
–
– 6,725
– 6,725
– 41
– 6,766
Other expenses and income 
­recognised directly in equity
–
–
– 415
– 107
–
7
– 515
– 1,962
–
– 2,477
– 7
– 2,484
Hedging results reclassified  
from non-financial assets  
to acquisition costs
–
–
96
–
–
–
96
–
–
96
–
96
As of 31 Dec 2020
1,530
378
305
396
236
359
1,296
4,868
– 6,725
1,347
40
1,387
LUFTHANSA GROUP ANNUAL REPORT 2020
138
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of changes in shareholders’ equity

Consolidated cash flow statement
for the financial year 2020
T061  CONSOLIDATED CASH FLOW STATEMENT
in €m
Notes
2020
2019
Cash and cash equivalents 1 Jan 
 
1,431
1,434
Net profit/loss before income taxes
 
– 8,631
1,860
Depreciation, amortisation and impairment losses on non-current assets (net of reversals)
 
4,393
2,738
Depreciation, amortisation and impairment losses on current assets (net of reversals)
 
159
99
Net proceeds on disposal of non-current assets
7   11
9
20
Result of equity investments
12
264
– 168
Net interest
13
334
315
Income tax payments/reimbursements
 
81
– 1,009
Significant non-cash-relevant expenses/income
 
212
– 134
Change in trade working capital
 
– 683
490
Change in other assets/shareholders’ equity and liabilities
 
1,534
– 181
Net cash from/used in operating activities
 
– 2,328
4,030
Capital expenditure for property, plant and equipment and intangible assets
17   18   19   21   22
– 1,249
– 3,486
Capital expenditure for financial investments
24  25
– 24
– 73
Additions/loss to repairable spare parts for aircraft
20
276
– 231
Proceeds from disposal of non-consolidated equity investments
 
3
1
Proceeds from disposal of consolidated equity investments 1)
49
– 218
3
Cash outflows for acquisitions/capital increases of/at non-consolidated equity investments
23   24  45
– 39
– 107
Cash outflows for acquisitions of consolidated equity investments
49
–
–
Proceeds from disposal of intangible assets, property, plant and equipment  
and other financial investments
 
166
132
Interest income
 
66
70
Dividends received
 
57
243
Net cash from/used in investing activities
 
– 962
– 3,448
Purchase of securities/fund investments
 
– 10,678
– 4,989
Disposal of securities/fund investments
 
9,298
4,570
Net cash from/used in investing and cash management activities
 
– 2,342
– 3,867
Capital increase
33  34
306
–
Transactions by non-controlling interests
 
–
1
Non-current borrowing
 
6,738
3,843
Repayment of non-current borrowing
 
– 1,724
– 3,413
Dividends paid
 
– 21
– 414
Interest paid
 
– 223
– 178
Net cash from/used in financing activities
 
5,076
– 161
Net increase/decrease in cash and cash equivalents
 
406
2
Changes due to currency translation differences
 
– 33
– 5
Cash and cash equivalents as of 31 Dec 
31
1,804
1,431
Less cash and cash equivalents of companies held for sale as of 31 Dec
 
–
16
Cash and cash equivalents of companies not classified as held for sale as of 31 Dec  2)
 
1,804
1,415
Securities
30
3,654
1,970
Liquidity 
 
5,458
3,385
Net increase/decrease in liquidity
 
2,073
216
1)	 Less cash outflows.
2)	The difference between the bank balances and cash-in-hand shown in the statement of financial position comes from fixed-term deposits of EUR 2m with terms  
of four to twelve months (previous year: EUR 0m). 
Further details can be found in the section ↗ Notes to the consolidated cash flow statement, p. 203f.
LUFTHANSA GROUP ANNUAL REPORT 2020
139
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated cash flow statement

Notes to the consolidated financial statements
Deutsche Lufthansa AG 2020
GENERAL REMARKS
1  	 Company information
The Lufthansa Group is a global aviation group whose  
subsidiaries and equity investments were organised into  
five operating segments in the financial year 2020: Network 
Airlines, Eurowings, Logistics, MRO and Catering.
Deutsche Lufthansa AG has its headquarters in Cologne, 
Germany, and is filed in the Commercial Register of Cologne 
District Court under HRB 2168.
The declaration on the German Corporate Governance Code 
required by Section 161 of the German Stock Corporation  
Act (AktG) was issued and made available to shareholders on 
the internet at 
 www.lufthansagroup.com/declaration-of- 
compliance.
The consolidated financial statements of Deutsche Lufthansa 
AG, Cologne, and its subsidiaries have been prepared in 
accordance with the International Financial Reporting Stand-
ards (IFRS) issued by the International Accounting Standards 
Board (IASB), taking account of interpretations by the IFRS 
Interpretations Committee as applicable in the European 
Union (EU).
The commercial law provisions of Section 315e Paragraph 1 of 
the German Commercial Code (HGB) have also been applied. 
All IFRSs issued by the IASB in effect at the time that these 
financial statements were prepared and applied by Deutsche 
Lufthansa AG have been adopted by the European Commis-
sion for application in the EU. The consolidated financial 
statements of Deutsche Lufthansa AG are prepared in millions 
of euros. Its financial year is the calendar year.
The accounting policies applied in the previous year have been 
retained. The amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 
and IFRS 16, “Interest Rate Benchmark Reform – Phase 2”, 
were applied early in financial year 2020.
The Executive Board of Deutsche Lufthansa AG prepared the 
consolidated financial statements for 2020 on 26 February 
2021. These consolidated financial statements were examined 
and approved for publication by the Supervisory Board of 
Deutsche Lufthansa AG in its meeting on 3 March 2021.
2 		 Going concern
The business of the Lufthansa Group companies were impacted 
significantly by the consequences of the coronavirus pandemic. 
International travel restrictions and quarantine rules that began 
in winter 2020 (in China) and spring 2020 elsewhere were 
tightened worldwide over the course of the year, bringing 
flight traffic at the Lufthansa Group companies almost to a 
complete standstill at times. Only the cargo business was 
able to continue successfully, with a sharp decline in the use 
of belly capacities. Around 700 Group aircraft were grounded 
temporarily in the course of the year. The slight recovery in 
summer 2020, when available capacity was around 25% of 
the previous year’s, was slowed by the end of the year due  
to the renewed sharp increase in the number of infections. 
Payments for existing, invariable cost components and the 
high level of refunds for cancelled flights had an impact on 
liquidity. Liquidity at Deutsche Lufthansa AG and its domestic 
and foreign subsidiaries was secured in the middle of the 
financial year in an initial step by the government support 
measures as part of the stabilisation packages (see below).
Over the remainder of the year, the companies initiated and 
partly implemented wide-ranging steps to safeguard short-
term liquidity and initiate a medium-term return to a profitable 
new normal once the pandemic comes to an end. As part of 
the Group-wide programme ReNew, which is made up of 
ReStructure, ReFocus, ReOrg and RePay, measures were taken 
to streamline structures and reduce the number of full-time 
employees by around 27,000, as well as to downsize the 
operating fleet by around 150 aircraft. Until further notice, 
some four-engined wide-bodied models (Airbus A340-600 
and A380 and Boeing 747-400) are to be put into deep storage 
or decommissioned entirely. Previously planned investment 
spending, mainly in aircraft, was postponed to a later date 
whenever possible and appropriate. The plan is to take delivery 
of no more than 80 new aircraft by 2023. In addition to state 
aid in the form of short-time working pay and the reimburse-
ment of social security contributions, crisis agreements extend-
ing into 2022 were reached with the collective bargaining 
partners to safeguard liquidity. Agreements to protect liquidity 
were also signed with other system partners. The Lufthansa 
Group’s liquidity management also profited from tax deferrals 
in the reporting year.
LUFTHANSA GROUP ANNUAL REPORT 2020
140
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

In addition to the government stabilisation packages, the 
Lufthansa Group successfully implemented its own financ-
ing activities in the financial year, generating proceeds of 
EUR 3.8bn for the Lufthansa Group. Short-term credit lines,  
commercial paper and money-market securities were supple-
mented on favourable terms by a euro bond for EUR 1.0bn,  
a convertible bond for EUR 0.6bn and loans secured by 
promissory notes and aircraft for around EUR 0.7bn. They 
serve both to ensure ongoing liquidity and to refinance fund-
ing arrangements that expire in 2020 and 2021. At year-end, 
Deutsche Lufthansa AG had centrally available liquidity of 
EUR 4.3bn. A further EUR 4.6bn was available from the WSF 
stabilisation package. Decentralised bank and cash balances 
came to a further EUR 0.9bn, and a total of EUR 1.1bn has 
not yet been used from the state funding agreed in Switzer-
land and Belgium. 
The current corporate forecast expect an end to the crisis 
situation only from 2024 onwards, whereby the Lufthansa 
Group assumes that even then only 90 % of the pre-crisis 
level will be reached. This means the planning is in line with 
sector forecasts and the most recent IATA study from Febru-
ary 2021, which in a positive scenario also predicts a return 
to pre-crisis levels in 2024 (and in a negative scenario only in 
2025). The restructuring measures initiated shall then lead to 
a profitable growth path again. Risks remain for the ramp-up 
phase from 2021 until 2024. The duration of the crisis will 
mainly depend on when travel restrictions, particularly in North 
America and other important traffic regions, are loosened or 
lifted. The effects of potential testing options, progress with 
international vaccination programmes and the risks of new 
mutations in the COVID-19 virus will be crucial in the months 
ahead. On the other hand, how customers behave once travel 
restrictions are lifted represents a risk for the further course 
of business, especially for Corporate Business. 
Deutsche Lufthansa AG has prepared a rolling liquidity fore-
cast until the end of 2022 on the basis of the uncertainty 
mentioned above concerning travel restrictions and customers’ 
travel patterns. The main parameters, “available capacity”, 
“load factors” and “yield” were set over the course of the 
planning process in agreement with the Group companies. 
Specifically, they assume that average capacity should reach 
just under 50% of its pre-crisis level in 2021, increasing to 
around 80% in 2022. For 2021, the assumption is that state 
aid will still be needed, in the form of short-time working pay 
and the reimbursement of social security contributions. The 
parameters were reviewed against publicly available expert 
opinions (for example IATA, Eurocontrol) to ensure they were 
reasonable. On this basis, the earnings and cost forecasts  
 
for the individual units and the Group as a whole were deter-
mined using top-down definition of parameters and bottom-up 
detailed planning. The resulting cash flows were adjusted for 
balance-sheet-related payments (for example ticket refunds), 
planned capital expenditure and inflows such as the planned 
financing measures to calculate changes in liquidity over time. 
The analysis comprises liquidity for the Group as a whole and 
for Deutsche Lufthansa AG, as well as the other important 
subsidiaries.
In terms of financing activities, two further bonds with a 
maturity of four and seven years were issued for a total of 
EUR 1.6bn in February 2021. They partly secure the refinancing 
of all liabilities falling due in 2021 and also enable the early 
repayment of the KfW credit facility of EUR 1.0bn. This means 
that certain restrictions on the Group’s own financing arrange-
ments no longer apply, such as the hypothecation of Group 
aircraft leasing companies and the ringfencing conditions on 
providing financial support to foreign subsidiaries.
In addition to the detailed forecast described above, an 
additional negative scenario was prepared as a top-down 
stress test, with more pessimistic assumptions for the level 
of capacity and changes over time of around 40% of pre-crisis 
levels, as well as for load factors and pricing. Even in this 
scenario, liquidity is secured for Deutsche Lufthansa AG and 
the Group for the planning period. 
Taking into account the corporate planning, the liquidity 
planning, the existing and potential funding measures as 
presented and the existing uncertainties about the future 
course of business, the Executive Board of the Company 
considers the Group’s liquidity to be secure for the eighteen 
months after the close of the financial year. The consolidated 
financial statements have therefore been prepared on a 
going concern basis.
The government stabilisation measures described below, 
which were provided in the reporting year and are still  
available for financing purposes, are the essential basis for 
this statement. 
After approval by the Federal Republic of Germany’s Eco-
nomic Stabilisation Fund (WSF) of the stabilisation package 
for Deutsche Lufthansa AG on 25 May 2020 and the approval 
of the shareholders of Deutsche Lufthansa AG at the extra­
ordinary general meeting held on 25 June 2020 regarding 
the capital measures agreed with the Economic Stabilisation 
Fund, the corresponding agreements with the Economic 
Stabilisation Fund were signed on 29 June 2020 and with 
KfW and a banking consortium on 1 July 2020.
LUFTHANSA GROUP ANNUAL REPORT 2020
141
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

The support package has a total volume of up to EUR 9bn 
and comprises a 20% direct equity investment by WSF in 
Deutsche Lufthansa AG from a capital increase of around 
EUR 0.3bn, a silent participation which can be recognised  
as equity worth EUR 4.7bn (Silent Participation I), a silent 
participation reported under borrowed capital worth EUR 1bn 
(Silent Participation II) and a credit facility of EUR 3bn provided 
by the KfW and a banking consortium. Funding commitments 
from other governments are offset against the support pack-
age from WSF. These commitments came to EUR 2.1bn as  
of 31 December 2020, so that the total volume of state aid 
provided by the German government is EUR 6.9bn.
Certain parts of Silent Participation II can be converted into 
shares in the event of a takeover, a dilution of the WSF stake 
or if no coupon payments are made on Silent Participation I. 
Annual coupon payments with an increasing rate of interest 
over the term have been agreed for the silent participations. 
Silent Participation I has no fixed term. Silent Participation II 
has a term of six years and can be extended annually there-
after, as long as Silent Participation I has not been repaid and 
the shareholding has not come to an end. 
The capital increase agreed in the package took effect when 
it was entered in the commercial register on 2 July 2020. 
The subscription price was EUR 2.56 per share, so the cash 
contribution came to around EUR 0.3bn. Silent Participation 
II was paid out in full by the WSF at the same time. 
None of Silent Participation I had been utilised as of 31 Decem-
ber 2020. Funding of EUR 153m agreed in Belgium and  
Austria is offset against Silent Participation I; EUR 4.5bn is 
still available from Silent Participation I.
The framework agreement with the Economic Stabilisation 
Fund provides for extensive information and auditing rights 
for the Economic Stabilisation Fund and obligations for the 
Lufthansa Group including regarding the suspension of divi-
dend payments, limitations on management compensation, 
a commitment not to make equity investments, waiver of  
up to 24 slots at both the Frankfurt and Munich airports and 
pursuit of a sustainable corporate policy. Subject to the full 
repayment of the silent participations by the Company and  
a minimum sale price of EUR 2.56 per share plus an annual 
interest of 12%, the WSF undertakes to sell its shareholding 
in full at the market price by 31 December 2023 or after this 
point in time when the conditions have been fulfilled. 
The credit line, originally of up to EUR 3bn, from the KfW  
and the banking consortium will pay interest at a floating 
rate dependent on the rating and has a term of three years.  
A total of EUR 1.0bn was used from the KfW credit facility as  
of the reporting date. (On Events after the reporting period  
↗ Note 46, p. 220ff.) Funding involving state aid for the sub­
sidiaries in Belgium, Austria and Switzerland, EUR 2.0bn is 
offset against the credit facility from the KfW and the banking 
consortium; the total volume of this credit line comes to  
EUR 1.0bn. The credit facility is secured by shares in various 
entities in Malta and Austria that own a total of 323 aircraft. 
The loan agreement contains covenants and obligations for 
the Lufthansa Group, including a requirement to hold a mini-
mum amount of liquidity. The credit facility may not be used 
to finance SWISS, Edelweiss, Austrian Airlines or Brussels 
Airlines. At the same time, the state aid from Belgium, Austria 
and Switzerland is provided on condition that the funding 
must remain in bank accounts belonging to the Group com-
panies in these countries or may only be used to support 
these companies.
The Swiss federal government guaranteed credit lines of 
CHF 1.5bn (approximately EUR 1.4bn) for the two Swiss  
airlines in the Lufthansa Group, SWISS and Edelweiss, on  
29 April 2020. The facility is provided by a consortium of 
Swiss banks. It will pay interest at a floating rate depending 
on the rating and has a term of five years, with two one-year 
extension options. It is 85% guaranteed by the Swiss federal 
government and secured by shares in AirTrust AG, Swiss 
International Air Lines AG and Edelweiss Air AG that are held 
directly by Deutsche Lufthansa AG. The corresponding loan 
agreement was signed on 20 August 2020. It stipulates that 
the loans may only be used for SWISS and Edelweiss and 
that no dividend payments may be made by the borrowers 
for as long as they make use of the credit facility. A number 
of bank accounts were pledged as collateral in this context, 
but may still be used to handle payments as long as the obli-
gations under the framework agreement are met. Furthermore, 
the companies are obliged to abide by covenants relating  
to minimum liquidity, minimum equity and future minimum 
earnings. As of 31 December 2020, CHF 475m of the credit 
facility had been used. Deutsche Lufthansa AG made its 
contribution in the form of a subordinated loan for CHF 500m.
The Austrian federal government, Deutsche Lufthansa AG 
and Austrian Airlines reached an agreement on 8 June 2020 
on the key aspects of a coronavirus aid package worth  
EUR 600m for Austrian Airlines. The measures provide for 
equity capital of EUR 300m to be injected into Austrian  
Airlines, an amount to be split 50/50 by Deutsche Lufthansa 
AG and the Austrian government, as well as debt financing 
of EUR 300m. Deutsche Lufthansa AG’s contribution of  
EUR 150m was made by way of a shareholder contribution by 
Lufthansa to Austrian Airlines via the existing holding structure. 
The Austrian state’s contribution, also of EUR 150m, was 
structured in a contract on 28 August 2020 as a subordinated 
loan, repayment of which will be waived if Austrian Airlines 
demonstrates that it has incurred a loss of at least EUR 150m 
LUFTHANSA GROUP ANNUAL REPORT 2020
142
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

as a result of the coronavirus pandemic. Since evidence had 
already been provided, the amount was recognised in profit 
and loss as a grant once the funds were received. As regards 
the debt component, a credit line of EUR 300m was agreed 
with a consortium of Austrian banks on 25 June 2020, of 
which the Austrian state has guaranteed 90% in the context 
of the special Austrian coronavirus legislation. The shares  
in Austrian Airlines AG, 38 aircraft and shares in an aircraft 
holding company that owns these aircraft were pledged to 
the banking consortium as additional collateral for these 
credit lines. In addition, it was agreed that interest and fees 
are to be paid a year in advance and that future income  
from aircraft sales and insurance payments are to be paid to 
accounts held as collateral. Finally, the contract prohibits 
Austrian Airlines AG from paying a dividend during the term 
of the agreement and obliges the company to maintain defined 
financing ratios and a certain amount of equity. The credit 
line runs until the end of 2025, is subject to a fixed interest 
rate and had been used in full as of 31 December 2020.
A stabilisation agreement was signed with the Belgian  
government on 1 September 2020 for a total of EUR 290m, 
made up of a credit facility of EUR 287m for SN Airholding 
SA/NV and a participation certificate for EUR 3m to be issued 
by Brussels Airlines SA/NV. In connection with this agreement, 
the Lufthansa Group pledged its shares and participation 
rights to the Belgian state agency Société fédérale de partic-
ipations et d’investissement. The agreements also prohibit 
dividend payments by Brussels Airlines SA/NV, set a cap  
on management remuneration and provide for coordinated 
activities to develop the range of flights available from  
Brussels Airport. The participation certificate and the loan 
will pay interest at a floating rate with annual increases. As  
of 31 December 2020, the participation certificate was fully 
paid in and EUR 130m of the loan had been utilised. The 
government stabilisation measures were supplemented by an 
equity injection of EUR 170m from Deutsche Lufthansa AG.
The Coronavirus Aid, Relief and Economic Security Act 
(CARES Act), which is designed to mitigate the negative 
economic impact of the COVID-19 pandemic, came into 
force in the US on 27 March 2020. On 3 April 2020, the LSG 
group submitted applications to the US Department of the 
Treasury for the Payroll Support Program feature of the legis-
lation for three companies in an amount totalling USD 307m, 
with the Lufthansa Technik group submitting applications  
worth USD 50m for four companies. In the third quarter of 
2020, the LSG group was awarded a loan of USD 79m and 
grants of USD 135m, which were disbursed in the period. The  
Lufthansa Technik group was awarded and received a loan  
of USD 8m and a grant of USD 22m. The support is tied to  
a commitment to maintain a defined level of employment.
Additional funding was provided in the USA in early 2021 
under the CARES Act I along with further funding from the 
subsequently passed CARES Act II. The LSG group intends 
to apply for further funding of USD 143m (of which USD 95m 
would be a grant). The Italian government also provided 
funds to compensate for losses incurred due the COVID-19 
pandemic. Air Dolomiti also applied for a grant of EUR 16m  
in early 2021.
3 		 New international accounting standards  
in accordance with IFRS and interpretations and 
summary of the significant accounting policies  
and valuation methods
INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)  
AND INTERPRETATIONS (IFRIC) TO BE APPLIED FOR THE FIRST TIME 
IN THE FINANCIAL YEAR AND AMENDMENTS TO STANDARDS  
AND INTERPRETATIONS
T062  IFRS-PRONOUNCEMENT  
(APPLICABLE FROM FINANCIAL YEAR 2020)
 
Changes to conceptual framework
Amendments to IAS 1 and IAS 8, Definition of materiality
Amendments to IFRS 9, IAS 39 and IFRS 7, Interest Rate Benchmark Reform
Amendments to IFRS 3, Definition of a Business
Amendments to IFRS 16, Covid-19-related Rent Concessions
The first-time application from 1 January 2020 or 1 June 2020 
of the mandatory accounting standards had no or no material 
effect on the presentation of the net assets, financial and 
earnings position or on earnings per share. 
Amendments to IFRS 9, IAS 39 and IFRS 7, Interest Rate 
Benchmark Reform. The amendments aim to reduce the 
potential impact of reforms to the interbank offered rates 
(IBORs) on companies’ financial reporting. The Lufthansa 
Group has applied this pronouncement in advance since the 
last financial year. First-time adoption had no effect on the 
presentation of the net assets, the financial and earnings 
position or on earnings per share, but did require additional 
disclosures in the notes. ↗ Note 45, p. 205ff.
Amendments to IFRS 16, Covid-19-related Rent Conces-
sions. As a result of the coronavirus pandemic, lessees were 
granted lease concessions. The IASB published an amend-
ment to IFRS 16 in May 2020 that includes an optional 
exemption for lessees. As a practical expedient, the lessee 
can decide to exempt themselves from assessing whether  
LUFTHANSA GROUP ANNUAL REPORT 2020
143
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

a COVID-19-related rent concession is a lease modification. 
Lessees that apply the exemption are to account for COVID-19- 
related rent concessions as they would do under IFRS 16 if 
they were not lease modifications. The Lufthansa Group has 
decided not to apply the optional exemption for lessees.
PUBLISHED INTERNATIONAL FINANCIAL REPORTING STANDARDS 
(IFRS) AND INTERPRETATIONS (IFRIC) NOT YET APPLIED/APPLICABLE 
AND AMENDMENTS TO STANDARDS AND INTERPRETATIONS
The following standards and amendments have already been 
adopted by the European Union but are only mandatory for 
financial statements after 31 December 2020:
T063  IFRS-PRONOUNCEMENT (ADOPTED BY THE EU)
 
Mandatory application  
for financial years  
beginning on or after
 
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 
and IFRS 16, Classification of financial liabilities – 
Phase 2
1 Jan 2021
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, 
Interest Rate Benchmark Reform – Phase 2. In August 
2020 the IASB adopted amendments to the Interest Rate 
Benchmark Reform (IBOR reform) – Phase 2. The amend-
ments provide for temporary exemptions if a reference inter-
est rate (IBOR – Interbank Offered Rate) is replaced by  
an alternative, virtually risk-free rate (RFR) and this has an 
impact on financial reporting. 
As a practical expedient, the amendments provide for contract 
amendments or changes in cash flows required as a direct 
result of the reform to be accounted for as changes to a  
variable interest rate, which corresponds to a change in the 
market rate. This expedient reflects the practical considera-
tion that the transition from a reference interest rate to  
a risk-free reference interest rate takes place on the same 
economic basis, without any transfer of value having taken 
place. All other changes made at the same time are measured, 
for example a change in the credit spread or the maturity date. 
Material changes result in the derecognition of the instru-
ment. If they are not material, the updated effective interest 
rate is used to determine the new carrying amount of the 
financial instrument, whereby all gains or losses are recog-
nised in the income statement. A similar practical expedient 
is to be introduced for changes to leases (IFRS 16) resulting 
from the Interest Rate Benchmark Reform. In addition, the 
changes permit hedge accounting to be maintained if the 
changes are only due to the Interest Rate Benchmark Reform.  
Permitted changes include changes from the transition to  
a risk-free rate in the hedged item, the hedging instrument 
and the hedged risk. IFRS 9 provides for income and expenses 
to be recognised in the income statement like effects from 
the ineffective portion of the hedge. Exemptions were also 
made in the event of separately identifiable risk components. 
The amendments to IFRS 7, Financial instruments, also require 
additional disclosures. The amendments are applicable retro-
actively for financial years beginning on or after 1 January 
2021. Early application is allowed. There is no need to adjust 
figures for prior periods. 
The amendments include practical expedients for the 
Lufthansa Group, particularly for hedging relationships  
designated as hedge accounting. Hedging relationships  
may be maintained where there is still uncertainty concern-
ing an alternative interest rate, which is mainly the case for 
Lufthansa with USD LIBOR. The extent of exposure to the 
amendments of IFRS 7, Financial instruments, is explained  
in an additional disclosure. The Lufthansa Group applies the 
amendments early following their endorsement in January 
2021, so that it can continue hedge accounting for its existing 
hedging relationships. First-time adoption has no effect on 
the presentation of the net assets, the financial and earnings 
position or on earnings per share. ↗ Note 45, p. 205ff.
The IASB and the IFRS Interpretations Committee have 
adopted other standards and interpretations whose applica-
tion is not mandatory for the financial year 2020:
T064  IFRS-PRONOUNCEMENT  
(NOT YET ENDORSED BY THE EU)
 
Anwendungspflicht  
für Geschäftsjahre  
beginnend am oder nach
 
IFRS 17, Insurance Contracts
1 Jan 2023
Amendments to IFRS 3,  
Reference to the conceptual framework
1 Jan 2022
Amendments to IAS 16, Generation of revenue 
before an asset’s intended use
1 Jan 2022
Amendments to IAS 37, Onerous Contracts –  
Cost ofFulfilling a Contract
1 Jan 2022
Annual improvement process (2018 – 2020), 
Amendments to IFRS 1, IFRS 9 and IAS 41
1 Jan 2022
Amendments to IAS 1, Classification of Liabilities 
as Current or Non-current.
1 Jan 2023
Currently, the new or amended IFRS pronouncements listed 
in the table which are no longer discussed below are not 
considered to have a material effect on the presentation of 
the net assets, financial and earnings position.
LUFTHANSA GROUP ANNUAL REPORT 2020
144
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

Amendments to IAS 37, Onerous Contracts – Cost of 
Fulfilling a Contract. The IASB published amendments  
to IAS 37, Provisions, Contingent Liabilities and Contingent 
Assets, Onerous Contracts – Cost of Fulfilling a Contract,  
in May 2020 to clarify that the costs of fulfilling a contract 
include all directly attributable costs. They include the addi-
tional costs of fulfilling a contract such as direct costs of 
labour or materials and the inclusion of other costs that relate 
directly to fulfilling contracts. General and administrative 
expenses do not relate directly to the contract and so are not 
costs of fulfilling a contract, unless the contract specifically 
provides for them to be charged on to the customer. The 
amendments are applicable for financial years beginning on or 
after 1 January 2022. The Group will apply these amendments  
to contracts in which not all obligations have been fulfilled at 
the beginning of the financial year in which the amendments 
are applied for the first time. We do not expect any material 
effects.
Amendments to IAS 1, Classification of Liabilities as 
Current or Non-current. In January 2020 the IASB published 
amendments to IAS 1, Presentation of Financial Statements, 
to clarify the guidance for classifying liabilities as current or 
non-current. The amendments clarify that the classification 
of liabilities depends on the rights in existence at the end of 
the reporting period. Classification is unaffected by the 
expectations of management or any events. What is meant 
by the “settlement” of a liability in IAS 1 is also clarified. The 
amendments are applicable retroactively for financial years 
beginning on or after 1 January 2023. The Group is presently 
reviewing the effects the amendments will have on its current 
accounting practice. 
Apart from the amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 
and IFRS 16, Interest Rate Benchmark Reform – Phase 2, the 
Lufthansa Group has not applied any of the aforementioned 
new or amended standards in advance. If the effective dates 
of the standards and interpretations mentioned above fall 
within the year, they are applied as of 1 January of the follow-
ing financial year. This is subject to the endorsement of the 
standards by the EU.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
AND VALUATION METHODS
The companies included in the consolidated financial  
statements use uniform accounting policies to prepare their 
financial statements.
The application of the accounting policies prescribed by 
IFRS and IFRIC requires making a large number of estimates 
and assumptions with regard to the future that may, naturally, 
not coincide with actual future conditions. All of these esti-
mates and assumptions are, however, reviewed continuously 
and are based either on past experience and/or expectations  
of future events that seem reasonable in the circumstances 
on the basis of sound business judgement. Estimates and 
assumptions that are of material importance in determining 
the carrying amounts for assets and liabilities are explained 
in the following description of the accounting policies applied 
to material items in the statement of financial position. 
The outbreak of the coronavirus pandemic and the steps 
taken worldwide to contain the virus have had a massive 
impact on the Group’s business operations. This is reflected 
throughout the Lufthansa Group’s consolidated financial 
statements. The uncertainties resulting from the crisis are 
vital for the general assessment of the Company’s status as 
a going concern, but also for specific accounting judgements 
and estimates. It is therefore of fundamental importance 
how long and at what intensity the COVID-related restrictions 
to air travel and the constraints for the economy as whole 
will continue, and over which period a recovery will take place. 
In addition, it it is hard to foresee what the new normal level 
will be for air transport in general and the Lufthansa Group  
in particular. The main assumptions and estimates were 
therefore based on the Group’s liquidity and profit forecasts 
(↗ Note 2, p. 140ff.). Critical accounting areas that will be 
affected most severely by the ongoing uncertainty about 
the further course of the pandemic are: 
—	 Carrying amounts of goodwill (↗ Note 17, p. 165f.) and 
equity investments (↗ Note 23, p. 174f.), which depend to 
a large degree on the speed of the recovery and the level 
of post-crisis business.
—	 Carrying amount of the aircraft (↗ Note 19, p. 170), which 
are affected by uncertainties regarding future capacities 
and so the extent to which the fleet can be used.
—	 Repairable spare parts (↗ Note 20, p. 171) and inventories 
(↗ Note 26, p. 176f.) require measurement assumptions 
about the extent to which lasting overcapacities will result 
from reducing particular fleet models or from a general 
long-term decline in business in the MRO segment. 
—	 Since the assumption is that the earnings position will 
only recover slowly and first result in sustainably positive 
taxable profits once the pandemic is over, the measure-
ment of carrying amount for deferred tax assets (↗ Note 15, 
p. 163f.), especially the tax loss carry-forwards created  
in the financial year, was based on their potential use over 
a longer time frame.
—	 Trade receivables (↗ Note 28, p. 177f.), particularly in the 
MRO segment, were subject to a greater default risk due 
to the airlines’ difficult financial situation. Estimates had 
to be made here about the probability of future defaults, 
for which credit scores based on past experience were 
only of limited use.  
LUFTHANSA GROUP ANNUAL REPORT 2020
145
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

—	 For financial instruments (↗ Note 45, p. 205ff.), in order to 
judge effective hedging relationships and so the necessity 
of recognising gains and losses through profit or loss, 
assumptions were made about the volume of future items 
to be hedged (particularly kerosene consumption). 
—	 Accounting for obligations under customer loyalty  
programmes and unused flight documents (↗ Note 40,  
p. 196) was subject to greater uncertainty about how  
customers would redeem miles or use tickets, which  
will also depend on when and to what extent air travel is 
possible again. These estimates play a role in the meas-
urement of miles accounts and forecasts of when miles 
and tickets are likely to expire.
The fundamental valuation method applied in the consolidated 
financial statements is the acquisition cost principle. Where 
IFRSs stipulate that other methods of measurement should 
be applied, these are used instead, and are referred to spe-
cifically in the following comments on measuring assets and 
liabilities.
Amendments to accounting policies as a result of revised and 
new standards are applied retrospectively unless provided 
otherwise for a specific standard. The income statement for 
the previous year and the opening statement of financial 
position for the comparable period are adjusted as if the new 
accounting policies had always been applied.
Recognition of income and expenses
Revenue and other operating income are recognised when 
the service has been provided. 
Passenger transport and ancillary services
The Lufthansa Group sells flight tickets and related ancillary 
services primarily via agents, its own websites or other airlines 
in the case of interlining. The payments are received by  
the Lufthansa Group via credit card billing companies, agents  
or other airlines, generally before the corresponding service 
is provided. Receivables from the sale of flight tickets and 
related ancillary services are only amounts payable by credit 
card billing companies, agents or other airlines.
The Lufthansa Group initially recognises all ticket sales as 
liabilities from unused flight documents. These are presented 
as contract liabilities in accordance with IFRS 15. Depending 
on the terms of the selected fare, the contract liabilities reflect 
a range of possibilities for refunding services that have not 
yet been provided. Liabilities include both the deferred income 
for future flights and ancillary services that are recognised  
as revenue when the flight documents are used, and the  
 
liabilities for award miles credited to the passenger when the  
flight documents are used. The Lufthansa Group allocates 
the transaction price to all of the performance obligations 
identified on the flight ticket on the basis of their individual 
transaction prices. The individual transaction prices for flight 
segments are determined using the IATA procedure, which 
allocates the total price payable to individual flight segments 
using what is known as a prorate calculation. Amounts calcu-
lated in this way meet the IFRS 15 definition of a relative 
individual transaction price. The individual transaction prices 
for ancillary services that are not included in the fare are 
directly observable prices within the meaning of IFRS 15. On 
average, it takes 2.5 months for a flight coupon to be real-
ised. This does not apply to financial years with severe flight 
restrictions such as 2020, when the use of flight documents 
fluctuated from month to month and altogether the large 
number of flight cancellations meant that customers could 
not use their tickets as planned. Additional cancellation and 
rebooking options were introduced in connection with the 
restrictions and flight cancellations caused by the corona­
virus pandemic.
The Lufthansa Group reduces liabilities from unused flight 
documents and recognises revenue for each flight segment 
(including the related ancillary revenue) when the respective 
document is used. For tickets that cover more than one flight 
segment, the Lufthansa Group identifies each flight segment 
as a distinct performance obligation, since each flight seg-
ment is independent and can be distinguished in the context 
of the contract. 
Interlining means that the passenger is carried by another 
airline for one (or more) flight segments. Only the commission 
paid by the other carrier is recognised as revenue for these 
flight segments, since the Lufthansa Group acts solely as an 
agent in terms of these performance obligations. If passengers 
with tickets sold by other airlines are carried partly or fully  
by the Lufthansa Group, the Lufthansa Group shows the pro 
rata ticket income received from the other airlines less the 
commission retained by the ticketing airline as revenue.
Generally speaking, the Lufthansa Group does not expect  
to receive any amount if a flight document is not used (or does 
not expect the amount to be material) and so for this reason 
does not anticipate the possibility that documents for a flight 
segment will not be used. The expected amount if flight 
documents are not used is only recognised as revenue if the 
probability that the passengers (in accordance with the port-
folios they are assigned to) exercise their remaining rights is 
low, and no later than when the expiry of flight documents is 
certain and known. 
LUFTHANSA GROUP ANNUAL REPORT 2020
146
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

IFRS 15 requires that income from the expiry of miles is  
recognised in parallel with revenue from the performance 
obligations that do not expire. A period of three years is 
therefore assumed for revenue recognition, and the revenue 
from miles expected to expire is recognised on a straight-line 
basis over this time. The effects of the coronavirus pandemic 
on air travel have changed the recognition parameters, partly 
because there were fewer opportunities to fly and partly 
because customers’ redemption patterns changed. The aver-
age percentage decline in redemption volumes was used  
as an indicator for adjusting the pro rata recognition volume. 
Revenue for award miles is recognised at the point in time  
or over the time at which the goods and services purchased 
with the award miles are transferred.
Logistics
Lufthansa Cargo markets the freight capacities of passenger 
aircraft at Lufthansa German Airlines, Austrian Airlines, 
Eurowings and Brussels Airlines and operates a fleet of cargo 
aircraft. In addition to income from standard cargo services, 
Lufthansa Cargo generates part of its revenue from ancillary 
services that are closely connected to the freight service.
In its cargo business, the Lufthansa Group has identified the 
entire freight service as a distinct performance obligation. 
The end customer receives the benefit of the transport service 
and uses the service at the same time as this performance 
obligation is fulfilled with each transport segment. In this case, 
the customer takes control of the company’s output while 
the carrier provides its service. The customer receives the 
benefit of the service as each transport segment is fulfilled. 
The corresponding cargo revenue is therefore recognised  
at the prorate value when the documents for each individual 
freight segment are used.
Lufthansa Cargo typically receives the consideration for  
performing its service once the transport has been carried out. 
MRO
The main distinct performance obligations in the MRO  
segment are the provision of maintenance and aircraft and 
engine overhaul services, which are recognised over time 
since the condition of IFRS 15.35 (b) is generally met. These 
performance obligations involve estimating the proportion  
of the total contract already completed and the profit on the 
whole contract, so that an input-orientated measurement of 
the percentage of completion can be made. Contract assets 
and contract liabilities are therefore both recognised. 
Access to Lufthansa Technik’s pool of spare parts and  
components is another key performance obligation, which is 
satisfied either over time or at a point in time, depending on 
the contract model agreed.
In some cases, the contracts in the MRO segment make it 
necessary not to recognise distinct services as individual 
performance obligations but rather as a series, as described 
in IFRS 15.22 (b). Furthermore, some of the contracts include 
standby obligations that require the recognition of revenue 
over time. This is particularly the case when remuneration  
is paid in the form of a fixed rate per hour of flying time. For 
such contracts, the percentage of completion is primarily 
measured on the basis of the hours invoiced monthly to the 
customer. Revenue from component supply contracts is  
realised taking into consideration the margin shown in the 
business plans, which are updated annually. 
A significant portion of the contracts in the MRO business 
segment run for several years and so have price adjustment 
clauses, which are only considered in the transaction price 
when the event that triggers a price adjustment (a wage 
increase, for example) has occurred. 
Catering
The LSG group offers products and services related to 
in-flight service. These include catering, in-flight sales and 
entertainment, in-flight service equipment and the asso­
ciated logistics as well as consultancy services and the  
operation of lounges. 
Airline catering is the main business of the LSG group as far 
as revenue is concerned. Taking the business model and the 
value chain for airline catering into account, the preparation 
of meals and the logistics related to this catering have been 
identified as distinct performance obligations. The perfor-
mance obligation to prepare meals is generally fulfilled when 
the meals are delivered to the customers. The catering logis-
tics performance obligation is fulfilled over the time between 
the transport of the meals to the airport and the disposal of 
the waste, depending on the services ordered by the customer. 
For performance obligations over time, the percentage of 
completion is measured on an output basis in accordance 
with IFRS 15.B15 in conjunction with IFRS 15.B16.
Billing and payment in the Catering segment generally take 
place one to two months after the performance obligation 
has been fulfilled. This gives rise to trade receivables, but no 
significant contract liabilities or contract assets from catering 
contracts.
LUFTHANSA GROUP ANNUAL REPORT 2020
147
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

Variable consideration (e.g. volume discounts) must be taken 
into account when determining the transaction price in the 
catering business. The majority of the variable consideration 
is estimated using the expected value method on the basis 
of historic data and current developments. The LSG group 
updates the estimated transaction price at the end of each 
reporting period and accounts for the resulting changes in 
accordance with IFRS 15.87–90.
Further disclosures on the Lufthansa Group’s revenue from 
contracts with customers can be found in ↗ Notes 4 and 5,  
p. 157ff. 
Operating expenses are recognised when the product or  
service is used or the expense arises. Provisions for warranties 
are generally accounted for when the corresponding revenue 
is recognised, while provisions for onerous contracts are 
generally set up when they are identified. 
Interest income and expenses are accrued in the appropriate 
period. Dividends from shareholdings not accounted for 
using the equity method are recognised when a legal claim 
to them arises.
Initial consolidation and goodwill
The initial consolidation of Group companies takes place using 
the purchase method. This involves measuring the fair value 
of the assets, liabilities and contingent liabilities identified,  
in accordance with the provisions of IFRS 3, of the company 
acquired at the acquisition date, and allocating the acquisi-
tion costs to them. The proportion of fair value of assets and 
liabilities not acquired is shown under non-controlling interests. 
The ancillary acquisition costs are recognised as expenses  
in the periods in which they occur.
Any excess of cost over the value of equity acquired is  
capitalised as goodwill. If the value of the acquirer’s interest 
in the shareholders’ equity exceeds the purchase price paid 
by the acquiring company, the difference is recognised 
immediately in profit or loss.
Differences from non-controlling interests acquired after 
control has been gained are set off directly against equity.
Goodwill is not amortised, but is tested annually for impair-
ment. The impairment tests applied to goodwill are carried 
out using established discounted cash flow methods. This is 
done on the basis of expected future cash flows from the 
latest business plan, which are extrapolated on the basis of  
long-term revenue growth rates and assumptions with regard 
to margin development and are discounted for the capital 
costs of the business unit. Tests are performed at the cash  
generating unit (CGU) level. For the individual premises on 
which impairment tests were based in the financial year 2020, 
see ↗ Note 17, p. 165ff.
Additional impairment tests are also applied during the course 
of the year if events give reason to believe that goodwill 
could be permanently impaired.
Once an impairment loss has been recognised on goodwill,  
it is not reversed in subsequent periods.
Notwithstanding the principles described above, Group 
companies that have no material impact on the Lufthansa 
Group’s net assets, financial and earnings position are  
not consolidated, but rather recognised in the consolidated 
financial statements at cost less any impairments.
Currency translation and consolidation methods
The financial statements of the foreign Group companies are 
prepared in the relevant functional currency and translated 
into euros before consolidation. The functional currency is 
mainly the currency of the country in which the company 
concerned is located. Occasionally, the functional currency 
differs from the national currency. Assets and liabilities  
are translated at the middle rates on the balance sheet date. 
Income statements are translated at the average exchange 
rates for the year. Any translation differences are recognised 
directly in equity without effect on profit and loss and are 
only recognised in profit or loss when control is lost or the 
equity investment is disposed of.
Goodwill from capital consolidation of foreign subsidiaries 
prior to 2005 is carried at historical cost net of amortisation 
accumulated by the end of 2004. Goodwill acquired after 
2005 is held in the functional currency of the purchased com-
pany and translated at the middle rates on the reporting date.
Transaction differences, however, are recognised in profit  
or loss. These differences arise in the financial statements  
of consolidated companies from the measurement of assets 
and liabilities denominated in a currency other than the 
company’s functional currency. Exchange rate differences 
here are included in revenue (exchange rate gains and  
losses on trade receivables) and in other operating income 
(other exchange rate gains) or other operating expenses 
(other exchange rate losses).
Translation differences relating to items whose fair value 
changes are recognised in equity are also recognised in equity 
without effect on profit and loss.
LUFTHANSA GROUP ANNUAL REPORT 2020
148
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

The most important exchange rates used in the consolidated 
financial statements have developed in relation to the euro 
as follows:
T065  EXCHANGE RATES
2020
2019
 
Balance 
sheet 
exchange 
rate
Income 
statement 
average 
rate
Balance  
sheet 
exchange  
rate
Income  
statement 
average 
rate
 
AUD
0.62497
0.60232
0.62443
0.62094
CAD
0.63740
0.65478
0.68299
0.67379
CHF
0.92165
0.93484
0.92137
0.89864
CNY
0.12475
0.12701
0.12767
0.12955
GBP
1.10660
1.12600
1.17019
1.14121
HKD
0.10497
0.11357
0.11456
0.11410
INR
0.01112
0.01188
0.01251
0.01271
JPY
0.00788
0.00825
0.00819
0.00820
KRW
0.00075
0.00074
0.00077
0.00077
NOK
0.09514
0.09271
0.10137
0.10171
PLN
0.21851
0.22425
0.23505
0.23209
SEK
0.09927
0.09515
0.09564
0.09444
USD
0.81377
0.88089
0.89198
0.89432
The provisions of IAS 29, Financial Accounting in Hyper­
inflationary Economies, were applied to one consolidated 
company in Argentina. Gains and losses from adjusting for 
inflation on the carrying amounts of non-monetary assets 
and liabilities and the income statement were immaterial and 
were recognised in other operating income.
The effects of intra-Group transactions are completely  
eliminated in the course of consolidation. Receivables and 
liabilities between consolidated companies are offset against 
one another and intra-Group provisions are reversed through 
profit or loss. Intra-Group profits and losses in non-current 
assets and inventories are eliminated – mostly in connection 
with the internal resale of aircraft and maintenance events. 
Intra-Group income is set off against the corresponding 
expenses. Tax accruals and deferrals are made as required by 
IAS 12 for temporary differences arising from consolidation.
Other intangible assets (except goodwill)
Acquired intangible assets are shown at cost, while internally 
generated intangible assets from which the Lufthansa Group 
expects to derive future benefit and that can be measured 
reliably are capitalised at cost of production and amortised 
regularly using the straight-line method over an estimated 
useful life. The cost of production includes all costs directly 
attributable to the production process, including borrowing 
costs as required under IAS 23, as well as appropriate portions 
of production-related overhead.
Intangible assets with indefinite useful lives (mainly brands 
and purchased, resellable take-off and landing rights) are not 
amortised, but rather subjected to a regular annual impairment 
test, as is goodwill.
Property, plant and equipment
Tangible assets used in business operations for longer  
than one year are valued at cost less regular straight-line 
depreciation. The cost of production includes all costs 
directly attributable to the manufacturing process as well  
as appropriate portions of production-related overhead.  
Borrowing costs in close connection with the financing of 
the purchase or production of a qualifying asset are also  
capitalised.
Key components of property, plant and equipment that  
have different useful lives are recognised and depreciated 
separately. Seats and in-flight entertainment systems installed 
in commercial aircraft are recognised separately. If costs are 
incurred in connection with regular extensive maintenance 
work (e.g. overhauling aircraft and major engine overhauls), 
these costs are recognised as a separate component insofar 
as they meet the criteria for recognition. The useful lives and 
remaining carrying amounts of assets are reviewed regularly 
and adjusted as necessary in line with the forecast.
The following useful lives and residual carrying amounts are 
applied throughout the Group:
T066  USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment
Useful life
 
Buildings
45 years
New commercial aircraft and reserve engines 
20 years to a  
residual value of 5%
Separable aircraft components
4 to 6 years
Technical equipment and machinery
8 to 20 years
Other equipment, operating and office equipment
3 to 20 years
Buildings, fixtures and fittings on rented premises are  
depreciated according to the terms of the leases or over a 
shorter useful life.
Assets acquired second-hand are depreciated over their 
expected remaining useful life.
When assets are sold or scrapped, the difference between 
the net proceeds and the net carrying amount of the assets 
is recognised as a gain or loss in the other operating income 
or expenses, respectively.
LUFTHANSA GROUP ANNUAL REPORT 2020
149
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

In addition to the impairment tests for goodwill, slots and 
brands, individual items of property, plant and equipment 
and intangible assets are also tested for impairment if they 
are no longer intended for future use, either because they are 
damaged, retired or due to be sold. In this case, the assets 
are measured individually in line with the applicable standard 
(full write-down to scrap value, or disposal proceeds less costs 
to sell). The lowest level at which assets can form a CGU is  
a production facility, to the extent that separate product lines 
or customer (groups) can be assigned to it. When aircraft are 
held for service in the Lufthansa Group fleet and there is no 
immediate intention to sell them, they are combined with the 
assets of the respective operating unit for the purposes of 
impairment testing.
Impairment losses on intangible assets and  
property, plant and equipment
The Lufthansa Group tests intangible assets and property, 
plant and equipment for impairment if events or changes in 
circumstances indicate that the carrying amount of an asset 
may not be recoverable. In addition to depreciation and 
amortisation, impairment losses are also recognised on the 
balance sheet date if the asset’s recoverable amount has 
fallen below its carrying amount. The recoverable amount is 
determined as the higher of an asset’s fair value less costs  
to sell and the present value of the estimated net future cash 
flows from continued use of the asset (value in use).
Fair value less costs to sell is derived from recently observed 
market transactions – insofar as they are available – or in the 
case of aircraft, from general external information on current 
market prices.
If it is impossible to forecast expected cash flows for an indi-
vidual asset, the cash flows for the next larger asset unit are 
estimated, discounted at a rate reflecting the risk involved, 
and the recoverable amount allocated to the individual assets 
in proportion to their respective carrying amounts.
If the reason for an impairment loss recognised in previous 
years should cease to exist in whole or in part in subsequent 
periods, the impairment loss is reversed up to the amount  
of the asset’s amortised cost.
Repairable spare parts for aircraft
Initial supply of spare parts for aircraft that can be reused 
after repair are classified as non-current assets.
The MRO segment accounts for most of the Group’s repairable 
spare parts. They are replaced and repaired on an ongoing 
basis to carry out customer orders and for the Group’s own 
purposes and are held in stock to support the Group’s long-
term business. A valuation-relevant subdivision essentially 
distinguishes between replacement components for aircraft 
(“pool material”), which is provided continuously for customer 
orders and which is measured at production/acquisition cost 
less depreciation, and spare parts that are exchanged and 
repaired on an ongoing basis for overhaul orders (“non-pool 
material”), which is measured at the lower of production/
acquisition cost and net realisable value. The starting point 
for the depreciated carrying amounts is the rolling average 
price of the materials. Pool material is depreciated over 5  
to 20 years, depending on the expected useful life of the 
corresponding aircraft model. Valuation allowances for non-
pool materials reflect their expected future marketability. All 
depreciation and impairment is recognised within the cost of 
materials and services, since this best reflects the business 
model.
Leases
The Lufthansa Group is a lessee for certain assets, particularly 
property and aircraft. In terms of property, the Group mainly 
leases airport infrastructure, including hangars, parking and 
handling spaces, lounges, and offices. Other office buildings, 
production and warehouse space are also leased. In addition, 
the Group uses aircraft and other operating and office equip-
ment on the basis of leases. In accordance with IFRS 16, the 
Lufthansa Group assesses at contract inception whether a 
contract is, or contains, a lease. That is, if the contract conveys 
the right to control the use of an identified asset for a period 
of time in exchange for consideration. 
Right-of-use assets are measured at cost less accumulated 
depreciation and impairment losses and adjusted for any 
change in the measurement of the lease liability. The cost of 
right-of-use assets includes the amount of lease liabilities 
recognised, initial direct costs incurred, and lease payments 
made at or before the commencement date less any lease 
incentives received.
 
The Lufthansa Group has opted not to apply IFRS 16 to 
intangible assets. Payments under leases with a term of no 
more than twelve months and leases in which the leased 
asset is of low value, will be recognised in profit or loss at 
the payment date in line with this option.  
LUFTHANSA GROUP ANNUAL REPORT 2020
150
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

For contracts that include non-lease components alongside 
lease components, these components are separated.
Right-of-use assets are depreciated on a straight-line basis 
over the shorter of the lease term or the estimated useful life 
of the leased item.
If ownership of the leased asset passes to the Lufthansa 
Group at the end of the lease term or is included in the costs 
of exercising a purchase option, depreciation is calculated 
for the expected useful life of the leased asset. 
Right-of-use assets are also tested for impairment. 
At the commencement date of the lease, Lufthansa Group 
recognises lease liabilities measured at the present value  
of the lease payments to be made over the term of the lease. 
The lease payments include fixed payments less any lease 
incentives owed, variable lease payments that depend on an 
index or a rate, and any amounts that are expected to be paid 
in the context of residual value guarantees. Lease payments 
also include the exercise price of a purchase option or penalties 
for early termination if the exercise of the purchase or termi-
nation option by the lessee is reasonably certain.
The Lufthansa Group has several leases that include renewal 
and termination options, particularly for properties. Judge-
ment is used when determining the probability that the option 
to renew or terminate the lease will be exercised. When 
determining lease terms, all the facts and circumstances are 
reasonably certain that offer an economic incentive to exer-
cise renewal options or not to exercise termination options. 
After the commencement date of the lease, the Lufthansa 
Group remeasures the lease liability if a significant event 
occurs or if circumstances change.
Variable lease payments that do not depend on an index or  
a reference rate are recognised as expenses in the period in 
which the event or condition triggering the payment occurs. 
Lease payments are discounted at the interest rate implicit 
in the lease, if it can be determined. Otherwise they are  
discounted at the incremental borrowing rate. Reference 
interest rates based on congruent, risk-free rates in major 
countries and currencies were used to calculate the incre-
mental borrowing rate. A credit risk premium was added to 
the respective reference rates.
As the lessor in an operating lease, the Lufthansa Group  
presents the leased item as an asset at amortised cost in prop-
erty, plant and equipment. Lease payments received in the 
period are shown as other operating income. The Lufthansa 
Group leases some of its properties and engines to other 
entities. There are currently no finance leases at the 
Lufthansa Group.
Equity investments accounted for using the equity method
Equity investments accounted for using the equity method 
are capitalised at cost at the time of acquisition.
In subsequent periods, the carrying amounts are either 
increased or reduced annually by changes in the shareholders’ 
equity of the associated company or joint venture that is held 
by the Lufthansa Group. The principles of purchase price 
allocation that apply to full consolidation are applied accord-
ingly to the initial measurement of any difference between 
the acquisition cost of the investment and the pro rata share 
of shareholders’ equity of the company in question. An impair-
ment test is only carried out in subsequent periods if there 
are indications of a potential impairment in the entire invest-
ment valuation.
Financial instruments
Financial assets are classified within the Lufthansa Group  
in accordance with IFRS 9 as “at amortised cost”, “at fair 
value through profit or loss”, “at fair value through other  
comprehensive income (with and without recycling)” and 
“derivative financial instruments as an effective part of a 
hedging relationship”.
The category “at amortised cost” consists of financial 
assets that are debt instruments and are intended to be held 
to maturity on the basis of the company’s business model. 
Furthermore, these instruments have fixed payment terms 
and meet the criteria for cash flow characteristics, i.e. con-
tractual payments of principal and interest. For the Lufthansa 
Group, this item particularly includes loans and receivables, 
cash-in-hand and bank balances. They are classified as 
non-current or current assets according to their remaining 
maturity.
The category “at fair value through profit or loss” comprises 
debt instruments for which the business model is neither  
to hold nor to sell them, or which do not pass the cash flow 
characteristics test. This is generally not the case for the 
Lufthansa Group. Equity instruments are also allocated to 
this category as a rule, so the Lufthansa Group generally  
recognises shares and equity investments that are financial 
instruments in this category. Derivatives are also classified  
in this category if they do not meet the criteria for hedge 
accounting.
LUFTHANSA GROUP ANNUAL REPORT 2020
151
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

Debt instruments are classified as “at fair value through 
other comprehensive income (with recycling)” when the 
business model is to both hold and sell these instruments 
and they pass the cash flow characteristics test. For the 
Lufthansa Group, this applies to securities representing debt 
instruments.
An option can be exercised to classify specific equity instru-
ments as “at fair value through other comprehensive 
income (without recycling)”. The Lufthansa Group exercises 
this option for individual share positions.
The Lufthansa Group uses derivatives for hedging, which  
are classified as “derivative financial instruments as an 
effective part of a hedging relationship” if all the require-
ments for hedge accounting are satisfied.
Financial instruments are recognised on the settlement date, 
i.e. on the date that they are created or transferred. Financial 
assets are capitalised at fair value plus transaction costs. 
Unrealised gains and losses are recognised directly in equity, 
taking deferred taxes into account. Long-term low or non- 
interest-bearing loans are recognised at net present value 
using the effective interest method. Subsequent measure-
ment of the financial instrument depends on the classification, 
either at amortised cost using the effective interest method, 
or at fair value, through profit or loss or in equity without 
effect on profit and loss. 
Receivables denominated in foreign currencies are measured 
at the balance sheet date rate.
The fair value of securities is determined by the price quoted 
on an active market. For unlisted fixed-interest securities, 
the fair value is determined from the difference between 
effective and market interest rate at the valuation date.
If there are doubts as to the recoverability of receivables, 
then impairment losses are recognised and these receivables 
are recognised at the lower recoverable amount. Subsequent 
reversals (write-backs) are recognised in profit or loss. IFRS 9 
requires that when a receivable is recognised for the first 
time, an expected loss is provided for that reflects the credit 
risk of the receivable before a default event occurs. An external 
credit risk exists for the Lufthansa Group, especially in its 
portfolio of trade receivables, for which an expected credit 
loss is recognised.
Derivative financial instruments are measured at fair  
value on the basis of published market prices. If there is no 
quoted price on an active market, other appropriate valuation 
methods are applied. Appropriate valuation methods take  
all factors into account that independent, knowledgeable 
market participants would consider in arriving at a price and 
that constitute recognised, established economic models  
for calculating the price of financial instruments.
In accordance with its internal guidelines, the Lufthansa Group 
uses derivative financial instruments to hedge interest rate 
and exchange rate risks and to hedge fuel price risks. This is 
based on the hedging policy defined by the Executive Board 
and monitored by a committee. ↗ Note 45, p. 205ff.
Interest rate swaps and interest rate/currency swaps are 
used to manage interest rate risks. Interest rate/currency 
swaps also hedge exchange rate risks arising from borrowing 
in foreign currencies.
Fuel price hedging takes the form of spread options and 
other hedging combinations, primarily for crude oil. To a  
limited extent, hedging may also be undertaken for other 
products, such as jet fuel or gas oil.
Hedging transactions are used to secure either fair values 
(fair value hedge) or future cash flows (cash flow hedge).
To the extent that the financial instruments used qualify  
as effective cash flow hedging instruments within the scope  
of a hedging relationship, in accordance with the provisions 
of IFRS 9, the fluctuations in market value will not affect the 
result for the period during the term of the derivative. They 
are recognised without effect on profit or loss in the corre-
sponding reserves. If the hedged cash flow is an investment, 
the result of the hedging transaction that has previously 
been recognised in equity is set off against the cost of the 
capital expenditure at the time the underlying transaction 
matures. In all other cases, the cumulative gain or loss previ-
ously stated in equity is included in net profit or loss for the 
period on maturity of the hedged cash flow.
In the case of effective hedging of fair values that are  
designated as a fair value hedge, the changes in the market 
value of the hedged asset or the hedged debt and those  
of the financial instrument will balance out in the income 
statement.
LUFTHANSA GROUP ANNUAL REPORT 2020
152
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

Derivatives that do not meet the criteria for hedge accounting 
are presented in the category “at fair value through profit  
or loss”. Changes in fair value are then recognised directly  
in the income statement. For the Lufthansa Group, this  
generally occurs when the exposure or item being hedged 
cannot be measured reliably or the exposure ceases to exist 
prematurely over the course of the hedge. 
Embedded derivatives – to the extent that they should,  
but cannot, be separated from the financial host contract – 
are also considered with these as trading transactions for 
measurement purposes. Changes in market value are also 
recognised directly as profit or loss in the income statement. 
Both types must be classified as financial assets stated  
“at fair value through profit or loss”.
It is the Lufthansa Group’s hedging policy (↗ Note 45,  
p. 205ff.) only to acquire effective derivatives for the purpose 
of hedging interest rate, exchange rate and fuel price risks.
Initial recognition of financial guarantees given to third  
parties is at fair value. Thereafter, financial guarantees are 
either measured in the category “at fair value through profit 
or loss” or at the higher of the originally recognised amount, 
less any cumulative amortisation through profit or loss in  
line with IFRS 15, and the value of the contractual obligation 
measured in line with IAS 37.
Emissions certificates
CO₂ emissions certificates are recognised as intangible 
assets and presented under other receivables. Rights, both 
those purchased and those allocated free of charge, are 
measured at cost and not amortised.
The Carbon Offsetting and Reduction Scheme for Inter­
national Aviation (CORSIA), which was concluded with the 
International Civil Aviation Organization (ICAO) in October 
2016, seeks to offset growth-related CO₂ emissions in inter-
national air traffic using climate protection projects from 2021 
onwards. In June 2020, the ICAO adopted a resolution con-
firming that carbon emissions in 2019 are the sole benchmark 
for determining relevant industry growth in the course of the 
CORSIA pilot phase. On the basis of this regulatory change, 
the Lufthansa Group assumes that it will not have to make 
any carbon offsets under CORSIA for the year 2021. Whether 
and how many CORSIA offsets will be required in future 
depends primarily on how fast air traffic recovers between 
the states participating in the CORSIA pilot phase.
Contract assets and receivables
Contract assets represent contractual claims to receive pay-
ments from customers where the contractual performance 
obligations have already been fulfilled but no unconditional 
payment claim has yet been incurred. Receivables are recog-
nised if the right to receive consideration is no longer subject 
to conditions. This is generally the case when the Group is 
contractually entitled to send the customer an invoice. Contract 
assets mainly relate to construction or service contracts for 
MRO and IT services. Valuation allowances are made on the 
respective gross amounts of expected payment defaults.
Inventories
The item “Inventories” comprises non-repairable spare parts 
and assets used in production or the provision of services 
(raw materials, consumables and supplies), purchased mer-
chandise, finished and unfinished goods and advance pay-
ments for them. They are measured at cost, determined on 
the basis of average prices, or at production costs. The cost 
of production includes all costs directly attributable to the 
production process, including borrowing costs as required 
under IAS 23, as well as appropriate portions of produc-
tion-related overheads at normal productivity rates. Measure-
ment on the balance sheet date is at the lower of cost and 
net realisable value. Net realisable value is defined as the 
estimated selling price less the estimated cost of completion 
and the estimated costs necessary to make the sale. If there 
are indicators for future inability to pay, corresponding valua-
tion allowances are made.
Assets held for sale
Individual, formerly non-current assets or groups of assets 
that are expected to be sold within the next twelve months 
are measured at the lower of their carrying amount at the 
time they are reclassified and fair value less costs to sell.  
Fair value less costs to sell is derived from recent market 
transactions, if available.
Property, plant and equipment and intangible assets are no 
longer depreciated or amortised and affiliated companies 
accounted for using the equity method are no longer ac- 
counted for in this way once they are classified as held for 
sale or distribution. While the impairment charge from the 
last measurement before reclassification is recognised as  
an impairment loss, all subsequent changes in the measure-
ment of current assets held for sale, e.g. due to exchange 
rate movements, are shown in other operating expenses  
or income.
LUFTHANSA GROUP ANNUAL REPORT 2020
153
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

Cash and cash equivalents
Cash and cash equivalents comprise cash-in-hand, cheques 
received and credit balances at banks. Cash equivalents are 
financial investments that can be liquidated at short notice. 
At the time of purchase or investment, they have a maturity 
of three months or less.
Pension provisions
The pension provisions for defined benefit plans correspond 
to the present value of the defined benefit obligations (DBO) 
on the reporting date less the fair value of plan assets, if 
necessary taking the rules on the maximum surplus of plan 
assets over the obligation (asset ceiling) into account.
The DBO is calculated annually by independent actuaries 
using the projected unit credit method prescribed in IAS 19 
for defined benefit pension plans. The measurement of  
pension provisions within the statement of financial position 
is based on a number of actuarial assumptions.
Capital account plans are measured using the market value 
of the assets assigned to the individual capital accounts  
as of the reporting date, whereby the present value of the 
minimum benefit payable when the beneficiary becomes 
entitled to the benefit is compared with the amount of con-
tributions already paid in, measured using the assumptions 
for the benefit plans. Additional risk premiums that the 
employer contributes to insure against early entitlements  
are included in current service expense.
They include, in particular, assumptions about long-term  
salary and pension trends as well as average life expectancy. 
The assumptions about salary and pension trends are based 
on developments observed in the past and take into account 
national interest and inflation rates and labour market trends. 
Estimates of average life expectancy are based on recognised 
biometric calculation formulas.
The interest rate used to discount the individual future  
payment obligations is based on the return from investment 
grade corporate bonds in the same currency and with a similar 
maturity. The discount rate is determined by reference to 
high-quality corporate bonds with an issue volume of at least 
EUR 100m and an AA rating from at least one of the rating 
agencies Moody’s Investor Service, Fitch Ratings or Standard 
& Poor’s Rating Services.
Actuarial gains and losses arising from the regular adjustment 
of actuarial assumptions are recognised directly in equity  
in the period in which they arise, taking deferred taxes into 
account. Also presented without effect on profit and loss are 
differences between the interest income at the beginning  
of the period calculated on plan assets based on the interest 
rate used to discount the pension obligations and the earnings 
from plan assets actually recorded at the end of the period. 
The actuarial gains and losses and any difference between the 
forecast result and the actual result from plan assets form 
part of the remeasurement.
Past service costs are recognised immediately in profit or loss.
Payments to pension providers for defined contribution 
retirement commitments for which the pension provider or 
the beneficiary assumes the financial risks are recognised  
in staff costs as they fall due.
Other provisions
Other provisions are recognised for present legal and con-
structive obligations to third parties arising from past events 
that will probably give rise to a future outflow of resources 
provided that a reliable estimate can be made of the amount 
of the obligations as of the reporting date.
The amount of the provision is determined by the best esti-
mate of the amount required to settle the present obligation. 
Past experience, current cost and price information as well 
as estimates from internal and external experts are used to 
determine the amount of provisions.
The management regularly analyses the current information 
on legal risks and makes provisions for probable obligations. 
These provisions cover estimated payments to the claimant, 
court and procedural costs, the costs of lawyers and of any 
out-of-court settlement. Internal and external lawyers assist 
with the estimate. When deciding on the necessity of a pro-
vision for litigation, the management takes into account the 
probability of an unfavourable outcome and the chance of 
making a sufficiently accurate estimate of the amount of the 
obligation. The commencement of legal proceedings, the 
formal assertion of a claim against the Group or the disclosure 
of certain litigation in the Notes does not automatically mean 
that a provision was made for the risk concerned. A ruling in 
court proceedings, a decision by a public authority or an out-
of-court settlement may cause the Group to incur expenses 
for which no provision was made because the amount could 
not be reliably determined or for which the provision made 
and the insurance coverage is not sufficient.
LUFTHANSA GROUP ANNUAL REPORT 2020
154
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

Provisions for restructuring and severance payments are only 
recognised when the Group has a constructive obligation. In 
the case of restructuring, a constructive obligation exists if 
there is a formal restructuring plan that includes the affected 
business unit or the affected part of a business unit, the 
location and number of employees affected, the detailed 
estimate of the associated costs and the time schedule. In 
addition, the key points of the plan must have been commu-
nicated to the employees concerned. The restructuring pro-
visions only include expenses directly attributable to the 
restructuring measures that are necessary for the restructuring 
and are not related to the future operating business. This 
includes, for example, expenses for severance payments to 
employees.
Provisions for obligations that are not expected to lead to an 
outflow of resources in the following year are recognised  
to the amount of the present value of the expected outflow, 
taking foreseeable price rises into account.
The assigned value of provisions is reviewed on each balance 
sheet date. Provisions in foreign currencies are translated at 
reporting date rates.
If no provision could be recognised because one of the stated 
criteria was not fulfilled, the corresponding obligations are 
shown as contingent liabilities and discussed in the relevant 
section.
Liabilities
Trade and other payables are initially recognised at fair value. 
Fair value is approximately equivalent to the carrying amount. 
Measurement in subsequent periods is at amortised cost 
using the effective interest rate method.
Liabilities in foreign currencies are measured with the 
exchange rate at the balance sheet date.
Obligations from share programmes are measured at fair 
value as cash-settled share-based payment transactions  
in accordance with IFRS 2. Fair value is derived using a 
Monte Carlo simulation.
The liability is recognised on the basis of the resulting  
fair value, taking the remaining term of the programme into 
account. Changes are recognised as staff costs in profit  
or loss.
Details of the assumptions used for the model and the struc-
ture of the share programmes can be found in ↗ Note 39,  
p. 192ff.
Contract liabilities
A contract liability is an obligation on the part of the Group 
towards a customer to provide goods or services for which 
the customer has already performed an obligation, e.g. by 
making an advance payment. Contractual liabilities are rec-
ognised as revenue as soon as the Group fulfils its contractual 
obligations. The Group’s contract liabilities consist of liabilities 
from unused flight documents, unredeemed miles from  
customer loyalty programmes, construction contracts and 
other contract liabilities. 
Until they are used, sold flight documents are recognised  
as an obligation from unused flight documents. Coupons 
that are unlikely to be used any more are recognised pro rata 
temporis as traffic revenue in the income statement at their 
estimated value. The estimate is based on historical statistical 
data. Due to the coronavirus pandemic and the associated 
increased number of tickets for cancelled and rebookable 
flights, the parameters for the use of expired flight coupons 
were adjusted according to current estimates. 
The Lufthansa Group uses various bonus miles programmes 
with the aim of ensuring long-term customer loyalty. Partici-
pants in the Miles & More programme, which is the biggest 
bonus miles programme in the Lufthansa Group, can collect 
and redeem bonus miles for flights with the airlines in the 
Lufthansa Group as well as with numerous partners (including 
other airlines, hotels, global car hire companies, financial  
and insurance providers, telecommunications companies, 
retailers, automobile clubs, etc.). Miles expire three years 
after they are collected, in accordance with the terms of 
membership, unless they are protected by frequent flyer  
status or credit card use.
Observable past redemption patterns are used to measure 
the premium claims that are collected on flights with the  
airlines in the Lufthansa Group. Miles that are expected to  
be used for flights with airlines of the Lufthansa Group are 
measured based on the average price of the premium flight 
or upgrade for the average number of miles used. The price is 
calculated on the basis of past redemption patterns, weighted 
for the various geographic regions and booking classes.  
This is then corrected to allow for the reduced flexibility of 
premium flights and the award miles granted for normal 
flights. Miles that are expected to be redeemed for other  
LUFTHANSA GROUP ANNUAL REPORT 2020
155
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

bonuses are measured at the average price for these bonuses 
and the average number of miles redeemed. The prices for 
additional miles are recalculated every year and applied to all 
additions in that year. Consumption of miles is measured 
using the average rate for total miles at the beginning of the 
year (same as previous year).
Premium points collected from other partners are measured at 
the amounts paid by these partners in relation to the average 
number of miles collected and redeemed.
The calculation method for the legal and economic expiry rate 
entails calculating the expiry rate from the values observed in 
prior years, increased or decreased as necessary by reference 
to past trends or future enhancements to the programme. 
Due to the significant decline in redemption behaviour in the 
wake of the coronavirus pandemic, the parameter adjust-
ments that would have resulted from the data of the current 
financial year were largely not taken into account for valua-
tion purposes.
Government grants
Government grants are recognised at fair value when there is 
reasonable certainty that the grant will be received and that 
the Group will fulfil all conditions attached to such grants. 
Government grants include, for example, income subsidies 
or social security contributions for short-time allowances. If 
short-time allowance is a personal benefit for the employee, 
the respective payments are transitory items. Another example 
is government loans at below-market rates, where the interest 
rate advantage is allocated pro rata temporis over the term 
of the loan. 
Government grants for the acquisition of property, plant and 
equipment are included in other liabilities as deferred income 
and recognised in other operating income on a straight-line 
basis over the estimated useful life of the corresponding asset. 
Non-monetary grants are only recognised in the income 
statement when the necessary eligibility criteria have been 
fulfilled. Until then, the corresponding amounts must also be 
shown under deferred income.
Tax liabilities
Obligations towards tax authorities that are uncertain  
with regard to their occurrence, probability and amount are 
recorded as tax liabilities on the basis of best estimates  
or expectations. Any contingent liabilities existing in this 
context are addressed separately as needed.
Deferred tax items
In accordance with IAS 12, deferred taxes are recognised for 
all temporary differences between the statements of financial 
position with regard to tax of individual companies and the 
consolidated financial statements. Tax loss carry-forwards 
are recognised to the extent that the deferred tax assets are 
likely to be used in the future. Company earnings forecasts 
and specific, realisable tax strategies are used to determine 
whether deferred tax assets are usable or not, i.e. whether 
they have a value that can be realised. The planning period 
used to assess this probability is determined by the individual 
Group company according to the specific circumstances and 
lies generally between three and five years unless there is 
convincing evidence of possible prolonged use beyond the 
general horizon of the official Group planning. This was the 
case in the financial year due to the high losses caused by the 
shock of the coronavirus pandemic, especially in Germany, 
resulting in the application of longer useful lives.
Effective income taxes
The Lufthansa Group is liable for income taxes in various 
countries. Material assumptions are necessary to calculate 
the income tax liabilities. For certain transactions and calcu-
lations, the final taxation cannot be assessed definitively  
in the course of normal business. The amount of the liability 
that may arise from future determinations of expected tax 
inspection is based on estimates of whether additional income 
taxes will be owed, and if so, at which amount. The assump-
tions underlying the estimates are reviewed on an ongoing 
basis and adjusted as necessary. Nevertheless, different  
tax payments may occur in the period in which taxation is 
definitively assessed.
LUFTHANSA GROUP ANNUAL REPORT 2020
156
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  General remarks

NOTES TO THE CONSOLIDATED 
INCOME STATEMENT
4 		 Traffic revenue
In the consolidated income statement, the Lufthansa  
Group attributes revenue to the segments Network Airlines,  
Eurowings, Logistics, MRO, Catering, and Additional Busi-
nesses and Group Functions. 
Traffic is under significant strain as a result of the worldwide 
travel restrictions due to the coronavirus pandemic. Passenger 
numbers fell by 75% in the 2020 financial year compared 
with the previous year.
The following table provides a breakdown of traffic revenue 
according to the different business models for the financial 
year that ended on 31 December 2020. The table following 
that shows the previous year’s figures:
T067  TRAFFIC REVENUE BY SECTOR 2020
in €m
Total 
 
Europe 1) 
 
North
America 1) 
Central and 
South
America 1)
Asia/
Pazific  1) 
Middle
East1) 
Africa 1) 
 
Network Airlines
5,899
4,066
859
131
556
144
143
	
Lufthansa German Airlines
3,465
 
 
 
 
 
 
	
SWISS  2)
1,635
 
 
 
 
 
 
	
Austrian Airlines 2)
415
 
 
 
 
 
 
	
Brussels Airlines
384
 
 
 
 
 
 
Eurowings  2)
583
576
4
1
2
–
–
Logistics
2,596
1,210
250
90
983
22
41
Total
9,078
1)	 Traffic revenue is allocated according 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.
T067  TRAFFIC REVENUE BY SECTOR 2019
in €m
Total 3) 
 
Europe1) 
 
North
America 1) 
Central and 
South
America 1)
Asia/
Pazific  1) 
Middle
East1) 
Africa 1) 
 
Network Airlines  2),  3)
23,507
15,193
4,407
513
2,348
586
460
	
Lufthansa German Airlines  3)
15,170
 
 
 
 
 
 
	
SWISS  2)
5,010
 
 
 
 
 
 
	
Austrian Airlines
1,941
 
 
 
 
 
 
	
Brussels Airlines
1,386
 
 
 
 
 
 
Eurowings  2),  3)
2,311
2,240
35
8
22
4
2
Logistics
2,318
1,153
265
94
703
31
72
Total
28,136
1)	 Traffic revenue is allocated according 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.
3)	Previous year’s figures have been adjusted due to reclassification of Brussels Airlines, Germanwings GmbH und the long-haul business of Eurowings to Network Airlines.
Traffic revenue of EUR 9,078m (previous year: EUR 28,136m) 
includes freight and mail revenue of EUR 3,011m (previous 
year: EUR 2,774m). Of the total, EUR 2,596m (previous year: 
EUR 2,318m) relate to the Logistics segment. Other freight 
and mail revenue of EUR 415m (previous year: EUR 456m) 
mainly comes from marketing belly capacities on passenger 
flights by SWISS, Austrian Airlines and Eurowings. 
LUFTHANSA GROUP ANNUAL REPORT 2020
157
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated income statement

5 		 Other revenue
The following table provides a breakdown of other revenue 
by category (type of service) and geography for 2020:
T068  OTHER OPERATING REVENUE BY AREA OF OPERATIONS 2020
in €m
Total 
 
Europe 1) 
 
North
America 1) 
Central and 
South
America 1)
Asia/
Pazific  1) 
Middle
East1) 
Africa 1) 
 
MRO
2,724
1,175
734
90
513
133
79
	
MRO services
2,272
 
 
 
 
 
 
	
Other operating revenue
452
 
 
 
 
 
 
Catering
1,064
165
662
53
132
22
30
	
Catering services
900
 
 
 
 
 
 
	
Revenue from in-flight sales
50
 
 
 
 
 
 
	
Other services
114
 
 
 
 
 
 
Network Airlines
268
233
10
2
14
5
4
Eurowings
6
6
–
–
–
–
–
Logistics
137
90
37
2
3
5
–
Additional Businesses and Group Functions
312
206
31
13
42
14
6
	
IT services
167
 
 
 
 
 
 
	
Travel management
91
 
 
 
 
 
 
	
Other
54
 
 
 
 
 
 
Total
4,511
1)	 Traffic revenue is allocated according to the original location of sale.
T068  OTHER OPERATING REVENUE BY AREA OF OPERATIONS 2019
in €m
Total 
 
Europe1) 
 
North
America 1) 
Central and 
South
America 1)
Asia/
Pazific  1) 
Middle
East1) 
Africa 1) 
 
MRO
4,378
1,973
1,054
282
793
173
103
	
MRO services
3,765
 
 
 
 
 
 
	
Other operating revenue
613
 
 
 
 
 
 
Catering
2,623
502
1,377
164
468
75
37
	
Catering services
2,210
 
 
 
 
 
 
	
Revenue from in-flight sales
169
 
 
 
 
 
 
	
Other services
244
 
 
 
 
 
 
Network Airlines 2)
604
496
42
1
47
8
10
Eurowings 2)
10
10
–
–
–
–
–
Logistics
119
68
41
–
3
7
–
Additional Businesses and Group Functions
554
388
43
16
83
18
6
	
IT services
188
 
 
 
 
 
 
	
Travel management
279
 
 
 
 
 
 
	
Other
87
 
 
 
 
 
 
Total
8,288
1)	 Traffic revenue is allocated according to the original location of sale.
2)	Adjustment due to changed allocation of Brussels Airlines, Germanwings GmbH und the long-haul business of Eurowings to Network Airlines.
The decline in other operating revenue was also recorded in 
the MRO and Catering business segments and in Additional 
Businesses and Group Functions as a result of the crisis.  
The Catering segment’s European business was sold in 
December 2020 ↗ Note 7, p. 159f. 
MRO services make up the majority of external revenue in 
the MRO segment. Other revenue in the MRO segment from 
the sale of material and hiring out material and engines, as 
well as logistics services, are classified as other services.
LUFTHANSA GROUP ANNUAL REPORT 2020
158
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated income statement

The revenue listed under catering services originates exclu-
sively in the Catering segment. The Catering segment also 
generates revenue from other services, particularly in the 
areas of flight security concepts, in-flight service equipment, 
transport/warehouse logistics and lounge operations.
Other revenue also includes revenue from customer contracts 
that are fulfilled over a given period. These are mainly MRO 
and IT services. 
6 		 Changes in inventories and work performed  
by entity and capitalised
T069  CHANGES IN INVENTORIES AND WORK PERFORMED  
BY ENTITY AND CAPITALISED
in €m
2020
2019
 
Increase/decrease in finished goods  
and work in progress
– 6
– 9
Other internally produced and  
capitalised assets
181
694
 
175
685
Other own work capitalised relates almost exclusively to  
aircraft and engine overhauls. 
Due to the coronavirus pandemic and the resulting global 
restrictions, parts of the fleet were retired into longterm  
storage in the 2020 financial year. This led to a decrease in 
other own work capitalised, as fewer maintenance events 
took place than in previous years.
7 		 Other operating income
T070  OTHER OPERATING INCOME
in €m
2020
2019
 
Foreign exchange gains
677
761
Income from the reversal of  
provisions and accruals
338
321
Subsidies
261
–
Compensation received for damages
45
42
Reversal of write-downs on receivables
36
27
Rental income
36
43
Income from the reversal of  
impairment losses on fixed assets
30
38
Services provided by the Group
24
26
Income from the disposal of non-current  
available-for-sale financial assets
21
2
Income from the disposal of  
non-current assets
17
18
Income from staff secondment
15
20
Commission income
10
14
Income from operating lease aircraft
10
49
Miscellaneous other operating income
377
528
1,897
1,889
Foreign exchange gains (excluding financial liabilities) mainly 
include gains from differences between the average rate for 
the month on the transaction date and on the payment date, 
along with foreign exchange gains from measurement at the 
closing date rate. Income from exchange rate hedging is also 
recognised here. Foreign exchange losses from these trans-
actions are reported under other operating expenses. ↗ Note 11, 
p. 161f. The foreign currency effects of borrowing are recog-
nised in other financial items, in the context of the net results 
of exchange rate hedging relationships for borrowing.
Income from the reversal of provisions and accruals relates to 
a number of provisions and accruals recognised in previous 
years that have not been fully used. In contrast, expenses 
from insufficient provisions recognised in previous years are 
recognised together with the primary expense item to which 
they relate. 
Income from government grants mainly includes unre-
stricted grants paid directly to the companies affected. Gov-
ernment support measures for Austrian Airlines accounted 
for EUR 150m of this amount. LSG and Lufthansa Technik 
companies received a further USD 104m under the CARES 
Act in the USA. The grants mentioned above were received 
after appropriate documentation was provided.
The Lufthansa Group recognised lease income of EUR 46m 
in 2020 (2019: EUR 92m). The main reason for the decline 
was the discontinuation of operations by two lessees. 
The following table shows the contractual lease payments:
T071  CONTRACTUAL LEASE PAYMENTS (LESSOR)
in €m
31 Dec 2020
31 Dec 2019
to 1 year 
20
79
more than 1 year to 2 years
16
50
more than 2 years to 3 years
14
35
more than 3 years to 4 years
11
28
more than 4 years to 5 years
9
8
more than 5 years
40
22
Income of EUR 30m was recognised from write-backs on  
assets in 2020 (previous year: EUR 38m). Of these reversals,  
EUR 21m relate to the assets of LSG’s European business  
in the Catering segment, which were recognised as assets 
held for sale in the previous year. The sale of the companies 
on 2 December 2020 resulted in a further positive effect of 
EUR 20m, which is reported under income from the disposal 
of non-current financial assets. A further EUR 8m in write-
backs relates to two Boeing 767s and five Dash 8-400s from 
the Network Airlines segment that are held for sale. 
LUFTHANSA GROUP ANNUAL REPORT 2020
159
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated income statement

Income from the disposal of property, plant and equipment 
also includes EUR 5m from aircraft sold (previous year:  
EUR 6m). 
Other operating income includes items not attributable to 
any of the aforementioned categories.
8 		 Cost of materials and services
T072  COST OF MATERIALS AND SERVICES
in €m
2020
2019
 
Aircraft fuel and lubricants 
1,875
6,715
Other raw materials,  
consumables and supplies 
2,104
3,589
Purchased goods 
226
512
Total cost of raw materials, consumables 
and supplies and of purchased goods 
4,205
10,816
Fees and charges 
1,796
4,523
External MRO services 
1,139
1,911
Charter expenses
469
814
External IT services 
318
452
In-flight services 
137
409
Flight irregularities
66
199
Other services 
323
703
Total cost of purchased services 
4,248
9,011
 
 
 
 
8,453
19,827
Changes in depreciation and valuation allowances on  
repairable spare parts are also reported within expenses for 
other raw materials, consumables and supplies. In the 2020 
financial year, impairments and valuation allowances totalling  
EUR 158m were incurred as a result of the crisis.
Expenses for flight irregularities includes accommodation 
and meals in the case of delays, for instance, or payments for 
damaged luggage. 
9 		 Staff costs
T073  STAFF COSTS
in €m
2020
2019
 
Wages and salaries
5,091
7,452
Social security contributions
687
1,024
Expenses for pension plans  
and other employee benefits
658
645
 
6,436
9,121
The decline in staff costs is due on the one hand to a  
reduction in the headcount at the Lufthansa Group and on 
the other to savings such as the use of short-time working  
 
to preserve jobs, salary waivers and the reduction of variable 
salary components. In 2020, income of EUR 1,020m was  
received in reimbursement of wage-replacement benefits 
and social security contributions paid in the context of  
short-time working in Germany, Austria and Switzerland.  
This includes EUR 293m in subsidies for social security  
contributions, which are classified as support measures.
Expenses for pension plans principally consist of additions to 
the pension provisions. ↗ Note 35, p. 180ff.
T074  EMPLOYEES
 
Average  
for the year 
2020
Average  
for the year 
2019
As of  
31 Dec 2020 
As of  
31 Dec 2019 
Ground staff
79,878
91,241
66,070
91,642
Flight staff
44,050
45,305
42,675
45,281
Trainees
1,279
1,238
1,320
1,430
 
125,207
137,784
110,065
138,353
The annual average is calculated pro rata temporis from the 
time companies are consolidated or deconsolidated.
10 		 Depreciation, amortisation and impairment
The individual line items show the breakdown of depreciation, 
amortisation and impairment charges between intangible 
assets, aircraft and other property, plant and equipment. 
Total depreciation, amortisation and impairment came to 
EUR 4,389m (previous year: EUR 2,776m).
T075  DEPRECIATION, AMORTISATION AND IMPAIRMENT
in €m
2020
2019
 
Amortisation of other intangible assets
134
102
Depreciation of aircraft
1,923
2,084
Depreciation of other tangible assets
504
506
Total amortisation/depreciation
2,561
2,692
Impairment of goodwill
222
–
Impairment of other intangible assets
15
24
Impairment of aircraft and reserve engines
1,461
36
Impairment of other tangible assets
51
1
Impairment of right-of-use assets
60
–
Impairment of financial assets
19
23
Total impairment
1,828
84
 
 
 
Total depreciation, amortisation  
and impairment
4,389
2,776
LUFTHANSA GROUP ANNUAL REPORT 2020
160
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated income statement

The decrease in depreciation and amortisation stems  
principally from the reduction of the active fleet. 
Impairment losses of EUR 1,828m were recognised in the 
financial year 2020. Of this, EUR 1,402m relates to the  
Network Airlines segment, EUR 97m to Eurowings, EUR 54m 
to Logistics, EUR 45m to MRO, EUR 201m to Catering and 
EUR 28m to Additional Businesses and Group Functions and 
adjustments at Group level. 
The adjustments include depreciation and amortisation of 
EUR 1,475m on aircraft and right-of-use assets for a total of 
115 aircraft that were transferred to long-term parking mode 
or which are no longer planned to return to service and aircraft 
which are held for sale. At Lufthansa German Airlines they 
comprise 14 Airbus A380s, five Boeing 747s, 17 Airbus A340s, 
two right-of-use assets for Airbus A330s, eleven Airbus A320s 
and 14 Airbus A319s, some of which are leased. At Austrian 
Airlines, three Boeing 767s and 13 Dash 8-400s were affected. 
Brussels Airlines wrote down right-of-use assets for two  
Airbus A330s and eight Airbus A319s. Five Airbus A321s as 
well as right-of-use assets for 15 Dash8-400s and one Airbus 
A319 were affected at Eurowings. Five Boeing MD-11s were 
impaired in Cargo operations because they were held for sale. 
In addition, the depreciation and amortisation of aircraft in 
the MRO area included depreciation of EUR 40m on replace-
ment engines for aircraft models that are unlikely to be used  
in the future. 
The above amount includes impairment losses of EUR 154m 
which were recognised for aircraft reclassified as held for 
sale. The Network Airlines segment accounted for EUR 84m, 
Logistics for EUR 52m and Eurowings for EUR 18m.
Goodwill was written down by a total of EUR 222m in the 
course of impairment testing for cash-generating units.  
They mainly related to LSG USA, LSG Korea and Eurowings.  
↗ Note 17, p. 165ff.
Property, plant and equipment in the catering segment as 
well as in the flight training operations was also impaired in 
the amount of EUR 31m due to the deteriorating profitability 
outlook. Other impairment losses included EUR 17m for 
high-loaders, leasehold improvements and kitchen equipment 
at the catering facilities in the USA, EUR 19m for financial 
assets and EUR 15m for IT products that are no longer in use. 
A write-down of EUR 62m was recorded in the result from 
equity investments for the shares in the joint ventures XEOS 
and Spairliners (MRO segment), which is accounted for using 
the equity method, and of EUR 4m on Diners Club Spain 
(other companies). These are also related to the deterioration 
in the business outlook of the companies.
Other operating expenses included further impairment losses 
of EUR 5m on aircraft already reclassified as held for sale. 
These consist of three Dash 8-400s, one Boeing 767 and 
one Boeing MD-11 (previous year: EUR 50m on the assets of 
the European catering facility held for sale).
In the previous year, impairment losses mainly related to  
aircraft held for sale (EUR 38m), IT projects (EUR 24m) and 
other non-current receivables (EUR 22m). 
11 		 Other operating expenses
T076  OTHER OPERATING EXPENSES
in €m
2020
2019
 
Rental and maintenance expenses
603
742
Foreign exchange losses
596
648
Staff-related expenses
543
1,201
Write-downs on receivables
251
120
Auditing, consulting and legal expenses
203
312
Other services
146
144
Advertising and sales promotions
128
384
Expenses for computerised  
distribution systems
126
506
Sales commission paid to agencies
97
368
Communications costs
68
85
Commissions for credit cards
58
232
Other taxes
51
84
Insurance premiums for flight operations
42
61
Losses on disposal of non-current assets
39
39
Miscellaneous other operating expenses
521
659
 
3,472
5,585
Staff-related expenses also include travel and training costs 
for Group employees and the costs of agency staff.
Foreign exchange losses (excluding financial liabilities) mainly 
consist of losses from differences between the monthly 
average rates on the transaction date and on the payment 
date, expenses from exchange rate hedges and translation 
losses from measurement at the exchange rate on the balance 
sheet date. ↗ Note 7, p. 159. The foreign currency effects of 
borrowing are recognised in other financial items, in the con-
text of the net results of exchange rate hedging relationships 
for borrowing.
The increase in valuation allowances on receivables was due 
to the crisis and, at EUR 197m (previous year: EUR 113m), 
mainly related to customer receivables at direct risk of default. 
In addition, impairments of EUR 54m (previous year: EUR 7m) 
were recognised with regard to existing general default risks. 
The MRO business segment was particularly impacted by 
this, with EUR 134m (previous year: EUR 51m).
LUFTHANSA GROUP ANNUAL REPORT 2020
161
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated income statement

Write-downs of EUR 5m were recognised in other operating 
expenses in connection with aircraft held for sale (previous 
year: EUR 50m write-downs on the assets of the European 
catering facility held for sale).
12 		 Result from equity investments
T077  RESULT FROM EQUITY INVESTMENTS
in €m
2020
2019
 
Result of joint ventures accounted  
for using the equity method
– 236
14
Result of associated companies accounted  
for using the equity method
– 40
74
Result of equity investments accounted  
for using the equity method
– 276
88
Dividends from other joint ventures 
4
12
Dividends from other associated companies 
2
3
Income from profit transfer agreements
26
35
Expenses from loss transfer agreements
– 35
– 19
Dividends from other equity investments 
15
49
Result of other equity investments
12
80
 
 
 
 
– 264
168
Write-downs on shares are also presented in the result  
of joint ventures accounted for using the equity method 
(EUR 66m; previous year: EUR 43m). ↗ Note 10, p. 160f.
Income and expenses from profit and loss transfer agreements 
include apportionments of taxes.
13 		 Net interest
T078  NET INTEREST
in €m
2020
2019
 
Income from other securities and  
non-current financial loans
3
8
Other interest and similar income
80
71
Interest income 
83
79
Interest expenses on pensions obligations
– 97
– 119
Interest expenses on other provisions 
– 13
3
Interest and other similar expenses 
– 307
– 278
Interest expenses 
– 417
– 394
 
 
 
 
– 334
– 315
Net interest comprises interest income and expenses –  
calculated using the effective interest method in accordance 
with IFRS 9 – from financial assets and liabilities not classified 
as at fair value through profit or loss.
Net interest declined year-on-year by EUR 19m. This is mainly 
due to interest expenses in connection with borrowing, which 
outweighed the absence of interest expenses incurred the 
previous year in connection with a supplementary tax payment. 
These were offset by lower expenses for the compounding  
of pension provisions, since the base rate was 0.6% lower on 
average between 31 December 2018 and 31 December 2019.
14 		 Other financial items
T079  OTHER FINANCIAL ITEMS
in €m
2020 
2019
 
Result of fair value hedges – change in  
time value of hedged transactions
60
– 90
Result of fair value hedges – change in  
time value of hedging instruments
– 41
89
Ineffective portion of derivatives  
used as cash flow hedges
– 144
– 18
Result of derivatives held for trading classified 
as at fair value through profit or loss
– 790
359
Result of measuring securities classified  
as at fair value through profit or loss
– 57
– 17
Exchange rates effects  
from financial liabilities
28
– 5
 
– 944
318
Due to the significant decline in business activity in the 2020 
financial year, there were “overhedges” on fuel hedges and, 
to a lesser extent, on currencies due to a lack of underlying 
transactions. These overhedges are recognised in the income 
statement and they reduced the financial result by a total  
of EUR 752m. In addition, there was a higher level of hedge 
ineffectiveness, particularly due to the restriking of currency 
hedges with positive market values as well as the post­
ponement of investment spending, which resulted in a total 
expense of EUR 125m. In addition, expenses of EUR 96m 
related to the market valuation of the convertible bond issued 
in the financial year. 
In the previous year, the release of cash flow hedges for 
investment spending no longer expected in the future had  
a positive effect on other financial items, with earnings of 
EUR 402m.
LUFTHANSA GROUP ANNUAL REPORT 2020
162
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated income statement

15 		 Income taxes
In the 2020 financial year, tax income of EUR 1,865m  
(previous year: tax expense of EUR 615m) was incurred due 
to the loss situation, which breaks down as follows:
T080  INCOME TAXES
in €m
2020 
2019
 
Current income taxes
80
547
Deferred income taxes
– 1,945
68
 
– 1,865
615
Current income taxes include corporation tax, solidarity sur-
charge, trade tax and other income taxes paid outside Ger-
many totalling EUR 4m for 2020 (previous year: EUR 382m). 
Other tax expenses of EUR 76m related to prior years  
(previous year: EUR 165m). The tax rates used to calculate 
deferred taxes abroad in the 2020 financial year were 
unchanged from the previous year at 3.5% to 35.0%. For 
measuring deferred taxes, the relevant taxation rules in force 
or adopted at the balance sheet date are used. Deferred 
taxes includes EUR 649m (previous year: EUR 6m) in tax 
income from temporary differences.
The following table reconciles expected and effective tax 
expenses. Expected tax expense is calculated by multiplying 
profit before income taxes by a tax rate of 25% (previous 
year: 25%). This is calculated as the average estimated value 
for the tax group of the Group parent company and is made 
up of a tax rate of 15.825% (previous year: 15.825%) for cor-
poration tax/solidarity surcharge and 9.175% for trade tax 
(previous year: 9.175%). The portion of trade tax related to  
the foreign air transport operations is deducted when calcu-
lating the tax rate for trade tax, particularly in the case of  
the Group parent company with its head office in Germany.
For the first time, individualised tax rates of between 15.825% 
and 31% were used in the financial year to determine the 
deferred taxes on temporary differences attributable to the 
individual companies of the tax group of the parent company  
instead of a uniform estimated value of 25% for the entire  
tax group. With respect to the surpluses of deferred tax assets 
capitalised in previous years, this resulted in an increase of 
EUR 109m in total, of which EUR 51m was recognised directly 
in equity due to its initial recognition.
T081  TAX RECONCILIATION
2020
2019
in €m
Basis of 
assess-
ment
Tax 
expenses 
Basis of 
assess- 
ment
Tax 
expenses 
Expected income  
tax expenses
– 8,631
– 2,158
1,860
465
Tax free gains/losses
– 122
31
–
– 1
Non-deductible costs
488
122
–
59
Non-taxable income
278
– 70
–
– 84
Non-taxable  
income from  
equity investments
– 226
57
–
– 51
Difference between 
local taxes and the 
deferred tax rates of 
the parent company 
as well as effects of 
changes in tax rates
–
– 132
–
– 5
Taxes from  
other periods 1)
–
44
–
193
Effects from use or 
deferred tax assets 
not recognised
–
241
–
39
Recognised income 
tax expenses
–
– 1,865
–
615
1)	 Deferred tax expenses of EUR – 32 m for other periods (previous year: EUR 28m 
tax revenue) and effective tax expenses of EUR 76m for other periods (previous 
year: EUR 165m).
Deferred tax liabilities of EUR 47m (previous year: EUR 48m) 
were not recognised on temporary differences in connection 
with shares in subsidiaries, as the temporary differences are 
not expected to reverse in the foreseeable future.
LUFTHANSA GROUP ANNUAL REPORT 2020
163
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated income statement

Deferred tax assets and liabilities in 2020 and 2019 were  
allocable to the following items in the statement of financial 
position:
T082  DEFERRED TAX ASSETS AND LIABILITIES
31 Dec 2020
31 Dec 2019
in €m
Assets
Liabilities
Assets
Liabilities
Tax loss 
­carry-forwards  
and tax credits
1,341
–
45
–
Pension provisions
3,424
–
2,574
–
Intangible assets, 
property, plant  
and equipment
–
1,034
–
1,112
Non-current  
financial assets
–
24
–
24
Fair value  
measurement of 
financial instruments
113
–
–
235
Provisions for  
contingent losses
15
–
6
–
Receivables/ 
liabilities/ 
other provisions
215
–
163
–
Inventories
313
–
242
–
Assets held for sale
–
15
–
–
Other
–
–
–
2
Offset amounts
– 588
– 588
– 762
– 762
 
4,833
485
2,268
611
In addition to a deferred tax asset on temporary differences 
of EUR 3,243m (previous year: EUR 57m), a deferred tax 
receivable on losses of EUR 1,335m (previous year: EUR 28m) 
was recognised for companies incurring on losses incurred  
a net tax loss in the reporting year or in the previous year, 
because tax and earnings planning indicates that there is  
a sufficient probability that the tax receivable will be realised. 
EUR 1,200m of the capitalised loss carry-forwards related  
to the tax group of Deutsche Lufthansa AG. The full amount 
of the loss carry-forward arising in the financial year was  
recognised. The basis for this approach was long-term tax 
planning based on current corporate planning. Both external 
forecasts, e.g. by the industry association IATA, and internal 
planning currently assume that the current loss situation is 
an exogenous shock which will be overcome in the next few 
years and which does not fundamentally call into question 
the sustainable profitability of the industry or the company. 
Deutsche Lufthansa AG has shown in the past that positive 
tax results can be achieved over long-term periods, and the 
Company’s planning indicates a return to sustained positive 
tax results by 2024 and for subsequent years. Based on 
these external and internal indicators, as well as the fact that 
under current German law the tax loss carry-forward is not 
restricted in time, the Company assumes that there is a high 
probability of sufficiently positive tax results in the future  
to be able to fully utilise the deferred tax assets. This means  
that the period of use is subject to uncertainty, but the Com-
pany does not consider the full use as such to be subject  
to uncertainty. An additional EUR 87m related to Swiss  
International Air Lines, which, on the basis of current earnings 
planning, considers the use of the loss carry-forwards to  
be sufficiently secure for the period of their legally limited 
useful life. 
In addition to recognised deferred tax assets from tax loss 
carry-forwards and tax credits, further tax loss carry-forwards 
and temporary differences totalling EUR 3,324m (previous 
year: EUR 3,050m) exist for which no deferred tax assets 
could be recognised.
The usage restrictions for non-capitalised tax loss carry- 
forwards and the resulting deferred taxes are distributed as 
follows:
T083  LIMITS ON THE USE OF NON-CAPITALISED  
LOSS CARRY-FORWARDS
in €m
Non- 
capitalised 
loss carry- 
forwards
Deferred  
taxes 
 
Usable
 
 
until 2024
328
74
until 2025
89
23
until 2026
106
25
until 2027
70
18
until 2028
70
17
until 2029
70
18
2030 and beyond
2,443
606
Total
3,176
781
16 		 Earnings per share
Basic/diluted earnings per share are calculated by dividing 
consolidated net profit by the weighted average number of 
shares in circulation during the financial year. To calculate  
the average number of shares, the shares bought back and 
reissued for the employee share programmes are included 
pro rata temporis.
The convertible bond issued in 2020 has not yet had an 
impact on earnings per share. The shares that could potentially 
be issued were not taken into account when determining 
diluted earnings, because they would have improved them. 
T084  EARNINGS PER SHARE
 
 
2020 
2019
Basic/diluted earnings per share
€
– 12.51
2.55
Consolidated net profit/loss
€m
– 6,725
1,213
Weighted average number of shares
537,591,908
475,730,992
As the parent company of the Group, Deutsche Lufthansa AG 
reported a net loss according to HGB of EUR 780m for the 
2020 financial year. 
In 2020, the distributable profit for the 2019 financial year 
was transferred in full to retained earnings.
LUFTHANSA GROUP ANNUAL REPORT 2020
164
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated income statement

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Assets
17 		 Goodwill and intangible assets with an indefinite useful life
T085  GOODWILL AND INTANGIBLE ASSETS WITH AN INDEFINITE USEFUL LIFE
in €m
Goodwill from consolidation 
Intangible assets with an  
indefinite useful life
Total 
Cost as of 1 Jan 2019
1,050
648
1,698
Accumulated impairment losses
– 314
– 3
– 317
Carrying amount 1 Jan 2019
736
645
1,381
Currency translation differences
–
14
14
Additions due to changes in consolidation 
–
–
–
Additions 
–
–
–
Reclassifications 
–
–
–
Disposals due to changes in consolidation
–
–
–
Disposals
–
–
–
Reclassifications to assets held for sale
–
–
–
Impairment losses 
–
–
–
Reversal of impairment losses 
–
–
–
Carrying amount 31 Dec 2019
736
659
1,395
Cost as of 1 Jan 2019
1,044
663
1,707
Accumulated impairment losses
– 308
– 4
– 312
Carrying amount 1 Jan 2020
736
659
1,395
Currency translation differences 
– 3
–
– 3
Additions due to changes in consolidation 
–
–
–
Additions 
–
–
–
Reclassifications 
–
–
–
Disposals due to changes in consolidation 
– 1
–
– 1
Disposals 
–
–
–
Reclassifications to assets held for sale 
–
–
–
Impairment losses 
– 222
–
– 222
Reversal of impairment losses 
–
–
–
Carrying amount 31 Dec 2020
510
659
1,169
Cost as of 31 Dec 2020
1,038
662
1,700
Accumulated impairment losses
– 528
– 3
– 531
 
All goodwill and intangible assets with an indefinite useful 
life were subjected to a regular impairment test in 2020  
as required by IAS 36. Furthermore, there is the obligation  
to perform an impairment test if there is an indication of 
impairment. For impairment testing following an indication 
of impairment ↗ Note 17, p. 165f.
Acquired brands and slots have an indefinite useful life due 
to their lasting legal and economic significance. The tests 
were performed at the level of the smallest cash generating 
unit (CGU) on the basis of fair value less costs to sell or  
value in use. 
LUFTHANSA GROUP ANNUAL REPORT 2020
165
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

The following table provides an overview of the goodwill 
tested and the assumptions made in the respective impair-
ment tests regarding the smallest possible cash-generating 
unit (CGU) in each case.
T086  IMPAIRMENT TESTS OF GOODWILL 2020
Name of the CGU  
 
 
Segment 
 
Lufthansa  
German Airlines 
 
Network  
Airlines 
Brussels  
Airlines  
 
Brussels  
Airlines 
Eurowings  
 
 
Eurowings 
 
LSG Sky Chefs 
USA group  
 
Catering 
 
LSG Sky Chefs 
Korea  
 
Catering 
 
Other  1)
 
 
Catering/Service 
and financial  
companies
Carrying amount of goodwill (31 Dec)
€ 252m 
€ 44m 
–
€ 177m 
–
€ 36m 
Impairment losses
–
–
€ 57m
€ 100m 
€ 57m 
€ 8m 
Duration of planning period
4 years
4 years
4 years
4 years
4 years
4 years
Revenue growth p.a.  
after end of planning period
1.0%
1.0%
1.0%
2.2%
2.0%
1.0% to 3.1%
Discount rate
5.5%  2)
5.5%  2)
5.5%  2)
5.7%  2)
5.5%  2)
5.0% to 9.6%  2)
1)	 Goodwill of less than EUR 25m carrying amount in any individual instance.
2)	After-tax rate.
The assumptions on revenue growth used for the impairment 
tests are based on approved internal budgets and external 
industry-specific sources (for example IATA) in the planning 
period. Discounts were also applied based on the planning of 
the individual businesses, which take into account the corre-
sponding planning uncertainties due to the crisis situation. 
Within the scope of the Group planning, the discounts were 
set at approximately 18% of the Adjusted EBIT figure on a 
long-term basis and were allocated to the units on a pro rata 
basis during the impairment tests. In general, a slow market 
recovery and with it the recovery of the earnings situation  
is assumed by the end of 2024, although losses are still 
assumed for the years 2021 and 2022. Even in the long term, 
capacities are not expected to return to pre-crisis levels.  
The duration of the ramp-up phase is an important risk factor. 
The margins used are based on past experience or were 
developed on the basis of cost-cutting measures initiated  
on the basis of the plans for the ReNew and ReStructure 
programmes. Long-term investment rates are based on past 
experience and take account of the replacement of any 
means of production envisaged during the planning period 
as well as current changes in fleet planning. Costs of the 
central functions were charged to the individual units based 
on their use of these functions. The tests also covered the 
right-of-use assets recognised in line with IFRS 16. 
The weighted average cost of capital is calculated using 
market data to derive leverage ratios, beta factors and bor-
rowing costs from a peer group that is reviewed annually. A 
market risk premium of 7.5% was used as a basis (previous 
year: 7.5%). Regional risks are taken into account by applying 
appropriate risk premiums.
With the onset of the coronavirus pandemic, the occurrence 
of a “triggering event” meant that interim impairment tests 
were carried out for all material business entities at the  
level of the cash-generating units during the first quarter. 
Compared with year-end 2019, the tests were performed 
with a discount rate that was 1 percentage point higher and  
1 percentage point lower growth from the end of the planning 
period. This was based on the preliminary updates of the 
Company’s planning, with an additional discount applied to 
the earnings figures in the terminal value for the existing high 
uncertainties at the beginning of the crisis and the preliminary 
nature of the planning. The result was an impairment loss at 
the entities Eurowings and LSG USA. Goodwill of EUR 57m 
at Eurowings was written off in full and goodwill at LSG USA 
was impaired by EUR 100m. 
At the end of the year, impairment tests were carried out  
at the level of the cash-generating units based on the 
assumptions described in the table. 
The LSG Korea unit, the flight training operations and other 
smaller catering companies had to be written down. Good-
will of EUR 57m at LSG Korea as well as the goodwill of the 
flight training operations and various catering companies 
totalling EUR 8m were written off in full. Property, plant and 
equipment at the flight training operations were also 
impaired in the amount of EUR 22m.
An impairment test was carried out for LSG Sky Chefs  
Nigeria and LSG Sky Chefs Kenya as of 31 December 2020, 
which resulted in impairment losses of EUR 9m on property, 
plant and equipment.
LUFTHANSA GROUP ANNUAL REPORT 2020
166
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

Assuming sustained revenue growth by the CGUs as described 
in the table, the recoverable amounts for the units without 
impairment indicators at the end of the year would exceed 
the carrying amount by a significant figure, even if the 
growth assumptions were reduced by one percentage point 
in each case. Worsening the scenarios by one percentage 
point in each case, in terms of planned EBITDA margins or 
the discount rates used for the impairment tests, would also 
not reduce the recoverable amounts below the respective 
carrying amounts for these CGUs. A reduction in the EBITDA  
margin of more than 0.6 percentage points only leads to a 
deficit for the LSG North America business entity. The dete-
rioration in the parameters mentioned would also not result 
in any significant additional impairment needs for those  
units for which the impairment tests led to write-downs at 
the end of the year. The sensitivity analysis takes into account 
changes in one assumption at a time, whereby the other 
assumptions remain unchanged from the original calculation. 
The following table shows the assumptions used for the  
previous year’s impairment tests.
T086  IMPAIRMENT TESTS OF GOODWILL 2019
Name of the CGU  
 
 
Segment 
 
Lufthansa  
German Airlines 
 
Network  
Airlines 
Brussels  
Airlines  
 
Brussels  
Airlines 
Eurowings  
 
 
Eurowings 
 
LSG Sky Chefs 
USA group  
 
Catering 
 
LSG Sky Chefs 
Korea  
 
Catering 
 
Other  1)
 
 
Catering/Service 
and financial  
companies
Carrying amount of goodwill (31 Dec)
€ 252m
€ 44m
€ 57m
€ 277m
€ 60m
€ 45m
Impairment losses
–
–
–
–
–
–
Duration of planning period
4 years
4 years
4 years
4 years
4 years
4 years
Revenue growth p.a.  
after end of planning period
2.0%
2.0%
2.0%
1.9%
2.6%
1.7% to 3.5%
Discount rate
3.9% 2)
3.9% 2)
3.9% 2)
4.6% 3)
4.1% 3)
3.9% 2) to 7.7% 3)
1)	 Goodwill of less than EUR 25m carrying amount in any individual instance.
2)	After-tax rate.
3)	Pre-tax rate.
The earnings situation of Austrian Airlines would also  
have triggered an impairment test if the value of the assets 
attributable to it had not already been confirmed by the 
impairment testing of the slots described below.
The intangible assets with indefinite useful lives consist of 
slots purchased as part of company acquisitions (insofar as 
they are tradeable) and brand names acquired. The slots were 
included in the impairment test for the smallest cash-gener-
ating unit (CGU) to which the respective slots are allocated. 
The following table shows the assumptions made for the 
impairment testing.
T087  IMPAIRMENT TESTS OF SLOTS 2020
Group company
SWISS
Austrian Airlines
Carrying amount for slots (31 Dec)
€ 135m 
€ 23m 
Impairment losses
–
–
Duration of planning period
4 years
4 years
Revenue growth p.a.  
after end of planning period
1.0%
1.0%
Discount rate
5.5% 1)
5.5% 1)
1)	 After-tax rate.
Based on sustainable revenue growth according to assump-
tions described in the table, the recoverable amounts signifi-
cantly exceed the carrying amounts. Even if the assumptions 
for revenue growth and margins were to be reduced or the 
discount rate were to be increased by one percentage point 
in each case, the recoverable amounts would exceed the 
carrying amounts.
The sensitivity analysis takes into account changes in one 
assumption at a time, whereby the other assumptions remain 
unchanged from the original calculation.
The following table shows the assumptions used for the  
previous year’s impairment tests.
T087  IMPAIRMENT TESTS OF SLOTS 2019
Group company
SWISS
Austrian Airlines
Carrying amount for slots (31 Dec)
€ 135m 
€ 23m 
Impairment losses
–
–
Duration of planning period
4 years
4 years
Revenue growth p.a.  
after end of planning period
2.0%
2.0%
Discount rate
3.9% 1)
3.9% 1)
1)	 After-tax rate.
LUFTHANSA GROUP ANNUAL REPORT 2020
167
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

The slots purchased by Deutsche Lufthansa AG are allocated 
at historical cost to the Lufthansa German Airlines unit at a 
carrying amount of EUR 76m and to the Eurowings unit with 
a carrying amount of EUR 36m. Both carrying amounts as of 
31 December 2020, which were unchanged compared with 
the previous year, were subjected to impairment testing with 
identical assumptions to those used for the goodwill of the 
CGUs Lufthansa German Airlines and Eurowings.
The regular impairment test for the brands acquired was  
carried out on the basis of the revenue generated from each 
brand.
The following additional assumptions were used in the 
impairment test for the acquired brands:
T088  IMPAIRMENT TESTS OF BRANDS 2020
Group company
SWISS
Austrian Airlines
Brussels Airlines
Other
Carrying amount for brand (31 Dec)
€ 238m
€ 107m
€ 37m
€ 7m
Impairment losses
–
–
–
–
Duration of planning period
4 years
4 years
4 years
4 years
Revenue growth p.a. after end of planning period
1.0%
1.0%
1.0%
1.0% to 2.2%
Savings in hypothetical leasing payments before taxes (royalty rate)
0.63%
0.35%
0.20%
0.23% to 0.50%
Discount rate
5.5% 1)
5.5% 1)
5.5% 1)
5.5% to 5.7%  1)
1)	 After-tax rate.
Assuming sustained brand-related revenue growth at the 
end of the planning period, as described in the table, the 
recoverable amounts for the brands exceed their carrying 
amounts, significantly in some cases. If the assumptions for 
sustained brand-related revenue growth were to be reduced 
by 0.5 percentage points or the discount rate were to be 
increased by 0.4 percentage points, the carrying amounts of 
the Austrian Airlines and Brussels Airlines brands would each 
fall short of the recoverable amounts. With corresponding 
sensitivity analyses, there was no impairment charge within 
the other brands in 2020. 
The sensitivity analysis takes into account changes in one 
assumption at a time, whereby the other assumptions remain 
unchanged from the original calculation. 
The assumptions used for the previous year’s impairment 
tests can be derived from the following table.
T088  IMPAIRMENT TESTS OF BRANDS 2019
Group company
SWISS
Austrian Airlines
Brussels Airlines
Other
Carrying amount for brand (31 Dec)
€ 238m
€ 107m
€ 37m
€ 7m
Impairment losses
–
–
–
–
Duration of planning period
4 years
4 years
4 years
4 years
Revenue growth p.a. after end of planning period
2.0%
2.0%
1.0%
0.0% to 2.0%
Savings in hypothetical leasing payments before taxes (royalty rate)
0.63%
0.35%
0.20%
0.23% to 0.50%
Discount rate
3.9% 1)
3.9% 1)
3.9% 1)
3.9% to 4.4% 1)
1)	 After-tax rate.
LUFTHANSA GROUP ANNUAL REPORT 2020
168
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

18 		 Other intangible assets
T089  OTHER INTANGIBLE ASSETS
in €m
Concessions, 
industrial  
property rights  
and similar rights 
and licences  
to such rights  
and assets
Internally ­ 
developed  
software 
 
 
 
Advance  
payments 
 
 
 
 
Total 
 
 
 
 
 
Cost as of 1 Jan 2019
1,289
150
152
1,591
Accumulated amortisation 
– 949
– 115
– 15
– 1,079
Carrying amount as of 1 Jan 2019
340
35
137
512
Currency translation differences 
4
– 1
–
3
Additions due to changes in consolidation 
–
–
–
–
Additions 
52
3
101
156
Reclassifications 
43
11
– 41
13
Disposals due to changes in consolidation 
–
–
–
–
Disposals
– 7
–
– 8
– 15
Reclassifications to assets held for sale
– 1
–
–
– 1
Amortisation 
– 99
– 9
– 13
– 121
Reversal of impairment losses 
–
–
–
–
Carrying amount as of 31 Dec 2019
332
39
176
547
Cost as of 1 Jan 2020
1,324
163
205
1,692
Accumulated amortisation
– 992
– 124
– 29
– 1,145
Carrying amount as of 1 Jan 2020
332
39
176
547
Currency translation differences 
– 1
–
–
– 1
Additions due to changes in consolidation 
–
–
–
–
Additions 
18
3
59
80
Reclassifications 
80
12
– 88
4
Disposals due to changes in consolidation 
–
–
–
–
Disposals
– 8
–
– 4
– 12
Reclassifications to assets held for sale
–
–
–
–
Amortisation 
– 126
– 21
– 2
– 149
Reversal of impairment losses 
–
–
–
–
Carrying amount as of 31 Dec 2020
295
33
141
469
Cost as of 31 Dec 2020
1,393
178
157
1,728
Accumulated amortisation
– 1,098
– 145
– 16
– 1,259
Non-capitalised research and development expenses for 
intangible assets of EUR 25m (previous year: EUR 49m) 
were incurred. Fixed orders have been placed for intangible 
assets worth EUR 13m (previous year: EUR 14m), but they 
are not yet at the Lufthansa Group’s economic disposal.
LUFTHANSA GROUP ANNUAL REPORT 2020
169
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

19 		 Aircraft and reserve engines including  
right-of-use assets
T090  AIRCRAFT AND RESERVE ENGINES INCLUDING  
RIGHT-OF-USE ASSETS
in €m
Aircraft and 
reserve  
engines 
 
Advance  
payments for 
aircraft and 
reserve  
engines
Total 
 
 
 
Cost as of 1 Jan 2019
31,609
1,690
33,299
Accumulated amortisation 
– 16,122
–
– 16,122
Carrying amount  
as of 1 Jan 2019
15,487
1,690
17,177
Currency translation  
differences
111
10
121
Additions due to changes  
in ­consolidation
–
–
–
Additions
2,149
1,098
3,247
Reclassifications
691
– 691
–
Disposals due to changes  
in ­consolidation 
–
–
–
Disposals
– 69
– 5
– 74
Reclassifications to assets 
held for sale 
– 20
–
– 20
Depreciation 
– 2,121
–
– 2,121
Reversal of impairment losses 
19
–
19
Carrying amount  
as of 31 Dec 2019
16,247
2,102
18,349
Cost as of 1 Jan 2020
32,945
2,102
35,047
Accumulated amortisation 
– 16,698
–
– 16,698
Carrying amount  
as of 1 Jan 2020
16,247
2,102
18,349
Currency translation  
differences
– 33
–
– 33
Additions due to changes  
in ­consolidation
–
–
–
Additions
1,004
258
1,262
Reclassifications
602
– 602
–
Disposals due to changes  
in ­consolidation 
–
–
–
Disposals
– 119
– 27
– 146
Reclassifications to assets 
held for sale 
– 149
–
– 149
Depreciation 
– 3,441
–
– 3,441
Reversal of impairment losses 
–
–
–
Carrying amount  
as of 31 Dec 2020
14,111
1,731
15,842
Cost as of 31 Dec 2020
32,025
1,731
33,756
Accumulated amortisation 
– 17,914
–
– 17,914
In the aircraft item, aircraft with a carrying amount of  
EUR 7,048m (previous year: EUR 2,449m) serve as collateral 
for existing aircraft financing. This collateral is composed as 
described below:
The item includes 79 aircraft with a carrying amount of  
EUR 1,988m (previous year: 80 aircraft with a carrying 
amount of EUR 2,549m), which have mostly been sold to 
and leased back from foreign leasing companies with the 
aim of obtaining favourable financing conditions. The leasing 
companies were fully consolidated as structured entities. 
The Lufthansa Group is entitled to buy the aircraft back at a 
fixed price and at a given point in time. Another four aircraft 
(previous year: none) with a carrying amount of EUR 416m 
(previous year: EUR 0m) were pledged as collateral under 
loan agreements.
Furthermore, rights of lien were granted on various shares in 
leasing companies in Malta and Austria in connection with 
the state funding for Deutsche Lufthansa AG to secure  
the KfW loan; these companies own a total of 323 aircraft 
with a carrying amount of EUR 4,432m. Austrian Airlines in 
Austria has granted liens on 38 aircraft with a book value  
of EUR 212m to a banking consortium as part of the stabili-
sation measures. 
In the reporting year, borrowing costs of EUR 19m were  
capitalised (previous year: EUR 24m). The financing rate 
used was 0.9% (previous year: 1.3%).
The additions relate to the procurement of new aircraft and 
engines as well as the capitalisation of engine maintenance 
events. This item also includes right-of-use assets for aircraft 
and reserve engines amounting to EUR 261m (previous year: 
EUR 227m). 
As a result of the nearly complete shutdown of passenger 
flight operations, which could only be reversed in stages, the 
operation plans for all components of the fleet were revised.  
As part of these restructuring plans, charter contracts and 
leases were terminated and company-owned aircraft were 
either released for sale, permanently retired or put into deep 
storage. The aircraft concerned and right-of-use assets for 
aircraft and reserve engines were subjected to an impair-
ment test insofar as a resumption of operations is considered 
unlikely on the basis of current planning. On the basis of 
expected realisation prices or due to the lack of additional 
values in use of the leases, this led to write-downs totalling 
EUR 1,515m (previous year: EUR 36m) for a total of 115 aircraft 
and other reserve engines ↗ Note 10, p. 160ff.
Order commitments for aircraft and reserve engines amount 
to EUR 12.9bn (previous year: EUR 14.3bn). We also refer  
to the comments on fleet orders in the management report 
(↗ Principles of the Group, Fleet and route network, p. 25ff.).
LUFTHANSA GROUP ANNUAL REPORT 2020
170
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

20		 Repairable spare parts
T091  NOTES ON REPAIRABLE SPARE PARTS FOR AIRCRAFT
2020
2019
in €m
Gross  
acquisition cost
Accumulated 
depreciation
Net carrying 
amount
Gross  
acquisition cost
Accumulated 
depreciation
Net carrying 
amount
Pool material
2,283
972
1,311
2,390
938
1,452
Non-pool material
1,055
543
512
1,246
428
818
Total
3,338
1,515
1,823
3,636
1,366
2,270
The additions for the year (netted against disposals) accord-
ingly amounted to EUR – 107m (previous year: EUR + 139m) 
for pool material and EUR – 191m (previous year: EUR + 100m) 
for non-pool material in the financial year; the net change  
in depreciation recognised in profit and loss was EUR 34m 
(previous year: EUR 60m) and EUR 115m (previous year:  
EUR 42m). Of the depreciation and amortisation expense  
for the financial year, EUR 158m related to impairments  
in connection with materials that are expected to become 
obsolete as a result of the adjusted outlook for business 
development and spare parts for aircraft types that are not 
expected to be supplied with materials even after the end  
of the coronavirus crisis.
21 		 Property, plant and equipment including right-of-use assets
T092  PROPERTY, PLANT AND OTHER EQUIPMENT INCLUDING RIGHT-OF-USE ASSETS
in €m
Land and  
buildings 
 
Technical 
­equipment and 
machinery 
Other equipment, 
operating and 
office equipment 
Advance  
payments and 
plant under  
construction
Total 
 
 
Cost as of 1 Jan 2019
4,248
1,315
1,528
142
7,233
Accumulated depreciation
– 1,467
– 946
– 1,036
– 13
– 3,462
Carrying amount as of 1 Jan 2019
2,781
369
492
129
3,771
Currency translation differences 
21
4
2
3
30
Additions due to changes in consolidation 
36
–
–
–
36
Additions 
692
42
151
102
987
Reclassifications 
50
15
18
– 98
– 15
Disposals due to changes in consolidation 
–
–
–
–
–
Disposals 
– 50
– 1
– 8
– 3
– 62
Reclassifications to assets held for sale 
– 112
– 22
– 56
– 9
– 199
Depreciation 
– 327
– 58
– 122
–
– 507
Reversal of impairment losses 
–
–
–
–
–
Carrying amount as of 31 Dec 2019
3,091
349
477
124
4,041
Cost as of 1 Jan 2020
4,714
1,245
1,470
124
7,553
Accumulated depreciation
– 1,623
– 896
– 993
–
– 3,512
Carrying amount as of 1 Jan 2020
3,091
349
477
124
4,041
Currency translation differences 
– 38
– 6
– 11
– 4
– 59
Additions due to changes in consolidation 
–
–
–
–
–
Additions 
228
34
72
61
395
Reclassifications 
25
17
18
– 65
– 5
Disposals due to changes in consolidation 
– 1
–
–
–
– 1
Disposals 
– 98
– 1
– 20
– 19
– 138
Reclassifications to assets held for sale 
– 11
– 3
7
8
1
Depreciation 
– 363
– 79
– 120
– 2
– 564
Reversal of impairment losses 
1
–
–
–
1
Carrying amount as of 31 Dec 2020
2,834
311
423
103
3,671
Cost as of 31 Dec 2020
4,703
1,256
1,453
105
7,517
Accumulated depreciation
– 1,869
– 945
– 1,030
– 2
– 3,846
LUFTHANSA GROUP ANNUAL REPORT 2020
171
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

There are no charges over land and property (previous year: 
EUR 4m). Pre-emption rights are registered for land held at 
EUR 178m (previous year: EUR 185m). Other property, plant 
and equipment carried at EUR 4m (previous year: EUR 4m) 
serves as collateral for existing financing arrangements. 
The following items of property, plant and equipment have 
been ordered, but are not yet at the Lufthansa Group’s  
economic disposal:
T093  ORDERS OF PROPERTY, PLANT AND EQUIPMENT  
AS OF THE REPORTING DATE
in €m
31 Dec 2020  31 Dec 2019
Land and buildings 
11
20
Technical equipment and vehicles
19
37
Operating and office equipment
26
61
56
118
22		 Leases
The following table shows the carrying amounts of the  
recognised right-of-use assets and the changes during the 
reporting period.
T094  RIGHT-OF-USE ASSETS
in €m
Aircraft and 
reserve engines 
 
 
Land and 
­buildings 
 
 
Technical 
equipment  
and  
machinery 
Other 
­intangible 
assets and 
technical  
equipment
Total 
 
 
 
Cost as of 1 Jan 2019
1,456
1,749
1
28
3,234
Accumulated depreciation
– 477
– 128
– 1
– 6
– 612
Carrying amount as of 1 Jan 2019
979
1,621
–
22
2,622
Currency translation differences 
4
14
–
–
18
Additions due to changes in consolidation 
–
–
–
–
–
Additions 
227
642
–
13
882
Reclassifications 
– 1
– 6
–
–
– 7
Disposals due to changes in consolidation 
–
–
–
–
–
Disposals 
– 8
– 45
–
– 1
– 54
Reclassifications to assets held for sale 
–
– 30
–
– 1
– 31
Depreciation 
– 264
– 244
–
– 12
– 520
Reversal of impairment losses 
–
–
–
–
–
Carrying amount as of 31 Dec 2019
937
1,952
–
21
2,910
Cost as of 1 Jan 2020
1,588
2,225
–
38
3,851
Accumulated depreciation
– 651
– 273
–
– 17
– 941
Carrying amount as of 1 Jan 2020
937
1,952
–
21
2,910
Currency translation differences 
–
– 21
–
–
– 21
Additions due to changes in consolidation 
–
–
–
–
–
Additions 
261
205
–
6
472
Reclassifications 
– 3
– 1
–
–
– 4
Disposals due to changes in consolidation 
–
–
–
–
–
Disposals 
– 24
– 97
–
– 1
– 122
Reclassifications to assets held for sale 
–
– 2
–
– 1
– 3
Depreciation 
– 311
– 264
–
– 10
– 585
Reversal of impairment losses 
–
1
–
–
1
Carrying amount as of 31 Dec 2020
860
1,773
–
15
2,648
Cost as of 31 Dec 2020
1,652
2,273
–
37
3,962
Accumulated depreciation
– 792
– 500
–
– 22
– 1,314
LUFTHANSA GROUP ANNUAL REPORT 2020
172
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

The Lufthansa Group mainly leases property, particularly at 
airports, as well as aircraft and other operating and office 
equipment. Leases may include renewal and termination 
options. The terms of the leases are negotiated individually 
and cover a wide range of different areas. Longer-term leases 
exist particularly for property. There is a remaining lease term 
of up to 35 years for land and buildings (previous year: up to 
36 years) as of the reporting date.
The average remaining term of the aircraft leases as of 31 De- 
cember 2020 was three years (previous year: four years).  
The additions to rights-of-use assets for aircraft in 2020 
relate to six aircraft. 
The leases existing under IFRS 16 affected the consolidated 
income statement as follows:
T095  LEASE EXPENSES RECOGNISED IN PROFIT OR LOSS
in €m
2020
2019
Amortisation of right-of-use assets 
585
520
Interest expenses for lease liabilities 
69
72
Expenses for short-term leases
50
193
Expenses for low-value leases
120
120
Variable lease payments
80
126
Some of the Lufthansa Group’s leases for properties and  
aircraft include renewal options and variable lease payments. 
They are used to obtain the greatest possible flexibility in 
terms of capacities. They have not been taken into account in 
various cases when measuring the lease liabilities, because it 
is not reasonably certain that they will be exercised. Potential 
future lease payments for periods after the exercise date of 
the renewal options are summarised in the following table:
T096  DISCLOSURES ON RENEWAL OPTIONS AND VARIABLE LEASE PAYMENTS 2020
Recognised  
lease liability  
(discounted)
Potential future lease payments  
not included in lease liabilities  
(undiscounted payments)
in €m
31 Dec 2020
Payable 2021 – 2025
Payable after 2025
Total
Aircraft
461
306
42
348
Property
1,812
71
435
506
Total
2,273
377
477
854
T096  DISCLOSURES ON RENEWAL OPTIONS AND VARIABLE LEASE PAYMENTS 2019
Recognised  
lease liability  
(discounted)
Potential future lease payments  
not included in lease liabilities  
(undiscounted payments)
in €m
31 Dec 2019
Payable 2020 – 2024
Payable after 2024
Total
Aircraft
486
296
34
330
Property
1,929
55
396
451
Total
2,415
351
430
781
Where termination options existed for individual leases,  
their exercise was considered unlikely, so that additional 
lease payments were already taken into account in the corre-
sponding lease liability. 
LUFTHANSA GROUP ANNUAL REPORT 2020
173
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

Amounts included in the cash flow statement are shown in 
the following table:
T097  CASH OUTFLOWS FOR LEASES 
in €m
2020
2019
Lease expenses from short-term  
and low-value leases and variable  
lease payments not included in  
the measurement of lease liabilities
250
439
Repayment of the redemption  
portion of the lease liability
480
499
Interest payments
67
69
Total
797
1,007
Lease payments are shown as cash flows from financing 
activities unless they are lease payments included in the 
measurement of lease liabilities, which are shown as cash 
flow from operating activities. 
The maturity analysis of lease liabilities is shown under  
borrowings, ↗ Note 37, p. 191.
Information about operating leases in which the Lufthansa 
Group is lessor can be found in ↗ Note 7, p. 159f.
23		 Equity investments accounted for using  
the equity method
T098  EQUITY INVESTMENTS ACCOUNTED FOR USING  
THE EQUITY METHOD
in €m
Investments 
in joint 
­ventures
Investments 
in associated 
companies
Total 
 
Cost as of 1 Jan 2019
391
263
654
Accumulated impairment losses
–
– 4
– 4
Carrying amount  
as of 1 Jan 2019
391
259
650
Currency translation differences 
3
9
12
Additions due to changes  
in ­consolidation 
–
–
–
Additions 
77
–
77
Changes with and without  
an effect on profit and loss 
70
73
143
Reclassifications
–
–
–
Disposals due to changes  
in ­consolidation 
–
–
–
Disposals 
–
–
–
Dividends paid 
– 62
– 101
– 163
Reclassifications to assets 
held for sale
–
– 4
– 4
Impairment losses 
– 43
–
– 43
Reversal of impairment losses 
–
–
–
Carrying amount  
as of 31 Dec 2019
436
236
672
Cost as of 1 Jan 2020
479
241
720
Accumulated impairment losses
– 43
– 5
– 48
Carrying amount  
as of 1 Jan 2020
436
236
672
Currency translation differences 
– 11
– 19
– 30
Additions due to changes  
in ­consolidation 
–
–
–
Additions 
31
–
31
Changes with and without  
an effect on profit and loss 
– 167
– 33
– 200
Reclassifications
39
–
39
Disposals due to changes  
in ­consolidation 
–
–
–
Disposals 
2
–
2
Dividends paid 
– 32
– 13
– 45
Reclassifications to assets 
held for sale
–
–
–
Impairment losses 
– 66
–
– 66
Reversal of impairment losses 
–
–
–
Carrying amount  
as of 31 Dec 2020
232
171
403
Cost as of 31 Dec 2020
340
176
516
Accumulated impairment losses
– 108
– 5
– 113
Reclassifications of interests in joint ventures relate to the 
right to profits of Terminal 2 Gesellschaft mbH & Co. OHG 
for 2019, which was reported under current receivables in  
the previous year and whose collection was partially waived 
in 2020.
LUFTHANSA GROUP ANNUAL REPORT 2020
174
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

Due to the deterioration in the business outlook in connection 
with the coronavirus crisis and its further impact on the  
market situation, impairment tests were carried out for the  
joint ventures XEOS and Spairliners in the MRO segment as 
well as at Diners Club Spain (Service & Finance companies), 
resulting in write-downs totalling EUR 66m. In the previous 
year, write-downs totalled EUR 43m and related to a Catering 
company. For the write-down on shares in joint ventures in 
2020, see ↗ Note 10, p. 160f.
Individual interests in companies accounted for  
using the equity method
The following tables show condensed earnings and balance 
sheet data for the individual material joint ventures accounted 
for using the equity method.
T099  BALANCE SHEET DATA  
GÜNES EKSPRES HAVACILIK ANONIM SIRKETI  
(SUNEXPRESS), ANTALYA, TURKEY
in €m
31 Dec 2020
31 Dec 2019
Current assets
558
594
	
of which cash and cash equivalents
310
317
Non-current assets
845
1,204
Current liabilities
738
769
Non-current liabilities
559
715
Current financial liabilities (except trade  
and other payables and provisions)
490
312
Non-current financial liabilities (except trade 
and other payables and provisions)
442
583
Shareholders’ equity
106
314
Share of equity
53
157
Other
24
21
Carrying amount
77
178
T100  INCOME STATEMENT DATA  
GÜNES EKSPRES HAVACILIK ANONIM SIRKETI  
(SUNEXPRESS), ANTALYA, TURKEY
in €m
2020 
2019
Revenue
493
1,432
Depreciation and amortisation
103
148
Interest income
4
6
Interest expenses
27
25
Income tax expense or income
19
14
Profit or loss from continuing operations
– 158
48
Profit or loss after tax from  
discontinued operations
–
–
Other comprehensive income
– 14
9
Total comprehensive income
– 172
57
Share of profit or loss from  
continuing operations
– 102
24
Share of comprehensive income
– 102
31
Dividends received
–
–
The item “Other” in the reconciliation with the carrying 
amount for SunExpress primarily includes the difference 
from the first-time consolidation of the company.
Due to the deterioration in the Company’s business situation 
caused by the coronavirus, an impairment test was also carried 
out for SunExpress, whose German subsidiary SunExpress 
Deutschland will cease business operations. This was based 
on the Company’s business plans, which show a crisis expe-
rience comparable to that of the Group companies in the 
passenger business. A discount factor of 7.0%, growth in sales 
of the perpetual annuity of 1.0% and a contingency discount 
on the sustainable result of 40% were assumed for the 
measurement. Even in the event of a further deterioration  
in the parameters by 2 percentage points or 10 percentage 
points, respectively, there would be no indication of an 
impairment of the carrying amounts. 
T101  BALANCE SHEET DATA  
TERMINAL 2 GESELLSCHAFT MBH & CO. OHG,  
MUNICH AIRPORT, GERMANY
in €m
31 Dec 2020
31 Dec 2019
Current assets
15
46
	
of which cash and cash equivalents
–
–
Non-current assets
1,265
1,323
Current liabilities
209
400
Non-current liabilities
1,030
908
Current financial liabilities (except trade  
and other payables and provisions)
137
256
Non-current financial liabilities (except trade 
and other payables and provisions)
1,002
880
Shareholders’ equity
41
61
Share of equity
17
25
Other
–
–
Carrying amount
17
25
T102  INCOME STATEMENT DATA  
TERMINAL 2 GESELLSCHAFT MBH & CO. OHG,  
MUNICH AIRPORT, GERMANY
in €m
2020 
2019
Revenue
123
357
Depreciation and amortisation
83
84
Interest income
–
–
Interest expenses
31
36
Income tax expense or income
–
10
Profit or loss from continuing operations
– 97
78
Profit or loss after tax from  
discontinued operations
–
–
Other comprehensive income
11
16
Total comprehensive income
– 86
94
Share of profit or loss from  
continuing operations
– 39
31
Share of comprehensive income
– 34
38
Dividends received
12
38
	
	
	
LUFTHANSA GROUP ANNUAL REPORT 2020
175
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

The following table contains summarised aggregated data 
from the income statements and carrying amounts for the 
individually immaterial joint ventures accounted for using the 
equity method.
T103  INCOME STATEMENTS DATA AND CARRYING AMOUNTS  
OF JOINT VENTURES ACCOUNTED FOR USING  
THE EQUITY METHOD
in €m
2020 
2019
Profit or loss from continuing operations
– 30
1
Profit or loss after tax from  
discontinued operations
–
–
Other comprehensive income
–
–
Total comprehensive income
– 30
1
Depreciation and amortisation
– 66
– 43
Carrying amount
138
233
The following table shows condensed earnings data and  
carrying amounts for the individual immaterial associated 
companies accounted for using the equity method.
T104  INCOME STATEMENTS DATA AND CARRYING AMOUNTS  
OF ASSOCIATED COMPANIES ACCOUNTED FOR USING  
THE EQUITY METHOD
in €m
2020 
2019
Profit or loss from continuing operations
– 40
74
Profit or loss after tax from  
discontinued operations
–
–
Other comprehensive income
3
– 1
Total comprehensive income
– 37
73
Carrying amount
171
236
24		 Other equity investments and non-current securities
T105  OTHER EQUITY INVESTMENTS AND NON-CURRENT SECURITIES
in €m
31 Dec 2020
31 Dec 2019
Investments in affiliated companies
218
223
Investments
34
33
Other investments
252
256
Non-current securities
54
53
Shares in related parties include shares in affiliated companies, 
joint ventures and associates that are not consolidated for 
reasons of materiality. These shares are carried at amortised 
cost. Disclosures on the equity investments and non-current 
securities can be found in ↗ Note 45, p. 205ff.
25		 Non-current loans and receivables
T106  NON-CURRENT LOANS AND RECEIVABLES
in €m
31 Dec 2020
31 Dec 2019
Loans to and receivables from  
affiliated companies 
104
104
Loans to and receivables from  
other equity investments 
–
–
Other loans and receivables
169
241
Emissions certificates
167
124
 
440
469
Non-current loans and receivables are carried at amor- 
tised cost.
CO₂ emissions certificates valued at EUR 275m were sold 
and simultaneously repurchased on the market on a forward 
basis in what are known as repo agreements so that economic 
ownership of the certificates is maintained. Appropriate other 
liabilities were recognised in the amount of the consideration 
received. For the impairment test for emissions certificates, 
we refer to the disclosures on the cash-generating units 
(CGUs) Lufthansa German Airlines, SWISS, Austrian Airlines, 
Eurowings and Brussels Airlines in ↗ Note 17, p. 165ff.
Other receivables include expected reimbursements for  
obligations for which provisions have been made amounting 
to EUR 1m (previous year: EUR 2m). Of the non-current 
receivables, EUR 1m (previous year: EUR 1m) serve as collat-
eral for liabilities.
26		 Inventories
T107  INVENTORIES
in €m
31 Dec 2020
31 Dec 2019
Raw materials, consumables and supplies 
650
888
Finished goods and work in progress 
75
88
Advance payments 
1
4
726
980
No inventories have been pledged as collateral for loans. 
EUR 571m of the inventories (previous year: EUR 782m)  
consist of non-repairable spare parts for aircraft.
The gross value of written-down inventories as of 31 Decem-
ber 2020 was EUR 938m (previous year: EUR 998m). Inven-
tories with a carrying amount of EUR 542m (previous year: 
EUR 716m) are held at net realisable value. Write-downs to net 
realisable value of EUR 276m were made at the beginning  
LUFTHANSA GROUP ANNUAL REPORT 2020
176
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

of the financial year (previous year: EUR 259m). New impair-
ment losses of EUR 129m were recognised in the reporting 
year (previous year: EUR 41m), most of which relate to the 
MRO segment. Write-downs of EUR 8m made in the previous 
year were reversed (previous year: EUR 18m).
27		 Contract assets
The Lufthansa Group recognised the following contract 
assets in 2020:
T108  CONTRACT ASSETS
in €m
31 Dec 2020
31 Dec 2019
Contract assets from MRO and IT services
146
278
Impairment of contract assets
– 4
– 1
Total contract assets
142
277
28		 Trade receivables and other receivables
T109  TRADE RECEIVABLES AND OTHER RECEIVABLES
in €m
31 Dec 2020
31 Dec 2019
Trade receivables
Trade receivables from affiliated companies 
60
58
Trade receivables from  
other equity investments 
1
2
Trade receivables from third parties 
1,516
3,802
1,577
3,862
Other receivables
 
Receivables from affiliated companies 
54
89
Receivables from other equity investments
1
1
Other receivables 
1,161
1,370
Emissions certificates
50
95
1,266
1,555
 
 
 
Total
2,843
5,417
For the impairment test for emissions certificates, we refer to 
the disclosures on the cash-generating units (CGU) Lufthansa 
German Airlines, SWISS, Austrian Airlines, Eurowings and 
Brussels Airlines in ↗ Note 17, p. 165ff.
As in the previous year, there is no collateral for trade receiv-
ables. Other receivables include expected reimbursements 
for obligations for which provisions have been made amounting 
to EUR 1m (previous year: EUR 1m).
For disclosures on impairment losses, credit risks and term 
structures, we refer to ↗ Note 45, p. 205ff.
Other receivables include claims of EUR 140m (previous year: 
EUR 149m) against insurers in connection with the accident 
involving the Germanwings aircraft on 24 March 2015. As of 
the reporting date, these receivables are offset by provisions 
of EUR 132m for outstanding obligations relating to this  
accident (previous year: EUR 135m).
Other receivables of EUR 2m (previous year: EUR 0m) serve 
to secure negative market values of derivatives.
29		 Deferred charges and prepaid expenses 
Deferred charges and prepaid expenses consist of various 
services paid for in advance for subsequent periods.
30		 Current securities
Current securities are fixed income securities, participation 
certificates, shares and investments in money market funds.
31 		 Cash and cash equivalents
This item includes fixed-term deposits in the amount of  
EUR 2m (previous year: EUR 0m) with terms of four to twelve 
months. As of 31 December 2020, bank balances in the 
amount of EUR 12m are pledged to lending banks. Other 
bank balances of EUR 70m are pledged subject to a condi-
tion precedent.
Bank balances in foreign currencies are translated at the 
exchange rate on the balance sheet date.
32		 Assets held for sale
Assets held for sale include 40 aircraft with a carrying amount 
of EUR 130m. These assets consist of three Boeing 767s,  
two Boeing 747s, 16 Airbus A320/321s, eight Dash 8-400s, 
six Bombardier CRJ9s and five Boeing MD-11 freighters.  
A further EUR 3m relates to one building. 
LUFTHANSA GROUP ANNUAL REPORT 2020
177
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

In the previous year, EUR 358m related to the assets in the 
disposal group “European activities of the LSG group”.
T110  ASSETS AND LIABILITIES IN THE DISPOSAL GROUP  
“EUROPEAN BUSINESS OPERATIONS OF THE LSG GROUP” 
AFTER CONSOLIDATION AS OF 31 DECEMBER 2019  
AND OTHER RECEIVABLES
in €m
31 Dec 2019
Assets
 
Intangible assets
1
Property, plant and other equipment
151
Other non-current assets
13
Deferred tax assets
31
Inventories
80
Other current assets
82
Total
358
Shareholders’ equity and liabilities
Pension provisions
289
Other non-current provisions
16
Other non-current liabilities
32
Other current provisions
11
Trade payables and other non-financial liabilities
175
Other current liabilities
17
Total
540
The closing of the sale to gategroup on 2 December 2020 
marked the disposal of the related assets and liabilities. In 
addition, three cargo aircraft and one building were available 
for sale. 
Shareholders’ equity and liabilities
33		 Issued capital
SHARE CAPITAL
By resolution of the extraordinary general meeting on 25 June 
2020, the issued capital of Deutsche Lufthansa AG was 
increased by EUR 306,044,326.40 to EUR 1,530,221,624.32 
by issuing 119,548,565 registered shares excluding share-
holders’ subscription rights. The shares were subscribed by  
the Economic Stabilisation Fund at the nominal amount of 
EUR 2.56 per share. The capital increase took effect on  
2 July 2020 when it was entered in the commercial register. 
Issued capital is divided into 597,742,822 registered shares, 
with each share representing EUR 2.56 of issued capital.
AUTHORISED CAPITAL 
A resolution passed at the Annual General Meeting on 7 May 
2019 authorised the Executive Board until 6 May 2024,  
subject to approval by the Supervisory Board, to increase  
the Company’s issued capital by up to EUR 450,000,000 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 7 May 
2019 authorised the Executive Board until 6 May 2024,  
subject to approval by the Supervisory Board, to increase  
the issued capital by up to EUR 30,000,000 by issuing new 
registered shares to employees (Authorised Capital B) for 
payment in cash. Existing shareholders’ subscription rights 
are excluded. As of 31 December 2020, shares with a nomi-
nal amount of EUR 7,637,832.68 were issued under this 
authorization, so that Authorised Capital B still amounted to 
EUR 22,362,168.32 as of the reporting date.
CONTINGENT CAPITAL
A resolution of the Annual General Meeting on 5 May  
2020 increased the company’s contingent capital by up to 
EUR 122,417,728. The contingent capital increase serves to 
issue up to 47,819,425 shares to the holders or creditors of 
conversion and/or option rights from convertible bonds with 
a total nominal value of up to EUR 1.5bn that may be issued 
by the Company or its Group companies until 4 May 2025  
in accordance with the resolution of the Annual General 
Meeting on 5 May 2020. In certain cases, the shareholders’ 
subscription rights can be excluded with the approval of the 
Supervisory Board.
A resolution of the extraordinary general meeting on 25 June 
2020 increased the contingent capital of Deutsche Lufthansa 
AG by up to EUR 102,014,776.32. The contingent capital 
increase serves to provide up to 39,849,522 shares for the 
exercise of conversion rights granted to the Economic Stabi-
lisation Fund created by the Stabilisation Fund Act as a silent 
shareholder for Silent Participation II-A at a strike rate of  
EUR 2.56 per share by resolution of the extraordinary general 
meeting on 25 June 2020. The rights can be exercised if  
a decision is published to make a takeover offer pursuant to 
Section 10 Securities Acquisition and Takeover Act (WpÜG) 
or if control is acquired pursuant to Sections 35 and 29 WpÜG. 
The buyer can exercise the conversion rights at any time  
if the Silent Participation II-A is sold to a private purchaser.
A resolution of the extraordinary general meeting on 25 June 
2020 increased the contingent capital of Deutsche Lufthansa 
AG by up to EUR 897,985,223.68. The contingent capital 
increase serves to provide up to 350,775,478 shares for the 
exercise of conversion rights granted to the Economic Stabi-
lisation Fund created by the Stabilisation Fund Act as a  
silent shareholder for antidilution and/or coupon protection 
for Silent Participation II-B by resolution of the extraordinary 
general meeting on 25 June 2020. If the conversion right  
is exercised to protect against dilution, the new shares will  
be issued at the current market price on the conversion date, 
less 10%. If the conversion right is exercised to protect the  
LUFTHANSA GROUP ANNUAL REPORT 2020
178
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

coupon, they are issued at the current market price on the 
conversion date, less 5.25%. The conversion rights expire if 
Silent Participation II-B is assigned to a third party.
AUTHORISATION TO PURCHASE TREASURY SHARES 
 
A resolution passed at the Annual General Meeting held on  
7 May 2019 authorised the Executive Board pursuant to  
Section 71 Paragraph 1 No. 8 Stock Corporation Act (AktG)  
to purchase treasury shares until 6 May 2024. The authori­
sation is limited to 10% of current issued capital, which can 
be purchased on the stock exchange or by a public purchase 
offer to all shareholders. The authorisation states that the 
Executive Board can use the shares, in particular, for the pur-
poses defined in the resolution passed at the Annual General 
Meeting. According to the resolution of the Annual General 
Meeting held on 7 May 2019, the Executive Board is also 
authorised to purchase treasury shares by means of deriva-
tives and to conclude corresponding derivative transactions.
At various points in 2020, Deutsche Lufthansa AG bought 
back 1,299,165 of its own shares at an average price of  
EUR 7.27. This corresponds to 0.22 % or EUR 3,325,862.40 
of share capital.
The shares purchased were used as follows:
—	 1,296,504 shares were transferred to the employees of 
Deutsche Lufthansa AG and to 33 other affiliated compa-
nies and equity investments as part of the profit-sharing 
for 2019, at a share price of EUR 7.56.
—	 517 shares were transferred for employees of Deutsche 
Lufthansa AG and another affiliated company as part of 
the profit-sharing for 2018, at a share price of EUR 14.18.
—	 2,144 shares were resold at a price of EUR 11.14.
On the balance sheet date, treasury shares were no longer held.
CAPITAL MANAGEMENT
After overcoming the coronavirus pandemic, the Lufthansa 
Group continues to aim for a sustainable equity ratio of 25% 
in order to ensure long-term financial flexibility and stability 
as a basis for the Group’s growth targets. As of 31 December 
2020 and 2019, equity and total assets were as follows:
T111  EQUITY AND LIABILITIES
in €m
31 Dec 2020
31 Dec 2019
Shareholders’ equity 
1,387
10,256
In % of total assets
3.5
24.0
Liabilities 
38,097
32,403
In % of total assets 
96.5
76.0
Total capital 
39,484
42,659
In the financial year 2020, the equity ratio declined by  
20.5 percentage points compared with the figure for the  
previous year to 3.5%.
Deutsche Lufthansa AG’s Articles of Association do not  
stipulate any capital requirements.
34		 Reserves
Capital reserves only include the share premium paid on 
capital increases and a convertible bond that was redeemed 
in full in previous years. The legal reserve contained in retained 
earnings of Deutsche Lufthansa AG is unchanged at EUR 26m; 
other reserves consist of other retained earnings.
The following table shows changes in other neutral reserves 
in 2020:
T112  NOTES ON OTHER COMPREHENSIVE INCOME
in €m
2020 
2019
Other comprehensive income  
after income taxes
Currency translation differences
	
Profit/loss for the period
– 107
115
	
Reclassification adjustments  
recognised in profit or loss
–
–
Subsequent measurement of financial assets 
at fair value (with recycling)
– 29
10
Subsequent measurement of financial assets 
at fair value (without recycling)
1
7
	
Profit/loss for the period
–
–
	
Reclassification adjustments  
recognised in profit or loss
–
–
Subsequent measurement of hedges –  
cash flow hedge reserve
– 655
258
Subsequent measurement of hedges –  
costs of hedging
143
476
	
Profit/loss for the period
– 1,119
1,278
	
Reclassification adjustments  
recognised in profit or loss
607
– 544
Other comprehensive income  
from investments accounted  
for using the equity method
	
Profit/loss for the period –  
reclassifiable
4
13
	
Profit/loss for the period –  
non-reclassifiable
–
–
Revaluation of defined-benefit  
pension plans
– 2,584
– 1,108
Other expenses and income recognised 
directly in equity (with recycling)
– 4
15
Other expenses and income recognised 
directly in equity (without recycling)
–
– 1
Income taxes on items in other  
comprehensive income
747
163
Other comprehensive income  
after income taxes
– 2,484
– 52
LUFTHANSA GROUP ANNUAL REPORT 2020
179
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

T113  NOTE ON INCOME TAXES RECOGNISED FOR OTHER COMPREHENSIVE INCOME
2020
2019
in €m
Amount before 
income taxes
Tax expenses/ 
income
Amount after 
income taxes
Amount before 
income taxes
Tax expenses/ 
income
Amount after 
income taxes
Currency translation differences
– 107
–
– 107
115
–
115
Subsequent measurement of financial 
assets at fair value (with recycling)
– 29
– 7
– 36
10
–
10
Subsequent measurement of financial 
assets at fair value (without recycling)
1
–
1
7
–
7
Subsequent measurement of hedges – 
cash flow hedge reserve
– 655
166
– 489
258
– 64
194
Subsequent measurement of hedges – 
costs of hedging
143
– 34
109
476
– 118
358
Other comprehensive income from 
investments accounted for using  
the equity method – reclassifiable
4
–
4
13
–
13
Revaluation of defined-benefit  
pension plans
– 2,584
622
– 1,962
– 1,108
345
– 763
Other expenses and income recognised 
directly in equity (with recycling)
– 4
–
– 4
15
–
15
Other expenses and income recognised 
directly in equity (without recycling)
–
–
–
– 1
–
– 1
Other comprehensive income
– 3,231
747
– 2,484
– 215
163
– 52
The overall change in equity is shown in ↗ T060 Consolidated 
statement of changes in shareholders’ equity, p. 138.
35		 Pension provisions
The Lufthansa Group’s pension obligations comprise both 
defined benefit and defined contribution plans and include 
both obligations to make current payments and entitlements 
to future pension payments.
Obligations under defined benefit pension plans for employees 
of the Lufthansa Group related mostly to pension obligations 
in Germany, Switzerland, Austria and the USA. Various com-
mitments have been made to different groups of employees.
For the employees in Germany and for expatriate staff who 
joined the Company before 1995, the supplementary pension 
scheme for state employees (VBL) was retained as the Com-
pany’s pension scheme after the Lufthansa Group’s privati-
sation. Employees who joined after 1994 received a retirement 
benefit commitment based on an average salary plan, which 
provided for pension units to be granted annually, with the 
size of these components depending on the employee’s age 
and salary. In 2003, the VBL pension scheme was changed 
to the average salary plan applicable to the employees 
recruited after 1995. Between 2015 and 2017, the existing 
domestic retirement benefit commitments to the individual 
groups of employees have been converted successively  
into defined contribution schemes.
The Lufthansa collective agreement on benefits for ground 
staff established a new company retirement benefit plan in 
the form of a defined-contribution benefit commitment for 
the ground staff in Germany, in particular those at Deutsche 
Lufthansa AG, Lufthansa Cargo AG, the Lufthansa Technik 
group and the LSG group. For employees recruited before  
1 January 2016, the entitlements vested up until 31 Decem-
ber 2015 are maintained. For service periods starting from  
1 January 2016, employees can reach the same level of bene-
fits by making contributions from their own pocket. For 
employees recruited from 1 January 2016, the contributions 
to the new model will be invested on the capital market. 
When the employee reaches retirement age, the entire 
account balance is converted into an annuity on the basis  
of the applicable BilMoG interest rate, subject to a pension 
adjustment of 1% per annum and while guaranteeing the 
contributions that were originally made.
On 17 March 2017, the “Lufthansa Pension Cabin” wage 
agreement was signed with the trade union UFO for cabin 
crew at Deutsche Lufthansa AG (DLH). It replaces the agree-
ments on the “Lufthansa Company Pension” for cabin crew 
and the “Lufthansa Transitional Benefit for Cabin Crew”.
LUFTHANSA GROUP ANNUAL REPORT 2020
180
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

For employees recruited up to 5 July 2016, the pension  
entitlements vested up until 30 June 2016 are maintained. 
For service periods from 1 July 2016, these employees receive 
employer contributions to the Company pension scheme 
depending on their eligible gross salary. An initial contribution 
to the transitional benefit scheme was calculated for the 
staff concerned as of 30 June 2016 on the basis of parameters 
and valuation methods defined by the collective bargaining 
partners. This initial transitional benefit contribution will 
replace all existing claims by the employees concerned under 
the collective agreement on “Transitional Benefit for Cabin 
Crew” and will be switched to a contribution commitment 
with a minimum guaranteed payment. All employees are free 
to make their own contributions on a voluntary basis. Contri-
butions from both employer and employee, as well as the  
initial transitional benefit contribution, are invested on the 
capital markets with a capital guarantee. When the employee 
reaches retirement age, the available account balance is con-
verted into an annuity on the basis of the applicable BilMoG 
interest rate, subject to a pension adjustment of 1% per annum.
On 21 December 2017, the “Lufthansa Pension Cockpit” wage 
agreement for cockpit staff was signed with the Vereinigung 
Cockpit pilots’ union. At the same time, a new “Transitional 
Benefit Cockpit” wage agreement was signed.
For employees recruited before 1 January 2017, the pension 
entitlements vested up until 31 December 2016 are maintained. 
For service periods from 1 January 2017, the employees receive 
employer contributions to the Company pension scheme 
depending on their eligible gross salary. All employees are free 
to make their own contributions on a voluntary basis. The 
capital is invested on capital markets with a capital guarantee 
and the guaranteed interest rate offered by the life insurance 
companies (currently 0.9% per annum) as an additional com-
mitment. When the employee reaches retirement age, the 
available account balance is converted into an annuity on  
the basis of the applicable BilMoG interest rate, subject to  
a pension adjustment of 1% per annum. 
In the new Company retirement benefit scheme for ground, 
cabin and cockpit staff, the obligations from the capital  
market-oriented components are recognised at the time value 
of the corresponding assets, insofar as the assets exceed  
the minimum guaranteed amount. Plan assets and benefit 
obligations are presented on a net basis. The employer con-
tributions constitute service expense.
Cockpit staff are still additionally entitled to a transitional 
pension arrangement covering the period from the end of their 
active in-flight service until the beginning of their statutory/
Company pension plans. Benefits depend on the number of 
years of service and the final salary before retirement (final 
salary plans). Pension entitlements continue to accrue while 
transitional benefits are being received.
Generally speaking, the previous rules for transitional benefits 
continue to apply, whereby in the latest version the benefits 
have been extended to cover cockpit staff at Germanwings 
who were recruited before 1 January 2005. The collective 
retirement age for pilots increases gradually from 58 to 60 by 
2021. In connection with the forecast long-term staff surplus 
among cockpit crew, the Company has proposed a tempo-
rary suspension of the clause relating to the collective retire-
ment age. A corresponding agreement has not yet been 
reached on a change to the wage settlement as part of an 
overall agreement. This results in an increase of EUR 41m in 
the transitional benefit obligation in the reporting year. 
Temporary reductions in employer contributions were agreed 
for the collective defined benefit plans for cockpit and  
cabin crew in 2020. These reductions will continue to apply 
until 2022.
Defined-benefit Company pension schemes and transitional 
pension arrangements for Germany are funded by plan assets, 
while amounts that have not yet been transferred are covered 
by pension provisions. 
There are no minimum funding requirements in Germany. 
Contributions for German defined benefit plans were  
suspended from the second quarter of 2020 onwards. In 
addition, reimbursements for pension payments made were 
withdrawn from the plan assets for the plans of Deutsche 
Lufthansa AG, Lufthansa Cargo AG and Lufthansa Technik AG 
for the first time.
Pension obligations in Switzerland are largely based on  
statutory obligations. The retirement benefits are funded via 
pension funds known as collective foundations. In addition 
to retirement benefits, the plans cover invalidity and depend-
ant persons’ benefits. Beneficiaries can choose between  
an annuity and a lump sum payment. The retirement age for 
the plans lies between 58 and 63 years. Contributions to  
the pension funds are made by employers and employees, 
whereby the Company contributions must be at least equal 
to the employee contributions defined in the terms of the 
plan. Contributions are deducted from the qualifying salary 
according to a sliding scale. If there is a deficit of plan assets, 
employer and employee contributions can be increased, a 
lower return can be determined or other steps permissible by 
law can be taken. The decision is taken by the trustees of the 
pension fund concerned. The trustees’ strategies for making 
good a deficit are based on the report by a pension fund 
expert and must be presented to the regulatory authority. 
The approval of the authority is not required, however.
LUFTHANSA GROUP ANNUAL REPORT 2020
181
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

In the context of the coronavirus crisis, SWISS has for the first 
time offered employees voluntary early retirement packages 
from the age of 58 until the end of 2023. This is intended to 
implement the socially responsible reduction of the surplus 
staff capacity in all groups of employees.
The pension obligations for employees of Austrian Airlines 
AG are mostly on a defined contribution basis and have been 
outsourced to a pension fund. They consist of retirement, 
invalidity and dependant persons’ benefits.
Obligations under defined benefit plans at Austrian Airlines AG 
relate to former directors and Executive Board members  
and others already receiving their pensions. Obligations under 
defined benefit plans for ground staff are now contribu-
tion-free and are determined by converting plan assets into an 
annuity. There are no defined benefit plans but only defined 
contribution pension obligations for active pilots, flight 
attendants and members of the top management level.
The defined benefit pension plans at LSG Sky Chefs in  
the USA are largely closed to new entrants and no further 
benefits are being granted to beneficiaries still in service. 
Benefit payments are based on average salary and the years 
of service acquired before the plan was closed or frozen.  
The retirement age is 65. Pension payments are funded 
externally. Retirement benefits have been switched to 
defined contribution plans.
Other staff abroad are also entitled to minor retirement  
benefits and in some cases to medical care based mainly on 
length of service and salary earned. As a rule, benefits are 
financed by means of external funds.
Contributions for defined contribution retirement benefit 
commitments came to EUR 409m in 2020 (previous year: 
EUR 499m). These mainly consist of contributions to statutory 
pension funds, but also include contributions under collec-
tive bargaining agreements or voluntary contributions to 
other pension funds.
In the financial year 2004, work began on building up plan 
assets to fund and safeguard future pension payments. The 
aim was to fund the pension obligations under existing plans 
in Germany in full. Contractual trust arrangements (CTAs)  
in the form of a mutual two-stage trusteeship were set up  
for this purpose.
The main trustee is Lufthansa Pension Trust e.V., a separate 
legal entity subject to German regulations. Deutsche Lufthansa 
AG and the trustees/other trustors agree on contributions 
and, if such a contribution is determined, make a payment to 
Lufthansa Pension Trust e.V. Deutsche Lufthansa AG and its 
subsidiaries Lufthansa Technik AG and Lufthansa Cargo AG 
are parties to the contractual trust arrangement. The trust 
assets have largely been held by a Maltese corporate vehicle 
since 2007. The Investment Board of Lufthansa Malta Pension 
Holding decides on the fund’s asset allocation. The asset 
management itself is delegated to fund management com-
panies, who invest the assets in accordance with the general 
investment principles defined by the Investment Board.
Assets to fund pension obligations for other German sub­
sidiaries have been invested with Deutsche Treuinvest 
Stiftung with the same investment strategy.
The assets to fund pension obligations in the new Lufthansa 
Pension Ground, Lufthansa Pension Cabin and Lufthansa 
Pension Cockpit capital market-based benefits system were 
transferred to an external trustee, Deutsche Treuinvest 
Stiftung, as part of a contractual trust arrangement. Capital 
is invested in what are known as age group funds, whose 
investment strategy is based on a life cycle model. As employ-
ees get older, less and less is invested in asset classes with  
a higher risk-return profile and a greater percentage in more 
conservative asset classes. The Company has set up an 
Investment Committee that is responsible for defining and 
monitoring the investment strategy, e.g. how the age group 
funds are composed and how the asset allocation changes 
over time.
EUR 85m was contributed to plan assets for employees in 
Germany in 2020 (previous year: EUR 250m). No further 
contributions have been made to Deutsche Lufthansa AG 
since the beginning of the crisis in March.
LUFTHANSA GROUP ANNUAL REPORT 2020
182
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

Amounts shown in the statement of financial position for 
defined benefit commitments are made up as follows:
T114  DEFINED-BENEFIT RETIREMENT COMMITMENTS
31 Dec 2020
31 Dec 2019
in €m
Defined- 
benefit  
obligations 
(DBO) 
Fair value of 
plan assets 
 
 
Effect of 
asset ceiling 
 
 
Net carrying 
amount for 
defined- 
benefit  
obligations
Defined- 
benefit  
obligations 
(DBO) 
Fair value of 
plan assets 
 
 
Effect of asset 
ceiling 
 
 
Net carrying 
amount for 
defined- 
benefit  
obligations
Retirement benefits 
Germany
19,506
– 12,165
–
7,341
18,227
– 13,135
–
5,092
Transitional benefits 
Germany
1,528
– 337
–
1,191
1,462
– 441
–
1,021
Switzerland
4,188
– 3,606
–
582
3,840
– 3,434
2
408
Austria
444
– 180
–
264
450
– 183
–
267
USA
342
– 306
–
36
369
– 327
–
42
Other countries
520
– 443
–
77
517
– 440
–
77
Carrying amounts
26,528
– 17,037
–
9,491
24,865
– 17,960
2
6,907
	
of which pension  
provisions
–
–
–
9,531
–
–
–
6,658
	
of which  
other assets
–
–
–
40
–
–
–
40
	
of which shown 
under liabilities  
for disposal
–
–
–
–
–
–
–
289
Reconciliation between the funding status and the amounts 
shown in the consolidated balance sheet is as follows:
T115  RECONCILIATION FUNDING STATUS
in €m
2020 
2019
Present value of funded  
pension obligations 
25,984
24,374
Plan assets 
– 17,037
– 17,960
Funding status (net)
8,947
6,414
Present value of unfunded  
pension obligations
544
491
Adjustment for asset ceiling 
–
2
Carrying amounts
9,491
6,907
	
of which pension provisions
9,531
6,658
	
of which other assets
40
40
	
of which shown under  
liabilities for disposal
–
289
During the reporting period, the present value of defined 
benefit pension obligations changed as follows:
T116  CHANGE IN PRESENT VALUE OF PENSION OBLIGATIONS
in €m
2020 
2019
Balance on 1 Jan
24,865
21,412
	
on which shown under  
liabilities for disposal
– 755
–
Current service costs
502
514
Interest expenses
319
418
Past service cost/effects of curtailments
32
11
Effects of settlements
– 1
–
Revaluations 
 
 
	
Actuarial gains/losses from  
changes in demographic assumptions
24
– 64
	
Actuarial gains/losses from  
changes in financial assumptions
2,433
2,461
	
Experience adjustments
– 308
281
Currency translation differences 
– 51
154
Changes in the group of  
consolidated companies
– 772
–
Plan contributions – employees
96
116
Pension payments
– 602
– 449
Settlement payments
– 10
–
Other  1)/reclassifications
1
11
As of 31 Dec 
26,528
24,865
	
of which shown under liabilities for disposal
–
– 755
1)	 The amounts are partly for benefit obligations which were measured  
in accordance with IAS 19 for the first time.
LUFTHANSA GROUP ANNUAL REPORT 2020
183
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

The changes in the group of consolidated companies relate 
to the pension obligations disposed of with the sale of the 
LSG group’s European business.
Actuarial gains/losses from changes in financial assumptions 
include losses due to the renewed fall in the discount rate  
for Germany, Austria and Switzerland compared with the 
previous year. Adjustments to obligations regarding capital 
market-based pension plans, which are due to changes in 
exchange rates, are shown in adjustments based on past 
experience.
The following table provides a detailed reconciliation of 
changes in the fair value of plan assets:
T117  CHANGE IN FAIR VALUE OF PLAN ASSETS
in €m
2020 
2019
Balance on 1 Jan
17,960
15,576
	
on which shown under  
liabilities for disposal
– 466
–
Interest income
222
299
Revaluations 
 
 
	
Income from plan assets,  
without amounts included in interest
– 443
1,571
Currency translation differences 
– 46
139
Changes in the group of  
consolidated companies
– 431
–
Plan contributions – employers
235
394
Plan contributions – employees
61
111
Pension payments
– 510
– 138
Settlement payments
– 10
–
Administrative costs related to obligations
– 3
– 3
Other  1)/reclassifications
2
11
As of 31 Dec 
17,037
17,960
	
of which shown under  
liabilities for disposal
–
– 466
1)	 The amounts are partly for benefit obligations which were measured  
in accordance with IAS 19 for the first time.
The outflows of plan assets due to pension payments of  
EUR 510m included, among other things, the financing  
of pensions in Germany from the CTA assets for the first 
time in the amount of EUR 288m.
In the financial years 2020 and 2019, pension provisions 
developed as follows:
T118  PENSION PROVISIONS
in €m
2020 
2019
Balance on 1 Jan
6,947
5,865
	
on which shown under  
liabilities for disposal
– 289
–
Currency translation differences  
carried forward
– 5
15
Changes in the group of  
consolidated companies
– 341
–
Pensions payments
– 92
– 311
Current service costs
502
514
Interest expenses
319
418
Interest income
– 222
– 299
Effects of amendments incl. curtailments, 
­settlements and administrative costs
34
14
Revaluations
 
 
	
Actuarial gains/losses  
and experience adjustments
2,149
2,678
	
Income from plan assets,  
without amounts included in interest
443
– 1,571
	
Net effect of adjustments for asset ceiling
– 3
2
Plan contributions/reclassifications
– 200
– 378
As of 31 Dec 
9,531
6,947
	
of which shown under  
liabilities for disposal
–
– 289
Expenses and income for defined-benefit plans are made up 
as follows:
T119  EXPENSES AND INCOME FOR DEFINED-BENEFIT PENSION PLANS
in €m
2020 
2019
Current service costs
502
514
Past service cost/effects of curtailments
32
11
Income from settlements
– 1
–
Accrued interest on projected  
pension obligations
319
418
Interest income on plan assets
– 222
– 299
Administrative costs related to obligations
3
3
Balance of expenses and income  
recognised in the income statement
633
647
Income from plan assets,  
without amounts included in interest
443
– 1,571
Actuarial gains and losses
2,149
2,678
Net effect of adjustment for asset ceiling
– 3
2
Other comprehensive income
2,589
1,109
 
 
 
 
3,222
1,756
LUFTHANSA GROUP ANNUAL REPORT 2020
184
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

Interest expenses on pension provisions and interest income 
on plan assets are shown in the financial result. Current  
service expense and past service expense are recognised  
in staff costs.
Past service expenses incurred in the reporting year stem 
mainly from forecast future expenses in connection with 
measurement effects from the temporary suspension pro-
posed by the Company of the clause defining the average 
retirement age for pilots in the context of transitional benefits 
at Deutsche Lufthansa AG. A corresponding accord to change 
the respective collective labor agreement has not been 
reached yet and will be part of an overall agreement.
A loss of EUR 221m was generated from plan assets in the 
financial year 2020. This amount is made up of the interest 
income recognised in the income statement and the revalu-
ation component for plan assets. Capital appreciation of 
EUR 1,870m was recognised in the previous year.
There were no significant effects from the asset ceiling 
defined in IAS 19.64.
The main actuarial assumptions used to calculate pension 
obligations and the corresponding plan assets are shown 
below:
T120  MAIN ACTUARIAL ASSUMPTIONS FOR GERMAN COMPANIES
in %
31 Dec 2020
31 Dec 2019
Interest rate
 
 
	
Retirement benefits
0.8
1.4
	
Transitional benefits
0.8
1.4
Salary increase
 
 
	
Retirement benefits
2.5
2.5
	
Transitional benefits
2.5
2.5
Pension increase
 
 
	
Retirement benefits
1.0
1.0
	
Transitional benefits
1.0
1.0
The Heubeck Actuarial Tables 2018 G were used in the  
biometric calculations for the German companies in the Group.
T121  MAIN ACTUARIAL ASSUMPTIONS FOR FOREIGN COMPANIES
in %
31 Dec 2020
31 Dec 2019
Interest rates
 
 
	
Austria
0.8
1.4
	
Switzerland
0.1
0.3
	
USA
2.3
3.2
Salary increase
 
 
	
Austria
1.6
1.8
	
Switzerland
1.5
1.5
	
USA
–
–
Pension increase
 
 
	
Austria
1.6
2.0
	
Switzerland
0.0
0.0
	
USA
–
–
The BVG 2015 generation tables are used for the biometric 
calculations for Switzerland. Country-specific mortality 
tables are used in the other countries.
The following table shows how the present value of defined 
benefit obligations would have been affected by changes  
in the relevant actuarial assumptions for the main pension 
plans described above:
T122  CHANGE IN ACTUARIAL ASSUMPTIONS, AS OF 2020
 
Effect on the 
defined-benefit 
contribution  
as of 
31 Dec 2020 
in €m
Change 
 
 
 
 
in %
Present value of the obligation  1)
26,528
–
Interest rate
 
 
	
Increase by 0.5 percentage points
24,257
– 8.6
	
Decrease by 0.5 percentage points
29,241
+ 10.2
Salary trend
 
 
	
Increase by 0.5 percentage points
26,668
+ 0.5
	
Decrease by 0.5 percentage points
26,396
– 0.5
Pension trend
 
 
	
Increase by 0.5 percentage points
26,825
+ 1.1
	
Decrease by 0.5 percentage points
26,483
– 0.2
1)	 Present value of the obligation using the assumptions shown in the  
“Actuarial assumptions” tables.
LUFTHANSA GROUP ANNUAL REPORT 2020
185
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

T122  CHANGE IN ACTUARIAL ASSUMPTIONS, AS OF 2019
 
Effect on the 
defined-benefit 
contribution  
as of 
31 Dec 2019 
in €m
Change 
 
 
 
 
in %
Present value of the obligation  1)
24,865
–
Interest rate
 
 
	
Increase by 0.5 percentage points
22,862
– 8.1
	
Decrease by 0.5 percentage points
27,201
+ 9.4
Salary trend
 
 
	
Increase by 0.5 percentage points
25,022
+ 0.6
	
Decrease by 0.5 percentage points
24,717
– 0.6
Pension trend
 
 
	
Increase by 0.5 percentage points
25,140
+ 1.1
	
Decrease by 0.5 percentage points
24,606
– 1.0
1)	 Present value of the obligation using the assumptions shown in the  
“Actuarial assumptions” tables.
A reduction of 10% in the mortality rates used to calculate 
the pension obligations increases the life expectancy of the 
beneficiaries by a given amount depending on their individual 
ages. It roughly corresponds to an increase of one year in  
the life expectancy of a male employee who is 55 years old 
today. A 10% reduction in the mortality rate would therefore 
increase the present value of the main benefit obligations in 
Germany and Switzerland by EUR 189m as of 31 December 
2020 (previous year: EUR 176m).
The sensitivity analysis examines changes in one assumption 
and leaves the other assumptions unchanged compared with 
the original calculation. The effects of any correlation between 
the individual assumptions are therefore not taken into 
account.
Plan assets for funded defined benefit pension obligations 
consist mainly of fixed-income securities, equities and cash 
and cash equivalents. They do not include financial instru-
ments issued by companies in the Group nor properties used 
by Group companies.
Plan assets serve solely to meet the defined benefit obliga-
tions. Funding these benefit obligations with assets provides 
security for future payments. In some countries, this takes 
place on the basis of statutory regulations, while in others 
(Germany, for example), this takes place on a voluntary basis.
The Lufthansa Group aims to completely cover its German 
pension obligations by means of cover assets and positive 
capital market returns in the medium to long term. Additional 
capital is transferred to the trustees for this purpose. Invest-
ment performance plays a crucial role in meeting this target.
The investment strategy for the capital market-based  
pension plans is initially defined by the Company and is reg-
ularly reviewed in the course of an allocation study. Where 
necessary, it is adjusted by the Investment Committee  
to reflect changes in capital market requirements. This may 
result in changes to the investment strategy for amounts 
that have already been invested.
The Lufthansa Group manages and monitors the financial 
risks that arise from outsourcing the defined benefit pension 
obligations. There was no change in the risk management 
and monitoring processes compared with the previous year. 
Derivative financial instruments are used, especially to  
manage foreign exchange risks.
The allocation of the funds to asset classes (e.g. equities)  
for the defined benefit plans is carried out on the basis of 
asset-liability matching (ALM) studies performed by the 
Lufthansa Group. The ALM study is conducted every three 
years with an external adviser in order to review the funding 
strategy on a regular basis and to make adjustments as  
necessary. The results of the study should indicate what 
combination of investments (annuities, equities, etc.) can be 
used to cover the long-term pension obligations. Step one  
of this process is for the actuary to draft a long-term forecast 
charting how the pension obligations will develop.
In addition to this, target figures are needed for the relative 
return and relative risk as regards coverage of the obligations. 
Last but not least, a risk budget must also be defined.
A simulation is used to test all permissible investment allo-
cations for their future compliance with these objectives. 
Those which do not fulfil the criteria are eliminated. Prefer-
ence is given to allocations that are return-oriented yet  
conservative and that have a high probability of achieving 
the investment target.
The results of the ALM study show whether there will be 
strategic shifts in the existing allocation. Alternative  
investments (e.g. property, private equity, infrastructure)  
are currently being further developed.
LUFTHANSA GROUP ANNUAL REPORT 2020
186
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

Plan assets are made up as follows:
T123  COMPOSITION OF PLAN ASSETS
31 Dec 2020
31 Dec 2019
 
Listed price  
in an  
active market 
in €m
No listed price 
in an  
active market  
in €m
Total 
 
 
in €m
in %
Listed price  
in an  
active market 
in €m
No listed price 
in an  
active market  
in €m
Total 
 
 
in €m
in %
 
Equities
 
 
5,626
33.0
 
 
5,189
28.9
	
Europe
2,152
–
 
 
3,299
–
 
 
	
Other
3,470
4
 
 
1,890
–
 
 
Fixed-income securities
 
 
6,060
35.6
 
 
6,111
34.0
	
Government bonds
3,159
8
 
 
3,053
–
 
 
	
Corporate bonds
2,890
3
 
 
3,058
–
 
 
Share funds
153
–
153
0.9
847
–
847
4.7
Fixed-income funds
723
–
723
4.2
1,482
–
1,482
8.3
Mixed funds 1)
77
–
77
0.5
247
–
247
1.4
Money market  
investments
1,298
–
1,298
7.6
1,039
–
1,039
5.8
Property
 
 
1,225
7.2
 
 
1,015
5.7
	
Direct investments
–
7
 
 
–
7
 
 
	
Indirect investments
863
355
 
 
744
264
 
 
Insurance contracts
–
151
151
0.9
–
133
133
0.7
Bank balances 
345
184
529
3.1
334
191
525
2.9
Other investments 2)
207
988
1,195
7.0
288
1,084
1,372
7.6
Total
15,337
1,700
17,037
100.0
16,281
1,679
17,960
100.0
1)	 Includes equities and interest-bearing securities. 
2)	Other investments include, in particular, alternative investments such as hedge funds, commodities and private equity funds.
In addition to various actuarial risks such as interest rate risk, 
life expectancy risk and the risk of salary increases, the  
pension plans expose the Group primarily to financial risks  
in connection with plan assets.
The return on plan assets is assumed at the beginning of  
the period to be the discount rate, which is determined on 
the basis of investment grade corporate bonds. For the old 
pension plans, if the actual return on plan assets is less  
than the discount rates applied, the net obligation from the 
pension plan goes up. With the new capital market-based 
pension plans, a gross obligation is recognised for the time 
value of the corresponding plan assets, taking the minimum 
guaranteed amount into account.
The share price risk that arises from the proportion of plan 
assets invested in equities is considered to be reasonable. 
The risk of default by bond issuers is limited, because invest-
ments are only made in investment grade bonds.
The amount of the net obligation under the old pension plans 
depends to a large extent on the rates of interest, whereby 
the current low-interest environment results in a relatively 
high net obligation. If yields on corporate bonds continue  
to decline, this would lead to a further increase in defined 
benefit obligations, which could probably only be partly off-
set by positive developments in the market values of the 
corporate bonds held in plan assets.
Based on current knowledge, it can be assumed that only 
EUR 178m will be transferred to pension plans in the 2021 
financial year due to the crisis situation (previous year:  
EUR 808m). The transfers are made up of planned allocations 
and benefit payments that are not covered by equivalent 
reimbursements from plan assets. The weighted duration of 
pension obligations was 20 years as of 31 December 2020 
(previous year: 18 years).
LUFTHANSA GROUP ANNUAL REPORT 2020
187
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

Over the next ten years, the following pension payments are 
forecast for the defined benefit commitments in existence 
as of the reporting date:
T124  FORECAST MATURITIES OF UNDISCOUNTED  
PENSION PAYMENTS, AS OF 2020
in €m
Forecast  
pension 
­payments 
31 Dec 2020
 
2021
524
2022
689
2023
626
2024
605
2025
627
2026 – 2030
3,699
T124  FORECAST MATURITIES OF UNDISCOUNTED  
PENSION PAYMENTS, AS OF 2019
in €m
Forecast  
pension 
­payments 
31 Dec 2019
 
2020
574
2021
596
2022
612
2023
637
2024
656
2025 – 2029
3,828
36		 Other provisions
Other provisions disclosed in the statement of financial  
position as non-current and current other provisions are 
made up as follows:
T125  NON-CURRENT AND CURRENT OTHER PROVISIONS
31 Dec 2020
31 Dec 2019
in €m
Total
Non-current
Current
Total
Non-current
Current
 
Obligations under partial retirement contracts 
32
32
–
20
18
2
Other staff costs 
209
169
40
202
159
43
Obligation to return emissions certificates 
50
–
50
95
–
95
Onerous contracts 
88
38
50
49
20
29
Environmental restoration
31
28
3
30
27
3
Legal proceedings 
65
12
53
77
11
66
Restructuring/severance payments 
221
47
174
171
79
92
Maintenance of lease aircraft 
323
162
161
293
139
154
Warranties 
47
–
47
46
–
46
Other provisions
323
70
253
301
37
264
Total
1,389
558
831
1,284
490
794
The obligations from partial retirement agreements result from 
collective bargaining agreements in Germany. Obligations 
were measured in 2020 using an interest rate of 0.00% (pre-
vious year: 0.01%). The interest effects shown in the following 
table on the development of other provisions resulted from 
the changes in the market value of the plan assets.
A total of EUR 133m (previous year: EUR 132m) has been 
transferred to an external trust fund as insolvency insurance 
for employer’s performance arrears as part of partial retire-
ment agreements under which the employee at first works 
full-time for less pay and then retires early on the same 
reduced pay. These assets, which fulfil the requirements  
for plan assets and therefore reduce the gross amount of 
obligations accordingly, are measured at market value on  
the balance sheet date.
The funding status for provisions for obligations to employees 
under partial retirement agreements is as follows:
T126  FUNDING STATUS
in €m
2020
2019
Present value of funded obligations  
under partial retirement agreements
149
146
External plan assets
– 130
– 141
 
19
5
	
of which other provisions
32
20
	
of which other assets
13
15
LUFTHANSA GROUP ANNUAL REPORT 2020
188
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

Provisions for other staff costs mainly relate to staff anniversary 
bonuses and other current obligations.
A provision for the obligation to submit CO₂ emissions certif-
icates to the relevant authorities is recognised for an amount 
equivalent to the carrying amount of the capitalised CO₂  
certificates. If the obligation is not fully covered by available 
certificates, the outstanding amount of the provision is 
measured using the market price of the emissions certificates 
as of the reporting date.
Expected losses from onerous contracts result from ongoing 
obligations or other contractual relationships in which per­
formance and consideration are out of balance.
Provisions for environmental restoration are based on surveyors’ 
findings and the assumption that all contamination is removed 
within ten years without any further legal requirements.
Provisions for ongoing legal proceedings were based on an 
assessment of the likely outcome of the proceedings.
The provisions for restructuring and severance payments  
are based on existing termination agreements or proposed 
contract terminations which the Lufthansa Group can no 
longer avoid.
The provisions for the overhaul of leased aircraft mainly 
relate to obligations for the maintenance, overhaul and repair 
of aircraft.
Other provisions of EUR 132m (previous year: EUR 135m) 
relate to outstanding obligations in connection with the acci-
dent involving the Germanwings aircraft on 24 March 2015.
Changes in groups of individual provisions in 2020 were  
as follows:
T127  CHANGES IN OTHER PROVISIONS 2020
in €m
Obligations 
under partial 
retirement 
­contracts
Other  
staff costs 
 
Obligation  
to return 
­emissions 
­certificates
Expected 
losses from 
onerous 
­contracts
Environmental 
restoration 
 
Legal 
­proceedings 
 
 
As of 1 Jan 2020
20
202
95
49
30
77
Changes in the group of consolidated ­companies 
–
–
–
–
–
–
Currency translation differences 
–
– 2
–
–
–
– 1
Utilisation 
– 52
– 42
– 64
– 11
– 2
– 4
Increase/addition 
58
49
67
61
3
19
Interest added back 
11
2
–
–
–
–
Reversal 
– 1
– 3
– 48
– 11
–
– 22
Transfers 
– 4
3
–
–
–
– 4
As of 31 Dec 2020
32
209
50
88
31
65
T127  CHANGES IN OTHER PROVISIONS 2020 (continued)
in €m
Restructuring/ 
severance 
­payments
Maintenance  
of lease  
aircraft
Warranties 
 
Other  
provisions 
Total 
 
 
As of 1 Jan 2020
171
293
46
301
1,284
Changes in the group of consolidated ­companies 
–
–
–
–
–
Currency translation differences 
– 1
– 10
–
– 2
– 16
Utilisation 
– 68
– 89
– 13
– 62
– 407
Increase/addition 
124
132
21
97
631
Interest added back 
–
–
–
–
13
Reversal 
– 2
– 2
– 7
– 9
– 105
Transfers 
– 3
– 1
–
– 2
– 11
As of 31 Dec 2020
221
323
47
323
1,389
LUFTHANSA GROUP ANNUAL REPORT 2020
189
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

Changes in groups of individual provisions in the previous 
year were as follows:
T127  CHANGES IN OTHER PROVISIONS 2019
in €m
Obligations 
under partial 
retirement 
­contracts
Other  
staff costs 
 
Obligation  
to return 
­emissions 
­certificates
Expected 
losses from 
onerous 
­contracts
Environmental 
restoration 
 
Legal 
­proceedings 
 
As of 1 Jan 2019
31
196
63
64
27
85
Changes in the group of consolidated ­companies 
–
–
–
–
–
–
Currency translation differences 
–
–
–
–
–
–
Utilisation 
– 57
– 30
– 73
– 11
– 2
– 14
Increase/addition 
54
42
104
16
5
28
Interest added back 
– 7
2
–
–
–
–
Reversal 
–
– 1
–
– 19
–
– 22
Transfers 
– 1
– 7
1
– 1
–
–
As of 31 Dec 2019
20
202
95
49
30
77
T127  CHANGES IN OTHER PROVISIONS 2019 (continued)
in €m 
Restructuring/ 
severance 
­payments
Maintenance  
of lease  
aircraft
Warranties 
 
Other  
provisions 
Total 
 
As of 1 Jan 2019
210
281
49
425
1,431
Changes in the group of consolidated ­companies 
–
–
–
–
–
Currency translation differences 
–
4
–
–
4
Utilisation 
– 77
– 95
– 10
– 85
– 454
Increase/addition 
45
127
14
84
519
Interest added back 
–
–
–
1
– 4
Reversal 
– 6
– 24
– 6
– 34
– 112
Transfers 
– 1
–
– 1
– 90
– 100
As of 31 Dec 2019
171
293
46
301
1,284
The following cash outflows are estimated for the non-current 
portion of the other groups of provisions:
T128  CASH OUTFLOWS FOR NON-CURRENT PROVISIONS,  
AS OF 2020
in €m
2022 
2023 
2024 
2025 and 
thereafter
 
Expected losses from 
onerous ­contracts
13
6
6
12
Environmental restoration
3
3
3
19
Restructuring/severance 
payments
29
6
1
11
Maintenance  
of aircraft on leases
25
6
8
35
Other provisions
17
9
14
48
At the end of 2019, the corresponding cash outflows were 
estimated as follows:
T128  CASH OUTFLOWS FOR NON-CURRENT PROVISIONS,  
AS OF 2019
in €m
2021 
2022 
2023 
2024 and 
thereafter
 
Expected losses from 
onerous ­contracts
11
3
–
7
Environmental restoration
3
3
3
18
Restructuring/severance 
payments
54
23
9
5
Maintenance  
of aircraft on leases
87
16
12
29
Other provisions
15
6
4
44
LUFTHANSA GROUP ANNUAL REPORT 2020
190
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

37		 Financial liabilities
Financial liabilities consist of a non-current portion with a 
residual term of more than one year and a current portion of 
less than one year, which is shown under current liabilities. 
The following table shows the total amount of borrowings:
T129  FINANCIAL LIABILITIES 31 DEC 2020
in €m
Total 
Non-current
Current
 
Bonds 
2,907
2,707
200
Liabilities to banks 
4,938
2,867
2,071
Leasing liabilities
2,637
2,183
454
Other loans
4,886
4,495
391
 
15,368
12,252
3,116
T129  FINANCIAL LIABILITIES 31 DEC 2019
in €m
Total 
Non-current
Current
 
Bonds 
1,094
996
98
Liabilities to banks 
2,110
1,453
657
Leasing liabilities
2,872
2,384
488
Other loans
3,954
3,563
391
 
10,030
8,396
1,634
Lufthansa pursues an interest rate risk strategy of converting 
fixed-interest financial liabilities in all currencies into varia-
ble-interest financial liabilities in euros by means of interest 
rate derivatives. 
The outstanding bonds comprise with a fixed redemption 
amount and one convertible bond. The bonds are denominated 
exclusively in EUR and were issued at a fixed interest rate of 
between 0.25% and 5.125%. They are set to mature between 
February 2021 and May 2026. The convertible bond was issued 
with a nominal volume of EUR 600m. Unless previously  
converted, the bond will be redeemed at its nominal value  
on 17 November 2025. Investors also have the option of con-
verting the bond into new and/or existing registered shares 
of Deutsche Lufthansa AG. The initial conversion price was 
set at EUR 12.96. 
Of the liabilities to banks, EUR 1,712m related to state-guar-
anteed loans secured by shares, company shares and aircraft 
of various consolidated companies (↗ Note 2, p. 140ff., and 
Note 19, p. 170). In addition, EUR 248m was attributable to 
loans from banks secured by three aircraft, which were con-
cluded in 2020. Liabilities to banks in the amount of EUR 2m 
were collateralised in the previous year.
Under other loans, EUR 3,378m (previous year: EUR 3,524m) 
was attributable to structured leasing companies and other 
aircraft financing models (↗ Note 19, p. 170). This amount was 
collateralised with the respective financed aircraft. A total of 
four additional aircraft financing arrangements were con-
cluded in 2020. EUR 133m related to a loan and profit-sharing 
rights as part of the Belgian state aid. Interest on the loan was 
determined to be below market rates with an total amount  
of EUR 8m. The loan was collateralised with shares and  
profit-sharing rights of the Belgian SN Airholding SA/NV. 
Other loans also include Silent Participation II of the Economic 
Stabilisation Fund (EUR 1,000m) and loans to the LSG com-
panies under the US CARES Act (EUR 65m).
In both the 2020 financial year and the 2019 financial year, 
all payment obligations and requirements from the loan 
agreements described have been fulfilled.
The Lufthansa Group’s lease liabilities have the following 
term structure: The disclosures are based on contractual, 
undiscounted payments.
T130  MATURITY ANALYSIS OF LEASE LIABILITIES
in €m
31 Dec 2020
31 Dec 2019
1st quarter
133
146
Up to 1 year 1)
376
392
1 – 5 years
1,309
1,350
Later
1,409
1,461
1)	 Without payments in 1st quarter.
38		 Non-current contract liabilities
T131  NON-CURRENT CONTRACT LIABILITIES
in €m
31 Dec 2020 31 Dec 2019
 
Non-current contract liabilities
36
25
 
36
25
Non-current contract liabilities consist of long-term deferrals 
for construction contracts where the payments received 
exceed the performance to date.
LUFTHANSA GROUP ANNUAL REPORT 2020
191
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

39		 Non-current advance payments received,  
deferred income and other non-financial liabilities
T132  NON-CURRENT ADVANCE PAYMENTS RECEIVED,  
DEFERRED INCOME AND OTHER NON-FINANCIAL LIABILITIES
in €m
31 Dec 2020 31 Dec 2019
 
Advance payments received 
8
7
Deferred income 
14
13
Other non-financial liabilities 
11
12
 
33
32
Deferred income includes EUR 6m (previous year: EUR 7m) 
for government grants and subsidies for capital expenditure, 
which are realised over the useful life of the assets in the  
following years. 
Other non-financial liabilities include obligations under 
share-based remuneration agreements for Executive Board 
members, managers and non-payscale employees. As part  
of the share-based remuneration agreements, the Lufthansa 
Group and other consolidated and non-consolidated Group 
companies participating in the programme offer a 50%  
discount on employee investment in Lufthansa shares to 
Executive Board members, managers and non-payscale 
employees. The option packages granted in 2017, 2018, 2019 
and 2020 consist of an outperformance option and a perfor-
mance option. At the end of the programme, the participants 
receive a cash payment if the conditions are met. 
The outperformance option is linked to the performance of 
the Lufthansa share compared with a notional index of shares 
in European competitors. When the beneficiary exercises  
the outperformance option, they receive a cash payment for 
every percentage point of outperformance, with a hurdle rate 
of 1%. The cash payment is capped at an outperformance of 
more than 20%.
The performance option is linked to the absolute performance 
of the Lufthansa share. The amount of the payment depends 
on meeting defined performance targets, whereby both  
a hurdle rate and a cap apply.
The programmes are scheduled to run for four years. The 
performance and the outperformance in all programmes are 
calculated on the principle of total shareholder return. The 
shares invested in personally may not be sold until the option 
is exercised.
T133  OUTPERFORMANCE OPTION – OVERVIEW
 
€ per  
outperformance level
Maximum  
per tranche in €
Board member 
1,000 per percentage 
point from 1%
20,000
Managers 
400 per percentage 
point from 1%
8,000
Non-payscale staff 
200 per 5 percentage 
points from 1%
1,000
T134  PERFORMANCE OPTION – PERFORMANCE TARGETS
Performance option per year
Hurdle rate
Cap
2017
23%
35%
2018
22%
33%
2019
22%
33%
2020
20%
35%
T135  PERFORMANCE OPTION – PAYMENT AMOUNTS
 
€ per  
performance level
Maximum  
per tranche in €
Board member 
10,000 + 1,000 
per performance unit
20,000
Managers 
4,000 + 500 
per performance unit
8,000
Non-payscale staff 
500 + 100 
per performance unit
1,000
A different system of variable remuneration has applied to the 
Executive Board since 2019. Under this system, one of the 
financial targets for the share-based remuneration compares 
the performance of the Lufthansa share, expressed as the 
total shareholder return (TSR), to other DAX companies. The 
performance period is still four years. To calculate the TSR in 
the performance period, the arithmetic mean closing prices 
in XETRA trading at Deutsche Börse for shares in Deutsche 
Lufthansa AG and its peer group over the 30 days immedi-
ately preceding the beginning of the performance period are 
compared with the prices over the 30 days immediately 
preceding the end of the performance period.
The performance of all the companies in the DAX index at the 
beginning and end of the period is ranked and the relative 
position of Deutsche Lufthansa AG is determined by its 
achieved percentile. Performance against the target and the 
amount of the payment in the 2019 programme depend on 
the percentile position of Deutsche Lufthansa AG. Target 
achievement is adjusted on a linear basis for positions between 
the 25th and 50th percentile and between the 50th and 
75th percentile.
LUFTHANSA GROUP ANNUAL REPORT 2020
192
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

T136  RELATIVE TSR – PERFORMANCE AND PAYMENT  
PROGRAMME 2019
Position of 
Lufthansa share 
compared with  
peer group
Target  
achievement 
Payment in €  
for Executive  
Board members
Payment in €  
for Executive  
Board Chairman
≤ 25th percentile
0%
–
–
≥ 50th percentile
100%
467,500
888,250
≥ 75th percentile
200%
935,000
1,776,500
As a result of the regulations in the stabilisation agreement 
with the WSF, the 2020 management programme was only 
offered with a contribution of shares. The 50% discount 
applies only to a portion of the potential tranches to be 
agreed and will only be granted at the end of the programme. 
The payments from the 2020 Executive Board and manage-
ment programme are subject to the completion of the stabi-
lisation measures.
Starting in 2020, the TSR approach for the Executive Board 
programme has been adjusted so that 85% of performance is 
now measured by financial parameters and 15% by sustaina-
bility parameters. The financial targets are the relative total 
shareholder return (TSR) of the Lufthansa share compared 
with the DAX and the average adjusted return on capital 
employed (Adjusted ROCE) during the performance period, 
both in equal parts (42.5% each). For the TSR component, 
the 60 trading days immediately preceding the beginning of 
the performance period and the 60 trading days immediately 
preceding the end of the performance period are used in the 
performance period. The positioning of the share in relation 
to the peer group remains identical for performance against 
the target. Performance against the target for average Adjusted 
ROCE is based on a comparison of the average Adjusted 
ROCE for the four-year performance period against a strategic 
target set in the grant year, which has a lower weighted aver-
age cost of capital (WACC). The sustainability parameters are 
set by the Supervisory Board for each performance period.  
For both of the non-market-dependent performance targets, 
Adjusted ROCE and sustainability parameters, an expected 
performance against each target of 100% was assumed for 
the purposes of the valuation. At the beginning of each per-
formance period, a further innovation is the allocation of a 
number of virtual shares, which is calculated by dividing the 
individual target amount of the long-term variable remunera-
tion by the average price of Deutsche Lufthansa AG shares 
during the 60 trading days immediately following the begin-
ning of each performance period. The payment is calculated 
by multiplying the degree of target achievement for this  
performance target by the number of virtual shares at the 
beginning of the performance period and the average price 
of Deutsche Lufthansa AG shares during the 60 trading days 
immediately preceding the end of the last year of each  
performance period.
Over the financial years 2020 and 2019, the number of 
options changed as follows:
T137  CHANGE IN NUMBER OF OPTIONS
 
2020
2019
Number of 
options 
 
 
Number of 
virtual 
shares  
in €  
thousands
Cash  
settlement 
 
in €  
thousands
Number of 
options 
 
 
Cash  
settlement 
 
in €  
thousands
Outstanding  
on 1 Jan 
22,313
–
–
20,546
–
Issued
2,243
571,106
–
7,420
–
Expired  
or unused
1,017
–
–
1,110
–
Exercised
3,957
–
17,062
4,543
31,726
Outstanding  
on 31 Dec 
19,582
571,106
–
22,313
–
The performance and outperformance option of the share 
programme 2016, which has now expired, resulted in a pay-
ment of EUR 17m (previous year: EUR 32m). No new shares 
were issued for the share programme 2020 in the financial 
year due to the changed structure. As a result, no staff costs 
arose from the issue of new shares in the financial year.  
Participants in the programme hold 3,126,854 shares as of 
the reporting date (previous year: 3,594,679 shares).
The fair values of the option rights in the share programmes 
still running were calculated using Monte Carlo simulations. 
This involves simulating the future returns of the shares in 
the comparative index and of Deutsche Lufthansa AG and 
calculating the value of the option rights as the forecast 
amount of a dividend.
LUFTHANSA GROUP ANNUAL REPORT 2020
193
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

The following fair values were measured in total:
T138  FAIR VALUE OF OPTION RIGHTS AS OF 31 DEC 2020
 
Number  
of options/
virtual  
shares 
Fair value  
per option  
 
in €
Proportional 
vested  
benefit 
Total  
fair value 
 
in €
 
Board member
Options 2017
181
2,940
0.74
395,259
Options 2018
181
3,224
0.51
295,390
Options 2019
6
25,067
0.44
66,117
Virtuelle Aktien 
2020
571,106
3.19
0.23
419,020
Managers
Options 2017
2,172
1,176
0.79
2,022,132
Options 2018
2,386
1,301
0.54
1,681,434
Options 2019
2,922
3,212
0.29
2,737,427
Options 2020
2,243
5,326
0.02
248,880
Non-payscale  
staff
Options 2017
2,291
158
0.79
286,566
Options 2018
3,154
168
0.54
287,014
Options 2019
4,046
400
0.29
472,033
Options 2020
–
–
–
–
Total options and  
virtual shares
590,688
8,911,272
	
of which options
19,582
 
 
 
	
of which  
virtual shares
571,106
T138  FAIR VALUE OF OPTION RIGHTS AS OF 31 DEC 2019
 
Number  
of options 
Fair value  
per option  
in €
Proportional 
vested  
benefit
Total  
fair value 
in €
 
Board member
Options 2016
135
31,582
0.70
2,980,551
Options 2017
181
5,376
0.58
559,576
Options 2018
165
5,770
0.36
342,594
Options 2019
6
281,633
0.25
422,450
Managers
Options 2016
2,062
12,628
0.79
20,614,158
Options 2017
2,173
2,148
0.54
2,528,286
Options 2018
2,525
2,354
0.29
1,733,623
Options 2019
3,071
5,479
0.04
701,084
Non-payscale  
staff
Options 2016
2,470
1,579
0.79
3,087,603
Options 2017
2,301
274
0.54
341,507
Options 2018
3,164
286
0.29
263,930
Options 2019
4,060
659
0.04
111,481
Total
22,313
 
 
33,686,841
Staff fluctuation of 5.35% is again assumed when accounting 
for the liability resulting from the valuation of option rights, 
so that the recognised liability is less than their calculated 
time value. An additional provision of EUR 2.7m was made 
for a discount on the purchase price that is only payable at 
the end of the management programme 2020. This one-time 
provision and the measurement of option rights therefore 
resulted in a total provision of EUR 11.0m as of the reporting 
date (previous year: EUR 32.3m), of which EUR 9m (previous 
year: EUR 7m) is shown under non-current liabilities. The 
payment of EUR 17m in the financial year on the basis of 
option rights that have now expired reduced the previously 
recognised provisions, so that the change in option rights  
in the reporting year decreased staff costs by EUR 4.2m.
The weighted average share prices at the calculation date 
(excluding the Executive Board TSR programme) were used 
in the Monte Carlo simulation. As stated in the terms of the 
programme, these are 50-day averages for the shares of 
Deutsche Lufthansa AG and the competitors included in the 
comparative index. The volatilities and correlations used  
are forecasts for a specific date and maturity on the basis  
of current market estimates.
Swap rates were used as the interest rate for the remaining 
term of the outperformance option in each case. The maximum 
term of the programmes was used for measurement purposes.
Time values for the Executive Board TSR programme were 
also measured using a Monte Carlo simulation based on  
historical and current market data for the relevant peer group 
of DAX companies. Forecast volatilities are based on the  
historic TSR data. The share prices for the past four years 
were used to calculate historical volatility. The measurement 
for the programme 2019 took into account a remaining term 
of 25 months and a risk-free interest rate of – 0.77%, for  
the programme 2020 a remaining term of 37 months and  
a risk-free interest rate of – 0.79%.
LUFTHANSA GROUP ANNUAL REPORT 2020
194
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

The parameters used by the external service provider for  
the notional airline peer group index are shown in the follow-
ing table:
T139  REFERENCE PRICE
 
Options 
2017
Options 
2018
Options 
2019
Options 
2020
 
Lufthansa
EUR
23.00
21.18
14.84
8.39
Air France-KLM
EUR
13.12
8.56
9.90
3.54
IAG
GBP
612.70
646.28
480.37
182.21
Ryanair
EUR
17.25
12.82
11.00
13.31
easyJet
GBP
1,240.72
1,340.31
1,131.63
622.96
Norwegian
NOK
218.45
236.70
37.49
–
WIZZair
GBP
2,991.52
2,858.46
3,667.66
3,701.91
Turkish
TRY
–
–
–
10.71
T140  PROJECTED VOLATILITIES
in % for:
Options  
2017 as of 
31 Dec 
2020
Options  
2017 as of 
31 Dec 
2019
Options  
2018 as of 
31 Dec 
2020
Options  
2018 as of 
31 Dec 
2019
Options  
2019 as of 
31 Dec 
2020
Options  
2019 as of 
31 Dec 
2019
Options  
2020 as of 
31 Dec 
2020
Options  
2020 as of 
31 Dec 
2019
 
Lufthansa
64.13
31.05
50.16
29.94
44.85
31.40
41.23
–
Air France-KLM
68.98
38.66
56.19
38.07
50.83
37.73
47.74
–
IAG
99.59
27.42
73.90
26.76
61.77
32.51
54.96
–
Ryanair
56.54
34.01
47.08
31.16
42.83
32.59
39.04
–
easyJet
86.64
34.95
67.31
33.35
57.57
36.06
52.02
–
Norwegian
141.14
81.10
119.94
70.93
105.57
64.75
–
–
WIZZair
67.61
32.96
51.89
32.14
47.38
33.70
43.74
–
Turkish
–
–
–
–
–
–
40.88
–
Risk-free interest rate 
 
 
 
 
 
 
 
Options 2017: 
– 0.72% for euro zone (previous year: – 0.66%) 
– 0.02% for UK (previous year: 0.55%) 
0.31% for Norway (previous year: 1.25%) 
 
Options 2018: 
– 0.77% for euro zone (previous year: – 0.66%) 
– 0.02% for UK (previous year: 0.50%) 
0.31% for Norway (previous year: 1.25%)
Options 2019: 
– 0.79% for euro zone (previous year: – 0.64%) 
– 0.02% for UK (previous year: 0.48%) 
0.31% for Norway (previous year: 1.24%) 
 
Options 2020: 
– 0.80% for euro zone 
0.00% for UK 
15.00% für Turkey
Fluctuation
5.35% (previous year: 4.9%)
5.35% (previous year: 4.9%)
LUFTHANSA GROUP ANNUAL REPORT 2020
195
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

40		 Current contract liabilities
The Lufthansa Group recognised the following contract  
liabilities:
T141  CONTRACT LIABILITIES
in €m
31 Dec 2020
31 Dec 2019
 
Contract liabilities from  
unused flight documents
2,064
4,071
Liabilities from customer loyalty programmes
2,220
2,200
Liabilities from MRO and IT services
297
196
Miscellaneous contract liabilities
460
279
Other contract liabilities
2,977
2,675
 
 
 
Liabilities from contracts with customers
5,041
6,746
Revenue recognised in the reporting period
 
 
Revenue recognised that was included  
in the contract liability balance at the  
beginning of the period
	
Revenue from unused flight documents
2,873
3,768
	
Revenue from customer  
loyalty programmes
210
576
	
Revenue from MRO and IT services
148
76
	
Other
226
50
Total
3,457
4,470
The decline in contract liabilities for unused flight documents 
is caused by the temporary nearly complete cancellation of 
flights since the beginning of March 2020 and lower ticket 
sales in 2020, and partly from higher refunds in connection 
with cancellations by passengers or airlines. EUR 1,045m of 
the contract liabilities as at 31 December 2019 could not be 
realised and were refunded to customers. Total ticket refunds 
of EUR 3,851m were made in connection with flights cancelled 
as a result of the pandemic. Only a small amount of expiry is 
currently assumed with regard to potentially unused tickets 
relating to flights during the crisis period. Consequently, no 
material revenue realisation was recognised for breakage  
for this period as part of the estimation assumptions in the 
measurement of the obligation.
Liabilities under customer loyalty programmes as of 31 Decem-
ber 2020 included 228 billion miles from bonus miles pro-
grammes (previous year: 225 billion miles). As a rule, the  
miles that are expected to expire are recognised pro rata 
over the general validity period of three years. The pro rata 
revenue realisations were reduced in accordance with the 
declining total redemptions in the financial year due to the 
severely restricted redemption options for air travel in con-
nection with the coronavirus pandemic when measuring the 
scope of the obligation. This is in line with the assumption 
that the proportion of expiring miles will not fundamentally 
increase due to the effects of the pandemic, but will merely 
shift to later periods. 
The unsatisfied performance obligation under existing  
long-term service contracts came to EUR 6.1bn in total, 
assuming that the services are performed as agreed, of 
which EUR 1.1bn relate to the next twelve months. These 
essentially consist of maintenance contracts in the MRO 
segment for the long-term maintenance and overhaul of  
airline sub-fleets. To calculate the outstanding performance 
obligations, the number of maintenance events derived from 
the respective flight plans and agreed in the contracts are 
taken into account, along with the expected revenue and 
fixed prices for certain services (VIP and cabin modifications). 
Around 61% of performance obligations beyond twelve 
months are expected to have been fulfilled by 2026. 
As in the previous year, no revenue was recognised in 2020 
for performance obligations fulfilled in prior financial years.
In line with the simplification rules of IFRS 15 disclosures  
are not made on performance obligations as of 31 December 
2020 or 31 December 2019 that have a forecast original term 
of one year or less. The option of rebooking flights means 
that there may be a period of time between the conclusion 
of the contract and the provision of the service that exceeds 
one year, although this cannot be foreseen when the contract 
is concluded. Due to the advance booking period of a maxi-
mum of one year and short-term rebooking possibilities, the 
Lufthansa Group assumes that the application of the simpli-
fication rule is justified. Award miles can be redeemed for at 
least three years, but may also be redeemed at short notice 
and for this reason are also reported as current.
The Lufthansa Group applies the simplification rule defined 
in IFRS 15.94, which allows contract initiation costs to be 
expensed if the amortisation period otherwise to be taken 
into account would be twelve months or less.
LUFTHANSA GROUP ANNUAL REPORT 2020
196
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

41 		 Trade payables and other current financial liabilities
T142  TRADE PAYABLES AND OTHER CURRENT FINANCIAL LIABILITIES
in €m
31 Dec 2020
31 Dec 2019
 
Trade payables
Trade payables to affiliated companies
55
42
Trade payables to other equity investments 
–
2
Trade payables to third parties 
2,032
3,678
2,087
3,722
Other liabilities
Liabilities to banks 
14
17
Other liabilities to affiliated companies 
316
260
Other liabilities to equity investments 
–
–
Liabilities from equity investments
61
356
Other financial liabilities
843
996
1,234
1,629
 
 
 
Total
3,321
5,351
The carrying amount of these liabilities corresponds to  
their fair value. Other liabilities of EUR 38m (previous year: 
EUR 109m) serve as collateral for positive market values of 
derivatives.
42		 Current advance payments received, deferred income 
and other non-financial liabilities
T143  CURRENT ADVANCE PAYMENTS RECEIVED, DEFERRED INCOME 
AND OTHER NON-FINANCIAL LIABILITIES
in €m
31 Dec 2020
31 Dec 2019
 
Advance payments received
21
17
Deferred income
88
59
Other non-financial liabilities
1,186
306
 
1,295
382
As of 31 December 2020, deferred income includes a balance 
of EUR 43m from grants received by catering and MRO 
companies in the USA under the CARES Act totalling USD 
157m. Deferred income and prepaid expenses are written 
back in accordance with the use of the funds received.
The increase in other non-financial liabilities is mainly due to 
tax liabilities. To support affected companies during the crisis 
in Germany and Austria, tax and levy deferments were granted 
by state institutions in the amount of EUR 918m. These are 
mainly import VAT and air traffic tax. Other non-financial lia-
bilities also include the current portion of obligations under 
share-based remuneration agreements measured at fair value 
(↗ Note 39, p. 192ff.). In addition, EUR 193m (previous year: 
EUR 279m) relates to deferred amounts for outstanding holi-
day allowance and overtime. 
LUFTHANSA GROUP ANNUAL REPORT 2020
197
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated statement of financial position

NOTES TO THE SEGMENT REPORTING
43		 Notes to the reportable segments  
and segment data
NOTES TO THE REPORTABLE SEGMENTS
As of 31 December 2020, the Lufthansa Group operates in 
five reporting segments, which make up its Group activities. 
The segments are defined in line with the internal reporting 
and management structure.
The airline activities were combined in their respective 
reporting segments based on the similarity between the 
economic characteristics of the individual airlines, such as 
network and sales structures, as well as customers and  
services. The Network Airlines segment comprises Lufthansa 
German Airlines, SWISS, Austrian Airlines, Brussels Airlines 
and Germanwings. Further information about the individual 
airlines can be found in the Group management report  
↗ starting on p. 51.
The Eurowings segment comprises the airlines under the 
Eurowings brand and the equity investment in SunExpress.
The Logistics segment comprises the scheduled airfreight 
activities of the Lufthansa Cargo group. Lufthansa Cargo is 
Europe’s leading cargo airline.
The MRO segment is a leading global provider of mainte-
nance, repair and overhaul services for civil and commercial 
aircraft and is represented by Lufthansa Technik group.
The Catering segment, represented by the LSG Lufthansa 
Service/Sky Chefs group, is a leading airline caterer and  
also offers catering services in the retail segment as well as 
service and logistics services.
Business activities not allocated to a reportable segment are 
presented in the “Additional Businesses and Group Functions” 
column of the segment reporting along with the income and 
expenses of central Group functions. They include income 
and expenses of Lufthansa Commercial Holding GmbH, 
Lufthansa AirPlus group, the Lufthansa Systems group, the 
Lufthansa Aviation Training group and other Group companies.
NOTES TO SEGMENT DATA AND INTERNAL MANAGEMENT
The accounting policies of the reportable segments are the 
same as those described in ↗ Note 3, p. 143ff.
Segmentation has been changed compared with the finan-
cial statements as of 31 December 2019. Brussels Airlines, 
Germanwings and the Eurowings long-haul business are 
managed by the Network Airlines group as of the start of 
financial year 2020 and have therefore been allocated to the 
Network Airlines segment. As of 1 January 2020, the line 
maintenance business of Lufthansa Technik was transferred 
to Deutsche Lufthansa AG, which will carry out the work 
itself from this point on, and is now part of the Network  
Airlines segment. The figures for the previous year have been 
adjusted accordingly. The segmentation changes increased 
previous-year revenue for the Network Airlines segment by 
EUR 1,972m and reduced its Adjusted EBIT by EUR 29m. In 
the Eurowings segment, the previous year’s revenue fell by 
EUR 1,812m, while Adjusted EBIT increased by EUR 44m. 
The figures for the previous year in the MRO segment for 
revenue and Adjusted EBIT fell by EUR – 349m and by  
EUR – 30m, respectively. 
The Lufthansa Group measures the performance of its  
segments using both segment result indicators: EBIT and 
Adjusted EBIT. EBIT is made up of the IFRS operating result 
and the result from equity investments. Adjusted EBIT is 
obtained by correcting EBIT for gains and losses on the dis-
posal of assets, write-downs and write-backs and earnings 
attributable to other periods in connection with pension  
obligations (plan adjustments and plan settlements).
Sales and revenue between reportable segments are based 
on arm’s length prices. Administrative services are charged 
as cost allocations.
For information on external traffic revenue ↗ Note 4, p. 157.
Capital employed largely comprises segment assets, 
adjusted for derivative financial instruments, and deferred 
tax items less non-interest-bearing debt.
The result of the equity valuation for the segment’s equity 
investments is part of its segment result. However, from  
a Group perspective, it is not attributed to the operating 
result, but rather to the financial result.
LUFTHANSA GROUP ANNUAL REPORT 2020
198
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the segment reporting

T144  SEGMENT INFORMATION FOR THE 2020 REPORTING SEGMENTS
in €m
Network 
Airlines 
 
Eurowings 
 
 
Logistics 
 
 
MRO 
 
 
Catering 
 
 
Total  
reportable 
operating 
segments
Additional 
Businesses 
and Group  
Functions
Reconciliation
Group 
 
 
Not­ 
­allocated
Consoli­
dation
 
External revenue
6,167
589
2,733
2,724
1,064
13,277
312
–
–
13,589
	
of which traffic revenue
5,488
579
2,596
–
–
8,663
–
415
–
9,078
Inter-segment revenue
455
9
24
1,023
241
1,752
158
–
– 1,910
–
Total revenue
6,622
598
2,757
3,747
1,305
15,029
470
–
– 1,910
13,589
Other operating income
994
147
69
437
143
1,790
1,571
–
– 1,356
2,005
Total operating income
7,616
745
2,826
4,184
1,448
16,819
2,041
–
– 3,266
15,594
Operating expenses
12,258
1,346
2,082
4,502
1,698
21,886
2,361
–
– 3,401
20,846
	
of which cost of  
materials and services
5,101
699
1,300
2,372
545
10,017
203
–
– 1,767
8,453
	
of which staff costs
3,340
176
377
1,113
742
5,748
660
–
– 3
6,405
	
of which depreciation  
and amortisation
1,814
199
178
197
117
2,505
124
–
– 68
2,561
	
of which other  
operating expenses
2,003
272
227
820
294
3,616
1,374
–
– 1,563
3,427
Results of equity  
investments 1)
– 32
– 102
28
– 65
– 34
– 205
6
–
–
– 199
	
of which result of invest-
ments accounted for  
using the equity method
– 39
– 102
17
– 52
– 34
– 210
–
–
–
– 210
Adjusted EBIT 2)
– 4,674
– 703
772
– 383
– 284
– 5,272
– 314
–
135
– 5,451
	
Reconciliation items
– 1,425
– 99
– 55
– 125
– 147
– 1,851
– 49
–
– 2
– 1,902
	
Impairment losses/gains
– 1,398
– 97
– 55
– 108
– 201
– 1,859
– 43
–
32
– 1,870
	
Effects from  
pension provisions
– 27
–
–
– 3
1
– 29
– 2
–
–
– 31
	
Results of disposal  
of assets
–
– 2
–
– 14
53
37
– 4
–
– 34
– 1
EBIT
– 6,099
– 802
717
– 508
– 431
– 7,123
– 363
–
133
– 7,353
Other financial result
 
 
 
 
 
 
 
 
 
– 1,278
Profit/loss before  
income taxes
 
 
 
 
 
 
 
 
 
– 8,631
Capital employed  3)
12,171
950
2,287
3,467
943
19,818
3,399
–
– 131
23,086
	
of which from investments 
accounted for using  
the equity method
17
77
49
173
86
402
2
–
– 1
403
Segment capital  
expenditure  4)
958
106
222
152
28
1,466
48
–
– 202
1,312
	
of which from investments 
accounted for using  
the equity method
–
–
–
31
–
31
–
–
–
31
Number of employees  
at end of period
57,363
3,088
4,373
22,745
13,227
100,796
9,269
–
–
110,065
Average number  
of employees
59,191
3,203
4,436
23,519
25,288
115,637
9,570
–
–
125,207
1)	 The result from equity investments does not include any impairment losses on investments accounted for using the equity method.
2)	For reconciliation from Adjusted EBIT to EBIT ↗ T021, p. 40, in the Group management report.
3)	The capital employed results from total assets adjusted for non-operating items (deferred taxes, positive market values,  
derivatives) less non-interest bearing liabilities (including trade payables and liabilities from unused flight documents).
4)	Investment in intangible assets and property, plant and equipment, as well as in loans to and shares in companies. Investment is shown without  
capitalised borrowing costs.
LUFTHANSA GROUP ANNUAL REPORT 2020
199
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the segment reporting

T144  SEGMENT INFORMATION FOR THE 2019 REPORTING SEGMENTS 1)
in €m
Network 
Airlines 
 
Eurowings 
 
 
Logistics 
 
 
MRO 
 
 
Catering 
 
 
Total  
reportable 
operating 
segments
Additional 
Businesses 
and Group  
Functions
Reconciliation
Group 
 
 
Not­ 
­allocated
Consoli­
dation
 
External revenue
24,111
2,321
2,437
4,378
2,623
35,870
554
–
–
36,424
	
of which traffic revenue
23,055
2,307
2,318
–
–
27,680
–
456
–
28,136
Inter-segment revenue
967
– 10
41
2,194
737
3,929
239
–
– 4,168
–
Total revenue
25,078
2,311
2,478
6,572
3,360
39,799
793
–
– 4,168
36,424
Other operating income
1,014
176
103
256
95
1,644
1,939
–
– 1,068
2,515
Total operating income
26,092
2,487
2,581
6,828
3,455
41,443
2,732
–
– 5,236
38,939
Operating expenses
24,362
2,633
2,621
6,425
3,355
39,396
2,971
–
– 5,243
37,124
	
of which cost of  
materials and services
13,843
1,861
1,778
3,902
1,441
22,825
287
–
– 3,285
19,827
	
of which staff costs
4,801
259
406
1,448
1,290
8,204
913
–
– 6
9,111
	
of which depreciation  
and amortisation
1,927
233
160
191
119
2,630
107
–
– 45
2,692
	
of which other  
operating expenses
3,791
280
277
884
505
5,737
1,664
–
– 1,907
5,494
Results of equity  
investments
46
24
41
60
28
199
12
–
–
211
	
of which result of invest-
ments accounted for  
using the equity method
31
24
18
34
24
131
–
–
–
131
Adjusted EBIT 2)
1,776
– 122
1
463
128
2,246
– 227
–
7
2,026
	
Reconciliation items
– 52
– 4
– 34
9
– 30
– 111
6
–
– 64
– 169
	
Impairment losses/gains
– 26
–
– 38
12
– 42
– 94
7
–
– 52
– 139
	
Effects from  
pension provisions
– 3
–
– 1
– 2
– 1
– 7
– 4
–
1
– 10
	
Results of disposal  
of assets
– 23
– 4
5
– 1
13
– 10
3
–
– 13
– 20
EBIT
1,724
– 126
– 33
472
98
2,135
– 221
–
– 57
1,857
Other financial result
 
 
 
 
 
 
 
 
 
3
Profit/loss before  
income taxes
 
 
 
 
 
 
 
 
 
1,860
Capital employed 3)
12,957
1,480
2,135
5,607
1,513
23,692
1,904
–
– 561
25,035
	
of which from investments 
accounted for using  
the equity method
25
178
49
279
139
670
5
–
– 3
672
Segment capital  
expenditure 4)
2,738
127
286
313
127
3,591
107
–
– 32
3,666
	
of which from investments 
accounted for using  
the equity method
–
–
–
49
28
77
–
–
–
77
Number of employees  
at end of period
60,913
3,432
4,539
23,855
35,636
128,375
9,978
–
–
138,353
Average number  
of employees
60,594
3,666
4,543
23,077
35,904
127,784
10,000
–
–
137,784
1)	 Previous year’s figures have been adjusted.
2)	For reconciliation from Adjusted EBIT to EBIT ↗ T021, p. 40, in the Group management report.
3)	The capital employed results from total assets adjusted for non-operating items (deferred taxes, positive market values,  
derivatives) less non-interest bearing liabilities (including trade payables and liabilities from unused flight documents).
4)	Investment in intangible assets and property, plant and equipment, as well as in loans to and shares in companies. Investment is shown without  
capitalised borrowing costs.
The reconciliation column includes both the effects of con-
solidation activities and the amounts resulting from different 
definitions of segment item contents compared with the 
corresponding Group items.
Eliminated segment revenue generated with other con­
solidated segments is shown in the reconciliation column  
for revenue.
The amounts in the reconciliation column for Group EBIT 
include the effects of consolidation procedures on profit  
or loss in which income and expense do not figure for two 
companies at the same amount, or in the same period. 
LUFTHANSA GROUP ANNUAL REPORT 2020
200
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the segment reporting

NOTES ON GEOGRAPHICAL REGIONS IN 2020
The allocation of traffic revenue to geographic regions is 
based on the original location of sale. Non-current assets are 
allocated according to the location of the relevant asset. The 
allocation of other revenue to the individual regions is based 
on the geographical location of the customer.
The regions are defined on a geographical basis. As an 
exception to this rule, traffic revenue generated in Turkey  
is attributed to Europe.
The Lufthansa Group controls its air traffic operations on  
the basis of network results and not on the basis of regional 
earnings contributions. The same applies to the Catering 
segment. Consequently, the presentation of regional segment 
results is of no informational value for the Lufthansa Group.
A presentation of traffic revenue generated in the Network 
Airlines, Eurowings and Logistics segments by traffic region, 
rather than by original location of sale, is included in the 
information on the respective segments in the management 
report.
External revenue, non-current assets and capital expenditure 
are as follows:
T145  EXTERNAL REVENUE AND NON-CURRENT ASSETS BY REGION FOR 2020
in €m
Europe 
 
North 
­America 
Central and 
South 
America
Asia / 
Pacific 
Middle  
East 
Africa 
 
Group 
 
 
Traffic revenue  1)
5,852
1,113
222
1,541
166
184
9,078
Other revenue
1,875
1,474
160
704
179
119
4,511
Non-current assets 2) 3) 4)
20,123
777
37
201
2
11
21,151
Capital expenditure on non-current assets 3)
1,224
33
–
10
–
1
1,268
1)	 Traffic revenue is allocated according to the original location of sale.
2)	Non-current assets include property, plant and equipment and intangible assets with the exception of repairable spare parts for aircraft.
3)	Aircraft are allocated according to their location of registration.
4)	Including rights of uses in accordance with first-time application of IFRS 16.
The figures for the main countries are as follows:
T146  EXTERNAL REVENUE AND NON-CURRENT ASSETS  
BY COUNTRIES FOR 2020
in €m
Germany
USA
 
Traffic revenue  1)
2,691
1,005
Other revenue
677
1,200
Non-current assets 2) 3) 4)
14,183
527
Capital expenditure on non-current assets 3)
991
27
1)	 Traffic revenue is allocated according to the original location of sale.
2)	Non-current assets include property, plant and equipment and intangible assets 
with the exception of repairable spare parts for aircraft.
3)	Aircraft are allocated according to their location of registration.
4)	Including rights of uses in accordance with first-time application of IFRS 16.
LUFTHANSA GROUP ANNUAL REPORT 2020
201
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the segment reporting

NOTES ON GEOGRAPHICAL REGIONS IN 2019
External revenue, non-current assets and capital expenditure 
are as follows:
T145  EXTERNAL REVENUE AND NON-CURRENT ASSETS BY REGION FOR 2019
in €m
Europe 
 
North 
­America 
Central and 
South 
America
Asia / 
Pacific 
Middle  
East 
Africa 
 
Group 
 
 
Traffic revenue  1)
18,586
4,707
615
3,073
621
534
28,136
Other revenue
3,437
2,557
463
1,394
281
156
8,288
Non-current assets 2) 3)
23,385
564
48
305
4
26
24,332
Capital expenditure on non-current assets 3)
3,434
50
6
17
–
3
3,510
1)	 Traffic revenue is allocated according to the original location of sale.
2)	Non-current assets include property, plant and equipment and intangible assets with the exception of repairable spare parts for aircraft.
3)	Aircraft are allocated according to their location of registration.
The figures for the main countries are as follows:
T146  EXTERNAL REVENUE AND NON-CURRENT ASSETS  
BY COUNTRIES FOR 2019
in €m
Germany
USA
 
Traffic revenue  1)
8,610
4,233
Other revenue
1,077
2,097
Non-current assets 2) 3)
16,207
533
Capital expenditure on non-current assets 3)
2,913
45
1)	 Traffic revenue is allocated according to the original location of sale.
2)	Non-current assets include property, plant and equipment and intangible assets 
with the exception of repairable spare parts for aircraft.
3)	Aircraft are allocated according to their location of registration.
In 2020 and in the previous year, no more than 10% of 
Lufthansa Group revenue was generated with any one  
customer.
LUFTHANSA GROUP ANNUAL REPORT 2020
202
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the segment reporting

NOTES TO THE CONSOLIDATED 
CASH FLOW STATEMENT
44		 Notes to cash flow from operating, investing and 
financing activities
The cash flow statement shows how cash and cash equiva-
lents have changed over the reporting period at the Lufthansa 
Group. In accordance with IAS 7, cash flows are divided into 
cash inflows and outflows from operating activities, from 
investing activities and from financing activities. The cash 
and cash equivalents shown in the cash flow statement 
comprise the statement of financial position items bank bal-
ances and cash-in-hand, without fixed-term deposits with 
terms of four to twelve months, amounting to EUR 2m (pre-
vious year: EUR 0m). The amount of liquidity in the broader 
sense is reached by adding securities that can be liquidated 
at short notice.
Interest paid and interest income from the corresponding 
interest rate hedges are netted to avoid overemphasising  
the items interest income and interest paid in the cash flow 
statement.
ADDITIONAL INFORMATION ON THE CASH FLOW STATEMENT
Cash flow from operating activities
Cash flow from operating activities is derived from profit/loss 
before income taxes using the indirect method. It is adjusted 
for non-cash income and expenses as well as changes in 
trade working capital and in other assets/liabilities that are 
not attributable to investing or financing activities.
Lease accounting in line with IFRS 16 means that payments 
under operating leases are presented as capital repayments  
or interest payments within cash flow from financing activities. 
In the financial year this had a positive impact of EUR 432m 
on cash flow from operating activities (of which EUR 379m 
capital repayment) and a corresponding negative effect in 
cash flow from financing activities.
In the current financial year, the Group primarily recognised 
the following non-cash income and expenses:
T147  SIGNIFICANT NON-CASH INCOME AND EXPENSES
in €m
2020
2019
 
Result of miscellaneous financial items
306
84
Write-down on receivables
248
120
Reversal of write-downs on receivables
– 36
– 27
Income from the reversal of  
provisions and accruals
– 338
– 321
Adjustments to retirement and  
transitional benefit systems
32
10
Total
212
– 134
Trade working capital consists of changes in the carrying 
amounts of inventories, trade receivables and payables,  
contract assets and down payments, other current assets 
and other current liabilities, contract liabilities and current 
deferrals and prepaid expenses.
Other assets/liabilities mainly include corrections between 
pensions expenses and payments, changes in other provisions, 
accruals/deferrals and corrections for non-cash effects from 
currency translation.
Special effects from other activities to strengthen the 
Group’s liquidity included the realisation and repeat purchase 
of existing exchange rate hedges with positive market  
values (known as restriking). This generated cash inflows of 
EUR 428m. Emissions certificates were also used in repo 
transactions to generate cash inflows (EUR 275m). Liquidity 
was improved by a total of EUR 918m thanks to deferrals of 
taxes and charges (mainly import VAT and air traffic tax) in 
Germany and Austria.
Cash flow from investing (and cash management) activities
Cash flows from investing and financing activities are  
calculated on the basis of payments.
Cash flow from investing activities results mainly from invest-
ments and disinvestments in non-current assets. The nega-
tive cash effect from disposals of consolidated companies 
results from the net total of the purchase price received and 
the decrease in cash and cash equivalents through the sale 
of the LSG group’s European business.
LUFTHANSA GROUP ANNUAL REPORT 2020
203
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated cash flow statement

The Lufthansa Group contributed EUR 235m to pension 
assets in 2020 (previous year: EUR 394m). These payments 
were categorised as cash flow from investing and cash  
management activities. By contrast, pension payments  
from fund assets led to cash inflows from investments  
(EUR 510m; previous year: EUR 138m). They correspond to 
cash outflows from operating activities.
Cash flow from financing activities
Cash flow from financing activities now also includes capital 
repayments and interest payments on lease liabilities. 
Borrowing and the instruments used to hedge it changed as 
follows in the financial year:
T148  FINANCIAL LIABILITIES 2020
in €m
31 Dec 
2019 
 
 
 
 
Cash  
effective 
 
 
 
 
Non-cash effective
31 Dec 
2020 
 
 
 
 
Addition due 
to changes 
in consoli­
dation 
Addition due 
to lease 
liabilities 
 
Currency 
translation 
differences 
 
Accrued 
interest 
 
 
Reclassi­
fication/
Reclassi­
fication in  
held for sale
Changes in 
fair value 
 
 
Non-current borrowings
8,396
5,547
–
340
– 278
25
– 2,022
244
12,252
Current borrowings
1,634
– 532
–
2
– 19
–
2,036
– 5
3,116
Other borrowings 1)
17
– 1
–
–
– 2
–
–
–
14
Total financial liabilities
10,047
5,014
–
342
– 299
25
14
239
15,382
Interest rate swaps and  
currency futures used  
for hedging – assets
– 205
69
–
–
–
–
–
– 20
– 156
Interest rate swaps and  
currency futures used  
for hedging – liabilities
27
–
–
–
–
–
–
17
44
1)	 Mainly relate to bank overdrafts.
Changes in borrowing in the previous year were as follows:
T148  FINANCIAL LIABILITIES 2019
in €m
31 Dec 
2018 
 
 
 
 
Cash  
effective 
 
 
 
 
Non-cash effective
31 Dec 
2019 
 
 
 
 
Addition due 
to changes 
in consoli­
dation 
Addition due 
to lease
liabilities 1) 
 
Currency 
translation 
differences 
 
Accrued 
interest 
 
 
Reclassi­
fication/
Reclassi­
fication in  
held for sale
Changes in 
fair value 
 
 
Non-current borrowings
5,008
2,688
–
2,410
66
21
– 1,867
70
8,396
Current borrowings
1,677
– 2,236
–
359
3
–
1,833
– 2
1,634
Other borrowings 2)
39
– 22
–
–
–
–
–
–
17
Total financial liabilities
6,724
430
–
2,769
69
21
– 34
68
10,047
Interest rate swaps and  
currency futures used  
for hedging – assets
– 154
89
–
–
–
–
–
– 140
– 205
Interest rate swaps and  
currency futures used  
for hedging – liabilities
49
–
–
–
–
–
–
– 22
27
1)	 This includes additions from the first-time application of IFRS 16 (non-current borrowings: EUR 1,599m and current borrowings: EUR 359m).
2)	Mainly relate to bank overdrafts.
LUFTHANSA GROUP ANNUAL REPORT 2020
204
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Notes to the consolidated cash flow statement

OTHER DISCLOSURES
45		 Additional disclosures on financial instruments
FINANCIAL ASSETS BY MEASUREMENT CATEGORY 
As of the current reporting date, the financial assets can be 
broken down into measurement categories with the following 
carrying amounts:
T149  FINANCIAL ASSETS IN THE BALANCE SHEET AS OF 31 DEC 2020
in €m
Amortised  
cost 
 
 
 
At fair value 
through  
profit or loss 
 
 
At fair value 
through other 
comprehensive 
income  
(with  
recycling)
At fair value 
through other 
comprehensive 
income  
(without  
recycling)
Derivative  
financial instru-
ments which  
are an effective  
part of a hedging  
relationship
Total 
 
 
 
 
Other equity investments
–
34
–
–
–
34
Non-current securities
31
–
–
23
–
54
	
of which equity instruments
–
–
–
23
–
23
	
of which debt instruments
31
–
–
–
–
31
Loans
121
–
–
–
–
121
Non-current receivables
318
–
–
–
–
318
Non-current derivative  
financial instruments
–
–
–
–
363
363
Trade receivables and  
other current receivables
2,793
–
–
–
–
2,793
Current derivative financial instruments
–
2
–
–
258
260
Current securities
–
3,654
–
–
–
3,654
	
of which equity instruments
–
3,654
–
–
–
3,654
	
of which debt instruments
–
–
–
–
–
–
Cash and cash equivalents
1,806
–
–
–
–
1,806
Total
5,069
3,690
–
23
621
9,403
T149  FINANCIAL ASSETS IN THE BALANCE SHEET AS OF 31 DEC 2019
in €m
Amortised  
cost 
 
 
 
At fair value 
through  
profit or loss 
 
 
At fair value 
through other 
comprehensive 
income  
(with  
recycling)
At fair value 
through other 
comprehensive 
income  
(without  
recycling)
Derivative  
financial instru-
ments which  
are an effective  
part of a hedging  
relationship
Total 
 
 
 
 
Other equity investments
–
33
–
–
–
33
Non-current securities
31
–
–
22
–
53
	
of which equity instruments
–
–
–
22
–
22
	
of which debt instruments
31
–
–
–
–
31
Loans
154
–
–
–
–
154
Non-current receivables
316
–
–
–
–
316
Non-current derivative  
financial instruments
–
6
–
–
899
905
Trade receivables and  
other current receivables
5,322
–
–
–
–
5,322
Current derivative financial instruments
–
6
–
–
452
458
Current securities
–
360
1,610
–
–
1,970
	
of which equity instruments
–
360
–
–
–
360
	
of which debt instruments
–
–
1,610
–
–
1,610
Cash and cash equivalents
1,415
–
–
–
–
1,415
Total
7,238
405
1,610
22
1,351
10,626
LUFTHANSA GROUP ANNUAL REPORT 2020
205
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

The category “At fair value through other comprehensive 
income” includes derivatives that do not meet the require-
ments for applying hedge accounting and so are accounted 
for as stand-alone derivatives. This category also includes 
equity instruments, consisting of money market funds and 
equity investments, for which the instrument-specific option 
of fair value through other comprehensive income without 
recycling has not been exercised. As of the reporting date, 
the fair-value option without effect on profit and loss and 
without recycling was chosen for one share position, in order 
to avoid the recognition of changes in market value through 
profit or loss. The item includes shares in VISA Inc. (market 
value: EUR 23m, dividend payments: EUR 0.1m in the 2020 
financial year) whose market valuation reserve increased by 
EUR 1m in 2020 (cumulative EUR 15m). The decline in debt 
instruments designated as at fair value (with recycling) with-
out effect on profit and loss was due to the release of bonds 
in the financial year. This and other liquid funds are being 
invested in the current year in money market funds, which 
are equity instruments at fair value through profit or loss.
FINANCIAL LIABILITIES BY MEASUREMENT CATEGORY
The financial liabilities can be divided into measurement  
categories with the following carrying amounts, whereby the 
category “at fair value through profit or loss” includes deriva-
tives that do not meet the requirements for applying hedge 
accounting and so are accounted for as stand-alone deriva-
tives. In addition, the instrument-specific option to designate 
the convertible bond issued in the reporting year as “at fair 
value through profit or loss” was also exercised; its fair value 
as of the reporting date was EUR 712m. The total change  
of EUR 118m in the market value of the convertible bond was 
therefore split into a credit-risk-induced share of EUR 22m, 
which is recognised as an expense in OCI, and a price-induced 
share of EUR 96m, which is recognised as an expense in the 
trading result.
T150  FINANCIAL LIABALITIES IN THE BALANCE SHEET AS OF 31 DEC 2020
in €m
Liabilities at fair 
value through  
profit or loss 
 
 
Derivative  
financial instru-
ments which  
are an effective  
part of a hedging  
relationship
Other financial  
liabilities at cost 
 
 
 
Total 
 
 
 
 
Borrowings (without IFRS 16 lease liabilities)
712
–
12,020
12,732
Derivative financial instruments 
85
738
–
823
Trade payables
–
–
2,087
2,087
Other financial liabilities
–
–
1,320
1,320
Total
797
738
15,427
16,962
T150  FINANCIAL LIABALITIES IN THE BALANCE SHEET AS OF 31 DEC 2019
in €m
Liabilities at fair 
value through  
profit or loss 
 
 
Derivative  
financial instru-
ments which  
are an effective  
part of a hedging  
relationship
Other financial  
liabilities at cost 
 
 
 
Total 
 
 
 
 
Borrowings (without IFRS 16 lease liabilities)
–
–
7,158
7,158
Derivative financial instruments 
67
199
–
266
Trade payables
–
–
3,722
3,722
Other financial liabilities
–
–
1,705
1,705
Total
67
199
12,585
12,851
LUFTHANSA GROUP ANNUAL REPORT 2020
206
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

The net result of the different categories of financial assets 
and liabilities is made up as follows:
T151  NET RESULT 2020 FOR FINANCIAL ASSETS AND LIABILITIES BY MEASUREMENT CATEGORY
in €m
Interest 
expenses 
Interest 
income 
Depreciation 
 
Result from 
valuation  
and sale
Currency 
result 
Net result 
 
 
Assets at amortised cost
–
3
– 213
–
– 11
– 221
At fair value through other comprehensive income  
(with recycling)
– 3
4
–
15
– 2
14
At fair value through other comprehensive income  
(without recycling)
–
–
–
1
–
1
Assets at fair value through profit or loss
–
–
–
24
–
24
Liabilities at amortised cost
– 169
–
–
–
39
– 130
Liabilities at fair value through profit or loss
– 1
–
–
– 886
–
– 887
Total
– 173
7
– 213
– 846
26
– 1,199
For the result of measurement and disposal of assets at fair 
value through profit or loss, see ↗ Note 14, p. 162.
T151  NET RESULT 2019 FOR FINANCIAL ASSETS AND LIABILITIES BY MEASUREMENT CATEGORY
in €m
Interest 
expenses 
Interest 
income 
Depreciation 
 
Result from 
valuation  
and sale
Currency 
result 
Net result 
 
 
Assets at amortised cost
–
8
– 94
–
8
– 78
At fair value through other comprehensive income  
(with recycling)
– 10
21
–
13
5
29
At fair value through other comprehensive income  
(without recycling)
–
–
–
– 8
–
– 8
Assets at fair value through profit or loss
–
–
–
411
–
411
Liabilities at amortised cost
– 123
–
–
–
– 22
– 145
Liabilities at fair value through profit or loss
–
–
–
– 52
–
– 52
Total
– 133
29
– 94
364
– 9
157
The table to the right shows the carrying amounts and market 
values for individual classes of financial liabilities. The stated 
market values of bonds reflect their stock market listings 
(Level 1 of the fair value hierarchy). The market values for other 
types of financial liability have been calculated using the 
applicable interest rates for the remaining term to maturity 
and repayment structures at the balance sheet date based 
on the available market information (Bloomberg) (Level 2  
of the fair value hierarchy). For other assets and liabilities, 
non-current receivables, trade receivables and cash-in-hand 
carried at amortised cost, the carrying amount is deemed to 
be a reasonable approximation of the fair value.
T152  FINANCIAL LIABILITIES
in €m
31 Dec 2020
31 Dec 2019
Carrying 
amount
Market  
value
Carrying 
amount
Market  
value
 
Bonds
2,707
2,643
995
1,026
Commercial 
Paper to banks
200
199
98
98
Borrower’s  
note loans
1,900
1,894
2,073
2,129
Credit lines
763
740
–
–
State-guaranteed 
loans
2,907
3,147
–
–
Aircraft financing
3,603
3,590
3,887
3,682
Other borrowings
651
705
104
124
Leasing liabilities 1)
2,637
–
2,873
–
Total
15,368
12,918
10,030
7,059
1)	 With the introduction of IFRS 16, declaration of market value no longer applies  
as of 1 January 2019.
LUFTHANSA GROUP ANNUAL REPORT 2020
207
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

FINANCIAL ASSETS HELD AT FAIR VALUE BY LEVEL OF  
FAIR VALUE HIERARCHY
The following table shows financial assets and liabilities  
held at fair value by level of 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 directly or indirectly from observable 
market data.
Level 3: Measurement is made by means of valuation  
methods with parameters not based exclusively on observ­
able market data.
In the financial year 2020, the fair value hierarchy for assets 
and liabilities held at fair value was as follows:
T153  FAIR VALUE HIERARCHY OF ASSETS AS OF 31 DEC 2020
in €m
Level 1
Level 2
Level 3
Total
 
Financial assets  
at fair value through 
profit and loss
3,654
2
–
3,656
Financial derivatives  
classified as held  
for trading
–
2
–
2
Securities
3,654
–
–
3,654
Derivative financial 
instruments which are  
an effective part of  
a hedging relationship
–
620
–
620
Financial assets  
at fair value through other 
comprehensive income
11
12
–
23
Equity instruments
11
12
–
23
Debt instruments
–
–
–
–
Total assets
3,665
634
–
4,299
T154  FAIR VALUE HIERARCHY OF LIABILITIES AS OF 31 DEC 2020
in €m
Level 1
Level 2
Level 3
Total
 
Financial liabilities  
at fair value through  
profit or loss
–
– 712
–
– 712
Derivative financial  
instruments at fair value 
through profit or loss
–
– 85
–
– 85
Derivative financial  
instruments which are  
an effective part of  
a hedging relationship
–
– 738
–
– 738
Total liabilities
–
– 1,535
–
– 1,535
In the previous year, the hierarchy was as follows:
T153  FAIR VALUE HIERARCHY OF ASSETS AS OF 31 DEC 2019
in €m
Level 1
Level 2
Level 3
Total
 
Financial assets  
at fair value through profit 
and loss
359
13
–
372
Financial derivatives  
classified as held  
for trading
–
12
–
12
Securities
359
1
–
360
Derivative financial instru-
ments which are  
an effective part of  
a hedging relationship
–
1,352
–
1,352
Financial assets  
at fair value through other 
comprehensive income
–
1,632
–
1,632
Equity instruments
–
22
–
22
Debt instruments
–
1,610
–
1,610
Total assets
359
2,997
–
3,356
T154  FAIR VALUE HIERARCHY OF LIABILITIES AS OF 31 DEC 2019
in €m
Level 1
Level 2
Level 3
Total
 
Derivative financial  
instruments at fair value 
through profit or loss
–
– 67
–
– 67
Derivative financial  
instruments which are  
an effective part of  
a hedging relationship
–
– 199
–
– 199
Total liabilities
–
– 266
–
– 266
LUFTHANSA GROUP ANNUAL REPORT 2020
208
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

NETTING OF FINANCIAL ASSETS AND LIABILITIES
The following financial assets and liabilities are subject to 
global netting agreements and other agreements.
T155  NETTING OF FINANCIAL ASSETS AS OF 31 DEC 2020
in €m
Gross  
amount
Netted 
amounts
Reported  
net amount
Amounts  
not netted
Cash  
collateral
Net  
amount
 
Trade receivables and other current receivables
2,837
44
2,793
–
2
2,793
Derivative financial instruments – assets
623
–
623
39
38
546
Cash and cash equivalents
1,822
16
1,806
–
–
1,806
Total assets
5,282
60
5,222
39
40
5,145
T156  NETTING OF FINANCIAL LIABILITIES AS OF 31 DEC 2020
in €m
Gross  
amount
Netted 
amounts
Reported  
net amount
Amounts  
not netted
Cash  
collateral
Net  
amount
 
Trade payables and other financial liabilities
2,144
60
2,084
–
38
2,084
Derivative financial instruments – liabilities
823
–
823
39
2
782
Total liabilities
2,967
60
2,907
39
40
2,866
In the previous year, the net balances were as follows:
T155  NETTING OF FINANCIAL ASSETS AS OF 31 DEC 2019
in €m
Gross  
amount
Netted 
amounts
Reported  
net amount
Amounts  
not netted
Cash  
collateral
Net  
amount
 
Trade receivables and other current receivables
5,478
156
5,322
–
–
5,322
Derivative financial instruments – assets
1,364
–
1,364
– 37
92
1,309
Cash and cash equivalents
1,445
30
1,415
–
–
1,415
Total assets
8,287
186
8,101
– 37
92
8,046
T156  NETTING OF FINANCIAL LIABILITIES AS OF 31 DEC 2019
in €m
Gross  
amount
Netted 
amounts
Reported  
net amount
Amounts  
not netted
Cash  
collateral
Net  
amount
 
Trade payables and other financial liabilities
3,908
186
3,722
–
92
3,722
Derivative financial instruments – liabilities
266
–
266
– 37
–
303
Total liabilities
4,174
186
3,988
– 37
92
4,025
LUFTHANSA GROUP ANNUAL REPORT 2020
209
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

PRINCIPLES OF HEDGING POLICY
As an aviation group with worldwide operations, the Lufthansa 
Group is exposed to exchange rate, interest rate and fuel 
price movement risks, as well as to credit and liquidity risks. 
Limiting these risks by means of systematic financial man-
agement is part of Company policy.
Market risk
The major market and price risks to which the Lufthansa 
Group is exposed are exchange rate fluctuations between 
the euro and other currencies, interest rate fluctuations in 
international money and capital markets, and price fluctuations 
in the crude oil and oil products markets. Hedging policy for 
limiting these risks is laid down by the Executive Board and 
documented by internal Group guidelines. It also provides for 
the use of financial derivatives. The corresponding financial 
transactions are concluded only with first-rate counterparties.
Foreign exchange risk
For US dollars, the Lufthansa Group is in a net payer position 
as regards currency risks from its operating business, since 
fuel payments are dollar-denominated. There is always a net 
surplus for other currencies. The main risks in this respect 
stem from the Chinese renminbi, the Swiss franc, British pound 
sterling, the Japanese yen and the Indian rupee. Depending 
on market liquidity, currency risks from projected operational 
exposure are hedged gradually over a period of 24 months  
by means of futures contracts, which are accounted for as 
cash flow hedges. The target hedging level is defined in  
the Group’s internal guidelines. The volume of hedging was 
reduced following the outbreak of the coronavirus crisis.  
At the end of the financial year 2020, exposure from opera-
tions for the next 24 months was as follows:
T157  CURRENCY EXPOSURE, AS OF 2020
in millions
USD
CNY
JPY
GBP
INR
 
Exposure (currency)
– 3,971
4,212
56,644
530
30,819
Exposure  
(EUR at spot rate)
– 3,236
525
448
589
344
Hedges (currency)
706
– 1,439 – 19,113
– 180
– 3,690
Hedging level
18%
34%
34%
34%
12%
Hedging rate
1.13
8.26
120.35
0.90
88.81
50% of currency risks from capital expenditure on aircraft are 
hedged when the contract is signed. The hedging level is 
reviewed and increased, where necessary, if, over the lifetime 
of the contract, the exchange rate goes significantly above 
or below that used to calculate the investment. In the last  
24 months before payment, the hedging level is increased  
in half-yearly steps of 10%, reaching 90% by the end. These 
investment hedges are therefore also accounted for as cash 
flow hedges. Capital expenditure on aircraft takes place in 
US dollars and is hedged in euros or in Swiss francs, depend-
ing on the functional currency of the Group company making 
the purchase. There was no exposure in Swiss francs as of 
the reporting date.
US dollar exposure for capital expenditure as of year-end 
2020 was as follows, broken down by the hedged currency:
T158  USD INVESTMENT EXPOSURE, HEDGED IN EUR
in millions
2021
2022
2023
2024
2025
2026
2027
2028
2029
Exposure from net capital expenditure (USD)
– 2,157
– 2,717
– 3,578
– 1,607
– 1,325
– 947
– 269
– 213
– 168
Exposure from net capital expenditure  
(EUR at spot rate)
– 1,755
– 2,211
– 2,912
– 1,308
– 1,078
– 770
– 219
– 173
– 137
Hedges (USD)
1,904
2,151
2,303
895
754
496
75
–
–
Hedging level
88%
79%
64%
56%
57%
52%
28%
0%
0%
Hedging rate EUR/USD
1.20
1.20
1.22
1.28
1.30
1.28
1.36
–
–
LUFTHANSA GROUP ANNUAL REPORT 2020
210
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

The following sensitivity analysis shows how net profit and 
equity would change if the currencies identified as price  
risk variables had been different from those at the balance 
sheet date.
T159  SENSITIVITY ANALYSIS BY CURRENCY
in €m
Effects on
earnings after taxes 1)
Effects on 
equity 1)
 
Currency – USD
+ 10%
– 199
589
– 10%
165
– 482
Currency – JPY
+ 10%
– 5
– 14
– 10%
5
12
Currency – CHF
+ 10%
39
– 3
– 10%
– 31
2
Currency – GBP
+ 10%
4
– 19
– 10%
– 3
16
Currency – CNY
+ 10%
9
– 16
– 10%
– 7
13
Currency – INR
+ 10%
2
– 4
– 10%
– 1
3
1)	 All amounts after deferred tax effects; +/– signs relate to net profit and/or equity.
Interest rate risk
The Lufthansa Group aims to pay interest on 100% of its 
financial liabilities in euros at floating rates of interest. To do 
so, interest rate swaps are arranged for interest-bearing, 
fixed-rate financial debt and leasing liabilities. Financial lia-
bilities denominated in euros are hedged using “plain vanilla” 
interest rate swaps, while cross-currency interest rate swaps 
are used to hedge financial liabilities in foreign currencies. 
Depending on the interest rate structure of the exposure to 
be hedged, hedges are either classified as fair value hedges 
or cash flow hedges. The interest rate risk is monitored con-
stantly; strategic interest rate hedges are used as needed in 
response to different market situations. Depending on the 
counterparties and the instruments used, cash collateral for 
interest rate swaps is either deposited with or received from 
counterparties (↗ T155, T156, p. 209). 
The tables below describe the floating/fixed ratio for non- 
current borrowing as of financial year-end 2020 after taking 
into consideration interest rate hedging, as well as the  
distribution of the nominal volume of interest rate hedges.
T160  INTEREST RATE EXPOSURE AFTER HEDGING
in €m
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
 
Fix
2,613
1,997
1,936
1,875
1,820
1,142
145
41
34
27
20
Variable
6,101
4,657
3,835
3,243
1,956
1,554
1,179
969
697
456
198
Float/Fix-Ratio
70%
70%
66%
63%
52%
58%
89%
96%
95%
94%
91%
T161  NOMINAL VOLUME OF INTEREST RATE HEDGES
in €m
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
 
Fix
– 3,105
– 2,067
– 1,676
– 652
– 457
– 169
– 493
34
27
20
12
Variable
3,227
2,196
1,800
771
567
258
558
697
456
198
36
The sensitivity analysis to the right shows how net profit and 
equity would change if the interest rate identified as a price 
risk variable had been different from the perspective of the 
balance sheet date. In view of the current low interest rates, 
a reduction of more than 50 basis points is not considered 
likely, which is why the analysis was limited to this figure. Only 
stand-alone interest rate derivatives have been included, 
because in fair value hedge accounting, interest rate deriva-
tives offset the movements in the underlying hedged items.
T162  SENSITIVITY ANALYSIS BY INTEREST RATE
in €m
Effects on 
earnings after taxes 1)
Effects on
equity 1)
 
Interest
 
 
+ 100 basis points
31
–
– 50 basis points
– 48
–
1)	 All amounts after deferred tax effects; +/– signs relate to net profit and/or equity.
LUFTHANSA GROUP ANNUAL REPORT 2020
211
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

Effects of the EU benchmark regulation of  
global reference interest rates
In terms of the financial instruments used by the Lufthansa 
Group, the global reform of variable reference interest rates 
means that the variable reference interest rates for trans­
actions that are available today will no longer be so in future 
or will be calculated differently. As of 31 December 2020, the 
Lufthansa Group held EUR 6.8bn in outstanding financial 
transactions, floating rate liabilities and hedging instruments 
based on variable interest rates. The following table shows 
the absolute nominal volume of the transactions as of the 
reporting date.
T163  NOMINAL VOLUME OF FLOATING RATE FINANCIAL  
INSTRUMENTS IN HEDGING RELATIONSHIPS
Reference floating  
interest rate by currency
Nominal volume of 
floating interest rate 
derivatives 
 
in €m
Nominal volume of 
floating interest rate 
financial liabilities 
(without derivatives)  
in €m
EUR – EURIBOR
5,001
1,085
USD – LIBOR
331
336
CHF – LIBOR
11
–
Total
5,343
1,421
EURIBOR’s calculation method was adjusted in 2019 to 
ensure that it complies with the rules of the EU benchmark 
regulation. The change therefore has no effect on the 
Lufthansa Group for financial instruments based on EURIBOR. 
Since October 2019, the European Central Bank has also 
published €STR, a benchmark-compliant overnight interest 
rate. Clearing houses switched their mark-to-market account-
ing to the new overnight reference rates €STR (EUR) and 
SOFR (USD) in the course of 2020. The current status is that 
USD LIBOR rates will be published for the last time as of  
31 December 2021, so another reference interest rate will 
have to be used from 2022 at the latest but none has yet 
become established in the market. However, the outstanding 
changes to USD and CHF LIBOR will not have any significant 
impact on the Group portfolio due to the small volume of 
transactions. 
The Lufthansa Group has opted for the early application  
of the “Amendments to IFRS 9, IAS 39 and IFRS 7, Reform  
of Reference Interest Rates” of Phase 1 published in Septem-
ber 2019 and the pronouncements on Phase 2 of the reform 
of reference interest rates “Amendments to IFRS 9, IAS 39, 
IFRS 7, IFRS 4 and IFRS 16” from January 2021, which include 
transitional provisions and accounting exemptions for interest 
rate hedges. The outstanding changes to the benchmarks 
will not have any impact on the USD and CHF hedging rela-
tionships designated by the Lufthansa Group. Contracts for  
derivatives and for financial liabilities have been analysed  
by the Lufthansa Group and fallback clauses added if  
necessary. Systematic adjustments will also be made to  
the extent required.
Fuel price risk
In 2020, fuel costs accounted for 9.0% of the Lufthansa 
Group’s operating expenses (previous year: 18.1%). Significant 
changes in fuel prices can therefore have a significant effect 
on the Lufthansa Group’s result. 
Fuel price risk is limited by the use of crude oil hedges. The 
hedging level and the time horizon depend on the risk profile, 
which is derived from the business model of a Group com-
pany. As a rule, up to 5% of exposure is hedged monthly for 
up to 24 months by spread options and other combinations 
of hedges. Executive Board approval may be obtained  
to extend the hedging period and to increase the monthly 
hedging volume in order to exploit market opportunities.  
The target hedging level is up to 85%. No new fuel exposure 
was hedged from March 2020 following the outbreak of the 
coronavirus crisis.
From a year-end perspective, fuel exposure was as follows:
T164  FUEL EXPOSURE
 
 
2021
2022
 
Fuel requirement 
in 1,000 tonnes
5,687
8,541
Hedges 
in 1,000 tonnes
3,901
128
Hedging level
%
69
1
Hedging rate
USD/bbl
59.29
55.65
The following sensitivity analysis shows how equity would 
have been affected by changes in the market value of hedging 
instruments held as of the reporting date if the fuel price,  
the identified risk variable, had been different. Since hedge 
accounting rules mean that changes in the market value of 
the instruments are only recognised directly in equity without 
effect on profit and loss, the change in the fuel price of the 
hedges alone has no effect on earnings. The impact on earn-
ings results from stand-alone derivative as of the current 
reporting date:
T165  SENSITIVITY ANALYSIS BY FUEL PRICE
in €m
Effects on 
earnings after taxes 1)
Effects on
equity 1)
 
Fuel price
 
 
+ 10%
–
66
– 10%
–
– 73
1)	 All amounts after deferred tax effects; +/– signs relate to net profit and/or equity.
LUFTHANSA GROUP ANNUAL REPORT 2020
212
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

Market values of the derivative financial instruments  
used for hedging
Hedging instruments in designated hedging relationships are 
used to hedge exchange rate, interest rate and fuel price 
risks as of the reporting date. They changed as follows in the 
financial year:
T166  DERIVATIVE FINANCIAL INSTRUMENTS USED FOR HEDGING AS OF 31 DEC 2020
in €m
Positive  
market value 
 
 
 
Negative 
market value 
 
 
 
Change in  
fair value of 
hedging 
instrument – 
designated 
risk
Change in  
fair value of 
hedging 
instrument – 
non-desig-
nated risk
Basis  
adjustment  
of hedged 
items 
 
OCI –  
cash flow 
hedge  
reserve 
 
OCI –  
cost of  
hedging 
 
 
Ineffective 
portion of 
hedges – 
designated 
risk 
Ineffective 
portion of 
hedges –  
non desig-
nated risk 
Fair value hedge
Interest rate hedges – 
interest rate swaps
131
– 41
– 41
–
60
–
–
19
–
Cash flow hedge
Fuel hedging – 
options
6
– 42
– 61
6
–
– 63
7
2
– 1
Exchange rate  
hedging – forward 
transactions
458
– 651
– 1,151
129
–
– 1,019
140
– 132
– 10
Interest rate hedges – 
interest rate swaps
26
– 3
– 21
–
–
– 19
–
– 2
–
Total
621
– 737
– 1,274
135
60
– 1,101
147
– 113
– 11
	
of which current
258
– 354
T166  DERIVATIVE FINANCIAL INSTRUMENTS USED FOR HEDGING AS OF 31 DEC 2019
in €m
Positive  
market value 
 
 
 
Negative 
market value 
 
 
 
Change in  
fair value of 
hedging 
instrument – 
designated 
risk
Change in  
fair value of 
hedging 
instrument – 
non-desig-
nated risk
Basis  
adjustment  
of hedged 
items 
 
OCI –  
cash flow 
hedge  
reserve 
 
OCI –  
cost of  
hedging 
 
 
Ineffective 
portion of 
hedges – 
designated 
risk 
Ineffective 
portion of 
hedges –  
non desig-
nated risk 
Fair value hedge
Interest rate hedges – 
interest rate swaps
156
– 27
89
–
– 90
–
–
– 1
0
Cash flow hedge
Fuel hedging – 
options
185
– 39
404
163
–
402
164
2
– 1
Exchange rate  
hedging – forward 
transactions
963
– 133
– 386
315
–
– 380
319
– 6
– 4
Interest rate hedges – 
interest rate swaps
49
–
4
–
–
8
–
– 4
0
Total
1,353
– 199
111
478
– 90
30
483
– 9
– 5
	
of which current
452
– 135
LUFTHANSA GROUP ANNUAL REPORT 2020
213
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

In terms of exchange hedging, the change of EUR –309m in 
the market value of the reserve for cash flow hedges relates to 
derivatives that are still in the portfolio. Other changes result 
from the realisation of derivatives, in particular EUR 560m 
that remain in OCI due to the postponement of hedged trans-
actions. The market values stated for financial derivatives 
correspond to the price at which an independent third party 
would assume the rights and/or obligations from the financial 
instrument. The fair values of interest rate derivatives corre-
spond to their respective market values, which are measured 
using appropriate mathematical methods, such as discount-
ing expected future cash flows. Discounting takes market 
standard interest rates and the residual term of the respective 
instruments into account. Currency forward transactions and 
interest rate swaps are individually discounted to the balance 
sheet date based on their respective forward rates and the 
appropriate interest rate curve. The market prices of options 
used to hedge fuel prices are determined using acknowledged 
option pricing models.
Depending on the hedged exposure, the Lufthansa Group 
designates interest rate hedges as both fair value hedges 
and cash flow hedges and accounts for them accordingly. 
Interest rate swaps are designated as part of a hedging rela-
tionship and are not broken down into individual components. 
Ineffectiveness in these hedging relationships mainly occurs 
as a result of the subsequent designation of cross currency 
swaps in hedges as of 1 January 2018. Other reasons for 
ineffectiveness in hedging relationships are different param-
eters in the hedged item and the hedging instrument and 
the basis spread in cross currency swaps. Ineffectiveness in 
fair value hedges and cash flow hedges are recognised and 
presented as part of the financial result, below the other 
financial items.
Derivatives used in the context of fuel hedging to hedge 
future kerosene purchases are designated as cash flow hedges. 
Since 1 January 2018, the Lufthansa Group has applied the 
IFRS 9 component approach, using crude oil, based on Brent 
Crude ICE, as the designated risk component of the hedging 
instrument. The hedged item is composed of a global mix  
of crude oil types. The base risk between individual crude oil 
components in the hedging instrument and the crude oil mix 
in the hedged item is reduced by rebalancing the volumes 
that make up the hedged item on a quarterly basis. In 2020, 
the quarterly rebalancing factors for adjusting the hedged 
item were as follows: 1.022 (Q1), 1.021 (Q2), 1.02 (Q3) and 
1.017 (Q4). The Lufthansa Group generally uses options and 
combinations of options to hedge fuel prices. The intrinsic 
value of the option is designated as the hedging instrument, 
so that effective changes in the intrinsic values are recog- 
nised in other comprehensive income in the cash flow hedge 
reserve. The time value of an option is not designated as a  
hedging instrument and effective changes in the time value 
are therefore recognised as a cost of hedging. This rule was 
applied for the first time retroactively. Ineffectiveness in fuel 
price hedges results from the base risk between the crude oil 
component and the crude oil mix in the component approach. 
Ineffectiveness in hedges is recognised and presented as 
part of the financial result, below the other financial items.
Since 1 January 2018, the Lufthansa Group has prospectively 
applied the spot-to-spot method for exchange rate forward 
transactions designated as cash flow hedges. The spot com-
ponents of a forward contract are designated as a hedging 
instrument and effective value changes are recognised in the 
cash flow hedge reserve. The other effective components of 
a forward contract, the forward component and the cross-cur-
rency basis spread are presented in a separate OCI component 
in line with the legal requirements for the cost of hedging. 
Ineffectiveness in hedging relationships results from changes 
in the timing of the planned aircraft purchases. Ineffectiveness 
is presented as part of the financial result, below the other 
financial items (↗ Note 14, p. 162).
The decline in flight traffic due to the coronavirus crisis 
meant that fuel prices and foreign currencies were and  
still are “overhedged”, meaning hedging relationships pre­
viously designated under hedge accounting rules had to be 
terminated early. The corresponding hedges are therefore 
accounted for as stand-alone derivatives. As of 31 December 
2020, the realised result of expired, stand-alone derivatives 
was EUR – 730m, which was recognised in the financial 
result. Fuel hedges accounted for expenses of EUR 758m 
and foreign currency hedges for earnings of EUR 28m.  
In addition, changes in the market value of outstanding 
“de-designated” hedges reduced the financial result by  
EUR – 21m, of which fuel hedging accounted for EUR – 22m 
and operating exchange rate hedges for EUR 1m. Overall, 
de-designated hedging relationships therefore had an earn-
ings impact of EUR – 752m. EUR 639m has been paid out  
in cash to date to settle the underlying transactions.
Long-term foreign currency hedges were also realised early 
in the financial year, generating cash proceeds of EUR 428m. 
The amounts will remain in the market valuation reserve until 
the hedged transactions are added and will then be allocated 
to the corresponding investments. In general, the same 
accounting method also applies to hedging transactions in 
which the hedged items (aircraft purchases) have been 
deferred due to the crisis.
LUFTHANSA GROUP ANNUAL REPORT 2020
214
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

The Lufthansa Group uses the hypothetical derivative 
method to calculate changes in the value of hedged items 
designated as being part of a hedging relationship.
T167  DESIGNATED HEDGED ITEMS IN HEDGING RELATIONSHIPS 2020
in €m
Carrying amount 
of liabilities 
 
 
Change in  
fair value of 
hedged items – 
designated risk 
Change in  
fair value of 
hedged items – 
non-desig- 
nated risk
Basis adjustment 
of hedged  
items from fair 
value hedges –  
cumulative
Fair value hedge
 
 
 
 
Interest rate hedges – interest rate swaps
– 4,920
60
–
– 18
Cash flow hedge
Fuel hedging – options
–
63
– 7
–
Exchange rate hedging – forward transactions
–
770
– 148
–
Interest rate hedges – interest rate swaps
–
– 25
–
–
Total
– 4,920
868
– 155
– 18
 
T167  DESIGNATED HEDGED ITEMS IN HEDGING RELATIONSHIPS 2019
in €m
Carrying amount 
of liabilities 
 
 
Change in  
fair value of 
hedged items – 
designated risk 
Change in  
fair value of 
hedged items – 
non-desig- 
nated risk
Basis adjustment 
of hedged  
items from fair 
value hedges –  
cumulative
Fair value hedge
 
 
 
 
Interest rate hedges – interest rate swaps
– 7,330
– 90
–
– 99
Cash flow hedge
Fuel hedging – options
–
– 407
– 164
–
Exchange rate hedging – forward transactions
–
390
– 301
–
Interest rate hedges – interest rate swaps
–
9
–
–
Total
– 7,330
– 98
– 465
– 99
T168  STATEMENT OF EQUITY RECONCILIATION FOR CASH FLOW HEDGES 2020
in €m
As of  
1 Jan 2020 
 
Gains or losses 
from effective 
hedging  
relationships
Reclassification 
to profit or loss 
 
Reclassification 
to acquisition 
costs of  
inventories
Reclassification 
to acquisition 
costs of  
aircraft
As of  
31 Dec 2020 
 
OCI – cash flow hedge reserve
477
– 1,463
– 811
– 163
41
– 54
Fuel hedging – options
43
– 1,169
– 943
– 163
–
– 21
Exchange rate hedging – futures
440
– 309
132
–
41
– 42
Interest rate hedges – interest rate swaps
– 6
15
–
–
–
9
OCI – cost of hedging
326
142
–
–
–
468
Fuel hedging – options
– 70
2
–
–
–
– 68
Exchange rate hedging – futures
396
140
–
–
–
536
Total
803
– 1,321
– 811
– 163
41
414
LUFTHANSA GROUP ANNUAL REPORT 2020
215
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

T168  STATEMENT OF EQUITY RECONCILIATION FOR CASH FLOW HEDGES 2019
in €m
As of  
1 Jan 2019 
 
Gains or losses 
from effective 
hedging  
relationships
Reclassification 
to profit or loss 
 
Reclassification 
to acquisition 
costs of  
inventories
Reclassification 
to acquisition 
costs of  
aircraft
As of  
31 Dec 2019 
 
OCI – cash flow hedge reserve
451
803
544
89
146
477
Fuel hedging – options
– 360
491
–
89
–
43
Exchange rate hedging – futures
820
310
544
–
146
440
Interest rate hedges – interest rate swaps
– 9
2
–
–
–
– 6
OCI – cost of hedging
– 151
476
–
–
–
326
Fuel hedging – options
– 227
157
–
–
–
– 70
Exchange rate hedging – futures
76
319
–
–
–
396
Total
300
1,279
544
89
146
803
Derivative financial instruments that do not meet the require-
ments for applying hedge accounting are measured at fair 
value through profit or loss. As a rule, these derivatives were 
originally in an economic hedging relationship with a particular 
exposure, but the exposure can either not be measured for 
hedge accounting purposes or no longer exists.
Fair values are all calculated solely on the basis of recognised 
financial and mathematical methods, using publicly available 
market information.
Changes in the market values of derivatives that do not  
qualify as effective hedging transactions under IFRS 9 can 
be seen in the income statement and in the overview of 
other financial items, ↗ Note 14, p. 162. 
Liquidity risk
Complex financial planning systems enable the Lufthansa 
Group to identify its future liquidity position at an early stage. 
Based on the results of the Group strategy and planning  
processes, a monthly rolling liquidity plan differentiated by 
currency is drawn up with a planning horizon of 24 months. 
This planning method offers an up-to-date picture of antici-
pated liquidity developments within the Company and  
corresponding currency effects.
The Lufthansa Group had no free credit lines as of 31 De- 
cember 2020 (previous year: EUR 774m). Other funds are 
nonetheless available as of the reporting date from guaran-
teed government loans. For details see ↗ Note 2, p. 140ff.
The Group has taken specific and general measures to safe-
guard and manage its liquidity to avoid any future potential 
liquidity restrictions that could result from the coronavirus 
pandemic. They include the implementation of monitoring on  
the basis of detailed, rolling short-term cash plans in order  
to manage liquidity effectively and track the current financing 
requirement closely. Specific liquidity risks resulting from 
reimbursements for cancelled flights were also analysed and 
managed. In addition, liquidity management in connection 
with current orders for goods and services was also optimised, 
greater transparency was achieved across the Group, includ-
ing an early warning system and an escalation process for 
outstanding receivables, additional signatures were required to 
place orders and monitoring concerning short-time working 
requirements was introduced.
A maturity analysis for the financial liabilities and the deriva-
tive financial instruments based on undiscounted gross  
cash flows including the relevant interest payments shows 
the following projected cash inflows and outflows from the 
perspective of the balance sheet date 31 December 2020. 
As a result of the hedges used, there are generally direct 
connections between the cash inflows and outflows for the 
derivative financial instruments shown.
T169  MATURITY ANALYSIS OF LIABILITIES FROM  
DERIVATIVE FINANCIAL INSTRUMENTS
in €m
From fuel 
derivatives 
 
 
 
 
Cash inflow 
from gross 
settlement  
of interest 
rate and  
exchange rate  
derivatives
Cash outflow 
from gross 
settlement  
of interest 
rate and 
exchange rate 
derivatives
Net 
 
 
 
 
 
 
1st quarter
12
– 1,349
1,424
87
Up to 1 year 1)
11
– 3,275
3,508
244
1 – 5 years
1
– 5,470
5,813
344
Later
–
– 530
567
37
1)	 Without payments in 1st quarter.
LUFTHANSA GROUP ANNUAL REPORT 2020
216
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

T170  MATURITY ANALYSIS OF LIABILITIES FROM  
NON-DERIVATIVE FINANCIAL INSTRUMENTS
in €m
Outflows
 
1st quarter
– 5,404
Up to 1 year 1)
– 3,460
1 – 5 years
– 5,468
Later
– 5,648
1)	 Without payments in 1st quarter.
Credit risk
The sale of passenger travel and freight documents mostly 
takes place via agencies. These agencies are mostly con-
nected to national clearing systems for billing passenger  
and freight sales. The credit rating of the agents is reviewed 
by the responsible clearing systems. Due to the broad  
diversification, credit risk for the agencies is relatively low 
worldwide. Nonetheless, credit terms for agents in some 
markets were tightened significantly in cooperation with the 
International Air Transport Association (IATA) in order to reduce 
credit risks even further.
Receivables and liabilities between airlines are offset through 
bilateral arrangements or via the IATA clearing house, insofar 
as the contracts underlying services do not explicitly specify 
otherwise. Systematic settlement of weekly receivables and 
liability balances significantly reduces the default risk. Fidelity 
guarantee insurance also covers partial risks within a certain 
range. Service contracts occasionally require collateral for 
miscellaneous transactions. All other contractual relationships 
are subject to credit rules, which, depending on the type  
and volume of the contract involved, require collateral, credit 
ratings/references or historical data from prior dealings,  
particularly payment history, in order to avoid defaults. Credit 
risks from the MRO business are monitored and managed 
with a separate credit risk management system. It comprises 
the calculation, authorisation and monitoring of customer- 
specific credit limits and the daily monitoring of payments 
received and receivables past due.
Counterparty risks in connection with credit card companies 
are monitored closely and incoming payments are reviewed 
daily. To reduce risks even further, a permanent analysis  
process examines whether to further tighten credit terms  
for some settlement partners. In addition to the monitoring 
of receivables at the Company or segment level, there is  
also counterparty monitoring at Group level, with individually 
assigned limits, in order to identify the accumulation of  
portfolio risks across the entire Group and take appropriate 
action where necessary. The maximum credit risk for financial 
assets from the potential insolvency of customers is their 
carrying amount.
In addition to individual write-downs on receivables if a 
default event occurs, IFRS 9 requires risk provisions to be 
recognised for expected losses. The Lufthansa Group’s trade 
receivables are exposed to external credit risks for which 
expected losses have already been taken into consideration in 
accordance with IFRS 9, in addition to individual write-downs. 
A simplified impairment model based on an impairment 
matrix is used for the portion of the receivables portfolio that 
does not consist of credit card receivables but is subject to 
external credit risks. The portfolio is divided into clusters 
based on customer groups, regions and days past due date. 
On the basis of historical default events in the Lufthansa 
Group’s receivables portfolio, a default matrix is calculated 
and supplemented by forward-looking, publicly available 
insolvency forecasts. This impairment matrix is applied to 
trade receivables that are exposed to external credit risk and 
are not credit card receivables. An impairment matrix is also 
used for trade and other receivables in the MRO segment. It 
entails dividing the customer portfolio into four risk classes, 
with a low, medium, high and very high risk of default. Cus-
tomers are assigned to each category using the MRO seg-
ment’s own credit risk management system, which is based 
on fundamental data, market information and payment his-
tory. Probabilities of default are derived from historic default 
events and current market information. Available collateral  
is taken into account. In addition, the receivables portfolio 
includes credit card receivables for which the Lufthansa Group 
is the credit card issuer. Expected losses for these credit 
card receivables are calculated in a separate model, based 
on counterparty-specific external ratings and default proba-
bilities. The Lufthansa Group uses a definition of default  
of 90 days past due for receivables, which are written off in  
full if the default event occurs. Exceptions are permitted in 
justified cases, however. 
LUFTHANSA GROUP ANNUAL REPORT 2020
217
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

In the following tables, Levels 1 and 2 describe expected 
credit losses, whereas Level 3 shows individual impairment 
losses on the basis of actual default events.
T171  STATEMENT OF RISK PROVISIONS 2020
in €m
Opening  
balance risk 
provision  
as of  
1 Jan 2020
Additions 
through  
profit or loss 
 
Reversals 
through  
profit or loss 
 
Utilisation 
 
 
 
Closing  
balance risk 
provision  
as of  
31 Dec 2020
Opening  
balance gross 
carrying 
amount as of 
1 Jan 2020
Closing  
balance gross 
carrying 
amount as of 
31 Dec 2020
Trade receivables and other receivables  
(simplified approach)
398
217
– 23
– 41
551
2,457
1,475
	
of which from expected losses
12
61
– 10
0
63
2,066
926
	
of which from individual loss allowances
386
156
– 13
– 41
488
391
549
Trade receivables and other receivables  
(credit card receivables)
17
4
– 4
– 4
14
1,060
210
	
of which Level 1
14
0
– 3
0
12
1,051
204
	
of which Level 2
0
0
0
0
0
0
1
	
of which Level 3
3
4
– 1
– 4
2
9
5
Total
415
221
– 27
– 45
565
3,517
1,685
T171  STATEMENT OF RISK PROVISIONS 2019
in €m
Opening  
balance risk 
provision  
as of  
1 Jan 2019
Additions 
through  
profit or loss 
 
Reversals 
through  
profit or loss 
 
Utilisation 
 
 
 
Closing  
balance risk 
provision  
as of  
31 Dec 2019
Opening  
balance gross 
carrying 
amount as of 
1 Jan 2019
Closing  
balance gross 
carrying 
amount as of 
31 Dec 2019
Trade receivables and other receivables  
(simplified approach)
314
102
– 10
– 8
398
2,540
2,457
	
of which from expected losses
9
6
– 3
0
12
2,234
2,066
	
of which from individual loss allowances
305
96
– 7
– 8
386
306
391
Trade receivables and other receivables  
(credit card receivables)
24
6
– 5
– 8
17
1,052
1,060
	
of which Level 1
17
1
– 4
0
14
1,041
1,051
	
of which Level 2
0
0
0
0
0
0
0
	
of which Level 3
7
5
– 1
– 8
3
11
9
Total
338
108
– 15
– 16
415
3,592
3,517
An expected loss of EUR 4m was recognised for contract 
assets as of the reporting date. 
The outbreak of the coronavirus pandemic caused a significant 
rise in credit risk and in expected and actual losses in the 
financial year. The customer portfolio in the MRO segment 
was particularly affected. Although the gross amount of  
receivables declined significantly, individual loss allowances  
in the non-credit card business increased by EUR 100m, 
mainly due to airline insolvencies. Loss allowances for future 
credit losses under the simplified approach rose by EUR 52m, 
particularly due to the special risks in the customer portfolio 
of Lufthansa Technik AG, which were reflected by business- 
specific risk clustering.
LUFTHANSA GROUP ANNUAL REPORT 2020
218
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

In the reporting year, the Lufthansa Group used the following 
default rates for each past due category in the impairment 
matrix for the simplified approach of the impairment model.
T172  IMPAIRMENT MATRIX FOR TRADE RECEIVABLES 2020
 
 
Not  
overdue 
1 – 30 days 
overdue 
31 – 60 days 
overdue 
61 – 90 days 
overdue 
More than  
90 days  
overdue
Total 
 
Default rate
%
3.0
6.0
6.7
10.0
22.0
–
Carrying amounts for trade receivables
€m
610
117
30
10
159
926
Expected loss
€m
18
7
2
1
35
63
T172  IMPAIRMENT MATRIX FOR TRADE RECEIVABLES 2019
 
 
Not  
overdue 
1 – 30 days 
overdue 
31 – 60 days 
overdue 
61 – 90 days 
overdue 
More than  
90 days  
overdue
Total 
 
Default rate
%
0.3
0.8
1.3
1.6
1.8
–
Carrying amounts for trade receivables
€m
1,419
393
47
41
166
2,066
Expected loss
€m
4
3
1
1
3
12
In order to determine expected losses of credit card receiva-
bles according to IFRS 9, the off-balance sheet exposure must 
be considered, in addition to the on-balance sheet exposure. 
The off-balance sheet exposure describes the portion of  
a credit card’s unused or free limit. The following overview 
shows the risk data for the credit card portfolio. Expected 
losses are calculated at the level of the individual credit card, 
so that the sizes of the average default probability and the 
average loss relate to the individual credit card.
T173  CONCENTRATION OF CREDIT RISK FROM CREDIT CARD RECEIVABLES
Internal credit rating
Probability  
of default  
according to  
external  
credit rating
Average  
probability  
of default 
 
Average  
expected loss  
per concerned 
credit card  
in €
Exposure  
Level 1  
impairment  
model  
in €m
Exposure  
Level 2  
impairment  
model  
in €m
Exposure  
Level 3  
impairment  
model  
in €m
On-balance sheet exposure
Low risk
≤ 2%
1.4%
16
193
–
–
Medium risk
> 2.0% bis ≤ 6.5%
3.1%
16
10
–
–
High risk
> 6.5%
41.2%
1,516
1
1
5
Total
204
1
5
Off-balance sheet exposure
Low risk
≤ 2%
1.3%
70
1,259
4
–
Medium risk
> 2.0% bis ≤ 6.5%
3.1%
193
135
–
–
High risk
> 6.5%
42.1%
4,863
143
–
–
Total
1,537
4
–
 
LUFTHANSA GROUP ANNUAL REPORT 2020
219
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

Securities representing debt instruments are rated as follows 
(Standard & Poor’s):
T174  SECURITIES RATINGS – DEBT INSTRUMENTS
in €m
 
AAA
–
AA+ 
–
AA
–
AA–
19
A+ 
–
A
–
A–
4
BBB+ 
–
BBB
–
Below BBB or unrated
8
Total
31
The credit risk for derivative financial instruments and secu-
rities held at fair value through or without effect on profit and 
loss is the risk that a counterparty defaults. The maximum 
credit risk from these instruments is their carrying amount. 
The counterparty default risk for financial market transactions 
is limited by defining a maximum risk, taking the credit score 
given by recognised rating agencies into account.
46		 Contingencies and events after the reporting period
T175  CONTINGENT LIABILITIES
in €m
31 Dec 2020
31 Dec 2019
 
From guarantees, bills of exchange  
and cheque guarantees 1)
664
935
From warranty contracts
192
378
From providing collateral  
for third-party liabilities
16
47
 
872
1,360
1)	 Previous year’s figures have been adjusted.
Warranties include an amount of EUR 68m (previous year: 
EUR 248m) relating to contingent liabilities towards credi-
tors of joint ventures. Liabilities under collateral agreements 
included contingent liabilities of EUR 4m (previous year:  
EUR 6m) towards creditors of joint ventures. Of the total, 
EUR 721m (previous year: EUR 1,035m) relates to joint and 
several guarantees and warranties taken on. These are 
matched by compensatory claims against the other co-debt-
ors amounting to EUR 692m (previous year: EUR 974m). 
Insofar as annual financial statements have yet to be pub-
lished, these figures are preliminary.
Otherwise, provisions for other risks could not be made 
because utilisation was not sufficiently probable. The poten-
tial financial effect of these provisions on the result would 
have been EUR 61m (previous year: EUR 55m).
Contracts signed for the sale of aircraft are expected to  
generate cash inflows of EUR 25m in subsequent years  
(previous year: EUR 0). 
LEGAL RISKS
The Lufthansa Group is exposed to a number of legal risks  
in the course of its normal business. Based on current  
knowledge, the assumption is that these will not have any 
major, lasting effects on the net assets, financial and earn-
ings position, beyond those for which provisions for litigation 
risks have been made, ↗ Note 36, p. 188ff. 
Legal disputes and other claims made against the Group  
are always subject to uncertainty, however. Management 
estimates of these risks may also change over time. The 
actual outcome of these legal disputes may differ from earlier 
management estimates, which could have significant effects 
on the net assets, financial and earnings position and the 
reputation of our Company. 
Due to the existing uncertainties and to those described 
below, we cannot make an assessment of the amount of the 
respective contingent liabilities or of the group of contingent 
liabilities. The legal disputes that these statements refer to 
include:
Risk of successful claims for damages in ongoing  
antitrust proceedings
Various cargo airlines, including Lufthansa Cargo AG and 
Swiss International Air Lines AG, were involved in a cargo 
cartel in the period between December 1999 and February 
2006. Deutsche Lufthansa AG, Lufthansa Cargo AG and 
Swiss International Air Lines AG are at risk of civil claims for 
damages in Norway, Israel, Korea and the Netherlands.  
The lawsuits have been brought by both direct and indirect 
customers and are addressed to the airlines as co-debtors.
All litigation in Germany and the United Kingdom was ended 
by a settlement in the previous year.
LUFTHANSA GROUP ANNUAL REPORT 2020
220
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

At present, it is not possible to give a concrete assessment 
of the outcome of the lawsuits still pending or of the number 
and amount of any other claims. When evaluating the risk,  
it should nonetheless be borne in mind that the European 
Commission’s decision on the cargo cartel, which the claim-
ants in the civil lawsuits refer to, among others, is still not 
legally binding. Following the reversal of this 2010 decision 
by the European Court of Justice (ECJ) in December 2015, 
the European Commission sent revised penalty notices in 
March 2017 in which the content was the same but the rea-
soning had been altered. The airlines concerned, including 
Lufthansa, again contested them, so the penalty notices are 
still not effective.
Moreover, an expert economic opinion commissioned by 
Lufthansa Cargo AG and Swiss International Air Lines AG  
has come to the conclusion that the cartel did not inflict any 
actual damage on customers. Even if there were damages 
(i.e. allegedly higher cartel prices), the court would have to 
examine whether the claimants passed them on to their own 
customers (in the case of the freight forwarders) or whether 
they were passed on to the claimants (in the case of the  
final customers). Nonetheless, significant effects on the net 
assets, financial and earnings position of the Group cannot 
be ruled out if it should lose any of these legal proceedings. 
Investigations in connection with work and service contracts
The investigations by the customs authorities in previous 
years into possible breaches of the German Law on Labour 
Leasing (Arbeitnehmerüberlassungsgesetz – AÜG) concerning 
the procurement of services by the Lufthansa Group have 
been concluded amicably. No penalties were imposed on 
individual employees of the Lufthansa Group nor on compa-
nies in accordance with Section 30 of the Administrative 
Offences Act (Gesetz über Ordnungswidrigkeiten – OWiG). 
Administrative proceedings with the German Statutory  
Pension Insurance Scheme concerning the legal status of 
two workers have been submitted for judicial review to the 
Higher Social Court in Berlin. 
Legal action by Ryanair against the European Commission’s 
decision on state aid
Ryanair DAC has appealed to the European Court of Justice 
against the decisions by the European Commission approving 
stabilisation measures for companies in the Lufthansa Group. 
Stabilisation measures of around EUR 7.6bn in total are 
affected for Deutsche Lufthansa AG, Austrian Airlines and 
Brussels Airlines SA/NV. The Lufthansa Group believes the 
chances of success are slim. If the appeals are successful, 
however, the decisions by the European Commission would 
be declared null and void. If the respective public-sector 
agencies are prevented from continuing to grant the stabili-
sation measures, the funds concerned would have to be  
 
cancelled and repaid. The companies will probably make use 
of the possibility to join the proceedings as interveners 
alongside the respective member states on the side of the 
European Commission.
TAX RISKS
Tax risks exist largely because of differences in legal opinions 
between the German tax authorities and the Company. In tax 
audits for the financial years 2003 to 2015, the tax authorities 
came to a number of different conclusions to those on which 
the Company had based its tax returns, relating, in particular, 
to partial write-downs on shareholder loans, the treatment  
of various lease structures and the acquisition of a foreign 
subsidiary, as well as the recognition and measurement of 
certain provisions and assets. The Lufthansa Group has 
appealed against the resulting tax assessments. Without 
abandoning its legal position, almost all the disputed matters 
were settled in the past by paying the back taxes demanded 
by the authorities. The Federal Finance Court adopted a  
different position on partial write-downs in 2019, which led 
to a more negative assessment of the current proceedings. 
However, no final decision on this matter has yet been taken. 
One previously disputed matter concerning the recognition 
of a provision for long-term MRO contracts has since been 
decided in the Company’s favour. To the extent that success 
in the remaining points is considered to be more likely than 
not, the corresponding receivables against the tax authorities 
have been recognised in accordance with IFRIC 23. The cor-
responding provisions were recognised for other potentially 
disputed matters to the extent that their use was probable. 
No provisions were recognised for matters which in the 
Company’s opinion are more likely than not to be decided in 
its favour. They could give rise to back payments of around 
EUR 200m in total. The assessment of the amount is subject 
to uncertainty.
EVENTS AFTER THE REPORTING PERIOD
Eurowings and ver.di reach crisis agreement
On 12 January 2021, Eurowings and the trade union ver.di 
reached a crisis agreement for cabin crew. Under the agree-
ment, employees are protected against dismissal until  
31 December 2021. In exchange, reductions in Christmas  
and holiday bonuses were agreed, among other things. 
Lufthansa issues another bond and repays KfW loan
Deutsche Lufthansa AG again successfully issued a bond 
with a total volume of EUR 1.6bn on 4 February 2021. The 
first tranche has a volume of EUR 750m and pays interest  
of 2.875% p.a. over a term of four years. The second tranche 
of EUR 850m matures in seven years and pays interest at 
3.75% p.a. 
LUFTHANSA GROUP ANNUAL REPORT 2020
221
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

Together with the funds of approximately EUR 2bn raised in 
the second half of 2020, the Lufthansa Group has thereby 
secured the refinancing of the financial liability of EUR 2.6bn 
due in 2021 and repaid the KfW loan of EUR 1bn ahead of 
schedule on 11 February 2021. 
EU Parliament adopts new slot rules
On 10 February 2021, the European Parliament passed a reso-
lution amending the slot rules for summer 2021 in response 
to the pandemic. The regulation stipulates that airlines can 
return up to 50% of their slot series in full before the season 
begins and that they only have to operate half the remaining 
slot series in order to secure them for the coming season. 
Based on its capacity outlook (↗ Forecast, p. 118ff.), the 
Lufthansa Group expects that it will be able to obtain all of 
the slots for which it has rights, including beyond the 2021 
summer season. 
47		 Other financial obligations
As of 31 December 2020, there were order commitments of 
EUR 13.0bn for capital expenditure on property, plant and 
equipment, including repairable spare parts, and for intangible 
assets (previous year: EUR 14.6bn). There were also capital 
and shareholder loan commitments of EUR 228m towards 
equity investments (previous year: EUR 335m).
48		 Auditors’ fees
The fees paid to the auditors in the financial year and 
charged to expenses in accordance with Section 314 Para-
graph 1 No. 9 HGB are made up as follows:
T176  AUDITORS’ FEES
in €m
2020
2019
 
Annual audit
3.2
4.4
Other assurance services
0.2
1.0
Tax advisory services
0.1
0.9
Other services
1.6
1.9
Total
5.1
8.2
In the financial year 2020, the audit was carried out for the 
first time by Ernst & Young GmbH Wirtschaftsprüfungs-
gesellschaft. In 2019, the fees were paid to Pricewaterhouse-
Coopers GmbH Wirtschaftsprüfungsgesellschaft.
The auditing services mainly consist of fees for auditing  
the consolidated financial statements, the review of the half-
yearly financial statements and the audit of the financial 
statements of Deutsche Lufthansa AG and its consolidated 
subsidiaries. Tax advisory services mainly relate to tax advice 
on tax declarations, transfer pricing, international taxes and 
inspections by tax authorities. Other services particularly 
relate to advisory services in connection with the sale of the 
LSG group’s European activities.
The following fees from entities in the worldwide EY network, 
particularly abroad, were also recognised as expenses (the 
figures for the previous year relate to the worldwide PwC 
network).
T177  ADDITIONAL AUDITORS’ FEES
in €m
2020
2019
 
Annual audit
2.3
3.8
Other assurance services
–
0.1
Tax advisory services
0.5
0.3
Other services
0.1
0.2
Total
2.9
4.4
The auditor at Ernst & Young GmbH Wirtschaftsprüfungs-
gesellschaft responsible for the Lufthansa Group is Siegfried 
Keller. He held this position for the first time in financial  
year 2020.
LUFTHANSA GROUP ANNUAL REPORT 2020
222
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Other disclosures

COMPOSITION OF THE GROUP
49		 Group of consolidated companies
The consolidated financial statements of Deutsche 
Lufthansa AG include all major subsidiaries, joint ventures 
and associated companies. 
Subsidiaries are entities over which Deutsche Lufthansa AG 
has rights that give it the ability to control the entity’s rele-
vant activities. Relevant activities are those activities that 
have a significant influence on the entity’s return. Deutsche 
Lufthansa AG therefore only has control over a company 
when it is exposed to variable returns from the company and 
its power over the company’s relevant activities enables it to 
influence these returns. This definition of control also applies 
to structured entities that are identified as such in the list of 
significant Group companies. In general, the ability to control 
subsidiaries arises when Deutsche Lufthansa AG holds a direct 
or indirect majority of voting shares. In structured entities, 
the ability to control does not come from holding the majority 
of voting shares, but rather from contractual agreements. 
Entities are consolidated from the time that the ability to 
control begins. They cease to be consolidated when the  
ability to control ends.
Joint arrangements are classified either as joint ventures  
or as joint operations. A joint arrangement exists for when 
the Lufthansa Group carries on joint business activities  
with third parties on the basis of a contractual agreement. 
Joint management or control only exists when decisions on 
activities that have a significant effect on the returns from 
an agreement require the unanimous approval of the parties 
sharing control.
Significant interests in companies that are managed jointly 
with one or more partners (joint ventures) are accounted for 
using the equity method. Joint operations are defined by the 
fact that the parties exercising joint control over the arrange-
ment have rights to the assets attributed to the arrangement 
and are liable for its debts. Assets and liabilities, revenue and 
expenses from the significant joint operations are recognised 
in the consolidated financial statements of the Lufthansa 
Group in proportion to these rights and obligations.
Associated companies are companies in which Deutsche 
Lufthansa AG has the opportunity to exercise major influence 
over financial and operating policy based on an interest of 
between 20% and 50%. Significant associated companies are 
accounted for in the consolidated financial statements using 
the equity method.
A list of major subsidiaries, joint arrangements and associated 
companies can be found in ↗ T184 – T187, p. 229 – 235, and 
the list of shareholdings in ↗ T188, p. 236 – 239.
In addition to Deutsche Lufthansa AG as the parent company, 
the group of consolidated companies includes 50 domestic 
and 242 foreign companies, including structured entities 
(previous year: 66 domestic and 267 foreign companies).
One material joint operation was also included in the consol-
idated financial statements on a pro rata basis in accordance 
with IFRS 11. It consists of a German cargo airline operated 
jointly by Deutsche Post AG and Deutsche Lufthansa AG, 
which each hold 50% of the share capital and voting rights. 
The two shareholders are also customers of the company 
and use the capacities of its cargo aircraft. In contrast to its 
capital and voting rights, the company’s assets and liabilities, 
as well as its income and expenses, are allocated based on 
the user relationship of the shareholders according to their 
contracts.
LUFTHANSA GROUP ANNUAL REPORT 2020
223
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Composition of the Group

Changes in the group of consolidated companies during  
the 2020 financial year are shown in the following table.  
One material change was the sale of the European catering 
activities to gategroup. These entities accounted for revenue 
of EUR 366m in 2020 until their disposal on 2 December 
2020. Some 8,000 employees left the Group when the  
disposal was completed.
T178  CHANGES IN THE GROUP OF CONSOLIDATED COMPANIES FROM 1 JAN 2020 TO 31 DEC 2020
Name, registered office
Additions
Disposals
Reasons
Network Airlines business segment
Austrian Asset Holding GP S. à r.l., Luxembourg, Luxembourg
19 Jun 2020
 
Acquisition
Austrian Asset Holding S.C.S., Luxembourg, Luxembourg
25 Jun 2020
 
Established
Raft Co., Ltd., Tokyo, Japan
18 Dec 2020
 
Established
Swiss Global Air Lines AG, Basel, Switzerland
 
11 May 2020
Liquidation
Soir Leasing Co. Ltd., Tokyo, Japan
 
25 Jun 2020
Liquidation
FI Beauty Leasing Ltd., Tokyo, Japan
 
29 Jun 2020
Liquidation
Jour Leasing Co. Ltd., Tokyo, Japan
 
31 Aug 2020
Liquidation
Eurowings business segment
LeaseAir GmbH & Co. Verkehrsflugzeuge V KG
 
30 Jun 2020
Fusion
Catering business segment
MIM IFE Limited, Dublin, Ireland
 
2 Dec 2019
Fusion
LSG Sky Chefs Danmark A/S, Dragør, Denmark
 
14 Sep 2020
Liquidation
Evertaste GmbH, Alzey
 
2 Dec 2020
Disposal
Evertaste Limited, Hounslow, UK
 
2 Dec 2020
Disposal
Evertaste Oy, Vantaa, Finland
 
2 Dec 2020
Disposal
Evertaste S.r.l., Fiumicino, Italy
 
2 Dec 2020
Disposal
LSG France SAS, Paris, France
 
2 Dec 2020
Disposal
LSG Helvetia SAS, Paris, France
 
2 Dec 2020
Disposal
LSG Linearis S.A.S., Paris, France
 
2 Dec 2020
Disposal
LSG Lufthansa Service Catering- und Dienstleistungsgesellschaft mbH, Neu-Isenburg
 
2 Dec 2020
Disposal
LSG Sky Chefs - First Catering Schweiz AG, Bassersdorf, Switzerland
 
2 Dec 2020
Disposal
LSG Sky Chefs Belgium N.V., Zaventem, Belgium
 
2 Dec 2020
Disposal
LSG Sky Chefs Berlin GmbH, Neu-Isenburg
 
2 Dec 2020
Disposal
LSG Sky Chefs Czechia spol. s.r.o. i. L., Bor, Czech Republic
 
2 Dec 2020
Disposal
LSG Sky Chefs Düsseldorf GmbH, Neu-Isenburg
 
2 Dec 2020
Disposal
LSG Sky Chefs Europe GmbH, Neu-Isenburg
 
2 Dec 2020
Disposal
LSG Sky Chefs Frankfurt International GmbH, Neu-Isenburg
 
2 Dec 2020
Disposal
LSG Sky Chefs Frankfurt ZD GmbH, Neu-Isenburg
 
2 Dec 2020
Disposal
LSG Sky Chefs Köln GmbH, Neu-Isenburg
 
2 Dec 2020
Disposal
LSG Sky Chefs Lounge GmbH, Neu-Isenburg
 
2 Dec 2020
Disposal
LSG Sky Chefs Lounge, Inc., Wilmington, USA
 
2 Dec 2020
Disposal
LSG Sky Chefs München GmbH, Neu-Isenburg
 
2 Dec 2020
Disposal
LSG Sky Chefs Objekt- und Verwaltungsgesellschaft mbH, Neu-Isenburg
 
2 Dec 2020
Disposal
LSG Sky Chefs S.p.A., Fiumicino, Italy
 
2 Dec 2020
Disposal
LSG Sky Chefs Schweiz AG, Bassersdorf, Switzerland
 
2 Dec 2020
Disposal
LSG Sky Chefs Spain, S.A., Madrid, Spain
 
2 Dec 2020
Disposal
LSG Sky Chefs Verwaltungsgesellschaft mbH, Neu-Isenburg
 
2 Dec 2020
Disposal
LSG Transalpino SAS, Paris, France
 
2 Dec 2020
Disposal
LSG-Food & Nonfood Handel GmbH, Neu-Isenburg
 
2 Dec 2020
Disposal
RISTO RAIL PORTUGAL, LDA, Lisbon, Portugal
 
2 Dec 2020
Disposal
SkylogistiX GmbH, Neu-Isenburg
 
2 Dec 2020
Disposal
Spiriant Asia Pacific Limited, Hong Kong, China
 
2 Dec 2020
Disposal
Spiriant Bahrain Limited W.L.L., Manama, Bahrain
 
2 Dec 2020
Disposal
Spiriant GmbH, Neu-Isenburg
 
2 Dec 2020
Disposal
SPIRIANT North America, Inc., Wilmington, USA
 
2 Dec 2020
Disposal
Supply Chain S.à.r.l., Contern, Luxembourg
 
2 Dec 2020
Disposal
Additional Businesses and Group Functions
AirPlus Air Travel Card Vertriebsgesellschaft mbH i.L., Vienna, Austria
 
8 Jan 2020
Liquidation
AirPlus Holding GmbH, Vienna, Austria
 
4 Feb 2020
Liquidation
Airplus International NV/SA, Brussels, Belgium
26 Nov 2020
Fusion
LUFTHANSA GROUP ANNUAL REPORT 2020
224
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Composition of the Group

USE OF EXEMPTION PROVISIONS
The following fully consolidated German Group companies 
made use of the exemption provisions in Section 264 Para-
graph 3 and Section 264b HGB in 2020.
T179  USE OF EXEMPTION PROVISIONS
Company name
Registered office
Eurowings Aviation GmbH
Cologne
Eurowings Digital GmbH
Cologne
Eurowings GmbH
Dusseldorf
Eurowings Technik GmbH
Cologne
Germanwings GmbH
Cologne
Jettainer GmbH
Raunheim
LSG Asia GmbH
Neu-Isenburg
LSG Lufthansa Service Europa/Afrika GmbH
Neu-Isenburg
LSG Lufthansa Service Holding AG
Neu-Isenburg
LSG South America GmbH
Neu-Isenburg
LSY GmbH
Norderstedt
Lufthansa AirPlus Servicekarten GmbH
Neu-Isenburg
Lufthansa Asset Management GmbH
Frankfurt/Main
Lufthansa Asset Management Leasing GmbH
Frankfurt/Main
Lufthansa Aviation Training Berlin GmbH
Berlin
Lufthansa Aviation Training Germany GmbH
Frankfurt/Main
Lufthansa Aviation Training GmbH
Hallbergmoos
Lufthansa Cargo AG
Frankfurt/Main
Lufthansa CityLine GmbH
Munich Airport
Lufthansa Commercial Holding GmbH
Frankfurt/Main
Lufthansa Global Business Services GmbH
Frankfurt/Main
Lufthansa Industry Solutions AS GmbH
Norderstedt
Lufthansa Industry Solutions BS GmbH
Raunheim
Lufthansa Industry Solutions GmbH & Co. KG
Norderstedt
Lufthansa Process Management GmbH
Neu-Isenburg
Lufthansa Seeheim GmbH
Seeheim-Jugenheim
Lufthansa Systems GmbH & Co. KG
Raunheim
Lufthansa Technik AERO Alzey GmbH
Alzey
Lufthansa Technik AG
Hamburg
Lufthansa Technik Immobilien- und  
Verwaltungsgesellschaft mbH
Hamburg
Lufthansa Technik Logistik GmbH
Hamburg
Lufthansa Technik Logistik Services GmbH
Hamburg
Lufthansa Technik Maintenance International GmbH
Frankfurt/Main
Miles & More GmbH
Frankfurt/Main
Retail in Motion GmbH
Neu-Isenburg
time:matters GmbH
Neu-Isenburg
time:matters Holding GmbH
Neu-Isenburg
time:matters Spare Parts Logistics GmbH
Neu-Isenburg
The companies are affiliated with Deutsche Lufthansa AG by 
means of direct or indirect profit and loss transfer agreements.
Furthermore, LHBD Holding Limited, London, UK, registration 
number 06939137, is exempt from the obligation to have its 
individual financial statements audited pursuant to Section 
479a of the 2006 Companies Act, United Kingdom.
The consolidated financial statements include equity invest-
ments in 29 joint ventures and 35 associates (previous year: 
35 joint ventures and 39 associates), of which ten joint  
ventures (previous year: eleven) and 14 associates (previous 
year: 15) were accounted for using the equity method. The 
other joint ventures and associated companies were valued 
at amortised cost due to their minor overall significance.
50		 Related party disclosures
According to the notification on voting rights from 6 July 
2020, the Federal Republic of Germany has held an indirect 
equity interest of 20.05% in Deutsche Lufthansa AG via  
the Economic Stabilisation Fund (WSF) since 2 July 2020. 
The WSF can exercise significant influence and represents  
a related party of Deutsche Lufthansa AG. The stabilisation 
measures in 2020 are significant transactions with the WSF.  
↗ Note 2, p. 140ff.
Balances and transactions between the Company and its 
fully consolidated subsidiaries, which constitute related  
parties, have been eliminated in the course of consolidation 
and are not commented on in this Note. Details of transac-
tions between the Lufthansa Group and other related parties 
are disclosed below.
The Lufthansa Group segments render numerous services  
to related parties within the scope of their ordinary business 
activities. Conversely, the companies in question provide 
services to the Lufthansa Group as part of their normal busi-
ness. These extensive supply and service relationships take 
place on the basis of market prices.
In addition, the Lufthansa Group and certain non-consoli-
dated subsidiaries have concluded numerous billing agree-
ments, partly governing the joint use of services. In these 
cases, the administrative services provided are charged as 
cost allocations.
LUFTHANSA GROUP ANNUAL REPORT 2020
225
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Composition of the Group

The Lufthansa Group’s cash management is centralised,  
and, in this respect, the Lufthansa Group also performs a 
“banking function” vis-à-vis the non-consolidated companies 
of the Group. Non-consolidated Group companies included 
in the Group’s cash management invest their available cash 
with the Group or borrow funds from the Group and carry  
out their derivative hedging transactions with the Group.  
All transactions take place at market conditions.
Due to geographical proximity in many cases, a large number 
of subletting contracts exists between the Lufthansa Group 
and related parties. In these cases, the Lufthansa Group  
usually charges the rental costs and incidental expenses 
incurred to the companies in question on a pro rata basis.
The following table shows the volume of significant services 
provided to or by related parties:
T180  VOLUME OF SIGNIFICANT SERVICES PROVIDED TO OR BY RELATED PARTIES
in €m
Volume of  
services rendered
Volume of  
services received
2020
2019
2020
2019
Non-consolidated subsidiaries
Albatros Versicherungsdienste GmbH, Germany
0
0
40
50
Austrian Airlines Technik-Bratislava, s.r.o., Slovakia
1
2
15
10
Austrian Airlines Tele Sales Service GmbH, Austria
0
0
3
5
Cargo Future Communications (CFC) GmbH, Germany
0
0
5
4
Delvag Versicherungs-AG, Germany
5
6
4
3
DLH Fuel Company mbH, Germany
0
0
131
508
Global Load Control (PTY) LTD, South Africa
0
0
4
8
handling counts GmbH, Germany
0
0
9
9
LGSP Lufthansa Ground Service Portugal, Unipessoal Lda., Portugal
0
1
5
6
Lufthansa Aviation Training Austria GmbH, Austria
2
1
7
6
Lufthansa Aviation Training Operations Germany GmbH, Germany
2
3
13
16
Lufthansa Aviation Training Pilot Academy GmbH, Germany
1
1
6
3
Lufthansa Aviation Training USA Inc., USA
1
1
11
14
Lufthansa Consulting GmbH, Germany
1
2
3
9
Lufthansa Engineering and Operational Services GmbH, Germany
3
4
26
32
Lufthansa Global Business Services Hamburg GmbH, Germany
6
7
26
29
Lufthansa Global Business Services Sp. z o. o., Poland
2
2
30
33
Lufthansa Global Tele Sales GmbH, Germany
3
7
57
60
Lufthansa Group Business Services New York LLC, USA
0
0
5
0
Lufthansa Group Security Operations GmbH, Germany
1
0
6
0
Lufthansa Industry Solutions SHPK, Albania
0
0
6
0
Lufthansa Industry Solutions TS GmbH, Germany
2
1
13
13
Lufthansa Services (Thailand) Ltd., Thailand
0
0
5
7
Lufthansa Services Philippines, Inc., Philippines
1
0
4
5
Lufthansa Systems FlightNav AG, Switzerland
0
1
22
25
Lufthansa Systems Hungaria Kft, Hungary
0
1
24
25
Lufthansa Systems Poland Sp. z o.o., Poland
1
2
33
32
Lufthansa Technical Training GmbH, Germany
5
6
15
19
Lufthansa Technik Brussels N.V., Belgium
1
5
3
2
Lufthansa Technik Component Services Asia Pacific Limited, China
2
1
6
6
Lufthansa Technik Middle East FZE, United Arab Emirates
3
1
10
8
Lufthansa Technik Milan s.r.l., Italy
1
6
2
3
Lufthansa Technik Miskolc Kft., Hungary
2
0
7
0
Lufthansa Technik Services India Private Limited, India
2
1
4
5
Lufthansa Technik Shenzhen Co. Ltd., China
15
22
26
34
Lufthansa Technik Turbine Shannon Limited, Ireland
3
3
9
19
LZ-Catering GmbH, Germany
3
5
11
12
Reservation Data Maintenance India Private Ltd., India
0
0
2
5
time:matters (Shanghai) International Freight Forwarding Ltd., China
17
0
12
0
time:matters Austria GmbH, Austria
25
1
0
0
time:matters Courier Terminals GmbH, Germany
1
1
9
8
ZeroG GmbH, Germany
1
1
3
7
LUFTHANSA GROUP ANNUAL REPORT 2020
226
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Composition of the Group

T180  VOLUME OF SIGNIFICANT SERVICES PROVIDED TO OR BY RELATED PARTIES (continued)
in €m
Volume of  
services rendered
Volume of  
services received
2020
2019
2020
2019
Joint ventures
Airfoil Services Sdn. Bhd., Malaysia
0
1
2
7
EME Aero Sp. z o.o., Poland
0
0
18
0
LG-LHT Aircraft Solutions GmbH, Germany
3
6
0
0
N3 Engine Overhaul Services GmbH & Co. KG, Germany
1
5
0
0
Shanghai Pudong International Airport Cargo Terminal Co. Ltd., China
1
1
6
6
Spairliners GmbH, Germany
30
59
36
46
Star Alliance Services GmbH, Germany
1
2
5
8
Terminal 2 Gesellschaft mbH & Co oHG, Germany
0
1
11
13
Terminal One Group Association, L.P., USA
0
7
7
7
XEOS Sp. z o.o., Poland
10
4
16
7
Associated companies
Aircraft Maintenance and Engineering Corp., China
4
10
6
3
Airmail Center Frankfurt GmbH, Germany
0
1
9
9
AviationPower GmbH, Germany
0
0
7
29
HEICO Aerospace Holdings Corp., USA
0
0
5
13
Other affiliated companies
Shanghai Pudong International Airport Public Cargo Terminal Co. Ltd. (West), Shanghai, China
0
0
17
97
SunExpress Deutschland GmbH, Germany
7
26
65
93
The following tables show receivables owed by and liabilities 
to related parties:
T181  RECEIVABLES FROM AFFILIATED COMPANIES
in €m
2020
2019
 
Trade receivables from  
non-consolidated subsidiaries
39
30
Trade receivables from joint ventures
11
22
Trade receivables from  
associated companies
5
5
Trade receivables from  
other affiliated companies
5
1
Total trade receivables
60
58
Other receivables from  
non-consolidated subsidiaries
19
30
Other receivables from joint ventures
19
49
Other receivables from  
associated companies
11
10
Other receivables from  
other affiliated companies
5
–
Total other receivables
54
89
Loans to non-consolidated subsidiaries 
99
99
Loans to joint ventures 
5
5
Loans to associated companies
–
–
Total non-current receivables
104
104
T182  LIABILITIES TO AFFILIATED COMPANIES
in €m
2020
2019
 
Trade payables to  
non-consolidated subsidiaries 
37
29
Trade payables to joint ventures 
15
8
Trade payables to associated companies
2
3
Trade payables to other affiliated companies 
1
2
Total trade payables 
55
42
Other liabilities to  
non-consolidated subsidiaries
282
260
Other liabilities to joint ventures
26
0
Other liabilities to associated companies
0
0
Other liabilities to other affiliated companies
8
0
Total other liabilities
316
260
No individual shareholders of Deutsche Lufthansa AG exer-
cise significant influence over the Group. For transactions 
involving members of the Executive Board and Supervisory 
Board (“directors’ dealings”), ↗ Note 51, p. 228.
LUFTHANSA GROUP ANNUAL REPORT 2020
227
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Composition of the Group

51 		 Supervisory Board and Executive Board
The disclosure of remuneration for key managers required  
by IAS 24 includes the remuneration of the active members 
of the Executive Board and Supervisory Board.
The members of the Executive Board and the Supervisory 
Board as well as the other offices that they hold are named in 
the combined management report in the section ↗ Corporate 
governance, p. 122ff. 
The principles of the remuneration system and the amount  
of remuneration paid to Executive Board and Supervisory 
Board members are shown and explained in detail in the 
remuneration report. The remuneration report forms part of 
the Annual Report 2020.
Total Executive Board remuneration under IFRS was EUR 9.7m 
(previous year: EUR 14.8m) including current service costs 
for pensions of EUR 3.2m (previous year: EUR 3.3m).
The active members of the Executive Board in past reporting 
years were remunerated as follows:
T183  EXECUTIVE BOARD REMUNERATION (IFRS)
in € thousands
2020
2019
 
Basic salary
5,226
5,934
Other 1)
58
110
One-year variable remuneration
1,058
2,091
Total short-term remuneration
6,342
8,135
Long-term variable remuneration 2) 
– 1,339
1,299
Share-based remuneration
– 1,976
– 1,945
Current service cost for retirement benefits
3,179
3,291
Total long-term remuneration
-136
2,645
Severance payments
3,500
4,055
Total
9,706
14,835
1)	 Other remuneration includes in particular benefits from the use of company cars, 
discounts in connection with cash outflows from share programmes (↗ Note 39, 
p. 192ff.) and concessionary travel in accordance with the relevant IATA regulations.
2)	Expenses recognised in the reporting year for long-term variable remuneration  
	 for the financial years 2018 to 2020.
Pension provisions for Executive Board members active in 
the 2020 financial year came to EUR 17.9m (previous year: 
EUR 16.7m).
In addition to the provisions for the one-year variable remu-
neration of EUR 1,058k (previous year: EUR 2,091k), the 
value of the provisions recognised for the future payment  
of long-term variable remuneration for the Executive Board 
members active in the financial year 2020 was reduced by  
a total of EUR – 1,339k (previous year: EUR 1,299k additionally 
recognised). In addition, provisions of EUR 519k were recog-
nised for the future payment of long-term, share-based 
remuneration for the Executive Board members active as of 
31 December 2020 (previous year: EUR 3,706k). 
Total remuneration (HGB) paid to the Executive Board of 
Deutsche Lufthansa AG in the financial year 2020 came to 
EUR 12,078k (previous year: EUR 13,967k). The above remu-
neration includes the share-based remuneration component 
Total Shareholder Return (TSR) of EUR 4,305k as part of  
the long-term variable remuneration incentive.
Current payments and other benefits for former members  
of the Executive Board and their surviving dependants  
came to EUR 6.9m (previous year: EUR 6.4m). This includes 
payments by subsidiaries as well as benefits in kind and  
concessionary travel.
Pension obligations towards former Executive Board members 
and their surviving dependants amount to EUR 71.6m (previ-
ous year: EUR 69.1m). They are included in pension provisions 
(↗ Note 35, p. 180f.).
Expenses for the fixed remuneration of Supervisory Board 
members came to EUR 1,887k in 2020 (previous year:  
EUR 2,170k). Other remuneration, mainly attendance fees, 
amounted to EUR 23k (previous year: EUR 62k). The Deutsche 
Lufthansa AG Supervisory Board members were also paid 
EUR 16k for work on supervisory boards of Group companies 
(previous year: EUR 2k). 
In the reporting year, as in the previous year, no loans or 
advance payments were made to members of the Executive 
Board and to members of the Supervisory Board.
In addition to their Supervisory Board remuneration, employee 
representatives on the Supervisory Board received compen-
sation for their work in the form of wages and salaries includ-
ing pension entitlements amounting to EUR 1.1m in total in 
2020 (previous year: EUR 1.1m).
LUFTHANSA GROUP ANNUAL REPORT 2020
228
CONSOLIDATED FINANCIAL STATEMENTS
Notes  →  Composition of the Group

Major subsidiaries
T184  MAJOR SUBSIDIARIES AS OF 31 DEC 2020
Equity stake 
Voting share 
Different 
­reporting period
Name, registered office
in %
in %  
 
Network Airlines business segment
Air Dolomiti S.p.A. Linee Aeree Regionali Europee, Dossobuono di Villafranca (Verona), Italy
100.00
100.00
 
 
AirNavigator Ltd., Tokyo, Japan
0.00
0.00
1)
 
AirTrust AG, Zug, Switzerland
100.00
100.00
 
June
ALIP No. 4 Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
ALIP No. 5 Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
ALIP No. 6 Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
ALIP No. 7 Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
AUA Beteiligungen Gesellschaft m.b.H., Vienna Airport, Austria
100.00
100.00
 
 
Aura Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
Auslese Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
Austrian Airlines AG, Vienna Airport, Austria
100.00
100.00
 
 
Austrian Airlines Lease and Finance Company Ltd. i.L., Guernsey, UK
100.00
100.00
 
 
Austrian Asset Holding GP S.à r.l., Luxembourg, Luxembourg
100.00
100.00
 
 
Austrian Asset Holding S.C.S., Luxembourg, Luxembourg
100.00
100.00
 
 
Bayern Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
Bremen Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
Brussels Airlines SA/NV, Brussels, Belgium
100.00
100.00
 
 
CASTOR Ltd., Tokyo, Japan
0.00
0.00
1)
 
Celine Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
CRANE LTD., Tokyo, Japan
0.00
0.00
1)
 
Dia Adler Ltd., Tokyo, Japan
0.00
0.00
1)
 
Dia Bach Ltd., Tokyo, Japan
0.00
0.00
1)
 
Dia Falke Ltd., Tokyo, Japan
0.00
0.00
1)
 
Dia Flamingo Ltd., Tokyo, Japan
0.00
0.00
1)
 
Dia Hausen Ltd., Tokyo, Japan
0.00
0.00
1)
 
Dia Himmel Ltd., Tokyo, Japan
0.00
0.00
1)
 
Dia Ibis Ltd., Tokyo, Japan
0.00
0.00
1)
 
Dia Orff Ltd., Tokyo, Japan
0.00
0.00
1)
 
Dia Vogel Ltd., Tokyo, Japan
0.00
0.00
1)
 
Dia Wagner Ltd., Tokyo, Japan
0.00
0.00
1)
 
Doppeladler Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
Dunkel Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
Edelweiss Air AG, Zurich, Switzerland
100.00
100.00
 
 
Eifel Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
Ellen Finance 2010 S.N.C., Puteaux, France
0.00
0.00
1)
 
Empyrée S.A.S., Paris-Cedex, France
0.00
0.00
1)
 
Evans Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
FG Honest Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
FG Unity Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
FG Vision Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
FK Yocasta Leasing Ltd., Tokyo, Japan
0.00
0.00
1)
 
FL Falcon Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
FL Uranus Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
Gabriela Finance 2012 Limited, Dublin, Ireland
0.00
0.00
1)
 
Germanwings GmbH, Cologne
100.00
100.00
 
 
Gina Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
Global Brand Management AG, Basel, Switzerland
100.00
100.00
 
 
Heike LH8 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Helles Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
Ingrid Finance 2010 S.N.C., Puteaux, France
0.00
0.00
1)
 
Lahm Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
LUFTHANSA GROUP ANNUAL REPORT 2020
229
CONSOLIDATED FINANCIAL STATEMENTS
Major subsidiaries

LHBD Holding Limited, London, UK
100.00
100.00
2)
 
Lufthansa CityLine GmbH, Munich Airport
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 10, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 12, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 14, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 15, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 16, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 17, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 18, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 20, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 21, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 22, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 24, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 25, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 26, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 27, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 28, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 29, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 30, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 32, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 33, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 34, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 35, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 36, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 37, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 38, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 39, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 40, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 41, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 42, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 43, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 44, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 45, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Malta Aircraft-Leasing Ltd., St. Julians, Malta
100.00
100.00
 
 
Lufthansa Process Management GmbH, Neu-Isenburg
100.00
100.00
 
 
Miles & More GmbH, Frankfurt/Main
100.00
100.00
 
 
Muller Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
NBB Cologne Lease Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
NBB Harz Lease Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
NBB Koblenz Lease Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
NBB Rhine Valley Lease LLC, Tokyo, Japan
0.00
0.00
1)
 
NBB Rothenburg Lease Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
NBB Saxon Lease Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
ÖLB Österreichische Luftverkehrs-Beteiligungs GmbH, Vienna Airport, Austria
100.00
100.00
 
 
ÖLH Österreichische Luftverkehrs-Holding GmbH, Vienna Airport, Austria
100.00
100.00
3)
 
ÖLP Österreichische Luftverkehrs-Privatstiftung, Vienna Airport, Austria
0.00
0.00
4)
 
ORIX Aquila Corporation, Tokyo, Japan
0.00
0.00
1)
 
ORIX Himalia Corporation, Tokyo, Japan
0.00
0.00
1)
 
ORIX Lysithea Corporation, Tokyo, Japan
0.00
0.00
1)
 
ORIX Miranda Corporation, Tokyo, Japan
0.00
0.00
1)
 
ORIX Telesto Corporation, Tokyo, Japan
0.00
0.00
1)
 
T184  MAJOR SUBSIDIARIES AS OF 31 DEC 2020 (continued)
Equity stake 
Voting share 
Different 
­reporting period
Name, registered office
in %
in %  
 
LUFTHANSA GROUP ANNUAL REPORT 2020
230
CONSOLIDATED FINANCIAL STATEMENTS
Major subsidiaries

T184  MAJOR SUBSIDIARIES AS OF 31 DEC 2020 (continued)
Equity stake 
Voting share 
Different 
­reporting period
Name, registered office
in %
in %  
 
Raft Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
Schloss Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
SL Aurora Ltd., Tokyo, Japan
0.00
0.00
1)
 
SL Prairie Ltd., Tokyo, Japan
0.00
0.00
1)
 
SL Victoria Ltd., Tokyo, Japan
0.00
0.00
1)
 
SMFL Y Lease Nin-i-Kumiai, Tokyo, Japan
0.00
0.00
1)
 
SMFL Y Lease Nin-i-Kumiai Two, Tokyo, Japan
0.00
0.00
1)
 
SN Airholding SA/NV, Brussels, Belgium
100.00
100.00
 
 
Swiss Aviation Software AG, Basel, Switzerland
100.00
100.00
 
 
Swiss International Air Lines AG, Basel, Switzerland
100.00
100.00
 
 
Sylvaner Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
TI DC Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
TI DD Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
TimBenNico Finance 2011 S.N.C., Puteaux, France
0.00
0.00
1)
 
TLC Amaryllis Ltd., Tokyo, Japan
0.00
0.00
1)
 
TLC Petunia Ltd., Tokyo, Japan
0.00
0.00
1)
 
TLC Salvia Ltd., Tokyo, Japan
0.00
0.00
1)
 
Tusker Leasing Co. Ltd., Tokyo, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH9 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH10 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH11 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH12 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH13 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH14 Kumiai, Okoyama, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH15 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH16 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH17 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH18 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH19 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH20 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH21 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH22 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Yamasa Aircraft LH23 Kumiai, Okayama, Japan
0.00
0.00
1)
 
Eurowings business segment
 
Eurowings Aviation GmbH, Cologne
100.00
100.00
 
 
Eurowings Digital GmbH, Cologne
100.00
100.00
 
 
Eurowings Europe GmbH, Vienna Airport, Austria
100.00
100.00
 
 
Eurowings GmbH, Dusseldorf
100.00
100.00
 
 
Eurowings Technik GmbH, Cologne
100.00
100.00
 
 
Lufthansa Asset Management Leasing GmbH, Frankfurt/Main
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 19, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 31, Salzburg, Austria
100.00
100.00
 
 
Logistics business segment
 
Jettainer Americas, Inc., East Meadow, USA
100.00
100.00
 
 
Jettainer GmbH, Raunheim
100.00
100.00
 
 
Lufthansa Cargo AG, Frankfurt/Main
100.00
100.00
 
 
Lufthansa Leasing Austria GmbH & Co. OG Nr. 50, Salzburg, Austria
100.00
100.00
 
 
time:matters GmbH, Neu-Isenburg
100.00
100.00
 
 
time:matters Holding GmbH, Neu-Isenburg
100.00
100.00
 
 
time:matters Spare Parts Logistics GmbH, Neu-Isenburg
100.00
100.00
 
 
LUFTHANSA GROUP ANNUAL REPORT 2020
231
CONSOLIDATED FINANCIAL STATEMENTS
Major subsidiaries

MRO business segment
 
 
 
 
BizJet International Sales & Support, Inc., Tulsa, USA
100.00
100.00
 
 
Hamburger Gesellschaft für Flughafenanlagen mbH, Hamburg
100.00
100.00
 
 
Hawker Pacific Aerospace, Sun Valley, USA
100.00
100.00
 
 
JASEN Grundstücksgesellschaft mbH & Co. oHG, Grünwald
100.00
50.00
1)
 
Lufthansa Industry Solutions AS GmbH, Norderstedt
100.00
100.00
 
 
Lufthansa Industry Solutions BS GmbH, Raunheim
100.00
100.00
 
 
Lufthansa Industry Solutions GmbH & Co. KG, Norderstedt
100.00
100.00
 
 
Lufthansa Technik AERO Alzey GmbH, Alzey
100.00
100.00
 
 
Lufthansa Technik AG, Hamburg
100.00
100.00
 
 
Lufthansa Technik Airmotive Ireland Holdings Ltd., Dublin, Ireland
100.00
100.00
 
 
Lufthansa Technik Airmotive Ireland Leasing Ltd., Dublin, Ireland
100.00
100.00
 
 
Lufthansa Technik Budapest Repülögép Nagyjavító Kft., Budapest, Hungary
100.00
100.00
 
 
Lufthansa Technik Component Services LLC, Tulsa, USA
100.00
100.00
 
 
Lufthansa Technik Immobilien- und Verwaltungsgesellschaft mbH, Hamburg
100.00
100.00
 
 
Lufthansa Technik Landing Gear Services UK Ltd., Kestrel Way, Hayes, UK
100.00
100.00
 
 
Lufthansa Technik Logistik GmbH, Hamburg
100.00
100.00
 
 
Lufthansa Technik Logistik Services GmbH, Hamburg
100.00
100.00
 
 
Lufthansa Technik Maintenance International GmbH, Frankfurt/Main
100.00
100.00
 
 
Lufthansa Technik Malta Limited, Luqa, Malta
92.00
92.00
 
 
Lufthansa Technik North America Holding Corp., Tulsa, USA
100.00
100.00
 
 
Lufthansa Technik Objekt- und Verwaltungsgesellschaft mbH, Hamburg
100.00
100.00
 
 
Lufthansa Technik Philippines, Inc., Manila, Philippines
51.00
51.00
 
 
Lufthansa Technik Puerto Rico LLC, San Juan, Puerto Rico
100.00
100.00
 
 
Lufthansa Technik Shannon Limited, Claire, Ireland
100.00
100.00
 
 
Lufthansa Technik Sofia OOD, Sofia, Bulgaria
75.10
75.10
 
 
Catering business segment
 
 
Aerococina S.A. de C.V., Mérida City, Mexico
51.98
100.00
 
 
AIRO Catering Services Eesti OÜ, Tallinn, Estonia
100.00
100.00
 
 
Airo Catering Services Latvija SIA, Marupe, Latvia
100.00
100.00
 
 
AIRO Catering Services Sweden AB, Upplands Väsby, Sweden
100.00
100.00
 
 
AIRO Catering Services – Ukraine, Boryspil, Ukraine
100.00
100.00
 
 
Arlington Services Mexico, S.A. de C.V., Mexico City, Mexico
100.00
100.00
 
 
Arlington Services Panama S.A., Panama City, Panama
100.00
100.00
 
 
AVIAPIT-SOCHI OOO, Sotschi, Russia
100.00
100.00
 
 
Bahia Catering Ltda., Sao Cristovao (Salvador), Brazil
100.00
100.00
 
 
Belém Serviços de Bordo Ltda., Maracangalha, Belém, Brazil
70.00
70.00
 
 
Capital Gain International (1986) Ltd., Hong Kong, China
100.00
100.00
 
 
Cater Suprimento de Refeicoes, Ltda., Rio de Janeiro, Brazil
100.00
100.00
 
 
Caterair Servicos de Bordo e Hotelaria Ltda., Ilha do Governador, Brazil
100.00
100.00
 
 
Charm Food Service Co. Ltd., Incheon, South Korea
80.00
100.00
 
 
CLS Catering Services Ltd., Vancouver, British Columbia, Canada
70.00
70.00
 
 
Comercializadora de Servicios Limitada, ENEA, Pudahuel, Santiago, Chile
100.00
100.00
 
 
Comisariato de Baja California, S.A. de C.V., Tijuana, Mexico
51.00
51.00
 
 
Comisariatos Gotre, S.A. de C.V., Torreon, Mexico
51.00
51.00
 
 
Constance Food Group, Inc., New York, USA
100.00
100.00
 
 
Fortaleza Serviços de Bordo Ltda., Fortaleza, Brazil
70.00
70.00
 
 
Inflight Catering (Pty) Ltd., Johannesburg, South Africa
100.00
100.00
 
 
Inflight Catering Services Limited, Dar es Salaam, Tansania
61.99
61.99
 
 
International Food Services Ltd., Hong Kong, China
100.00
100.00
 
 
LSG Asia GmbH, Neu-Isenburg
100.00
100.00
 
 
T184  MAJOR SUBSIDIARIES AS OF 31 DEC 2020 (continued)
Equity stake 
Voting share 
Different 
­reporting period
Name, registered office
in %
in %  
 
LUFTHANSA GROUP ANNUAL REPORT 2020
232
CONSOLIDATED FINANCIAL STATEMENTS
Major subsidiaries

LSG Catering China Ltd., Hong Kong, China
100.00
100.00
 
 
LSG Catering Guam, Inc., Guam, USA
100.00
100.00
 
 
LSG Catering Hong Kong Ltd., Hong Kong, China
100.00
100.00
 
 
LSG Catering Saipan, Inc., Saipan, Micronesia
100.00
100.00
 
 
LSG Catering (Thailand) Ltd., Bangkok, Thailand
100.00
100.00
 
 
LSG Holding Asia Ltd., Hong Kong, China
86.88
80.00
 
 
LSG Lufthansa Service Asia Ltd., Hong Kong, China
100.00
100.00
 
 
LSG Lufthansa Service Cape Town (Pty) Ltd., Boksburg, South Africa
100.00
100.00
 
 
LSG Lufthansa Service Enterprises Ltd., Hong Kong, China
100.00
100.00
 
 
LSG Lufthansa Service Europa/Afrika GmbH, Neu-Isenburg
100.00
100.00
 
 
LSG Lufthansa Service Guam, Inc., Tamuning, Guam, USA
100.00
100.00
 
 
LSG Lufthansa Service Holding AG, Neu-Isenburg
100.00
100.00
 
 
LSG Lufthansa Service Hong Kong Ltd., Hong Kong, China
41.62
50.00
4)
 
LSG Lufthansa Service Saipan, Inc., Saipan, Micronesia
100.00
100.00
 
 
LSG Lufthansa Service – Sky Chefs do Brasil Catering, Refeições Ltda., Guarulhos, Brazil
100.00
100.00
 
 
LSG Sky Chefs Argentina S.A., Ezeiza, Argentina
100.00
100.00
 
 
LSG Sky Chefs de Venezuela C.A., Caracas, Venezuela
99.99
99.93
 
 
LSG Sky Chefs Havacilik Hizmetleri A.S., Bakirköy/Istanbul, Turkey
100.00
100.00
 
 
LSG Sky Chefs (India) Private Ltd., Bangalore, India
100.00
100.00
 
March
LSG Sky Chefs Istanbul Catering Hizmetleri A.S., Istanbul, Turkey
100.00
100.00
6)
 
LSG Sky Chefs Kenya Limited, Nairobi, Kenya
50.20
50.20
 
 
LSG Sky Chefs Korea Co Ltd., Incheon, South Korea
80.00
80.00
 
 
LSG Sky Chefs Malmö AB, Kungsör, Sweden
100.00
100.00
 
 
LSG Sky Chefs New Zealand Limited, Auckland, New Zealand
100.00
100.00
 
 
LSG Sky Chefs Norge AS, Gardermoen, Norway
100.00
100.00
 
 
LSG Sky Chefs North America Solutions, Inc., Wilmington, USA
100.00
100.00
 
 
LSG Sky Chefs (Qingdao) Co., Ltd., Laixi City, China
100.00
100.00
 
 
LSG Sky Chefs Rus, Moscow, Russia
100.00
100.00
 
 
LSG Sky Chefs South Africa (Proprietary) Ltd., Johannesburg, South Africa
100.00
100.00
 
 
LSG Sky Chefs Supply Chain Solutions, Inc., Wilmington, USA
100.00
100.00
 
 
LSG Sky Chefs Sverige AB, Kungsör, Sweden
100.00
100.00
 
 
LSG Sky Chefs TAAG Angola S.A., Luanda, Angola
40.00
40.00
4)
 
LSG Sky Chefs (Thailand) Ltd., Bangkok, Thailand
64.30
100.00
 
 
LSG Sky Chefs UK Ltd. i.L., Sidcup, UK
100.00
100.00
 
 
LSG Sky Chefs USA, Inc., Wilmington, USA
100.00
100.00
 
 
LSG South America GmbH, Neu-Isenburg
100.00
100.00
 
 
LSG/Sky Chefs Europe Holdings Ltd., Hounslow, UK
100.00
100.00
 
 
Myanmar LSG Lufthansa Service Ltd., Yangon, Myanmar
100.00
100.00
 
September
Natal Catering Ltda., Aeroporto São Gonçalo do Amarante, Brazil
70.00
70.00
 
 
Oakfield Farms Solutions, L.L.C., Wilmington, USA
100.00
100.00
 
 
Retail In Motion Asia Limited, Hong Kong, China
100.00
100.00
 
 
Retail in Motion GmbH, Neu-Isenburg
100.00
100.00
 
 
Retail in Motion Latin America SpA, ENEA, Pudahuel, Santiago, Chile
100.00
100.00
 
 
Retail in Motion Limited, Dublin, Ireland
100.00
100.00
 
 
Retail In Motion Mexico S. de R.L. de C.V., Mexico City, Mexico
51.00
100.00
 
 
Retail in Motion Middle East L.L.C., Abu Dhabi, United Arab Emirates
100.00
100.00
 
 
SCIS Air Security Corporation, Wilmington, USA
100.00
100.00
 
 
ServCater Internacional Ltda., Guarulhos, Brazil
90.00
90.00
 
 
Servicios Complementarios de Cabina, S.A. de C.V., Mexico City, Mexico
51.88
99.80
 
 
Siam Flight Services Ltd., Bangkok, Thailand
49.00
66.67
 
 
Silver Wings Bulgaria OOD, Sofia, Bulgaria
28.75
28.75
5)
 
Sky Chefs Chile SpA, ENEA, Pudahuel, Santiago, Chile
100.00
100.00
 
 
T184  MAJOR SUBSIDIARIES AS OF 31 DEC 2020 (continued)
Equity stake 
Voting share 
Different 
­reporting period
Name, registered office
in %
in %  
 
LUFTHANSA GROUP ANNUAL REPORT 2020
233
CONSOLIDATED FINANCIAL STATEMENTS
Major subsidiaries

Sky Chefs De Mexico, S.A. de C.V., Mexico City, Mexico
51.00
51.00
 
 
Sky Chefs de Panama, S.A., Panama City, Panama
100.00
100.00
 
 
Sky Chefs Things Remembered Services FZE, Lagos, Nigeria
51.00
51.00
 
 
Sky Chefs Things Remembered Services Limited, Lagos, Nigeria
51.00
51.00
 
 
Sky Chefs, Inc., Wilmington, USA
100.00
100.00
 
 
Western Aire Chef, Inc., Wilmington, USA
100.00
100.00
 
 
ZAO AeroMEAL, Yemelyanovo, Russia
100.00
100.00
 
 
Additional Businesses and Group Functions
 
AirPlus International AG, Kloten, Switzerland
100.00
100.00
 
 
AirPlus International, Inc., Alexandria, USA
100.00
100.00
 
 
AirPlus International Limited, London, UK
100.00
100.00
 
 
AirPlus International S.r.l., Bologna, Italy
100.00
100.00
 
 
AirPlus Payment Management Co. Ltd., Shanghai, China
100.00
100.00
 
 
Crane Strategic Investment S.C.S., Grevenmacher, Luxembourg
100.00
100.00
 
 
LCH Grundstücksgesellschaft Berlin mbH, Frankfurt/Main
100.00
100.00
 
 
LHAMI LEASING LIMITED, Dublin, Ireland
100.00
100.00
 
 
LHAMIH LIMITED, Dublin, Ireland
100.00
100.00
 
 
LSG Sky Chefs Bremen GmbH, Neu-Isenburg
100.00
100.00
 
 
LSG Sky Chefs Hamburg GmbH, Neu-Isenburg
100.00
100.00
 
 
LSG Sky Chefs Leipzig GmbH, Neu-Isenburg
100.00
100.00
 
 
LSG Sky Chefs RPC West GmbH, Neu-Isenburg
100.00
100.00
 
 
LSY GmbH, Norderstedt
100.00
100.00
 
 
Lufthansa AirPlus Servicekarten GmbH, Neu-Isenburg
100.00
100.00
 
 
Lufthansa Asset Management GmbH, Frankfurt/Main
100.00
100.00
 
 
Lufthansa Aviation Training Berlin GmbH, Berlin
100.00
100.00
 
 
Lufthansa Aviation Training Germany GmbH, Frankfurt/Main
100.00
100.00
 
 
Lufthansa Aviation Training GmbH, Hallbergmoos
100.00
100.00
 
 
Lufthansa Aviation Training Switzerland AG, Opfikon, Switzerland
100.00
100.00
 
 
Lufthansa Commercial Holding GmbH, Frankfurt/Main
100.00
100.00
 
 
Lufthansa Global Business Services GmbH, Frankfurt/Main
100.00
100.00
 
 
Lufthansa Leasing Austria 1. Beteiligungs GmbH, Salzburg, Austria
100.00
100.00
 
 
Lufthansa Malta Blues LP, St. Julians, Malta
99.99
99.99
 
 
Lufthansa Malta Corporate Finance Limited, St. Julians, Malta
100.00
100.00
 
 
Lufthansa Malta Finance Holding Limited, St. Julians, Malta
100.00
100.00
 
 
Lufthansa Malta Treasury Services Limited, St. Julians, Malta
100.00
100.00
 
 
Lufthansa Seeheim GmbH, Seeheim-Jugenheim
100.00
100.00
 
 
Lufthansa Systems Americas, Inc., Miami Lakes, USA
100.00
100.00
 
 
Lufthansa Systems GmbH & Co. KG, Raunheim
100.00
100.00
 
 
MARDU Grundstücks-Verwaltungsgesellschaft mbH & Co. oHG, Grünwald
100.00
50.00
1)
 
MUSA Grundstücks-Verwaltungsgesellschaft mbH & Co. oHG, Grünwald
100.00
50.00
1)
 
Quinto Grundstücksgesellschaft mbH & Co. oHG, Grünwald
99.73
49.75
1)
 
TGV DLH, Dusseldorf
100.00
100.00
 
1)	 Fully consolidated structured entity in accordance with IFRS 10.
2)	The Companies House registration number is: 06939137. 
3)	50.20% of the equity stakes and voting rights are attributed via ÖLP.
4)	Management responsibility for the company lies with the Group.
5)	28.75% equity shares and voting rights are attributed via a call option.
6)	33.34% of the equity stakes and 50.01% voting rights are attributed via a call option.
T184  MAJOR SUBSIDIARIES AS OF 31 DEC 2020 (continued)
Equity stake 
Voting share 
Different 
­reporting period
Name, registered office
in %
in %  
 
LUFTHANSA GROUP ANNUAL REPORT 2020
234
CONSOLIDATED FINANCIAL STATEMENTS
Major subsidiaries

T185  MAJOR JOINT VENTURES AS OF 31 DEC 2020 1)
Name, registered office
Equity stake 
Voting share 
Different 
­reporting period
in %
in %
 
 
Network Airlines business segment
 
 
 
Terminal 2 Gesellschaft mbH & Co oHG, Munich Airport
40.00
40.00
 
Eurowings business segment
 
 
 
Günes Ekspres Havacilik Anonim Sirketi (Sun Express), Antalya, Turkey
50.00
50.00
 
Logistics business segment
 
 
 
Shanghai Pudong International Airport Cargo Terminal Co. Ltd., Shanghai, China
29.00
22.22
 
MRO business segment
 
 
 
EME Aero Sp. z o.o., Jasionka, Poland
50.00
50.00
 
LG-LHT Aircraft Solutions GmbH, Hamburg
51.00
50.00
 
LG-LHT Passenger Solutions GmbH, Hamburg
51.00
50.00
 
N3 Engine Overhaul Services GmbH & Co. KG, Arnstadt
50.00
50.00
 
Spairliners GmbH, Hamburg
50.00
50.00
 
XEOS Sp. z o.o., Warsaw, Poland
51.00
50.00
 
Additional Businesses and Group Functions
 
 
 
Diners Club Spain S.A., Madrid, Spain
25.00
25.00
T186  JOINT OPERATIONS AS OF 31 DEC 2020 2)
 
Aerologic GmbH, Leipzig
50.00
50.00
T187  MAJOR ASSOCIATED COMPANIES AS OF 31 DEC 2020  1)
 
MRO business segment
Aircraft Maintenance and Engineering Corp., Beijing, China
25.00
28.57
 
HEICO Aerospace Holdings Corp., Florida, USA
20.00
20.00
October
Catering business segment
Cosmo Enterprise Co. Ltd., Narita City, Japan
20.00
20.00
March
Gansu HNA LSG Sky Chefs Co. Ltd., Lanzhou, China
49.00
40.00
 
Hong Kong Beijing Air Catering Ltd., Hong Kong, China
45.00
40.00
 
Hong Kong Shanghai Air Catering Ltd., Hong Kong, China
45.00
40.00
 
Inflite Holdings (Cayman) Ltd., Grand Cayman, Cayman Islands
49.00
49.00
September
Inflite Holdings (St. Lucia) Ltd., Castries, St. Lucia
49.00
49.00
September
Nanjing Lukou International Airport LSG Catering Co. Ltd., Nanjing City, China
40.00
40.00
 
Tolmachevo Catering OOO, Novosibirsk, Russia
26.00
26.00
 
Wenzhou Longwan International Airport LSG Sky Chefs Co. Ltd., Wenzhou City, China
40.00
40.00
 
Xian Eastern Air Catering Co. Ltd., Xian, China
30.00
28.57
 
Yunnan Eastern Air Catering Co. Ltd., Kunming, China
24.90
28.57
 
ZAO Aeromar, Moscow region, Russia
49.00
49.00
 
1)	 Accounted for using the equity method. 
2)	Included on a pro rata basis in accordance with IFRS 11.
LUFTHANSA GROUP ANNUAL REPORT 2020
235
CONSOLIDATED FINANCIAL STATEMENTS
Major subsidiaries

Miscellaneous equity investments
T188  MISCELLANEOUS EQUITY INVESTMENTS AS OF 31 DEC 2020
Equity stake
Voting share
Name, registered office
in % 
in % 
 
Subsidiaries, not consolidated
26. INCORPORATION, Inc., East Meadow, USA
100.00
100.00
ACS Aircontainer Services Gesellschaft m.b.H. in Liqu., Fischamend, Austria
100.00
100.00
Air Dolomiti Deutschland GmbH, Munich
100.00
100.00
AIRBEL N.V./S.A., Brussels, Belgium
50.50
50.50
Airline Marketing Services India Private Limited, Mumbai, India
100.00
100.00
AirPlus International Soluções de Pagamento Limitada, Sao Paulo, Brazil
100.00
100.00
Airport Services Dresden GmbH, Dresden
100.00
100.00
Airport Services Leipzig GmbH, Schkeudiz
100.00
100.00
Albatros Service Center GmbH, Cologne
100.00
100.00
Albatros Versicherungsdienste GmbH, Cologne
100.00
100.00
Austrian Airlines Technik-Bratislava, s.r.o., Bratislava, Slovakia
100.00
100.00
Austrian Airlines Tele Sales Service GmbH, Innsbruck, Austria
100.00
100.00
AVIATION Data Hub GmbH, Hamburg
100.00
100.00
Aviation Quality Services GmbH, Frankfurt/Main
100.00
100.00
Aviation Services Network GmbH, Friedrichshafen
100.00
100.00
Avionic Design GmbH, Hamburg
49.00
49.00
Cargo Future Communications (CFC) GmbH, Büchenbeuren
100.00
100.00
Caterair Portugal – Assistencia A Bordo, Lda., Sacavém, Portugal
100.00
100.00
CB Customs Broker GmbH, Kelsterbach
100.00
100.00
Delvag Versicherungs-AG, Cologne
100.00
100.00
Deutsche Lufthansa Unterstützungswerk GmbH, Frankfurt/Main
100.00
100.00
DLH Fuel Company mbH, Hamburg
100.00
100.00
DLH Malta Pension Ltd., St. Julians, Malta
100.00
100.00
DLH Malta Transition Limited, St. Julians, Malta
100.00
100.00
FLYdocs Inc. (Delaware Corp.), City of Wilmington, New Castle, USA
100.00
100.00
FLYdocs Systems India Private Ltd., Vadoora, India
100.00
100.00
FLYdocs Systems Limited, Tamworth, Staffordshire, UK
100.00
100.00
FLYdocs Systems (MIDCO) Limited, Tamworth, Staffordshire, UK
100.00
100.00
Flydocs Systems (TOPCO) Limited, Staffordshire, UK
100.00
100.00
Gen2 Systems Limited, Tamworth, UK
100.00
100.00
Global Load Control (PTY) LTD, Cape Town, South Africa
100.00
100.00
Global Tele Sales (PTY) Ltd., Cape Town, South Africa
100.00
100.00
Global Tele Sales Brno s.r.o., Brno, Czech Republic
100.00
100.00
Global Tele Sales Ltd., Dublin, Ireland
100.00
100.00
Global Telesales of Canada, Inc., Peterborough, Canada
100.00
100.00
handling counts GmbH, Frankfurt/Main
100.00
100.00
help alliance gGmbH, Frankfurt/Main
100.00
100.00
heyworld GmbH, Frankfurt/Main
100.00
100.00
Hinduja Lufthansa Cargo Holding B.V., Amsterdam, Netherlands
100.00
100.00
Idair GmbH, Hamburg
100.00
100.00
In-Flight Management Solutions Latin America, S.A. de C.V., Mexico City, Mexico
100.00
100.00
IND Beteiligungs GmbH, Raunheim
100.00
100.00
LCAG Malta Pension Ltd., St. Julians, Malta
100.00
100.00
LCAG Malta Transition Limited, St. Julians, Malta
100.00
100.00
LGSP Lufthansa Ground Service Portugal, Unipessoal Lda., Maia/Oporto, Portugal
100.00
100.00
LHT Malta Pension Ltd., St. Julians, Malta
100.00
100.00
LSG Malta Pension Ltd., St. Julians, Malta
100.00
100.00
LSI Malta Pension Ltd., St. Julians, Malta
100.00
100.00
LUFTHANSA GROUP ANNUAL REPORT 2020
236
CONSOLIDATED FINANCIAL STATEMENTS
Miscellaneous equity investments

Lufthansa Aviation Training Austria GmbH, Vienna Airport, Austria
100.00
100.00
Lufthansa Aviation Training Crew Academy GmbH, Frankfurt/Main
100.00
100.00
Lufthansa Aviation Training Operations Germany GmbH, Berlin
100.00
100.00
Lufthansa Aviation Training Pilot Academy GmbH, Frankfurt/Main
100.00
100.00
Lufthansa Aviation Training USA Inc., Goodyear, USA
100.00
100.00
Lufthansa Blues Beteiligungs GmbH, Frankfurt/Main
100.00
100.00
Lufthansa Cagri Merkezi ve Müsteri Hizmetleri A.S., Istanbul, Turkey
100.00
100.00
Lufthansa Cargo India (Priv) Ltd. i.L., New-Delhi, India
100.00
100.00
Lufthansa Cargo Servicios Logisticos de Mexico, S.A. de C.V., Mexico City, Mexico
100.00
100.00
Lufthansa City Center International GmbH, Frankfurt/Main
50.00
50.00
Lufthansa Consulting Brasil Ldta., Rio de Janeiro, Brazil
99.90
99.90
Lufthansa Consulting GmbH, Frankfurt/Main
100.00
100.00
Lufthansa Engineering and Operational Services GmbH, Frankfurt/Main
100.00
100.00
Lufthansa Global Business Services Hamburg GmbH, Hamburg
100.00
100.00
Lufthansa Global Business Services Ltd., Bangkok, Thailand
100.00
100.00
Lufthansa Global Business Services S.A. de C.V., Mexico City, Mexico
100.00
100.00
Lufthansa Global Business Services Sp. z o.o., Krakow, Poland
100.00
100.00
Lufthansa Global Tele Sales GmbH, Berlin
100.00
100.00
Lufthansa Group Business Services Hong Kong Limited, Hong Kong, China
100.00
100.00
Lufthansa Group Business Services Johannesburg (pty) Ltd., Gauteng, South Africa
100.00
100.00
Lufthansa Group Business Services New York LLC, Wilmington, Delaware, USA
100.00
100.00
Lufthansa Group Business Services Wien GmbH, Vienna, Austria
100.00
100.00
Lufthansa Group Security Operations GmbH, Frankfurt/Main
100.00
100.00
Lufthansa Industry Solutions SHPK, Tirana, Albania
100.00
100.00
Lufthansa Industry Solutions TS GmbH, Oldenburg
100.00
100.00
Lufthansa Innovation Hub GmbH, Berlin
100.00
100.00
Lufthansa International Finance (Netherlands) N. V., Amsterdam, Netherlands
100.00
100.00
Lufthansa Job Services Norderstedt GmbH, Norderstedt
100.00
100.00
Lufthansa Malta Blues General Partner GmbH & Co. KG, Frankfurt/Main
100.00
100.00
Lufthansa Malta Pension Holding Ltd., St. Julians, Malta
100.00
100.00
Lufthansa Pension Beteiligungs GmbH, Frankfurt/Main
100.00
100.00
Lufthansa Pension GmbH & Co. KG, Frankfurt/Maín
100.00
100.00
Lufthansa Services Philippines, Inc., Manila, Philippines
100.00
100.00
Lufthansa Services (Thailand) Ltd., Bangkok, Thailand
100.00
100.00
Lufthansa Super Star Gesellschaft mit beschränkter Haftung i.L., Berlin
100.00
100.00
Lufthansa Systems 25. GmbH, Raunheim
100.00
100.00
Lufthansa Systems Asia Pacific Pte. Ltd., Singapore, Singapore
100.00
100.00
Lufthansa Systems FlightNav AG, Opfikon, Switzerland
100.00
100.00
Lufthansa Systems Hungaria Kft, Budapest, Hungary
100.00
100.00
Lufthansa Systems Poland Sp. z o.o., Danzig, Poland
100.00
100.00
Lufthansa Systems Verwaltungs GmbH, Raunheim
100.00
100.00
Lufthansa Technical Training GmbH, Hamburg
100.00
100.00
Lufthansa Technik Brussels N.V., Steenokkerzeel-Melsbroek, Belgium
100.00
100.00
Lufthansa Technik Component Services Asia Pacific Limited, Hong Kong, China
100.00
100.00
Lufthansa Technik Intercoat GmbH, Kaltenkirchen
51.00
51.00
Lufthansa Technik Middle East FZE, Dubai, United Arab Emirates
100.00
100.00
Lufthansa Technik Milan s.r.l., Somma Lombardo (VA), Italy
100.00
100.00
Lufthansa Technik Miskolc Kft., Budapest, Hungary
100.00
100.00
Lufthansa Technik Services India Private Limited, New-Delhi, India
100.00
100.00
Lufthansa Technik Shenzhen Co. Ltd., Shenzhen, China
80.00
67.00
Lufthansa Technik Turbine Shannon Limited, Shannon, Ireland
100.00
100.00
T188  MISCELLANEOUS EQUITY INVESTMENTS AS OF 31 DEC 2020 (continued)
Equity stake
Voting share
Name, registered office
in % 
in % 
LUFTHANSA GROUP ANNUAL REPORT 2020
237
CONSOLIDATED FINANCIAL STATEMENTS
Miscellaneous equity investments

Lufthansa Technik Vostok Services OOO, Moscow, Russia
100.00
100.00
Lufthansa UK Pension Trustee Limited, West Drayton, Middlesex, UK
100.00
100.00
LZ-Catering GmbH, Hamburg
100.00
100.00
Malta Pension Investments, St. Julians, Malta
0.00
100.00
Marriott Export Services, C.A., Caracas, Venezuela
99.99
100.00
Marriott International Trade Services, C.A., Caracas, Venezuela
99.99
100.00
Ocean GmbH, Frankfurt/Main
100.00
100.00
Oscar Bravo GmbH, Munich
100.00
100.00
Quinto Grundstücks-Verwaltungsgesellschaft mbH, Grünwald
94.80
94.80
Reservation Data Maintenance India Private Ltd., New-Delhi, India
51.00
51.00
Retail inMotion Asia Pacific Limited, San Po Kong, Kowloon, China
100.00
100.00
Shared Services International India Private Limited, New-Delhi, India
100.00
100.00
Shared Services International, Singapore PTE. LTD, Singapore, Singapore
100.00
100.00
Skeyos GmbH, Hamburg
100.00
100.00
Star Risk Services Inc., Southlake, USA
100.00
100.00
Swiss WorldCargo (India) Private Limited, Mumbai, India
100.00
100.00
TATS – Travel Agency Technologies & Services GmbH, Frankfurt/Main
100.00
100.00
time:matters Americas, Inc., Miami, USA
100.00
100.00
time:matters Asia Pacific Pte. Ltd., Singapore, Singapore
100.00
100.00
time:matters Austria GmbH, Vienna Airport, Austria
100.00
100.00
time:matters Belgium BVBA, Mechelen, Belgium
100.00
100.00
time:matters Courier Terminals GmbH, Frankfurt/Main
100.00
100.00
time matters GmbH, Zurich, Switzerland
100.00
100.00
time:matters Netherlands B.V., Schiphol-Rijk, Netherlands
100.00
100.00
time:matters (Shanghai) International Freight Forwarding Ltd., Shanghai, China
100.00
100.00
VPF Malta Pension Ltd., St. Julians, Malta
100.00
100.00
Yilu Travel Services GmbH, Berlin
100.00
100.00
ZeroG GmbH, Raunheim
100.00
100.00
Other equity investments
Aeroxchange Ltd., Wilmington, USA
11.36
0.00
AFS Aviation Fuel Services GmbH, Hamburg
33.33
33.33
Airfoil Services Sdn. Bhd., Kuala Lumpur, Malaysia
50.00
50.00
Airline Tariff Publishing Co., Dulles, USA
9.77
9.77
Airmail Center Frankfurt GmbH, Frankfurt/Main
40.00
40.00
ATLECON Fuel LLC, Atlanta, USA
13.85
13.85
AUS Fuel Company, LLC, Austin, USA
6.67
6.67
AviationPower GmbH, Hamburg
49.00
49.00
Beijing Lufthansa Center Co. Ltd., Beijing, China
11.23
12.50
Berlin Fuelling Services GbR, Berlin
12.50
12.50
Cargo One GmbH, Berlin
16.22
16.22
Charlotte Fuel Facilities LLC, Wilmington, USA
11.11
11.11
Chelyabinsk Catering Service OOO, Chelyabinsk, Russia
26.00
26.00
Düsseldorf Fuelling Services (DFS) GbR, Dusseldorf
33.33
33.33
EFM – Gesellschaft für Enteisen und Flugzeugschleppen am Flughafen München mbH, Freising
51.00
51.00
Egyptian Aviation Services Company (S.A.E.), Cairo, Egypt
5.83
5.83
Entebbe Handling Services Limited (ENHAS), Entebbe, Uganda
5.00
5.00
FFS Frankfurt Fuelling Services (GmbH & Co.) OHG, Hamburg
33.33
33.33
Finairport Service S.r.l. i.L., Turin, Italy
100.00
100.00
Fleet Logistics Inc. i.L., Wilmington, USA
18.33
18.33
Flight Training Alliance GmbH, Frankfurt/Main
50.00
50.00
Flughafen München Baugesellschaft mbH, Munich Airport
40.00
40.00
FraAlliance GbR, Frankfurt/Main
50.00
50.00
T188  MISCELLANEOUS EQUITY INVESTMENTS AS OF 31 DEC 2020 (continued)
Equity stake
Voting share
Name, registered office
in % 
in % 
LUFTHANSA GROUP ANNUAL REPORT 2020
238
CONSOLIDATED FINANCIAL STATEMENTS
Miscellaneous equity investments

FraCareServices GmbH, Frankfurt/Main
49.00
49.00
FSH Flughafen Schwechat-Hydranten-Gesellschaft GmbH & Co OG, Vienna Airport, Austria
14.29
14.29
GOAL German Operating Aircraft Leasing GmbH, Munich
40.00
40.00
GOAL German Operating Aircraft Leasing GmbH & Co. KG, Grünwald
40.00
39.99
Guangzhou Baiyun International Airport LSG Sky Chefs Co. Ltd., Guangzhou, China
30.00
28.57
Hamburg Fuelling Services GbR, Hamburg
25.00
25.00
Hamburg Tank Service GbR, Hamburg
33.30
33.30
Hangzhou Xiaoshan Airport LSG Air Catering Co. Ltd., Hangzhou, China
25.00
28.57
Hookers Point Fuel Facilities LLC., Orlando, USA
9.09
9.09
Hydranten-Betriebs OHG, Frankfurt/Main
49.00
20.00
INAIRVATION GmbH, Edlitz-Thomasberg, Austria
50.00
50.00
Kulinary Holding AG, Opfikon, Switzerland
40.00
40.00
LSG Sky Chefs Catering Egypt S.A.E., Cairo, Egypt
15.00
15.00
Luftfahrzeugverwaltungsgesellschaft GOAL mbH i.L., Grünwald
40.00
40.00
Lufthansa HNA Technical Training Co. Ltd., Meilan Airport, Hainan, China
50.00
1.00
Lufthansa Leasing GmbH, Grünwald
49.00
49.00
Lumics GmbH & Co. KG, Hamburg
50.00
50.00
Lumics Verwaltungs GmbH, Hamburg
50.00
50.00
Montreal International Fuel Facilities Corporation, Dorval, Canada
11.20
11.20
N3 Engine Overhaul Services Verwaltungsgesellschaft mbH, Hamburg
50.00
50.00
ORD Fuel Company, LLC, Wilmington, USA
6.67
6.67
Orlando Fuel Facilities LLC, Wilmington, USA
5.88
5.88
PHL Fuel Facilities LLC, Pittsburgh, USA
10.00
10.00
Rydes GmbH i.Gr., Berlin
8.00
8.00
SAN Fuel Company, LLC, Fort Worth, USA
5.56
5.56
Sanya LSG Air Catering Co. Ltd., Sanya, China
45.00
40.00
SCA Schedule Coordination Austria GmbH, Vienna Airport, Austria
25.00
25.00
Shenzhen Airport International Cargo Terminal Company Limited, Shenzhen, China
50.00
50.00
Sichuan Airlines LSG Air Catering Co. Ltd., Chengdu, China
40.00
40.00
Tanklager-Gesellschaft Tegel GbR, Tegel
12.50
12.50
Terminal One Group Association, L.P., New York, USA
24.75
0.00
Terminal One Management Inc., New York, USA
25.00
25.00
THBG BBI GmbH, Schönefeld
46.45
46.45
Turbo Fuel Services Sachsen (TFSS) GbR, Hamburg
20.00
20.00
UBAG Unterflurbetankungsanlage Flughafen Zürich AG, Rümlang, Switzerland
12.00
12.00
Universal Air Travel Plan, Inc., Washington, USA
5.26
5.26
Vancouver Airport Fuel Facilities Corporation, Dorval, Canada
5.71
5.71
Verimi GmbH, Frankfurt/Main
5.91
5.91
Xinjiang HNA LSG Sky Chefs Co. Ltd., Urumqi, China
49.00
40.00
Zentrum für Angewandte Luftfahrtforschung GmbH, Hamburg
20.00
20.00
T188  MISCELLANEOUS EQUITY INVESTMENTS AS OF 31 DEC 2020 (continued)
Equity stake
Voting share
Name, registered office
in % 
in % 
LUFTHANSA GROUP ANNUAL REPORT 2020
239
CONSOLIDATED FINANCIAL STATEMENTS
Miscellaneous equity investments

Frankfurt, 26 February 2021
Executive Board
Carsten Spohr
Chief Executive Officer
Detlef Kayser
Chief Operations Officer
Michael Niggemann
Chief HR & Legal Officer
Christina Foerster
Chief Customer Officer
Remco Steenbergen
Chief Financial Officer
Harry Hohmeister
Chief Commercial Officer
Declaration by the legal representatives
We declare that, to the best of our knowledge and according 
to the applicable accounting standards, the consolidated 
financial statements give a true and fair view of the net assets, 
the financial and earnings positions of the Group, and that 
the Group management report, which has been combined 
with the management report for Deutsche Lufthansa AG, 
includes a fair view of the course of business, including the 
business result, and the situation of the Group, and suitably 
presents the principal opportunities and risks to its future 
development.
LUFTHANSA GROUP ANNUAL REPORT 2020
240
DECLARATION BY THE LEGAL REPRESENTATIVES

The following Auditor’s Report also includes a “Report on the audit of the electronic reproductions of the financial statements 
and the management report prepared for the purpose of disclosure in accordance with Section 317 Paragraph 3b HGB” 
(“ESEF Report”). The subject matter on which the ESEF Report is based (ESEF documents to be audited) is not included.  
The audited ESEF documents can be viewed in or retrieved from the German Federal Gazette (in German language only).
Independent auditor’s report
To Deutsche Lufthansa Aktiengesellschaft
REPORT ON THE AUDIT OF THE  
CONSOLIDATED FINANCIAL STATEMENTS AND 
OF THE GROUP MANAGEMENT REPORT
Opinions
We have audited the consolidated financial statements of 
Deutsche Lufthansa Aktiengesellschaft, Cologne, and its 
subsidiaries (the “Group” or “Lufthansa Group”), which com-
prise the consolidated income statement and consolidated 
statement of comprehensive income for the fiscal year from 
1 January to 31 December 2020, and the consolidated state-
ment of financial position as at 31 December 2020, consoli-
dated statement of changes in shareholders’ equity and con-
solidated cash flow statement for the fiscal year from 1 January 
to 31 December 2020, and notes to the consolidated financial 
statements, including a summary of significant accounting  
policies. In addition, we have audited the Group management 
report of Deutsche Lufthansa Aktiengesellschaft, which is 
combined with the management report of Deutsche Lufthansa 
Aktiengesellschaft, for the fiscal year from 1 January to 
31 December 2020. In accordance with the German legal 
requirements, we have not audited the content of the Group 
corporate governance declaration pursuant to Sec. 315d HGB 
which is published on the website stated in the “Corporate 
Governance” section of the combined management report 
and the Group non-financial declaration pursuant to Sec. 315b 
HGB included in the “Combined non-financial declaration” 
section. In addition, we have not audited the content of the 
other information extending beyond the prior year in the tables 
with multi-year comparisons of the combined management 
report (information pertaining to fiscal years 2015, 2016, 2017 
and 2018). Other information in the combined management 
report relates to any information whose disclosure in the 
management report is not required pursuant to Secs. 315, 
315a or Secs. 315b to 315d HGB or GAS 20.
In our opinion, on the basis of the knowledge obtained in  
the audit, 
—	 the accompanying consolidated financial statements 
comply, in all material respects, with the IFRSs as adopted 
by the EU, and the additional requirements of German 
commercial law pursuant to Sec. 315e (1) HGB and, in 
compliance with these requirements, give a true and fair 
view of the assets, liabilities and financial position of the  
	
Group as at 31 December 2020 and of its financial per­
formance for the fiscal year from 1 January to 31 Decem-
ber 2020, and
—	 the accompanying Group management report as a whole 
provides an appropriate view of the Group’s position.  
In all material respects, this Group management report  
is consistent with the consolidated financial statements, 
complies with German legal requirements and appropri-
ately presents the opportunities and risks of future devel-
opment. Our opinion on the Group management report 
does not cover the content of the aforementioned Group 
corporate governance declaration, the content of the 
aforementioned Group non-financial declaration or the 
aforementioned multi-year comparisons included in the 
Group management report.
Pursuant to Sec. 322 (3) Sentence 1 HGB [“Handelsgesetz-
buch”: German Commercial Code], we declare that our  
audit has not led to any reservations relating to the legal 
compliance of the consolidated financial statements and  
of the Group management report.
Basis for the opinions 
We conducted our audit of the consolidated financial state-
ments and of the Group management report in accordance 
with Sec. 317 HGB and the EU Audit Regulation (No 537/2014, 
referred to subsequently as “EU Audit Regulation”) and in 
compliance with German Generally Accepted Standards for 
Financial Statement Audits promulgated by the Institut der 
Wirtschaftsprüfer [Institute of Public Auditors in Germany] 
(IDW). We performed the audit of the consolidated financial 
statements in supplementary compliance with the Interna-
tional Standards on Auditing (ISAs). Our responsibilities under 
those requirements, principles and standards are further 
described in the “Auditor’s responsibilities for the audit of 
the consolidated financial statements and of the Group  
management report” section of our auditor’s report. We are 
independent of the Group entities in accordance with the 
requirements of European law and German commercial and 
professional law, and we have fulfilled our other German pro-
fessional responsibilities in accordance with these require-
ments. In addition, in accordance with Art. 10 (2) f) of the  
EU Audit Regulation, we declare that we have not provided 
non-audit services prohibited under Art. 5 (1) of the EU Audit 
Regulation. We believe that the audit evidence we have 
obtained is sufficient and appropriate to provide a basis for 
our opinions on the consolidated financial statements and  
on the Group management report.
LUFTHANSA GROUP ANNUAL REPORT 2020
241
INDEPENDENT AUDITOR’S REPORT

Key audit matters in the audit of the consolidated  
financial statements
Key audit matters are those matters that, in our professional 
judgment, were of most significance in our audit of the consol-
idated financial statements for the fiscal year from 1 January 
to 31 December 2020. These matters were addressed in the 
context of our audit of the consolidated financial statements 
as a whole, and in forming our opinion thereon; we do not 
provide a separate opinion on these matters. 
Below, we describe what we consider to be the key audit 
matters:
1.	 Implications of the COVID-19 pandemic for  
the going concern basis
Reasons why the matter was determined to be  
a key audit matter
The COVID-19 pandemic has had a particularly strong impact 
on the airline industry. Since the outbreak of the pandemic in 
spring 2020, national and international travel restrictions have 
led to a significant reduction in air travel. The restrictions 
have had a major impact on the operations and liquidity of 
the Lufthansa Group.
To safeguard the solvency of the Lufthansa Group, stabiliza-
tion measures and loans of up to EUR 9b were agreed with 
the Economic Stabilization Fund in the Federal Republic of 
Germany as well as with the governments of Switzerland, 
Austria and Belgium. Lufthansa has also made use of other 
support measures provided by other governments around 
the world, such as the US.
The Lufthansa Group has significantly reduced available 
flight capacity and also initiated measures to reduce costs 
and capital expenditure. The Executive Board has prepared 
the Group operational planning for the fiscal years 2021 to 
2024, together with a liquidity forecast for the same period, 
and thereby mapped out the possible effects from national 
and international travel restrictions in connection with the 
COVID-19 pandemic on the available flight capacity, taking 
into account the countermeasures. The result of the planning 
depends to a large extent on the assumptions that the exec-
utive directors have made regarding future business devel-
opments and the cash inflows and outflows derived from 
them. The planning for 2021 and subsequent years is based 
on the assumption that a vaccine will be widely available or 
an established testing strategy will be in place. Significant 
cost savings were also assumed based on initiated restruc-
turing measures.
The review of the implications of the COVID-19 pandemic  
for the going concern basis of accounting was a key audit 
matter due to the wide range of political, medical and global 
economic effects and due to the measures taken by the 
executive directors in this connection to mitigate risk and 
their consideration in the business planning.
Auditor’s response
We discussed what influence the COVID-19 pandemic, with 
its national and international travel restrictions, could have on 
Deutsche Lufthansa Aktiengesellschaft and its subsidiaries 
with the executive directors, both direct and indirect and short 
and medium term. We discussed what different assumptions 
and scenarios were used by the executive directors in their 
assessment.
We analyzed, with the support of internal specialists from 
Strategy and Transactions, the group operational planning 
prepared by the executive directors, including the liquidity 
forecast, and discussed this with the responsible management 
level. We assessed the plausibility (transparency, consist-
ency, lack of contradiction) of management’s disclosures on 
the key planning assumptions, strategic objectives, expected 
developments and operational measures and their inclusion/
reflection in the cash flows. 
We also checked the clerical accuracy, completeness and 
consistency of the planning model, the conceptual design 
and in particular the derivation of the cash flows and their 
individual components. In this connection, we also reviewed 
the implementation of the measures adopted under the 
restructuring programs to reduce the outflow of liquidity on 
the basis of resolutions, internal and external publications 
and observed facts for the implementation of capacity adjust-
ments and their impact on the fleet as well as on personnel. 
We also checked the capital expenditures reflected in the 
financial planning on the basis of purchase commitments 
and framework agreements.
In order to assess the cash inflows included in the liquidity 
planning we, among other things, reviewed the agreements 
on state stabilization measures and other financing schemes, 
checked incoming payments and assessed the terms and 
conditions. The defined overarching objectives of the financ-
ing strategy and the suitability of the measures underlying 
them were also assessed. In addition, we examined the key 
planning assumptions taking into account historical develop-
ments and our understanding of the business and performed 
plausibility tests on the basis of various external information. 
Our assessment was based on analyst estimates, both for 
the Lufthansa Group as well as in relation to comparable 
companies, along with other external forecasts on the  
development of the airline industry (market studies) and 
macroeconomic forecasts.
LUFTHANSA GROUP ANNUAL REPORT 2020
242
INDEPENDENT AUDITOR’S REPORT

In addition, the updated assessments of the executive  
directors concerning the availability of a COVID-19 vaccine,  
a testing strategy, the current travel restrictions as well as 
the current booking behavior and the consideration of these 
factors in the group planning were discussed with the  
executive directors and management of the Company and 
examined on the basis of the Group’s internal assessments.
We also discussed other potential measures to secure  
liquidity which are not reflected in the liquidity planning due 
to a lack of necessity with the management and assessed 
their risk coverage potential.
In addition, we checked whether the consolidated financial 
statements and Group management report contain disclo-
sures on the implications of the COVID-19 pandemic for the 
going concern basis and in particular the measures taken  
by the executive directors to mitigate risk.
Our audit procedures did not lead to any reservations relating 
to the going concern basis/the application of the going  
concern basis of accounting.
Reference to related disclosures
With regard to the assessment of the executive directors  
on the Company’s ability to continue as a going concern and 
the related recognition and measurement policies applied, 
we refer to the disclosure in the notes to the consolidated 
financial statements in section “2 Going concern,” and with 
regard to the related information on judgment by the Execu-
tive Board and sources of estimation uncertainty, we refer  
to the disclosure in the notes to the consolidated financial 
statements “3 New international accounting standards in 
accordance with IFRS and interpretations and summary of 
the significant accounting policies and valuation methods.”
Please also refer to the “Opportunities and risk report” as 
well as the “Forecast” in the Group management report and 
there, in particular, to the section “Overall statement by  
the Executive Board on the expected development of the 
Lufthansa Group.”
2.	 Recoverability of own and leased aircraft
Reasons why the matter was determined to be  
a key audit matter
The aircraft reported in the consolidated financial state-
ments of Deutsche Lufthansa Aktiengesellschaft represent  
a significant portion of the assets of Deutsche Lufthansa 
Aktiengesellschaft and its subsidiaries. The aircraft reported 
includes aircraft which is legally owned and used by Deutsche 
Lufthansa Aktiengesellschaft and its subsidiaries as well as 
leased aircraft.
In response to the impact of the COVID-19 pandemic, the 
Executive Board resolved to permanently reduce the fleet. 
The executive directors were thus tasked with determining 
the fair value, taking into consideration the future use of the 
aircraft (for example via sale or abandonment) and thus also 
assessing the need to recognize an impairment charge.
From our perspective, the recoverability of aircraft was a key 
audit matter in our audit as the measurement and resulting 
impairment of these items significant in amount are based  
to a large extent on the estimates and assumptions of the 
executive directors, particularly in light of the impact of the 
COVID-19 pandemic.
Auditor’s response
With regard to the assessment of the recoverability of the 
aircraft in the economic ownership of the Lufthansa Group 
and earmarked for continued use in flight operations, we 
examined the fleet planning in connection with the Group 
operational planning for internal consistency and analyzed 
whether these are in line with industry forecasts. In this con-
nection, we checked the impairment test prepared by the 
executive directors and the assumptions underlying this test 
in relation to the various cash-generating units to which these 
aircraft are allocated for internal and external consistency (e.g., 
comparison with internal planning documents and industry 
forecasts) and checked whether impairment is required.
With regard to the assessment of the decisions made by  
the executive directors on the continued use of aircraft in  
the economic ownership of the Lufthansa Group and which is 
not due to be used further in flight operations, we assessed 
whether the measures included in the resolutions made by 
the executive directors on the abandonment or deep storage 
were reflected in full in the financial statements. In addition, 
in relation to the aircraft earmarked for abandonment or deep 
storage, we assessed the measurement assumptions with 
regard to for the underlying sale or scrap value used by the 
executive directors for the purpose of determining the 
impairment of the aircraft, taking into account the available 
information. In this connection, we assessed whether the 
assumptions made by the executive directors were transpar-
ently derived from observable market data on prices, taking 
into account a market price overview published regularly by 
Aircraft Value Analysis Company Ltd., comparable purchase 
agreements from the past or from purchase agreements 
already concluded.
Our audit procedures did not lead to any reservations relating 
to the recoverability of own and leased aircraft.
LUFTHANSA GROUP ANNUAL REPORT 2020
243
INDEPENDENT AUDITOR’S REPORT

Reference to related disclosures
With regard to the accounting for aircraft, we refer to the 
disclosure in the notes to the consolidated financial state-
ments in sections “19 Aircraft and reserve engines including 
right-of-use assets,” “22 Leases” and “10 Depreciation, 
amortisation and impairment.”
3.	 Accounting for state aid/stabilization measures
Reasons why the matter was determined to be  
a key audit matter
To safeguard the ability of the Lufthansa Group to continue as 
a going concern, stabilization measures and state guaranteed 
loans of up to EUR 9b were agreed with the Economic Stabi-
lization Fund in the Federal Republic of Germany (WSF) as 
well as with the governments of Switzerland, Austria and 
Belgium. The state aid and stabilization measures include 
various instruments, of both an equity and debt nature. In 
addition to syndicated loans and subordinated loans as well 
as silent participations, the stabilization measures include a 
20% stake of WSF in Deutsche Lufthansa Aktiengesellschaft 
(EUR 306m), a further silent participation classified as equity 
(EUR 4.7b, Silent Participation I) and a loan from COFAG  
(COVID-19-Finanzierungsagentur des (österreichischen) 
Bundes GmbH) (EUR 150m). The loan is recognized as a 
grant in profit or loss after certain requirements are met and is 
offset against Silent Participation I, which is thus reduced  
to EUR 4.5b.
The audit of the accounting for state aid/stabilization measures 
was deemed a key audit matter as there is an elevated risk  
of misstatement due to the number of individual measures 
and the wide range of complex contractual conditions. Due 
to the complexity of accounting regulations and their inter-
pretation, this relates in particular to the classification of Silent 
Participation I in the WSF framework agreement as equity, 
the accounting for contractual components as separate 
transactions and the recognition of the aid in Austria in profit 
or loss in the correct period.
Auditor’s response
In the course of our audit procedures, with the support of  
our internal specialists from the Financial Instruments Expert 
Group, among other things, we analyzed the contracts under-
lying the respective measures; in particular we examined the 
WSF framework agreement to determine if the accounting 
applied by the Executive Board for the individual agreements 
contained therein as separate transactions meets the criteria 
of IAS 32, Financial Instruments. In addition, on the basis of 
the equity criteria defined in IAS 32 and using the documents 
on the Group planning and liquidity forecast along with dis-
cussions with the responsible management, we examined 
whether the arrangements made in relation to the separate 
transactions meet the requirements for qualification as equity.
In addition to the participation of WSF in Deutsche Lufthansa 
Aktiengesellschaft, we reviewed the notarized minutes 
(Sec. 130 AktG [“Aktiengesetz”: German Stock Corporation 
Act]) certifying the resolution of the Extraordinary General 
Meeting of Deutsche Lufthansa Aktiengesellschaft on the 
approval of the stabilization measures, including the capital 
increase and reviewed the entry of this capital increase in the 
commercial register as well as checked the related incoming 
payment.
In addition, we checked whether the loan of EUR 150m from 
COFAG was recognized in fiscal year 2020 in profit or loss  
as a government grant in accordance with IAS 20. The waiver 
of repayment of the loan is subject to the condition that  
Austrian Airlines AG suffered economic damages of at least 
EUR 150m in fiscal year 2020 due to COVID-19. In this con-
nection, we obtained an understanding of the method used 
for calculating the damages determined by the management 
of Austrian Airlines AG for the period from 9 March 2020  
to 14 June 2020 and assessed the recognition of COVID-19 
crisis-induced expenses on the basis of comparative values 
(budget/actual and prior year).
We reconciled all incoming payments from the stabilization 
measures agreed with the WSF and the governments of 
Switzerland, Austria and Belgium with the bank statements. 
We also checked the calculation of the fixed and variable 
interest expenses and their recognition in profit or loss on 
the basis of the underlying contracts.
In addition, we assessed the disclosures required by IAS 20 
in the notes to the consolidated financial statements on  
government grants.
Our audit procedures did not lead to any reservations relating 
to the accounting for state aid/stabilization measures.
Reference to related disclosures
The disclosures on the accounting for state aid/stabilization 
measures are mainly included in the sections “2 Going con-
cern,” “7 Other operating income,” “19 Aircraft and reserve 
engines including right-of-use assets,” “33 Issued capital” 
and “37 Financial liabilities” of the notes to the consolidated 
financial statements.
Furthermore, we refer to the “Economic report” in the  
Group management report and there to the information on 
“Financing” in the “Earnings, assets and financial position” 
section, subsection “Financial position.”
LUFTHANSA GROUP ANNUAL REPORT 2020
244
INDEPENDENT AUDITOR’S REPORT

4.	 Accounting for short-time working allowances  
as well as corresponding social security contributions 
and the reimbursement thereof
Reasons why the matter was determined to be  
a key audit matter
The COVID-19 pandemic had a significant impact on the 
global operations of the Lufthansa Group in fiscal year in 
2020. The executive directors of various Group companies of 
the Lufthansa Group introduced short-time working arrange-
ments as one of the measures to limit the financial fallout 
from the ongoing crisis. In this connection, the executive 
directors applied to the relevant competent state authorities 
for a reimbursement of the short-time pay within the legally 
prescribed scope.
Approval of the reimbursements of short-time pay requested 
monthly is, depending on the specific state, handled partly 
by way of formal benefit notices or official decrees before 
payment is made, partly also by way of direct payment of  
the reimbursements by the competent state authority if its 
review of the payroll reports or reimbursement lists does  
not lead to any reservations. However, as this generally only 
relates to approvals subject to a subsequent review to assess 
compliance of the submitted reimbursement claims with  
the respective legal requirements by the same or other state 
authority after the end of the period of short-time work, the 
reimbursement amounts received represent an uncertainty 
until this time for the relevant group companies of the 
Lufthansa Group.
In order to reflect this special matter in payroll accounting, the 
underlying IT systems were adjusted and special measures 
for monitoring were implemented in the accounting-related 
internal control system. These modifications of the underlying 
personnel accounting systems as well as the accounting-re-
lated internal control system (“ICS”) of the Group companies 
represent an elevated risk of material misstatement of the 
reimbursement claims in the consolidated financial statements, 
as mistakes in payroll accounting as well as weaknesses in 
the monitoring activities of the ICS could lead to incorrectly 
calculated amounts of reimbursement claims, which could 
give rise to negative financial effects for the Group.
With regard to the reimbursable amounts from the state 
authorities, a legally fundamental distinction must be made 
between claims asserted by the Group companies of the 
Lufthansa Group and claims asserted by individual employees 
against the former. The claims asserted by the companies 
against the competent state authorities must be, as they are 
subject to the fulfillment of certain legally defined conditions, 
classified as income-related government grants and deducted 
from the related expense. Reimbursements from the compe-
tent state authorities to the group companies of the Lufthansa 
Group resulting from claims of individual employees against 
the former, such as in the case in Germany for short-time pay, 
merely constitute a transitory item for the employer which  
 
is recognized outside of profit or loss in the consolidated  
financial statements of the Lufthansa Group as receivables 
against the corresponding state authorities. The different 
accounting for the two types of reimbursement claims under-
scores in particular the risk of an incorrect valuation due to 
differing assessment bases. As of the reporting date, receiv-
ables from the competent state authorities are estimated 
based on the amounts already paid or transferred but not yet 
reimbursed by the competent state authorities, taking into 
account historical data of the past months.
In light of these differences in accounting and due to the 
quantitative significance of reimbursements of short-time 
working allowances and social security contributions for the 
consolidated financial statements of the Lufthansa Group  
as well as the complexity of the legal requirements and the 
process-related uncertainty, the accounting for short-time 
working allowances as well as the corresponding social secu-
rity contributions constitute a key audit matter in our audit.
Auditor’s response
In the course of our audit procedures, we assessed, partly with 
the support of our internal specialists from People Advisory 
Services, the accounting for short-time working allowances 
and the corresponding social security contributions as well as 
the reimbursement thereof by the competent state authori-
ties in terms of merit and amount. In the course of this, we 
evaluated on the basis of evidence in samples whether there 
was a legal basis for the introduction of short-time working 
arrangements. This included the advance declarations or 
applications for the first grant, some of which are regularly 
repeated, to the competent state authorities by the executive 
directors of the group companies which contain a notifica-
tion of the reduction in working hours or the introduction of 
short-time work in the operation, as well as the documentation 
demonstrating compliance with the legal conditions for the 
introduction of short-time work and, consequently, the receipt 
of short-time working allowances. We also obtained the 
approval notices or official orders confirming compliance with 
the relevant legal conditions for the introduction of short-time 
working and approval for the receipt of short-time working 
allowances and subsequent reimbursements thereof and the 
related social security contributions based on merit.
Our audit procedures included the assessment of the 
accounting for the reimbursements of the short-time work-
ing allowances by the competent state authorities as well as 
the corresponding – in some cases payable solely by the 
employer – social security contributions by the competent 
state authorities in accordance with IAS 20 as income-related 
government grants. Taking account of the approved individual 
short-time working arrangements and the arrangements  
differentiated by operating area, by carrying out sample- 
based checks we obtained an understanding of the process 
for calculating and accounting for the reimbursement amounts 
particularly in order to assess the results of the modifications 
to the underlying payroll accounting system related to the  
LUFTHANSA GROUP ANNUAL REPORT 2020
245
INDEPENDENT AUDITOR’S REPORT

short-time (work scheme) working arrangements. In this con-
nection, we compared the absence times due to short-time 
working arrangements displayed in the time logging systems 
against the individual payslips of the sample-based check 
and against the reimbursement lists or payroll reports com-
pleted by the responsible employees of the companies and 
which are the basis of the monthly reimbursement claims. 
Furthermore, by performing sample-based checks we verified 
the clerical accuracy and methods used for calculating and 
determining the short-time working allowances stated in these 
reimbursement claims as well as the corresponding social 
security contributions. Furthermore, we gained an under-
standing during our process walkthrough of the measures of 
the accounting-related internal control system and assessed 
these in the course of a test of design.
We also tested the plausibility of the amount of receivables 
recognized as of the reporting date taking into account  
historical data from retroactively calculated discrepancies 
between the monthly reimbursement claims and benefit 
notices or official decrees issued by the competent state 
authorities as well as the actual reimbursement amounts.
Furthermore, we performed analytical audit procedures 
regarding the amount of short-time working allowances as 
well as the corresponding social security amounts. In doing 
so, we tested the plausibility of correlations, fluctuations and 
trends on the basis of our expectations based on surveys 
and the claim applications and notices presented above. This 
included, among other things, the analysis of the development 
of the reimbursed short-time working allowances and the 
corresponding social security contributions as well as the 
reimbursement amounts as a percentage of total staff costs 
and the total social security expenses taking into account 
the number of employees.
Our audit procedures did not lead to any reservations with 
regard to the accounting for short-time working allowances 
and the corresponding social security contributions or their 
reimbursement.
Reference to related disclosures
We refer to the disclosure in the notes to the consolidated 
financial statements under “3 New international accounting 
standards in accordance with IFRS and interpretations and 
summary of the significant accounting policies and valuation 
methods” and “9 Staff costs” for information on the account-
ing for short-time working allowances and government grants 
in the form of a reimbursement of social security contribu-
tions by the competent state authorities in the context of the 
reimbursement of short-time working allowances. 
5.	 Accounting for derivative financial instruments  
in hedging relationships 
Reasons why the matter was determined to be  
a key audit matter
Deutsche Lufthansa Aktiengesellschaft uses a variety of 
derivative financial instruments to hedge against currency, 
fuel price and interest rate risks arising from its ordinary 
business activities. The Lufthansa Group experienced signifi-
cant restrictions in terms of flight volumes in fiscal year 2020 
as a result of the COVID-19 pandemic, resulting in lower 
cash flows in foreign currency as well as a significant decline 
in purchases of kerosene. As a result, forecast transactions 
and thus hedged items in hedging relationships were not 
carried out. In our view, these matters constituted one of the 
key audit matters due to the significant volume in terms of 
amount, the high complexity and number of hedging trans-
actions as well as the extensive accounting requirements.
Auditor’s response
In the course of our audit, we analyzed, with the support of 
our internal specialists from the Financial Instruments Experts 
Group, among other things, the contractual and economic 
basis of the hedging relationship between the forecast trans-
actions as hedged items and the derivative financial instru-
ments as hedging instruments as well as the accounting, 
including earnings effects. Our focus was on testing the  
controls that address the existence and completeness of  
the derivative financial instruments and of the designated 
hedges in the IT systems used for the accounting for the 
hedging relationships. We also obtained bank confirmations 
as audit evidence.
We obtained an understanding of the valuation of the hedged 
items and hedging transactions (including option premiums) 
by the executive directors in particular in the areas of fuel 
and foreign currency by reperforming valuations in our own 
valuation systems. For interest rate derivatives, we performed 
audit procedures in relation to the software used for valuation 
purposes. We reviewed the access restrictions, the approval 
process for software changes as well as the archiving of 
software changes and subsequently reperformed the valuation 
of significant interest rate derivatives on a sample basis.
We assessed, together with our specialists, compliance with 
the requirements for the accounting for the hedging relation-
ships using the designation documents prepared by the 
executive directors and the internal risk management guide-
lines. On the basis of business plans and inquiries of manage-
ment, we checked whether only such forecast transactions 
constitute a hedged item of a hedging relationship that
LUFTHANSA GROUP ANNUAL REPORT 2020
246
INDEPENDENT AUDITOR’S REPORT

are considered highly probable on the basis of the current 
business plan. We traced the accounting for hedging relation-
ships and their (potentially premature) terminations in terms 
of value and reconciled them with the respective items in  
the statement of financial position and income statement. 
With regard to fuel price hedges, we also checked the clerical 
accuracy of the calculation of the recognition of the option 
premiums that are a component of the designated derivatives.
Our audit procedures did not lead to any reservations  
regarding the accounting for derivative financial instruments 
in hedging relationships.
Reference to related disclosures
The disclosures on the recognition and measurement policies 
applied for derivative financial instruments in hedging rela-
tionships are included in the sections “3 New international 
accounting standards in accordance with IFRS and inter-
pretations and summary of the significant accounting poli-
cies and valuation methods,” “14 Other financial items” and 
“45 Additional disclosures on financial instruments” in the 
notes to the consolidated financial statements.
Other information 
The Supervisory Board is responsible for the report of the 
Supervisory Board in the “Report of the Supervisory Board” 
section. The executive directors and the Supervisory Board 
are responsible for the declaration pursuant to Sec. 161 AktG 
on the German Corporate Governance Code, which is part  
of the Group corporate governance declaration. In all other 
respects, the executive directors are responsible for the other 
information. The other information comprises the aforemen-
tioned Group corporate governance declaration, the afore-
mentioned Group non-financial declaration and the afore-
mentioned other information included in the Group manage-
ment report. The other information also comprises parts to be 
included in the annual report, of which we received a version 
prior to issuing this auditor’s report, in particular: 
—	 The letter from the Executive Board to the shareholders  
in the “Letter from the Executive Board” section of the 
annual report
—	 The explanations on the Deutsche Lufthansa Aktien­
gesellschaft share in the “Lufthansa share” section of the 
annual report
—	 The declaration by the executive directors in “General 
remarks,” section “1 Company information” of the notes to 
the consolidated financial statements
—	 The remuneration report in the “Remuneration report” 
section of the annual report
—	 The Ten-year overview in the “Ten-year overview” section 
of the annual report.
but not the consolidated financial statements, not the  
management report disclosures whose content is audited 
and not our auditor’s report thereon.
Our opinions on the consolidated financial statements and 
on the Group management report do not cover the other 
information, and consequently we do not express an opinion 
or any other form of assurance conclusion thereon.
In connection with our audit, our responsibility is to read  
the other information and, in so doing, to consider whether 
the other information
—	 is materially inconsistent with the consolidated financial 
statements, with the Group management report or our 
knowledge obtained in the audit, or
—	 otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that 
there is a material misstatement of this other information,  
we are required to report that fact. We have nothing to report 
in this regard.
Responsibilities of the executive directors and  
the Supervisory Board for the consolidated financial 
statements and the Group management report
The executive directors are responsible for the preparation  
of the consolidated financial statements that comply, in all 
material respects, with IFRSs as adopted by the EU and the 
additional requirements of German commercial law pursuant 
to Sec. 315e (1) HGB, and that the consolidated financial 
statements, in compliance with these requirements, give a 
true and fair view of the assets, liabilities, financial position 
and financial performance of the Group. In addition, the 
executive directors are responsible for such internal control 
as they have determined necessary to enable the preparation 
of consolidated financial statements that are free from 
material misstatement, whether due to fraud or error. 
In preparing the consolidated financial statements, the  
executive directors are responsible for assessing the Group’s 
ability to continue as a going concern. They also have the 
responsibility for disclosing, as applicable, matters related to 
going concern. In addition, they are responsible for financial 
reporting based on the going concern basis of accounting 
unless there is an intention to liquidate the Group or to cease 
operations, or there is no realistic alternative but to do so. 
LUFTHANSA GROUP ANNUAL REPORT 2020
247
INDEPENDENT AUDITOR’S REPORT

Furthermore, the executive directors are responsible for  
the preparation of the Group management report that, as a 
whole, provides an appropriate view of the Group’s position 
and is, in all material respects, consistent with the consoli-
dated financial statements, complies with German legal 
requirements, and appropriately presents the opportunities 
and risks of future development. In addition, the executive 
directors are responsible for such arrangements and measures 
(systems) as they have considered necessary to enable the 
preparation of a Group management report that is in accord-
ance with the applicable German legal requirements, and  
to be able to provide sufficient appropriate evidence for the 
assertions in the Group management report.
The Supervisory Board is responsible for overseeing the 
Group’s financial reporting process for the preparation  
of the consolidated financial statements and of the Group 
management report.
Auditor’s responsibilities for the audit of the consolidated 
financial statements and of the Group management report
Our objectives are to obtain reasonable assurance about 
whether the consolidated financial statements as a whole are 
free from material misstatement, whether due to fraud or 
error, and whether the Group management report as a whole 
provides an appropriate view of the Group’s position and,  
in all material respects, is consistent with the consolidated 
financial statements and the knowledge obtained in the 
audit, complies with the German legal requirements and 
appropriately presents the opportunities and risks of future 
development, as well as to issue an auditor’s report that 
includes our opinions on the consolidated financial state-
ments and on the Group management report. 
Reasonable assurance is a high level of assurance, but is  
not a guarantee that an audit conducted in accordance with 
Sec. 317 HGB and the EU Audit Regulation and in compliance 
with German Generally Accepted Standards for Financial 
Statement Audits promulgated by the IDW and supplemen-
tary compliance with the ISAs will always detect a material 
misstatement. Misstatements can arise from fraud or error 
and are considered material if, individually or in the aggregate, 
they could reasonably be expected to influence the economic 
decisions of users taken on the basis of these consolidated 
financial statements and this Group management report. 
We exercise professional judgment and maintain professional 
skepticism throughout the audit. We also:
—	 Identify and assess the risks of material misstatement of 
the consolidated financial statements and of the Group 
management report, whether due to fraud or error, design 
and perform audit procedures responsive to those risks,  
	
and obtain audit evidence that is sufficient and appro­
priate to provide a basis for our opinions. The risk of not 
detecting a material misstatement resulting from fraud  
is higher than for one resulting from error, as fraud may 
involve collusion, forgery, intentional omissions, misrep-
resentations, or the override of internal control. 
—	 Obtain an understanding of internal control relevant to 
the audit of the consolidated financial statements and of 
arrangements and measures (systems) relevant to the 
audit of the Group management report in order to design 
audit procedures that are appropriate in the circumstances, 
but not for the purpose of expressing an opinion on the 
effectiveness of these systems.
—	 Evaluate the appropriateness of accounting policies used 
by the executive directors and the reasonableness of  
estimates made by the executive directors and related 
disclosures.
—	 Conclude on the appropriateness of the executive direc-
tors’ use of the going concern basis of accounting and, 
based on the audit evidence obtained, whether a material 
uncertainty exists related to events or conditions that may 
cast significant doubt on the Group’s ability to continue as 
a going concern. If we conclude that a material uncertainty 
exists, we are required to draw attention in the auditor’s 
report to the related disclosures in the consolidated finan-
cial statements and in the Group management report or, if 
such disclosures are inadequate, to modify our respective 
opinions. Our conclusions are based on the audit evidence 
obtained up to the date of our auditor’s report. However, 
future events or conditions may cause the Group to cease 
to be able to continue as a going concern.
—	 Evaluate the overall presentation, structure and content 
of the consolidated financial statements, including the 
disclosures, and whether the consolidated financial state-
ments present the underlying transactions and events  
in a manner that the consolidated financial statements 
give a true and fair view of the assets, liabilities, financial 
position and financial performance of the Group in com-
pliance with IFRSs as adopted by the EU and the addi-
tional requirements of German commercial law pursuant 
to Sec. 315e (1) HGB.
—	 Obtain sufficient appropriate audit evidence regarding the 
financial information of the entities or business activities 
within the Group to express opinions on the consolidated 
financial statements and on the Group management 
report. We are responsible for the direction, supervision 
and performance of the group audit. We remain solely 
responsible for our audit opinions.
LUFTHANSA GROUP ANNUAL REPORT 2020
248
INDEPENDENT AUDITOR’S REPORT

—	 Evaluate the consistency of the Group management 
report with the consolidated financial statements, its  
conformity with [German] law, and the view of the Group’s 
position it provides.
—	 Perform audit procedures on the prospective information 
presented by the executive directors in the Group man-
agement report. On the basis of sufficient appropriate 
audit evidence we evaluate, in particular, the significant 
assumptions used by the executive directors as a basis 
for the prospective information, and evaluate the proper 
derivation of the prospective information from these 
assumptions. We do not express a separate opinion on 
the prospective information and on the assumptions used 
as a basis. There is a substantial unavoidable risk that 
future events will differ materially from the prospective 
information.
We communicate with those charged with governance 
regarding, among other matters, the planned scope and  
timing of the audit and significant audit findings, including 
any significant deficiencies in internal control that we identify 
during our audit.
We also provide those charged with governance with a state-
ment that we have complied with the relevant independence 
requirements, and communicate with them all relationships 
and other matters that may reasonably be thought to bear  
on our independence and where applicable, the related  
safeguards.
From the matters communicated with those charged with 
governance, we determine those matters that were of  
most significance in the audit of the consolidated financial 
statements of the current period and are therefore the key 
audit matters. We describe these matters in our auditor’s 
report unless law or regulation precludes public disclosure 
about the matter.
OTHER LEGAL AND REGULATORY REQUIREMENTS
Report on the assurance in accordance with Sec. 317 (3b) HGB 
on the electronic reproduction of the consolidated financial 
statements and the Group management report prepared for 
publication purposes
Opinion
We have performed assurance work in accordance with 
Sec. 317 (3b) HGB to obtain reasonable assurance about 
whether the reproduction of the consolidated financial state-
ments and the Group management report (hereinafter the 
“ESEF documents”) contained in the attached electronic file 
„Deutsche_Lufthansa_AG_KA_LB_ESEF-2020-12-31.zip“ and 
prepared for publication purposes complies in all material  
respects with the requirements of Sec. 328 (1) HGB for the 
electronic reporting format (“ESEF format”). In accordance 
with German legal requirements, this assurance only extends 
to the conversion of the information contained in the consol- 
idated financial statements and the Group management report 
into the ESEF format and therefore relates neither to the 
information contained in this reproduction nor to any other 
information contained in the abovementioned electronic file.
In our opinion, the reproduction of the consolidated financial 
statements and the Group management report contained  
in the abovementioned attached electronic file and prepared 
for publication purposes complies in all material respects 
with the requirements of Sec. 328 (1) HGB for the electronic 
reporting format. We do not express any opinion on the 
information contained in this reproduction nor on any other 
information contained in the abovementioned file beyond 
this reasonable assurance opinion and our audit opinion on 
the accompanying consolidated financial statements and the 
accompanying Group management report for the fiscal year 
from 1 January to 31 December 2020 contained in the “Report 
on the audit of the consolidated financial statements and of 
the Group management report” above.
Basis for the opinion 
We conducted our assurance work on the reproduction of the 
consolidated financial statements and the Group manage-
ment report contained in the abovementioned attached 
electronic file in accordance with Sec. 317 (3b) HGB and 
Exposure Draft of IDW Assurance Standard: Assurance in 
Accordance with Sec. 317 (3b) HGB on the Electronic Repro-
duction of Financial Statements and Management Reports 
Prepared for Publication Purposes (ED IDW AsS 410) and  
the International Standard on Assurance Engagements 3000 
(Revised). Our responsibilities under that standard are further 
described in the “Group auditor’s responsibilities for the 
assurance work on the ESEF documents” section. Our audit 
firm applied the requirements for quality control systems  
set forth in IDW Standard on Quality Control: “Requirements 
for Quality Control in Audit Firms” (IDW QS 1).
Responsibilities of the executive directors and the 
Supervisory Board for the ESEF documents
The executive directors of the Company are responsible for the 
preparation of the ESEF documents including the electronic 
reproduction of the consolidated financial statements and 
the Group management report in accordance with Sec. 328 (1) 
Sentence 4 No. 1 HGB and for the tagging of the consoli-
dated financial statements in accordance with Sec. 328 (1) 
Sentence 4 No. 2 HGB.
In addition, the executive directors of the Company are 
responsible for such internal control as they have considered 
necessary to enable the preparation of ESEF documents that 
are free from material non-compliance with the requirements 
of Sec. 328 Abs. 1 HGB for the electronic reporting format, 
whether due to fraud or error.
The executive directors of the Company are also responsible 
for the submission of the ESEF documents together with  
the auditor’s report and the attached audited consolidated 
financial statements and the audited Group management 
report as well as other documents to be published to the 
operator of the Bundesanzeiger [German Federal Gazette]. 
LUFTHANSA GROUP ANNUAL REPORT 2020
249
INDEPENDENT AUDITOR’S REPORT

The Supervisory Board is responsible for overseeing the 
preparation of the ESEF documents as part of the financial 
reporting process.
Group auditor’s responsibilities for the assurance work  
on the ESEF documents 
Our objective is to obtain reasonable assurance about whether 
the ESEF documents are free from material non-compliance 
with the requirements of Sec. 328 (1) HGB, whether due to 
fraud or error. We exercise professional judgment and maintain 
professional skepticism throughout the engagement. We also:
—	 Identify and assess the risks of material non-compliance 
with the requirements of Sec. 328 (1) HGB, whether due 
to fraud or error, design and perform audit procedures 
responsive to those risks, and obtain assurance evidence 
that is sufficient and appropriate to provide a basis for  
our assurance opinion. 
—	 Obtain an understanding of internal control relevant to 
the assurance work on the ESEF documents in order to 
design assurance procedures that are appropriate in the 
circumstances, but not for the purpose of expressing an 
opinion on the effectiveness of these controls.
—	 Evaluate the technical validity of the ESEF documents, i.e., 
whether the electronic file containing the ESEF documents 
meets the requirements of Delegated Regulation (EU) 
2019/815, in the version valid as of the reporting date, on 
the technical specification for this electronic file.
—	 Evaluate whether the ESEF documents enable an XHTML 
reproduction with content equivalent to the audited  
consolidated financial statements and to the audited 
Group management report.
—	 Evaluate whether the tagging of the ESEF documents 
with Inline XBRL technology (iXBRL) enables an appro­
priate and complete machine-readable XBRL copy of the 
XHTML reproduction.
Further information pursuant to Art. 10 of the  
EU Audit Regulation 
We were elected as group auditor by the Annual General 
Meeting on 5 May 2020. We were engaged by the Super­
visory Board on 8 May 2020. We have been the group  
auditor of Deutsche Lufthansa Aktiengesellschaft since  
fiscal year 2020. 
We declare that the opinions expressed in this auditor’s 
report are consistent with the additional report to the audit 
committee pursuant to Art. 11 of the EU Audit Regulation 
(long-form audit report). 
In addition to the financial statement audit, we have provided 
or were engaged to provide to Group entities the following 
services that are not disclosed in the consolidated financial 
statements or in the Group management report:
—	 Review of the interim financial statements of Deutsche 
Lufthansa AG as of 30 June 2020
—	 Submission of a comfort letter for Deutsche Lufthansa AG 
in connection with the Euro Medium Term Note (EMTN) 
program
—	 Engagement to obtain limited assurance on the non-finan-
cial declaration pursuant to Secs. 289b et seq. and 315b 
et seq. HGB
—	 Engagement to obtain limited assurance on the report  
of Deutsche Lufthansa AG on compliance with the condi-
tions and requirements of the parent company and the 
affected Group companies pursuant to Art. 8 to 17 of the 
framework agreement for the granting of stabilization 
measures
—	 Audit-related services legally prescribed by Sec. 162 (3) 
AktG in relation to the remuneration report prepared in 
accordance with the provisions of the AktG
—	 Voluntary audits of financial statements as of 31 Decem-
ber 2020
—	 Performance of agreed-upon procedures for Lufthansa 
Cargo AG, Frankfurt am Main, in relation to the company’s 
registered office
—	 Project-related audit of a migration of IT-based account-
ing-related systems pursuant to IDW AuS 850 for 
Lufthansa AirPlus Servicekarten GmbH, Neu-Isenburg
—	 Permissible consulting in connection with a report on the 
expenditure of funds for Lufthansa Technik AG, Hamburg
—	 Audit of Albatros Service Center GmbH, Cologne, in 
accordance with Sec. 24 FinVermV [“Finanzanlagen­
vermittlungsverordnung”: German Ordinance on Financial 
Investment Mediation]
—	 Agreed-upon procedures relating to a compliance issue  
of a foreign subsidiary of Deutsche Lufthansa Aktien­
gesellschaft
GERMAN PUBLIC AUDITOR RESPONSIBLE  
FOR THE ENGAGEMENT
The German Public Auditor responsible for the engagement 
is Siegfried Keller.
Eschborn/Frankfurt am Main, 2 March 2021
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
 
Prof. Dr. Sven Hayn	
Siegfried Keller
Wirtschaftsprüfer	
Wirtschaftsprüfer
[German Public Auditor]	
[German Public Auditor]
LUFTHANSA GROUP ANNUAL REPORT 2020
250
INDEPENDENT AUDITOR’S REPORT

REMUNERATION 
REPORT
The remuneration report provides detailed, individualised 
information about the remuneration awarded and owed  
to active and former members of the Executive Board and 
Supervisory Board of Deutsche Lufthansa AG in the 2020 
reporting year, as well as the agreed benefits for the financial 
year. The report satisfies the requirements of Section 162 AktG 
and the relevant financial reporting standards (HGB, IFRS).  
A summary of the remuneration system for the Executive 
Board in financial year 2020 can be found in ↗ T202, p. 261ff. 
Further detailed information about the remuneration systems 
for the members of the Executive Board and Supervisory 
Board of Deutsche Lufthansa AG is provided on the Com­
pany’s website. 
 www.lufthansagroup.com.
Remuneration of  
Executive Board members
The system for remunerating Executive Board members takes 
account of the Company’s size, complexity and economic 
situation, as well as its prospects. It is also aligned with the 
Company strategy and so creates an incentive for successful 
and sustainable business practices. The responsibilities and 
performance of the Executive Board as a whole and of the 
individual members are considered simultaneously. For this 
reason, the remuneration system is based on transparent, 
performance-related parameters relevant to Company perfor-
mance and sustainability. The proportion of long-term variable 
remuneration is significantly higher than that of short-term 
variable remuneration in order to put the emphasis on the 
Company’s long-term performance.
The Supervisory Board as a whole is responsible for the 
structure of the remuneration system for Executive Board 
members and for defining the individual benefits. The Steer-
ing Committee assists the Supervisory Board, monitors the 
appropriateness of the remuneration system and prepares 
the Supervisory Board’s resolutions. In the event of material 
changes to the remuneration system, but at least every four 
years, the remuneration system is presented at the Annual 
General Meeting for approval.
Important events in remuneration year 2020
The Supervisory Board adopted changes to the remuneration 
system for the Executive Board in place since 2019, which 
take effect from 2020. Therefore, they particularly reflected 
the statutory changes resulting from the Act on Transposition 
of the Second Shareholder Rights Directive (ARUG II), as well 
as the revised version of the German Corporate Governance 
Code. In addition, by making these changes the Supervisory 
Board has responded to demands from investors and proxy 
advisers following the Annual General Meeting on 7 May 2019. 
The main adjustments are summarised below:
T189  OVERVIEW OF CHANGES TO THE SYSTEM OF  
EXECUTIVE BOARD REMUNERATION
Aspect
Change
One-year variable  
remuneration  
(annual bonus)
—	 New financial performance targets 
Adjusted ROCE (42.5%) 
Adjusted EBIT margin (42.5%)
Long-term variable  
remuneration (LTI)
—	 Transition to a performance share plan,  
with contingent award of virtual shares
Rules for holding shares 
 
 
 
 
—	 A four-year vesting period is generally agreed, 
independent of the variable remuneration
—	 Holding period extended up to four years  
after the end of the service period, whereby  
a maximum of 25% of the shareholding  
may be sold each year
Malus/Clawback 
—	 Introduction of a compliance and  
performance clawback rule
Maximum remuneration 
(Total cap)
—	 Flight benefits granted to Board members 
included in the cap
The modified remuneration system was presented to the 
Annual General Meeting on 5 May 2020 for approval in 
accordance with Section 120a (1) AktG and approved with a 
majority of 88.22%. The remuneration system applied to all 
active and former Executive Board members in 2020.
LUFTHANSA GROUP ANNUAL REPORT 2020
251
REMUNERATION REPORT

GREATER TRANSPARENCY IN REMUNERATION REPORTING
Feedback on the transparency of Executive Board remunera-
tion from the Annual General Meeting 2019 was also acted 
on, leading to detailed, understandable reporting on targets 
and performance for financial year 2019.
In addition, reporting for 2020 now covers Executive Board 
remuneration in accordance with the new Section 162 AktG, 
whereby the sample Table 1 in the GCGC as amended on  
7 February 2017 is also still applied.
EFFECTS OF THE CORONAVIRUS CRISIS
In economic terms, the financial year 2020 was defined  
by the far-reaching impact of the global spread of corona­
virus on global air traffic and thus on the business of the 
Lufthansa Group. The collapse in demand for air travel due  
to the coronavirus pandemic led to a drastic fall in revenue 
and thus significantly burdened earnings for the Lufthansa 
Group. These effects are also visible in the variable remuner-
ation for Executive Board members. In March 2020, they also 
said that they would voluntarily forego 20% of their basic  
salary for the period from April to September 2020.
Remuneration limited for the duration of  
WSF stabilisation measures
The framework agreement signed on 29 June 2020 between 
Deutsche Lufthansa AG and the Economic Stabilisation 
Fund (WSF) includes significant restrictions on Executive 
Board remuneration. Subject to contractual claims against 
the Company arising before 21 June 2020, no bonuses or 
other variable or similar remuneration components may be 
awarded to Executive Board members for the duration of the 
stabilisation measures. The same applies to special payments 
in the form of share packages, gratuities and other forms of 
compensation in addition to the fixed salary, other discre-
tionary payments by the Company and severance payments 
not required by law. 
At the same time, no Executive Board member may receive a 
basic salary (inclusive of any payments for work on executive 
or supervisory boards of Group companies) which is higher 
than their basic salary as of 31 December 2019 until at least 
75% of the total of Silent Participations I and II (including 
interest and any additional payment) as well as the equity 
interest have been satisfied, repaid or redeemed, sold or  
otherwise settled by means of a capital contribution or other-
wise. Analogously, the upper limit for new Executive Board 
members is set by the lowest fixed salary of an Executive 
Board member with an equivalent position as of 31 Decem-
ber 2019.
Deutsche Lufthansa AG has signed supplements to the 
existing service contracts with all Executive Board members 
to implement the remuneration caps agreed with the WSF. 
CHANGES IN THE COMPOSITION OF THE EXECUTIVE BOARD
The Executive Board was reduced from seven to six mem-
bers when Ulrik Svensson stepped down in April 2020. 
After Thorsten Dirks stepped down in June 2020, the Execu-
tive Board intermittently consisted of five members. A new 
Chief Financial Officer, Remco Steenbergen, was appointed 
with effect from 1 January 2021 (↗ Supervisory Board report, 
p. 7ff.). Since January 2021, the Executive Board once again 
consists of six members. Mr Steenbergen also agreed with the 
remuneration restrictions during the stabilisation measures.
Overview of Executive Board remuneration in 2020
The following table provides an overview of the components 
of the remuneration system for Executive Board members  
for 2020, the structure of the individual remuneration com-
ponents and the targets on which these are based:
LUFTHANSA GROUP ANNUAL REPORT 2020
252
REMUNERATION REPORT

T190  EXECUTIVE BOARD REMUNERATION SYSTEM 2020
Component
Objective
Structure
Performance-unrelated remuneration
Basic salary
Should reflect the role and responsi-
bilities in the Executive Board. Should 
ensure a reasonable basic income and 
prevent unreasonable risk-taking
—	 Annual basic salary 
—	 Paid in twelve monthly rates 
	
—	 Chairman of the Executive Board and CEO: EUR 1,634,000 
	
—	 Ordinary Executive Board members: EUR 860,000 
Ancillary benefits
—	 Company car with driver, industry-standard concessionary flights  
for private travel, insurance premiums
Retirement benefits
Should ensure adequate  
retirement benefits
—	 Annual allocation of a fixed amount 
	
—	 Chairman of the Executive Board and CEO: EUR 855,000 
	
—	 Ordinary Executive Board members: EUR 450,000
Performance-related remuneration
One-year variable remuneration (annual bonus)
Should support profitable growth, 
reflecting the Executive Board’s  
collective responsibility and  
the individual performance of  
Executive Board members
—	 Adjusted EBIT margin versus target (42.5%) 
—	 Adjusted ROCE versus target (42.5%) 
—	 Total and individual business and sustainability targets (15%) 
—	 Individual performance factor (coefficient of 0.8 – 1.2) 
—	 Target amount for 100% target achievement 2020: 
	
—	 Chairman of the Executive Board and CEO: EUR 1,140,000 
	
—	 Ordinary Executive Board members: EUR 600,000 
—	 Cap: 200% of target amount 
	
—	 Chairman of the Executive Board and CEO: EUR 2,280,000 
	
—	 Ordinary Executive Board members: EUR 1,200,000
—	 Payable in cash or shares
Long-term variable remuneration (LTI)
Should promote a sustainable abso-
lute and positive relative development  
of Company value – while aligning the 
interests of Executive Board members 
with those of shareholders
—	 Allocation of virtual Lufthansa shares with a four-year duration
—	 Final number of virtual shares dependent on:
	
—	 Average Adjusted ROCE during the performance period  
versus target (42.5%)
	
—	 Relative TSR of Lufthansa share versus DAX (42.5%) 
	
—	 Strategic and sustainability goals (15%) 
—	 Performance dependent on 60-day average price of Lufthansa share 
at end of period and dividend payments during the programme
—	 Target amount for 100% target achievement 2020: 
	
—	 Chairman of the Executive Board and CEO: EUR 2,090,000 
	
—	 Ordinary Executive Board members: EUR 1,100,000 
—	 Cap: 200% of target amount
	
—	 Chairman of the Executive Board and CEO: EUR 4,180,000
	
—	 Ordinary Executive Board members: EUR 2,200,000 
—	 Payable in cash or shares
End-of-service benefits
Termination by consent 
Should avoid unreasonably  
high severance payments
—	 Severance payment limited to remainder of service contract  
or two times annual remuneration (cap)
Post-contractual non-compete clause
Protects the Company’s interests
—	 One-year non-compete clause after leaving the Executive Board, 
with payment of compensation of 50% of basic salary
—	 Company may waive non-compete clause (with six months’ notice)
Change of control
Should ensure independence in takeo-
ver situations
—	 Severance payment consisting of remuneration for the remainder  
of the service contract, up to a maximum of 150% of cap on  
severance pay
Other compensation rules
Share Ownership Guidelines 
Should strengthen the equity culture 
and align interests of Executive Board 
members and shareholders
—	 Obligation to invest in Lufthansa shares over a period of four years 1) 
	
—	 Chairman of the Executive Board and CEO: 200% of basic salary 
	
—	 Ordinary Executive Board members: 100% of basic salary 
—	 Holding obligation for the duration of work on the Executive Board: 
graduated annual reduction of 25% of shareholding after leaving  
the Executive Board
Compliance and performance clawback
Should ensure sustainable Company 
development
—	 Supervisory Board has the right to withhold annual bonus  
and LTI or recover remuneration already paid
Maximum remuneration in accordance  
with Section 87a Paragraph 1 Sentence 2  
No. 1 AktG 
Should prevent uncontrolled  
high payments 
 
—	 Reduction in variable remuneration if maximum for a financial year  
is exceeded:
	
—	 Chairman of the Executive Board and CEO: EUR 9.5m 
	
—	 Ordinary Executive Board members: EUR 5.0m
1)	 The four-year ramp-up phase is temporarily suspended during the period of the WSF stabilisation measures. For further information, see below ↗ p. 265.
LUFTHANSA GROUP ANNUAL REPORT 2020
253
REMUNERATION REPORT

Variable remuneration in financial year 2020
The performance criteria for short-term and long-term variable 
remuneration are derived from the Company’s strategic goals 
and operational management. They aim to increase profita-
bility and use resources efficiently as well as to optimise the 
employment of capital. For this reason, Adjusted EBIT and 
Adjusted ROCE are the relevant performance indicators for 
the Lufthansa Group and the main performance criteria for 
variable remuneration. Taking the interests of shareholders 
and other stakeholders into account, this is intended to ensure 
the sustainability of the business and reflect the Lufthansa 
Group’s social and ecological responsibilities.
On the basis of the remuneration system, the Supervisory 
Board determined the targets and minimum and maximum 
targets for the financial performance indicators and selected 
focus topics for the non-financial targets for the variable remu-
neration for the financial year 2020. The Supervisory Board 
ensured that the targets are demanding and ambitious.
Despite the uncertainties due to the emerging coronavirus 
crisis, the Supervisory Board defined the financial targets for 
the financial year 2020 on the basis of the Group’s medium- 
term financial planning, i.e. without including any effects  
of the coronavirus pandemic on the performance of the 
Lufthansa Group, which could not be foreseen at the time 
the targets were defined.
The Supervisory Board defined “Customers” and “Employees” 
as focus topics for the business and sustainability targets  
in the short-term variable remuneration, and the parameter 
“Environment” as focus topic for the strategic and sustaina-
bility target for long-term variable remuneration in the 2020 
financial year. The non-financial performance criteria thus 
take the interests of key stakeholders into account and provide 
long-term incentives for the environmental goal of reducing 
carbon emissions. For both the annual bonus and long-term 
variable remuneration, the possible range of the target 
achievement for the financial and non-financial targets is 
between 0% and 200%.
ONE-YEAR VARIABLE REMUNERATION (ANNUAL BONUS)
In the sense of value-based management, the Group’s key 
performance indicators, Adjusted EBIT margin and Adjusted 
ROCE, each account for 42.5% of the annual bonus. At the 
same time, this encourages improvements in profitability  
and the efficient use of capital. In 2020, the target for the 
Adjusted EBIT margin was 5.4%. The target for Adjusted 
ROCE was 5.8%. The end points of the range (lower and upper 
threshold) were each defined by a deviation of +/–  3 percent-
age points from the target.
As a result of the massive negative impact of the global 
coronavirus pandemic on the Lufthansa Group’s business, 
target achievement for the financial targets in the short-term 
variable remuneration for 2020 was 0%.
For the sustainability parameter “Customers”, the Net Promoter 
Score (↗ Combined non-financial declaration, p. 98ff.), i.e. the 
proportion of customers recommending the Company, is 
used. The corresponding results are taken from the Network 
Airlines (Lufthansa German Airlines, Austrian Airlines, SWISS) 
and from Eurowings, with three-quarters weighted for the 
Network Airlines and one-quarter for Eurowings. The perfor-
mance curve is linear. Interim figures are interpolated on  
a straight-line basis.
The “Engagement Index” is used for the parameter  
“Employees” (↗ Combined non-financial declaration, p. 103ff.). 
It measures the extent to which employees identify with  
the Company, as well as their commitment and willingness 
to recommend the Company to others. Each index score  
corresponds to a performance level. The 100% target is 
based on the average external benchmark.
Target achievement
C32 ANNUAL BONUS 2020: SUSTAINABILITY TARGET “CUSTOMER”
Net Promoter
Score (NPS)  1)
Network Airlines
Eurowings
1)  The Net Promoter Score is a registered service mark of Bain & Company, Inc.,  
Fred Reichheld and Satmetrix Systems, Inc.
200 %
100 %
0 %
45
35
60
40
70
45
Target achievement
C33 ANNUAL BONUS 2020: SUSTAINABILITY TARGET “EMPLOYEE”
Engagement
Index
200%
100%
50%
0%
2.1
2.3
2.2
2.4
LUFTHANSA GROUP ANNUAL REPORT 2020
254
REMUNERATION REPORT

The “Customers” and “Employees” targets each account for 
7.5% of the annual bonus. The following table shows perfor-
mance against the business and sustainability targets for the 
financial year 2020.
T191  ANNUAL BONUS 2020: TARGET ACHIEVEMENT  
SUSTAINABILITY TARGETS
 
Weighting 
 
100%  
target figure 
Actual  
figure 
Level of  
target  
achievement
Customer (NPS)
7.5%
 
 
140.0%
	
Network  
Airlines (3/4)
 
60
62
120.0%
	
Eurowings (1/4)
 
40
50
200.0%
 
 
 
 
 
Employee  
(Engagement index)
7.5%
2.2
2.0
200.0%
Total
15.0%
 
 
170.0%
In addition, the Supervisory Board can apply an individual 
performance factor (bonus/malus factor) of 0.8 to 1.2 when 
assessing the performance of each individual Executive 
Board member for the annual bonus. This is based on the 
individual performance targets agreed annually between  
the Supervisory Board and the individual Executive Board 
members. The targets are adapted to the responsibilities of 
each Executive Board member and cover relevant aspects  
of all stakeholder groups derived from the Company strategy. 
At the end of the financial year these are reviewed by the 
Steering Committee and the Supervisory Board. The follow-
ing table summarises the topics included in the individual 
performance targets agreed for the reporting year.
T192  INDIVIDUAL PERFORMANCE TARGETS 2020
Executive Board
Topics for individual target agreements
Carsten Spohr
—	 Continued development of long-term Group  
strategy (10+ years)
—	 Definition of a Corporate Responsibility strategy
—	 Modernisation of leadership culture
—	 Promotion of management succession planning
Christina Foerster
—	 Improvement of customer focus: buildup of a  
comprehensive view of all customer interfaces
—	 Corporate responsibility: 
	
—	 Design of a sustainable aviation fuel (SAF)  
strategy
	
—	 Establishment of clear processes and governance
—	 Continued development of corporate culture: focus 
on management culture
Harry Hohmeister
—	 Multi-traffic system: continued development  
of commercial and technical integration of  
different airlines
—	 Continued development of distribution systems
—	 Development of a qualified performance  
management system to improve commercial  
management through more number transparency
Detlef Kayser
—	 Improvement of punctuality and regularity
—	 Erection of a new platform with focus on  
tourist business
—	 Promotion of digitalisation of operations processes
—	 Implementation of cooperation agreements  
with airports
Michael Niggemann 
 
 
 
 
 
—	 Development of a solution for outstanding  
collective bargaining topics (cabin crew)
—	 Modernisation of the system of internal rules  
and policies: development and advancement of  
processes with the co-determination bodies
—	 Group structure: development of a competitive, 
modern legal structure
Ulrik Svensson 
 
 
 
—	 Crisis management: 
	
—	 Cash management
	
—	 Rapid cost reduction
—	 Direction of the medium-term EBIT improvement 
programme after the coronavirus crisis
In addition, overarching targets for the whole Executive Board 
were also agreed to emphasise the collective responsibility 
of the Executive Board as a body. Since the first effects of 
the global spread of coronavirus were already visible when  
the targets were set in early 2020, the Supervisory Board 
defined coping with the crisis as the overarching goal. The 
following table provides an overview of the joint targets set for 
the entire Executive Board by the Supervisory Board for the 
reporting year.
LUFTHANSA GROUP ANNUAL REPORT 2020
255
REMUNERATION REPORT

T193  OVERARCHING TARGETS FOR THE ENTIRE  
EXECUTIVE BOARD 2020
Topic
Targets
Crisis management
—	 Management of effects of the coronavirus crisis
—	 Cash flow management to secure liquidity
—	 Sustainable cost reductions
Group strategy
—	 Strengthening of the long-term Group strategy 
—	 Development of Group portfolio towards airline focus
—	 Definition of a Corporate Responsibility strategy
—	 Promotion of customer-centric developments,  
digitalisation and innovations
Leadership and  
corporate culture 
—	 Promotion of lean processes, reduction of  
complexity, acceleration of decision-making 
—	 Enhancement of internal management presence
The Steering Committee and Supervisory Board assess  
performance against the individual targets at the end of the 
financial year. For each Executive Board member, the factor 
of between 0.8 and 1.2 is then multiplied with the overall  
target achievement from the financial and the business and 
sustainability targets.
On the basis of actual target achievement and the individual 
performance factors determined by the Supervisory Board, 
this results in an overall performance of 25.5% to 30.6% for 
the Executive Board members for the 2020 financial year. This 
results in an annual bonus for the Executive Board members 
for 2020, as shown in the following table. On 2 March 2021, 
all active members of the Executive Board have declared to 
waive the payment of these entitlements.
T194  AMOUNT OF ANNUAL BONUS 2020
Supervisory Board
in €
Carsten Spohr
348,840
Christina Foerster
153,000
Harry Hohmeister
168,300
Detlef Kayser
153,000
Michael Niggemann
183,600
Ulrik Svensson (pro rata until 30 Apr 2020)
51,000
LONG-TERM VARIABLE REMUNERATION (LTI)
To promote the long-term, sustainable development of the 
Company, the long-term variable remuneration, and there-
fore the majority of variable remuneration, depends on the 
achievement of long-term targets. Taking the absolute and 
relative share performance into account aligns the interests 
of Executive Board members closely with those of share-
holders as an essential stakeholder group.
The current long-term variable remuneration includes still 
ongoing programmes from several financial years, which  
are partly based on remuneration systems in effect before  
1 January 2020. They include the long-term variable remu-
neration agreed in financial year 2019 (LTI 2019) and the 
amount of variable remuneration carried over for financial 
year 2018 (Deferral 2018). Until 2018 the Executive Board 
members also participated in share programmes for Lufthansa 
Executive Board members and managers (LH-Performance). 
Entitlements under LTI 2020 and 2019 as well as Deferral 
2018 and the still ongoing LH-Performance programmes 
were established before 21 June 2020 and can therefore be 
paid during the WSF stabilisation measures.
Long-term variable remuneration 2020 (LTI 2020)
Since 2020, the agreed long-term variable remuneration for 
Executive Board members is share-based. At the beginning 
of the performance period, the Executive Board members 
receive a number of virtual shares corresponding to the  
contractually agreed target amount. The number of virtual 
shares is determined by reference to the average price of the 
Lufthansa share in the first 60 trading days after the four-year 
performance period begins. The average price for the LTI 
2020 is EUR 13.29. The number of virtual shares conditionally 
granted to individual Executive Board members under the  
LTI in the reporting year is shown in the following table.
T195  CONTINGENT SHARE ALLOCATION LTI 2020
Supervisory Board
Target amount 
Number of  
contingent shares
Carsten Spohr
€ 2,090,000
157,261
Christina Foerster
€ 1,100,000
82,769
Harry Hohmeister
€ 1,100,000
82,769
Detlef Kayser
€ 1,100,000
82,769
Michael Niggemann
€ 1,100,000
82,769
Ulrik Svensson  
(pro rata until 30 Apr 2020)
€ 91,667
6,897
The final number of virtual shares depends on achievement 
of the financial performance targets Adjusted ROCE (42.5%) 
and relative Total Shareholder Return (42.5%), as well as the 
non-financial strategic and sustainability targets (15%).
LUFTHANSA GROUP ANNUAL REPORT 2020
256
REMUNERATION REPORT

Performance against the target of Adjusted ROCE is  
measured by comparing average Adjusted ROCE over the 
four-year performance period with a strategic target set by 
the Supervisory Board at the beginning of the performance 
period. The Supervisory Board aligns this target with the 
Group’s four-year operational plans, whereby the lower limit 
is to cover the weighted average cost of capital (WACC). 
This is in accordance with the strategic objective of earning 
a return on capital employed that is higher than the cost  
of capital.
For the LTI 2020, the strategic target ROCE is 7.0%. The 
actual average Adjusted ROCE reached and the resulting level 
of target achievement are published in the remuneration 
report for the financial year at the end of the respective per-
formance period.
TSR performance for the LTI 2020 is calculated at the end of 
the four-year performance period. This involves comparing 
the average share price for the last 60 exchange trading days 
before the start of the performance period with the average 
share price for the last 60 exchange trading days before the 
end of the performance period. Dividends are fictitiously 
assumed to be reinvested. The companies in the DAX are 
used as the peer group for the relative TSR, both those in the 
index at the beginning and at the end of the performance 
period. The TSR performance of all companies is ranked and 
the relative performance of Deutsche Lufthansa AG deter-
mined by its percentile position. Target achievement is 100% 
if the TSR of Deutsche Lufthansa AG corresponds to the 
median (50th percentile) for the peer group. A performance 
on or below the 25th percentile corresponds to a target 
achievement of 0%. The maximum of 200% is achieved for  
a TSR on or above the 75th percentile. Interim figures are 
interpolated along this line.
For the non-financial target “Environment”, the targets set  
by IATA for fuel efficiency are used, i.e. the average amount 
of kerosene consumed to carry a passenger 100 kilometres. 
The aim is to reduce specific fuel consumption by 1.5% p.a. 
and so improve specific CO₂ emissions. The LTI 2020 includes 
emissions from Lufthansa’s own fleet as well as those from 
wet-lease flights. The end points of the range are defined by a 
deviation of +/–  1.5 percentage points from the annual target. 
Interim figures are interpolated on a straight-line basis. 
To calculate performance, the improvement in specific CO₂ 
emissions is measured annually over the four-year perfor-
mance period. This then accounts for one-quarter of the total 
performance against the sustainability target at the end of 
the performance period. Specific fuel efficiency (including  
Target achievement
C34 LTI 2020: TARGET ACHIEVEMENT ADJUSTED ROCE
Adjusted ROCE
200%
100%
0%
4.2%
(WACC)
Strategic target 
ROCE
Strategic target 
ROCE
+ 3 percentage points
Target achievement
C35  LTI 2020: TARGET ACHIEVEMENT RELATIVE  
TOTAL SHAREHOLDER RETURN
 
 Relative Total Shareholder Return for the Lufthansa share  
compared with the DAX
Lufthansa percentile
200%
100%
0%
25th percentile 50th percentile
target figure
75th percentile
maximum
Target achievement
C36 LTI 2020: TARGET ACHIEVEMENT SUSTAINABILITY TARGET
 
Annual reduction of specific CO₂ emissions
Reduction of 
specific  
CO₂ emissions
200 %
100 %
0 %
0 %
– 1,5 %
– 3 %
LUFTHANSA GROUP ANNUAL REPORT 2020
257
REMUNERATION REPORT

wet-lease flights) came to 10.50 kg/100 passenger-kilometres 
in 2020 (2019: 9.23 kg/100 passenger-kilometres), so that 
performance in the 2020 financial year for the environmental 
parameter for the LTI 2020 was 0%. 
At the end of the performance period, the number of virtual 
shares granted conditionally is multiplied by the total target 
achievement, which results from the target achievement  
of the financial and non-financial performance targets, in 
order to obtain the final number of virtual shares. Payment  
is generally in cash. To calculate the payment amount, the 
final number of virtual shares is multiplied by the average 
price of the Lufthansa share over the last 60 trading days  
of the performance period, plus dividends paid during the 
performance period.
Long-term variable remuneration 2019 (LTI 2019)
The main difference between the LTI 2019 and the programme 
for 2020 is that for financial year 2019, the agreement was 
not based on virtual shares. All the other parameters, particu-
larly the underlying performance criteria, are the same as in 
the LTI 2020. Please see the comments in the remuneration 
report 2019 for details 
 Annual report 2019, p. 119ff. 
The Supervisory Board also defined the parameter “Environ-
ment” as the sustainability target for the LTI 2019, again using 
the fuel efficiency target adopted by IATA. A target of 100% 
was therefore defined as an annual improvement of 1.5% in 
specific fuel consumption. With deviations of +/–  1.5 percent-
age points from the annual target, the performance curve  
is the same as for the LTI 2020.
Since until 2018 the average specific kerosene consumption 
figures for a given financial year were only available in the 
middle of the following financial year the Supervisory Board 
decided when setting the LTI 2019 to compare the previous 
year’s fuel efficiency figures with those for the year before 
that. For 2020, the environmental target is therefore meas-
ured on the basis of a comparison between the specific CO₂ 
emissions in the 2019 and 2018 financial years. 
To calculate performance, the achievement of the environ-
mental target is determined by the Supervisory Board annually 
over the four-year performance period. The individual values 
each account for one-quarter of the total performance against 
the sustainability target at the end of the performance period.
The target achievements for the environmental parameter  
in the LTI 2019 already determined by the Supervisory  
Board for 2019 and 2020 are shown in the following table  
↗ Combined non-financial declaration, p. 89ff.
T196  ACHIEVEMENT OF ENVIRONMENTAL TARGET IN LTI 2019  
Annual reduction in CO₂ emissions
Year of  
performance period
Reference  
years
Target  
achievement
Weighting 
2019 
 
2018  
compared  
with 2017
53%
1/4
2020 
 
2019  
compared  
with 2018
0%
1/4
The following table shows the long-term variable remuneration 
for 2020 and 2019 in accordance with IFRS 2. The LTI com-
ponent Relative Total Shareholder Return is included pro rata 
for the LTI 2019.
T197  PERFORMANCE OF LTI SHARE PROGRAMMES  1)
in €
Time value LTI 2020
Time values LTI 2019
Financial year 2020 
Financial year 2020 
Financial year 2019 
Change 2020  
compared with 2019
Carsten Spohr
125,416
20,769
241,395
– 220,626
Thorsten Dirks (until 30 Jun 2020)
–
–
127,050
– 127,050
Christina Foerster
66,008
–
–
–
Harry Hohmeister
66,008
10,931
127,050
– 116,119
Detlef Kayser
66,008
10,931
127,050
– 116,119
Michael Niggemann
66,008
–
–
–
Ulrik Svensson (until 30 Apr 2020)
22,003
7,288
127,050
– 119,763
411,451
49,919
749,595
– 699,677
1)	 Time values pro rata temporis for the performance period of four years.
LUFTHANSA GROUP ANNUAL REPORT 2020
258
REMUNERATION REPORT

Deferral from the annual bonus 2018 (Deferral 2018)
In the remuneration system for Executive Board members  
in effect until 31 December 2018, the variable remuneration 
was based on the Lufthansa Group’s EBIT margin. For the 
financial year 2018, 50% of the variable remuneration was 
paid in the following year, with 50% deferred for two further 
years. At the end of the full three-year assessment period, the 
amount carried forward is multiplied by a factor determined 
on the basis of objective indicators, of which cumulative three- 
year EACC accounts for 70% and the sustainability parame-
ters of environment, customer satisfaction and employee 
commitment account for 30%. The factor can vary between 
0.0 and 2.0 and is applied uniformly for the entire Executive 
Board to the amount carried forward before it is paid out. The 
multiplier based on EACC increases on a linear basis from  
a value of 0.0, which corresponds to EACC of EUR – 1,000m  
or lower, to a maximum value of 2.0, which is attained when 
EACC reaches EUR +1,000m. The sustainability factor, which 
can also vary between 0.0 and 2.0, is determined by the 
Supervisory Board on the basis of a recommendation from 
the Steering Committee and represents a discretionary assess-
ment of changes in the figures “Reduction of CO₂ emissions”, 
“Customer satisfaction at Lufthansa German Airlines (CPI)” 
and “Employee survey indices in the Group”. The maximum 
amount of total variable remuneration that can be paid for a 
given financial year is capped at 175% of fixed annual salary.
Due to the collapse in business caused by the coronavirus 
crisis in the reporting year, the EACC factor for the benefit 
vested and deferred in financial year 2018 is 0 (cumulative 
three-year EACC 2018–2020: EUR –4,596m). The Supervisory 
Board has set the sustainability factor at 1.2 on the basis of  
a recommendation by the Steering Committee in view of the 
significant improvements in the Customer Profile Index and 
the Engagement Index. This gives a total multiple of 0.36. 
The resulting definitive entitlements from variable remunera-
tion deferred from 2018 are shown for the individual Execu-
tive Board members in the following table. Messrs Spohr, 
Hohmeister and Dirks and Ms Volkens have said that they 
will forego payment of the Deferral 2018 in March 2021 and 
continue to defer it until further notice.
T198  AMOUNT OF DEFERRAL 2018
in €
2018
Carsten Spohr
498,398
Thorsten Dirks
311,499 
Harry Hohmeister
311,499
Ulrik Svensson 
311,499
Bettina Volkens
311,499
Share-based remuneration – LH-Performance (until 2018)
Up to and including 2018, the Executive Board members 
were also obliged to take part in the share programme for 
Executive Board members and managers. 
Participation in the LH-Performance programme for Executive 
Board members required a personnel investment in Lufthansa 
shares in tranches of EUR 4k. The Chairman of the Executive 
Board and CEO was thereby obliged to hold Lufthansa shares 
valued at EUR 180k and an ordinary Executive Board member 
to hold shares valued at EUR 120k, whereby Lufthansa granted 
a discount of 50% on the share price. The shares invested  
in personally may not be sold until the end of the respective 
four-year performance period. The amount of a potential 
entitlement under the share programmes is linked both to the 
absolute performance of the Lufthansa share (performance 
option) and to the performance of the Lufthansa share com-
pared with a notional index of European competitors’ shares 
(outperformance option). The performance and outperformance 
of the Lufthansa shares are calculated on the principle of 
total shareholder return. This means that cash dividends, 
subscription rights, capital rights and other special rights are 
included in the calculation of performance/outperformance, 
as well as the change in the share price. The performance 
option for 2016 results in a cash payment if the share price 
goes up by more than 27%. The option is capped at a per­
formance of more than 41%. For the outperformance option 
the participants receive a payment for each percentage point 
of outperformance. When this is more than 20 percentage 
points, it is capped at a defined amount. The maximum for 
both the performance and the outperformance options is 
EUR 20k per tranche. Further information about the ongoing 
LH-Performance programmes can be found in ↗ Note 39,  
p. 192ff.
T199  SHARE OPTION PROGRAMME 2016: TARGET ACHIEVEMENT
 
Hurdle 
Cap 
Actual  
figure
Payment  
per tranche
Performance  
Lufthansa share
27%
41%
– 15.13%
EUR 0
Outperformance 
compared  
with peer group
+ 1 pts
+ 20 pts
+ 30.32 pts
EUR 20k 
Payments are only made to Executive Board members under 
the options if they are still active members of the Executive 
Board of Deutsche Lufthansa AG at the end of the programme. 
If the Executive Board member has retired or steps down once 
his appointment comes to an end, a payment is made pro 
rata temporis for the portion of the programme during which 
the participant was still a member of the Executive Board. 
LUFTHANSA GROUP ANNUAL REPORT 2020
259
REMUNERATION REPORT

Information about the ongoing LH-Performance programmes 
and the payments made to Executive Board members in 2020 
for LH-Performance 2016 are shown in the following tables. 
As of 31 December 2020 (2019), the members of the Execu-
tive Board held the following shares and option packages 
from current share programmes under LH-Performance:
T200  LH-PERFORMANCE PROGRAMME
Number of shares
2017 programme
2018 programme
Number of shares  
purchased from  
own funds
Number of option 
­packages 
Number of shares  
purchased from  
own funds
Number of option 
­packages 
Thorsten Dirks 
(until 30 Jun 2020)
4,350 
(4,350)
30 
(30)
6,750 
(6,750)
30 
(30)
Harry Hohmeister
4,350 
(4,350)
30 
(30)
6,750 
(6,750)
30 
(30)
Carsten Spohr 
6,525 
(6,525)
45 
(45)
10,125 
(10,125)
45 
(45)
Ulrik Svensson 
(until 30 Apr 2020)
4,350 
(4,350)
30 
(30)
6,750 
(6,750)
30 
(30)
Bettina Volkens 
(until 31 Dec 2019)
4,350 
(4,350)
30 
(30)
6,750 
(6,750)
30 
(30)
 
The following table shows changes in the ongoing  
LH-Performance share programmes in 2020. 
 
T201  PERFORMANCE OF LH-PERFORMANCE PROGRAMME
in €
Financial year 2020
Financial year 2019
Payments from 
maturing share  
programmes 
Change in  
fair value of 
­ongoing share  
programmes
Total 
 
 
Payments from 
maturing share  
programmes 
Change in  
fair value of ­ 
ongoing share  
programmes
Total 
 
 
Carsten Spohr
– 900,000
– 248,558
– 1,148,558
– 1,485,000
497,447
– 987,553
Thorsten Dirks  
(until 30 Jun 2020)
–
– 15,633
– 15,633
–
18,243
18,243
Harry Hohmeister
– 600,000
– 165,705
– 765,705
– 990,000
331,631
– 658,369
Ulrik Svensson  
(until 30 Apr 2020)
–
– 46,453
– 46,453
–
18,243
18,243
Bettina Volkens  
(until 31 Dec 2019)
– 600,000
– 465,370
– 1,065,370
– 990,000
654,411
– 335,589
 
– 2,100,000
– 941,719
– 3,041,719
– 3,465,000
1,519,975
– 1,945,025
More information on payment caps can be found in the 
Notes to the consolidated financial statements. ↗ Note 39, 
p. 192ff.
LUFTHANSA GROUP ANNUAL REPORT 2020
260
REMUNERATION REPORT

Amount of Executive Board remuneration in 2020
REMUNERATION OF EXECUTIVE BOARD MEMBERS  
ACTIVE IN THE FINANCIAL YEAR 
Awarded and due remuneration and contractually agreed 
benefits in financial year 2020
The following tables show the remuneration awarded and 
due (paid) to each individual member of the Executive Board 
in financial year 2020 and the contractually agreed benefits 
for 2020. Section 162 AktG defines as awarded and due (paid) 
remuneration that fell due in the reporting period and have 
already been paid to the individual Executive Board member 
or which are outstanding but not yet paid. The presentation 
of contractually agreed benefits in the table ↗ T203, p. 263f., 
corresponds to the format previously recommended by the 
German Corporate Governance Code as amended on 7 Feb-
ruary 2017 as Model table 1 relating to Section 4.2.5 (3).
The disclosures on payments and contractually agreed bene-
fits are each divided into fixed and variable remuneration 
components. The allocation to retirement benefits in the 
financial year is disclosed as part of contractually agreed 
benefits. The fixed remuneration components include the basic 
salary and ancillary benefits that are not performance-related. 
Variable, performance-related remuneration is divided into 
short-term and long-term variable remuneration.
The following tables show the remuneration awarded or due 
to active Executive Board members in 2020. This “pay” stated 
for the reporting year comprises the fixed remuneration com-
ponents actually paid in the reporting year, plus the variable 
remuneration due and paid in the financial year (Deferral 
2017, plus the one-year variable remuneration for 2019. For 
details, please refer to the presentation in the remuneration 
report 2019 (  Annual report 2019, p. 118ff.) including pay-
ments under the option programme LH-Performance 2016.
T202  AWARDED AND GRANTED BENEFITS (PAID)
in € thousands
Carsten Spohr, Chairman of the Executive Board 
Chairman since 1 May 2014;  
Member of the Executive Board since 1 Jan 2011
Thorsten Dirks 
Member of the Executive Board since 1 May 2017  
to 30 Jun 2020  1)
2020
2020  2)
2019
2019  2)
2020
2020  2)
2019
2019  2)
Basic salary  3)
1,471
38.4%
1,634
32.9%
387
39.3%
860
47.3%
Ancillary benefits
19
0.5%
28
0.6%
11
1.1%
15
0.8%
Total
1,490
38.9%
1,662
33.5%
398
40.4%
875
48.2%
One-year variable  
remuneration 2019 (2018)
576
15.0%
1,385
27.9%
226 4)
23.0%
942
51.8%
Long-term variable remuneration
 
 
 
 
 
 
 
 
	
Three-year variable remuneration 
Deferral 2017 (Deferral 2016)
864
22.6%
436
8.8%
360
36.6%
–
–
	
Option programme (4 years)  
LH Performance 2016  
(LH Performance 2015)
900
23.5%
1,485
29.9%
–
–
–
–
Total
2,340
61.1%
3,306
66.5%
586
59.6%
942
51.8%
Service cost 
–
–
–
–
3,500
–
–
–
Total remuneration
3,830
100.0%
4,968
100.0%
4,484
100.0%
1,817
100.0%
1)	 The employment contract with Thorsten Dirks was ended early as of 30 June 2020.
2)	The relative proportions indicated here relate to the total remuneration shown in the table excluding severance payments.
3)	Including voluntary waiver of 20% of basic salary for the period from April to September 2020.
4)	Remuneration of EUR 77k paid the previous year was offset against this.
LUFTHANSA GROUP ANNUAL REPORT 2020
261
REMUNERATION REPORT

in € thousands
Christina Foerster  
Member of the Executive Board since 1 Jan 2020
Harry Hohmeister  
Member of the Executive Board since 1 Jan 2013
2020
2020  1)
2019
2019  1)
2020
2020  1)
2019
2019  1)
Basic salary  2)
774
99.9%
–
–
774
34.7%
860
28.4%
Ancillary benefits
1
0.1%
–
–
15
0.7%
18
0.6%
Total
775
100.0%
0
0.0%
789
35.4%
878
29.0%
One-year variable  
remuneration 2019 (2018)
–
–
–
–
303
13.6%
865
28.6%
Long-term variable remuneration
 
 
 
 
 
 
 
 
	
Three-year variable remuneration 
Deferral 2017 (Deferral 2016)
–
–
–
–
540
24.2%
291
9.6%
	
Option programme (4 years)  
LH Performance 2016  
(LH Performance 2015)
–
–
–
–
600
26.9%
990
32.7%
Total
0
0.0%
0
0.0%
1,443
64.7%
2,146
71.0%
Service cost 
–
–
–
–
–
–
–
–
Total remuneration
775
100.0%
0
0.0%
2,232
100.0%
3,024
100.0%
1)	 The relative proportions indicated here relate to the total remuneration shown in the table excluding severance payments.
2)	Including voluntary waiver of 20% of basic salary for the period from April to September 2020.
in € thousands
Detlef Kayser  
Member of the Executive Board since 1 Jan 2019
Michael Niggemann  
Member of the Executive Board since 1 Jan 2020
2020
2020  1)
2019
2019  1)
2020
2020  1)
2019
2019  1)
Basic salary  2)
774
73.6%
860
91.5%
774
99.9%
–
–
Ancillary benefits
6
0.6%
12
1.3%
1
0.1%
–
–
Total
780
74.1%
872
92.8%
775
100.0%
0
0.0%
One-year variable  
remuneration 2019 (2018)
272 3)
25.9%
68
7.2%
–
–
–
–
Long-term variable remuneration
 
 
 
 
 
 
 
 
	
Three-year variable remuneration 
Deferral 2017 (Deferral 2016)
–
–
–
–
–
–
–
–
	
Option programme (4 years)  
LH Performance 2016  
(LH Performance 2015)
–
–
–
–
–
–
–
–
Total
272
25.9%
68
7.2%
0
0.0%
0
0.0%
Service cost 
–
–
–
–
–
–
–
–
Total remuneration
1,052
100.0%
940
100.0%
775
100.0%
0
0.0%
1)	 The relative proportions indicated here relate to the total remuneration shown in the table excluding severance payments.
2)	Including voluntary waiver of 20% of basic salary for the period from April to September 2020.
3)	Remuneration of EUR 68k paid the previous year was offset against this.
LUFTHANSA GROUP ANNUAL REPORT 2020
262
REMUNERATION REPORT

in € thousands
Ulrik Svensson  
Member of the Executive Board since 1 Jan 2017  
to 30 Apr 2020  1)
Bettina Volkens  
Member of the Executive Board since 1 Jul 2013  
to 31 Dec 2019  2)
2020
2020  3)
2019
2019  3)
2020
2020  3)
2019
2019  3)
Basic salary  4)
272
24.3%
860
49.4%
–
–
860
28.4%
Ancillary benefits
5
0.4%
15
0.9%
3
0.2%
22
0.7%
Total
277
24.7%
875
50.3%
3
0.2%
882
29.1%
One-year variable  
remuneration 2019 (2018)
303
27.1%
865
49.7%
303
21.0%
865
28.6%
Long-term variable remuneration
 
 
 
 
 
 
 
 
	
Three-year variable remuneration 
Deferral 2017 (Deferral 2016)
540
48.2%
–
–
540
37.3%
291
9.6%
	
Option programme (4 years)  
LH Performance 2016  
(LH Performance 2015)
–
–
–
–
600
41.5%
990
32.7%
Total
843
75.3%
865
49.7%
1,443
99.8%
2,146
70.9%
Service cost  5)
–
–
–
–
–
–
4,055
–
Total remuneration
1,120
100.0%
1,740
100.0%
1,446
100.0%
7,083
100.0%
1)	 The employment contract with Ulrik Svensson was ended early as of 30 April 2020.
2)	The employment contract with Bettina Volkens was ended early as of 31 December 2019. The indicated severance payment amount includes the six-month non-compete 
compensation payable by the company. See the remuneration report 2019 for further details (  Annual Report 2019, p. 125).
3)	The relative proportions indicated here relate to the total remuneration shown in the table excluding severance payments.
4)	Including voluntary waiver of 20% of basic salary for the period from April to September 2020.
5)	Service cost under IFRS and thus not “remuneration awarded and due” within the meaning of Section 162 Paragraph 1 sentence 1 AktG.
Contractually agreed benefits as defined in the model table 
previously included in the German Corporate Governance 
Code is presented as “contractual benefits” at their value at  
the time of the agreement (corresponding to a target achieve- 
ment of 100%) for the respective financial year. Individual 
caps and lower thresholds for these remuneration elements 
are also shown.
T203  CONTRACTUAL BENEFITS
Carsten Spohr, Chairman of the Executive Board 
Chairman since 1 May 2014;  
Member of the Executive Board since 1 Jan 2011
Thorsten Dirks 
Member of the Executive Board since 1 May 2017  
to 30 Jun 2020  1)
in € thousands
2020 
2019 
2020  
(min)
2020  
(max)
2020 
2019 
2020  
(min)
2020  
(max)
 
Basic salary
1,471
1,634
1,471
1,471
387
860
387
387
Ancillary benefits
19
28
19
19
11
15
11
11
Total
1,490
1,662
1,490
1,490
398
875
398
398
One-year variable remuneration
1,140
1,140
0
2,280
–
600
–
–
Long-term variable remuneration
2,090
2,090
0
4,180
–
1,100
–
–
Total
3,230
3,230
0
6,460
0
1,700
0
0
Service cost
925
920
925
925
251
486
251
251
Total remuneration
5,645
5,812
2,415
8,875
649
3,061
649
649
1)	 In accordance with the severance payment agreement, there is no entitlement to the short-term and long-term remuneration for the financial year 2020.
LUFTHANSA GROUP ANNUAL REPORT 2020
263
REMUNERATION REPORT

Christina Foerster  
Member of the Executive Board since 1 Jan 2020
Harry Hohmeister  
Member of the Executive Board since 1 Jan 2013
in € thousands
2020 
2019 
2020  
(min)
2020  
(max)
2020 
2019 
2020  
(min)
2020  
(max)
Basic salary
774
–
774
774
774
860
774
774
Ancillary benefits
1
–
1
1
15
18
15
15
Total
775
0
775
775
789
878
789
789
One-year variable remuneration
600
–
0
1,200
600
600
0
1,200
Long-term variable remuneration
1,100
–
0
2,200
1,100
1,100
0
2,200
Total
1,700
0
0
3,400
1,700
1,700
0
3,400
Service cost
450
–
450
450
483
486
483
483
Total remuneration
2,925
0
1,225
4,625
2,972
3,064
1,272
4,672
 
Detlef Kayser  
Member of the Executive Board since 1 Jan 2019
Michael Niggemann  
Member of the Executive Board since 1 Jan 2020
in € thousands
2020 
2019 
2020  
(min)
2020  
(max)
2020 
2019 
2020  
(min)
2020  
(max)
Basic salary
774
860
774
774
774
–
774
774
Ancillary benefits
6
12
6
6
1
–
1
1
Total
780
872
780
780
775
0
775
775
One-year variable remuneration
600
600
0
1,200
600
–
0
1,200
Long-term variable remuneration
1,100
1,100
0
2,200
1,100
–
0
2,200
Total
1,700
1,700
0
3,400
1,700
0
0
3,400
Service cost
460
450
460
460
450
–
450
450
Total remuneration
2,940
3,022
1,240
4,640
2,925
0
1,225
4,625
 
Ulrik Svensson  
Member of the Executive Board since 1 Jan 2017  
to 30 Apr 2020  1)
Bettina Volkens  
Member of the Executive Board since 1 Jul 2013  
to 31 Dec 2019  1)
in € thousands
2020 
2019 
2020  
(min)
2020  
(max)
2020 
2019 
2020  
(min)
2020  
(max)
Basic salary
272
860
272
272
–
860
–
–
Ancillary benefits
5
15
5
5
–
22
–
–
Total
277
875
277
277
0
882
0
0
One-year variable remuneration
200
600
–
400
–
600
–
–
Long-term variable remuneration
367
1,100
–
733
–
1,100
–
–
Total
567
1,700
0
1,133
0
1,700
0
0
Service cost
160
471
160
160
678
478
678
678
Total remuneration
1,004
3,046
437
1,570
678
3,060
678
678
1)	 The employment contract with Bettina Volkens was ended early as of 31 December 2019. The severance payment is not included in the “Variable remuneration” table.
LUFTHANSA GROUP ANNUAL REPORT 2020
264
REMUNERATION REPORT

In 2020, the members of the Executive Board received no 
benefits or promises of benefits from third parties relating  
to their work on the Executive Board.
RETIREMENT BENEFITS
The members of the Executive Board receive retirement  
benefit commitments based on a defined contribution plan. 
As of the 2019 financial year, a fixed annual amount is made 
available to every Executive Board member for the duration 
of their employment – EUR 855k for the CEO and EUR 450k 
for ordinary members – as a contribution to their retirement 
benefit account.
The investment guidelines are based on the investment  
concept for the Lufthansa Pension Trust, which also applies 
to staff members of Deutsche Lufthansa AG.
Retirement benefits are paid when the beneficiary reaches 
the retirement age of 60 years (if they are no longer an Exec-
utive Board member) or in the event of disability or death.  
If the service contract ends before retirement age is reached, 
the beneficiaries or their surviving dependants acquire a 
retirement benefit credit equivalent to the balance of the 
pension account at the time. Deutsche Lufthansa AG guar-
antees the sum of contributions paid.
A supplementary risk capital sum will be added to the pension 
credit in the event of a claim for a disability pension or a pen-
sion for surviving dependants. This sum will consist of the 
average contributions paid into the pension account over the 
past three years multiplied by the number of full years by 
which the claimant is short of the age of 60 from the time  
a disability pension entitlement arises.
The pension credit is paid out in ten instalments. On applica-
tion by the Executive Board member or his/her surviving 
dependants, a payment as a lump sum or in fewer than ten 
instalments may also be made, subject to approval by the 
Company. The retirement benefit credit received until 31 
December 2018 by Messrs Spohr and Hohmeister may also 
be paid as an annuity, on application and with the approval 
of the Company.
Under his contract as a pilot, which is currently not active, 
Carsten Spohr is entitled to a transitional pension in accord-
ance with the wage agreement “Transitional pensions for 
cockpit staff”. If Carsten Spohr leaves the Executive Board 
before he becomes 60 and resumes his employment as a 
pilot, he is entitled to draw a “Transitional pension for cockpit 
staff at Lufthansa” once he becomes 60 or on request once 
he turns 55, in accordance with the provisions of the wage 
agreement. This additional benefit is paid if certain conditions 
of eligibility are met and provides for a monthly pension of up 
to 60% of the last modified salary until the beneficiary reaches 
the age of 63.
Pension entitlements in 2020
The total amount of pension entitlements acquired by active 
and former Executive Board members in 2020 is EUR 4.0m 
(previous year: EUR 3.1m) according to HGB and EUR 3.9m 
(pre­vious year: EUR 3.3m) under IFRS was recognised in 
staff costs (service cost). The individual current service cost 
and present values of pension entitlements are as follows:
T204  PENSION ENTITLEMENTS ACCORDING TO HGB AND IFRS
HGB
HGB
IFRS
IFRS
Current service costs 
Settlement amount of  
pension obligations
Current service costs 
Present value of  
pension obligations
in € thousands
2020
2019
31 Dec 2020
31 Dec 2019
2020
2019
31 Dec 2020
31 Dec 2019
Carsten Spohr
797
839
8,018
7,198
925
920
8,024
6,948
Thorsten Dirks  
(until 30 June 2020)
200
432
1,770
1,534
251
486
1,770
1,497
Christina Foerster
651
–
654
–
450
–
666
–
Harry Hohmeister
427
421
3,572
3,129
483
486
3,573
3,068
Detlef Kayser
434
522
1,304
522
460
450
1,305
450
Michael Niggemann
680
–
684
–
450
–
701
–
Ulrik Svensson  
(until 30 April 2020)
142
435
1,890
1,715
160
471
1,890
1,707
Bettina Volkens  
(until 31 December 2019)
651
427
3,768
3,102
698
478
3,768
3,068
 
3,982
3,076
21,660
17,200
3,877
3,291
21,697
16,738
LUFTHANSA GROUP ANNUAL REPORT 2020
265
REMUNERATION REPORT

Compliance with remuneration cap
In addition to the caps for short-term and long-term variable 
remuneration for 2020 in accordance with Section 87a Para-
graph 1 Sentence 2 No.1 AktG, there is a cap on total remu-
neration for the financial year (including ancillary benefits and 
retirement benefit commitments). This maximum remunera-
tion amounts to EUR 9.5m for the Chairman of the Executive 
Board and CEO and EUR 5m for an ordinary Executive Board 
member and relates to actual expenses or the actual payment 
of remuneration agreed for the financial year. If remuneration 
for financial year 2020 exceeds this cap, the variable remu-
neration is reduced accordingly.
Since the four-year performance period means that expenses 
for the long-term variable remuneration component are only 
known in the third year after the reporting year, compliance 
with the remuneration cap for 2020 can only be reported 
definitively in the remuneration report for financial year 2023.
SHARE OWNERSHIP GUIDELINES
The Share Ownership Guidelines (SOG) have been an integral 
part of the remuneration system for the Executive Board 
since 2019. They oblige the CEO to acquire Lufthansa shares 
worth twice his basic salary and ordinary Executive Board 
members to acquire shares worth one year’s basic salary and 
to hold them for their term of office and beyond. Executive 
Board members must demonstrate annually that they meet 
this obligation.
The minimum number of Lufthansa shares to be purchased 
by the Executive Board members is determined when they 
start their work based on the average share price over the 
125 trading days before the service contract begins. Shares 
are to be acquired over a four-year period. Existing share-
holdings are included in the calculation. In connection with 
the restrictions on Executive Board remuneration for the 
duration of the WSF stabilisation measures, the Supervisory 
Board has decided to suspend the four-year acquisition 
period for as long as the stabilisation measures are in place. 
It will be resumed as soon as variable remuneration is 
awarded again.
T205  SHAREHOLDINGS OF CURRENT EXECUTIVE BOARD MEMBERS
 
Number of  
LH shares  
according  
to SOG
Shareholdings  
as of  
31 Dec 2020 
Carsten Spohr
155,969
130,000
Christina Foerster
56,126
2,426
Harry Hohmeister
41,044
76,048
Detlef Kayser 
41,044
2,320
Michael Niggemann
56,126
21,270
The shares bought in accordance with the SOG are to be 
held until the end of the service contract of the Executive 
Board member. After they leave, Executive Board members 
may sell 25% of their SOG shares per year.
MALUS AND CLAWBACK RULE
In the event of an intentional or grossly negligent breach of 
statutory obligations or internal policies (compliance penalty 
or clawback), or if variable remuneration components depend-
ent on achieving certain targets are paid on the basis of false 
data (performance clawback), the Supervisory Board has  
the right to withhold or demand repayment of short-term 
and long-term variable remuneration.
Enforcement of the withholding or repayment claim is at the 
professional discretion of the Supervisory Board.
The Supervisory Board did not make use of the right to  
withhold or demand repayment of variable remuneration 
components in the 2020 financial year.
END-OF-SERVICE BENEFITS
Cap on severance pay
If a contract is terminated early for reasons other than good 
cause or a change of control, the Company will not remuner-
ate more than the value of outstanding entitlements for the 
remainder of the contract, as recommended by the German 
Corporate Governance Code, whereby these payments may 
not exceed annual remuneration for two years (severance cap). 
The cap on severance pay is determined by the annual remu-
neration, which is made up of basic salary and the target 
amounts of one-year and long-term variable remuneration; 
in-kind benefits and ancillary benefits are not considered. 
This means the maximum severance pay for an ordinary 
Executive Board member is currently EUR 2,560,000 per 
annum, or EUR 4,864,000 for the CEO.
LUFTHANSA GROUP ANNUAL REPORT 2020
266
REMUNERATION REPORT

Post-contractual non-compete clause
As a rule, the Executive Board members are subject to a 
one-year non-competition clause after leaving the Executive 
Board. The Company pays the Executive Board member 
compensation of half their annual salary for the duration of 
the post-contractual non-compete clause. The Company has 
the option of waiving compliance with the post-contractual 
non-compete clause up to the end of the service contract with 
the effect that it is no longer obliged to pay compensation 
six months after the waiver is entered. To date, only the ser-
vice contracts with Messrs Hohmeister and Steenbergen, 
which were signed after the German Corporate Governance 
Code as amended on 16 December 2019 came into effect, as 
well as future appointments and reappointments, require 
severance pay to be offset against the non-compete com-
pensation. 
Change of control
If the contract between an Executive Board member and 
Deutsche Lufthansa AG is terminated in connection with  
a change of control at the Company, the Executive Board 
member is entitled to a payment equivalent to the remu­
neration outstanding for the remainder of the contract. The 
amount of payment may not exceed 150% of the contractual 
cap on severance pay mentioned above. In line with the rec-
ommendation of the German Corporate Governance Code  
as amended on 16 December 2019, the cap on severance pay 
also applies to a change of control for the service contracts 
with Messrs Hohmeister and Steenberger, which were signed 
after GCGC 2019 came into effect, as well as for future 
appointments and reappointments.
REMUNERATION OF EXECUTIVE BOARD MEMBERS WHO STEPPED 
DOWN IN THE REPORTING YEAR
Severance agreement with Ulrik Svensson
After Ulrik Svensson stepped down from the Executive Board 
for health reasons, his service contract was terminated early 
by resolution of the Supervisory Board on 21 April 2020 and 
a corresponding severance agreement on 30 April 2020.  
Mr Svensson waived his right to a severance payment. The 
Company waived the post-contractual non-compete clause 
and is not obliged to pay compensation. 
Mr Svensson’s claims to one-year and long-term variable 
remuneration for the proportion attributable to the financial 
year 2020 are not affected. He also retains his rights to  
the long-term variable remuneration agreed in 2019 for his 
Executive Board work during the performance period to  
the extent that the conditions for a payment are met at the 
end of the performance period. 
Mr Svensson also retains his rights to the deferred portion of 
variable remuneration for 2018 (Deferral 2018, see comments 
on ↗ p. 259). Payments under the ongoing LH-Performance 
programme will be made pro rata temporis for the period in 
which Mr Svensson was still an Executive Board member. 
The Company will make an annual contribution of EUR 450k 
– pro rata for 2020, i.e. until 30 April 2020 (EUR 150k) –  
for retirement benefits to Mr Svensson’s pension account. 
Existing internal rules for former Executive Board members 
apply to Mr Svensson’s use of concessionary private travel 
arrangements from the time of his departure.
Severance agreement with Thorsten Dirks
The employment contract with Thorsten Dirks was termi-
nated prematurely with effect from 30 June 2020 in accord-
ance with a Supervisory Board resolution of 26 June 2020 
and the corresponding severance agreement. In accordance 
with a severance payment agreement, Mr Dirks will receive  
a severance payment of EUR 3.5m. The severance payment 
is less than the contractually agreed cap of two times annual 
remuneration (EUR 5.12m) and is also less than he would have 
earned over the remaining 2.5 years of the service contract. 
The Company waived the post-contractual non-compete 
clause and is not obliged to pay compensation.
Mr Dirks is not entitled to the short-term and long-term  
variable remuneration for 2020 or to the long-term variable 
remuneration for 2019. 
However, Mr Dirks does retain his rights to the deferred  
portion of variable remuneration for 2018 (Deferral 2018, see 
comments on ↗ p. 259). He has deferred this until further 
notice. For the purposes of the ongoing LH-Performance 
programme, Mr Dirks will be treated as if he had fulfilled  
his employment contract until the original end date of  
30 April 2023.
The Company will make an annual contribution of EUR 450k 
– pro rata for 2020, i.e. until 30 June 2020 (EUR 225k) –  
for retirement benefits to Mr Dirks’ pension account. Existing 
internal rules for former Executive Board members apply to 
Mr Dirks’ use of concessionary private travel arrangements 
from the time of his departure.
LUFTHANSA GROUP ANNUAL REPORT 2020
267
REMUNERATION REPORT

BENEFITS PAID TO FORMER EXECUTIVE BOARD MEMBERS
Current payments and other benefits paid to former Executive 
Board members (not including the amounts for Ms Volkens 
and Mr Garnadt) and their surviving dependants came to 
EUR 5.2m in the reporting year (previous year: EUR 5.7m). 
This also includes non-cash benefits and concessionary 
travel. Pension obligations towards former Executive Board 
members and their surviving dependants amount to EUR 67.8m 
(previous year: EUR 69.1m).
In the reporting year, Karl Ulrich Garnadt, who left the  
Executive Board on 30 April 2017, received remuneration of 
EUR 180k from the Deferral 2017 (previous year: EUR 291k 
from the Deferral 2016) and payments of EUR 73k from the 
LH-Performance 2016 option programme (previous year: 
EUR 402k from LH-Performance 2015) .
Remuneration awarded and owed to Bettina Volkens in 
2020 is shown in table ↗ T202, p. 261ff., along with the 
remuneration for Executive Board members active in the 
reporting year. Ms Volkens left the Executive Board on  
31 December 2019. 
Disclosures on relative changes in Executive Board 
remuneration, the remuneration of the remaining workforce 
and Company profitability
The following table shows the relative change in remuneration 
awarded and owed in the respective financial year for the 
Executive Board members active in the reporting year, the 
remuneration of the remaining workforce and year-on-year 
changes in selected earnings indicators for the Lufthansa 
Group. In line with the presentation in table ↗ T202, p. 261ff., 
the remuneration of Executive Board members shown in  
the table represents the amounts awarded and due in the 
reporting year. 
Profitability is generally shown by reference to revenue and 
Adjusted EBIT for the Lufthansa Group. The latter is a key 
performance indicator for the Group and forms the basis  
for the financial targets in the variable remuneration of the 
Executive Board. 
For the presentation of average remuneration per full-time 
employee, the relevant workforce is deemed to be the 
employees of German Group companies in the Lufthansa 
collective bargaining group (without Lufthansa CityLine 
GmbH and Germanwings GmbH). The decline in employee 
remuneration is mainly due to short-time working measures 
and the corresponding decline in allowances included in 
basic pay (e.g. shift allowance, extra holiday allowance).
T206  DEVELOPMENT OF THE REMUNERATION OF THE EXECUTIVE 
BOARD IN RELATION TO THE REMUNERATION OF THE  
WORKFORCE AND THE COMPANY’S INCOME TAX TREND
In %
Change 2020
compared
with 2019  1) 
Executive Board  2)
 
Carsten Spohr
– 22.9 
Harry Hohmeister 
– 26.2 
Detlef Kayser 
– 11.9 
Thorsten Dirks (until 30 Jun 2020)  3)
– 45.8 
Ulrik Svensson (until 30 Apr 2020)
– 35.6 
Earnings indicators
 
Adjusted EBIT
– 369.1 
Revenue
– 62.7 
Workforce
 
Overall workforce in Germany
– 14.5 
Pay-scale staff in Germany
– 13.5 
1)	 Figures for Executive Board members and the workforce are based on remunera-
tion awarded and due in 2020 within the meaning of Section 162 Paragraph 1 Sen-
tence 1 AktG. The transitional rule defined in Section 26 of the Introductory Act to 
the German Stock Corporation Act was applied.
2)	Figures without Christina Foerster and Michael Niggemann, since both have 
only been members of the Executive Board since 1 January 2020 and therefore 
did not receive Executive Board remuneration in 2019.
3)	Not including severance payments.
Review of the appropriateness of  
Executive Board remuneration
The Supervisory Board also reviewed the amount and structure 
of Executive Board remuneration in 2020. It confirmed that 
Executive Board remuneration was appropriate, particularly 
given that Executive Board members voluntarily waived part 
of their basic salary and in view of the restrictions imposed 
by the WSF framework agreement.
When reviewing the appropriateness of Executive Board 
remuneration, the Supervisory Board also considers whether 
it is market-standard by examining the amount and structure 
of Executive Board remuneration at comparable companies. 
It also takes into account the relationship between Executive 
Board remuneration and that of senior executives and the 
workforce as a whole, including over time.
To determine whether it is appropriate and market-standard, 
the target and maximum remuneration are assessed on the 
basis of Deutsche Lufthansa AG’s position in a comparable 
market, as defined by reference to revenue, employees and 
market capitalisation. The comparable market consists of 
DAX and MDAX companies of a similar size as of the assess-
ment date.
LUFTHANSA GROUP ANNUAL REPORT 2020
268
REMUNERATION REPORT

For the vertical appropriateness review, the Supervisory Board 
looks at the remuneration of both senior executives and  
the workforce as a whole, with regard to the German Group 
companies in the Lufthansa collective bargaining group.
Remuneration of  
Supervisory Board members
STRUCTURE OF SUPERVISORY BOARD REMUNERATION
In accordance with the resolution taken at the Annual General 
Meeting on 8 May 2012, the members of the Supervisory 
Board have received only fixed remuneration since the financial 
year 2013. 
In accordance with Section 13 Paragraph 1 of the Articles  
of Association, for each financial year ordinary Supervisory 
Board members receive remuneration of EUR 80k. The Chair 
receives EUR 240k, and the Deputy Chair EUR 120k. The 
Chair of the Audit Committee receives an additional EUR 60k 
and other members of the Audit Committee receive an addi-
tional EUR 30k. Chairs of other committees receive an addi-
tional EUR 40k and other members of other committees 
receive an additional EUR 20k. Remuneration for committee 
work is subject to the proviso that the committee must have 
met at least once in the financial year.
If Supervisory Board members leave the Supervisory Board 
or a post in one of its committees for which additional remu-
neration is paid during the course of a financial year, they 
receive their remuneration pro rata temporis. Pro rata tempo-
ris remuneration for committee work is subject to the proviso 
that the committee must have met at least once before  
their departure.
Fixed remuneration and remuneration for committee work 
are due at the end of each financial year, attendance fees  
are due in principle at the end of each meeting. Supervisory 
Board remuneration and attendance fees for 2020 were paid 
in January 2021.
AMOUNT OF SUPERVISORY BOARD REMUNERATION
Expenses for fixed remuneration and work on Supervisory 
Board committees amounted to EUR 1,887k in the 2020 
financial year (previous year: EUR 2,170k). 
The following table shows the amounts paid to the individual 
Supervisory Board members and the relative change in total 
remuneration compared with the previous year. 
Other remuneration, mainly attendance fees, amounted to 
EUR 23k (previous year: EUR 62k) . The Deutsche Lufthansa AG 
Supervisory Board members were also paid EUR 16k for work 
on supervisory boards of Group companies (previous year: 
EUR 2k) .
All Supervisory Board members active in 2020 voluntarily 
waived 25% of their remuneration for the months of April to 
September 2020, as well as 25% of their attendance fees for 
the meeting in March and all further meetings from April to 
September 2020.
LUFTHANSA GROUP ANNUAL REPORT 2020
269
REMUNERATION REPORT

T207  REMUNERATION SUPERVISORY BOARD
 
2020
2019
Fixed  
remuneration 1) 
 
 
 
Remuneration  
for committee work 
 
 
 
Total 
Super­
visory 
Board  
remu­
neration
Fixed  
remuneration 1) 
 
 
 
Remuneration  
for committee work 
 
 
 
Total 
Super­
visory 
Board  
remu­
neration
Change 
2020 
com-
pared 
with
2019 2)
in €  
thousands
in %
in €  
thousands
in %
in €  
thousands
in €  
thousands
in %
in €  
thousands
in %
in €  
thousands
in %
Karl-Ludwig Kley
210
79.8
53
20.2
263
240
80.0
60
20.0
300
– 12.3
Christine Behle
105
85.4
18
14.6
123
120
85.7
20
14.3
140
– 12.1
Alexander Behrens
70
72.9
26
27.1
96
80
72.7
30
27.3
110
– 12.7
Jörg Cebulla
70
72.9
26
27.1
96
80
72.7
30
27.3
110
– 12.7
Erich Clementi  
(since 5 May 2020)
44
100.0
–
–
44
–
–
–
–
–
–
Thomas Enders  
(since 5 May 2020)
44
80.0
11
20.0
55
–
–
–
–
–
–
Herbert Hainer  
(until 5 May 2020)
26
66.7
13
33.3
39
80
66.7
40
33.3
120
– 67.5
Christian Hirsch  
(until 31 Dec 2020)
70
100.0
–
–
70
80
100.0
–
–
80
– 12.5
Jürgen Jennerke  
(since 8 Dec 2020)
5
100.0
–
–
5
–
–
–
–
–
–
Michael Kerkloh  
(since 2 Sep 2020)
25
75.8
8
24.2
33
–
–
–
–
–
–
Carsten Knobel
70
72.9
26
27.1
96
80
72.7
30
27.3
110
– 12.7
Holger Benjamin Koch
70
100.0
–
–
70
80
100.0
–
0.0
80
– 12.5
Martin Koehler  
(until 31 Aug 2020)
45
80.4
11
19.6
56
80
80.0
20
20.0
100
– 44.0
Harald Krüger  
(since 5 May 2020)
44
100.0
–
–
44
–
–
–
–
–
–
Martina Merz  
(until 5 May 2020)
26
100.0
–
–
26
80
100.0
–
–
80
– 67.5
Michael Nilles  
(until 5 May 2020)
26
100.0
–
–
26
80
100.0
–
–
80
– 67.5
Monika Ribar  
(until 31 Aug 2020)
45
72.6
17
27.4
62
80
72.7
30
27.3
110
– 43.6
Birgit Rohleder
70
100.0
–
–
70
80
100.0
–
–
80
– 12.5
Miriam Sapiro
70
100.0
–
–
70
80
100.0
–
–
80
– 12.5
Ilja Schulz
70
80.5
17
19.5
87
80
80.0
20
20.0
100
– 13.0
Astrid Stange  
(since 5 May 2020)
44
100.0
–
–
44
–
–
–
–
–
–
Olivia Stelz
70
100.0
–
–
70
80
100.0
–
–
80
– 12.5
Stephan Sturm
70
56.9
53
43.1
123
80
57.1
60
42.9
140
– 12.1
Angela Titzrath  
(since 2 Sep 2020)
25
100.0
–
–
25
–
–
–
–
–
–
Christina Weber  
(until 2 Dec 2020)
74
75.5
24
24.5
98
80
72.7
30
27.3
110
– 10.9
Klaus Winkler
70
100.0
–
–
70
80
100.0
–
–
80
– 12.5
Matthias Wissmann  
(until 5 May 2020)
26
100.0
–
–
26
80
100.0
–
–
80
– 67.5
Total
1,584
83.9
303
16.1
1,887
1,800
83
370
17.1
2,170
– 13.0
1)	 Including voluntary waiver of 25% of salary for the period from April to September 2020. 
2)	The relative proportions indicated here relate to the total Supervisory Board remuneration shown in the table.
LUFTHANSA GROUP ANNUAL REPORT 2020
270
REMUNERATION REPORT

FURTHER  
INFORMATION
272	 Independent Auditor’s Limited Assurance Report  
regarding the Non-Financial Statement 
274	 Report of the independent auditor on the audit  
of the remuneration report pursuant to Sec. 162 (3) AktG
275	 Ten-year overview
277	 Glossary
279	 Chart and table overview
282	 Credits/Contact 
	
Financial calendar 2021 and Disclaimer
LUFTHANSA GROUP ANNUAL REPORT 2020
271

Independent Auditor’s Limited Assurance Report
regarding the Non-Financial Statement 
To Deutsche Lufthansa Aktiengesellschaft, Köln
We have performed a limited assurance engagement on the 
Non-Financial Statement of Deutsche Lufthansa Aktiengesell­
schaft according to § 289b HGB (“Handelsgesetzbuch”: 
German Commercial Code), which is combined with the 
Non-Financial Statement of the Lufthansa Group according 
to § 315b HGB, also consisting of the chapter “Principles of 
the Group” in the combined management report of Deutsche 
Lufthansa Aktiengesellschaft being incorporated by reference, 
for the reporting period from 1 January 2020 to 31 December 
2020 (hereafter “Non-Financial Statement”). Our engagement 
did not include any disclosures for prior years and any refer-
ences to further information in the Non-Financial Statement. 
Management’s responsibility
The legal representatives of the Company are responsible for 
the preparation of the Non-Financial Statement in accordance 
with §§ 315c in conjunction with 289c to 289e HGB.
This responsibility includes the selection and application  
of appropriate methods to prepare the Non-Financial  
Statement as well as making assumptions and estimates 
related to individual disclosures, which are reasonable in  
the circumstances. Furthermore, the legal representatives 
are responsible for such internal controls that they have  
considered necessary to enable the preparation of a Non- 
Financial Statement that is free from material misstatement, 
whether due to fraud or error. 
Auditor’s declaration relating to independence  
and quality control
We are independent from the Company in accordance with 
the provisions under German commercial law and professional 
requirements, and we have fulfilled our other professional 
responsibilities in accordance with these requirements. 
Our audit firm applies the national statutory regulations and 
professional pronouncements for quality control, in particular 
the by-laws regulating the rights and duties of Wirtschafts-
prüfer and vereidigte Buchprüfer in the exercise of their pro-
fession [Berufssatzung für Wirtschaftsprüfer und vereidigte 
Buchprüfer] as well as the IDW Standard on Quality Control 1: 
Requirements for Quality Control in audit firms [IDW Qualitäts­
sicherungsstandard 1: Anforderungen an die Qualitätssiche­
rung in der Wirtschaftsprüferpraxis (IDW QS 1)].
Auditor’s responsibility
Our responsibility is to express a limited assurance conclusion 
on the Non-Financial Statement based on the assurance 
engagement we have performed.
We conducted our assurance engagement in accordance 
with the International Standard on Assurance Engagements 
(ISAE) 3000 (Revised): Assurance Engagements other than 
Audits or Reviews of Historical Financial Information, issued 
by the International Auditing and Assurance Standards Board 
(IAASB). This Standard requires that we plan and perform  
the assurance engagement to obtain limited assurance about 
whether the Non-Financial Statement of the Company has 
been prepared, in all material respects, in accordance with 
§§ 315c in conjunction with 289c to 289e HGB. In a limited 
assurance engagement, the assurance procedures are less  
in extent than for a reasonable assurance engagement and 
therefore a substantially lower level of assurance is obtained. 
The assurance procedures selected depend on the auditor’s 
professional judgment. 
Within the scope of our assurance engagement, which has 
been conducted mainly between October 2020 and March 
2021, we performed amongst others the following assurance 
and other procedures:
—	 Inquiries of employees regarding the selection of topics 
for the Non-Financial Statement, the risk assessment and 
the concepts of Deutsche Lufthansa Aktiengesellschaft 
and Lufthansa Group for the topics that have been identi-
fied as material,
—	 Inquiries of employees responsible for data capture and 
consolidation as well as the preparation of the Non-Finan-
cial Statement, to evaluate the reporting processes, the 
data capture and compilation methods as well as internal 
controls to the extent relevant for the assurance of disclo-
sures in the Non-Financial Statement, 
—	 Identification of likely risks of material misstatement in 
the Non-Financial Statement,
—	 Inspection of relevant documentation of the systems  
and processes for compiling, aggregating and validating 
data in the relevant areas in the reporting period, 
LUFTHANSA GROUP ANNUAL REPORT 2020
272
FURTHER INFORMATION
Independent Auditor’s Limited Assurance Report regarding the Non-Financial Statement

—	 Analytical evaluation of disclosures in the Non-Financial 
Statement at the level of the parent company and the group,
—	 Inquiries and inspection of documents on a sample basis 
relating to the collection and reporting of selected data and
—	 Evaluation of the presentation of disclosures in the 
Non-Financial Statement.
Assurance conclusion
Based on our assurance procedures performed and assurance 
evidence obtained, nothing has come to our attention that 
causes us to believe that the Non-Financial Statement of 
Deutsche Lufthansa Aktiengesellschaft and of Lufthansa 
Group for the period from 1 January 2020 to 31 December 
2020 has not been prepared, in all material respects, in 
accordance with §§ 315c in conjunction with 289c to 289e 
HGB. Our engagement did not include any disclosures for 
prior years and any references to further information in the 
Non-Financial Statement. 
Intended use of the assurance report
We issue this report on the basis of the engagement agreed 
with Deutsche Lufthansa Aktiengesellschaft. The assurance 
engagement has been performed for the purposes of the 
Company and the report is solely intended to inform the 
Company as to the results of the assurance engagement and 
must not be used for purposes other than those intended. 
The report is not intended to provide third parties with support 
in making (financial) decisions. 
Engagement terms and liability
The “General Engagement Terms for Wirtschaftsprüfer and 
Wirtschaftsprüfungsgesellschaften [German Public Auditors 
and Public Audit Firms]” dated 1 January 2017 are applicable 
to this engagement and also govern our relations with third 
parties in the context of this engagement (www.de.ey.com/
general-engagement-terms). In addition, please refer to  
the liability provisions contained there in no. 9 and to the 
exclusion of liability towards third parties. We assume no 
responsibility, liability or other obligations towards third parties 
unless we have concluded a written agreement to the contrary 
with the respective third party or liability cannot effectively 
be precluded. 
We make express reference to the fact that we do not update 
the assurance report to reflect events or circumstances  
arising after it was issued unless required to do so by law.  
It is the sole responsibility of anyone taking note of the result 
of our assurance engagement summarized in this assurance 
report to decide whether and in what way this result is useful 
or suitable for their purposes and to supplement, verify or 
update it by means of their own review procedures. 
Munich, 2 March 2021
Ernst & Young GmbH 
Wirtschaftsprüfungsgesellschaft
Nicole Richter	
	
Yvonne Meyer 
Wirtschaftsprüferin	
Wirtschaftsprüferin
(German Public Auditor)	
(German Public Auditor)
LUFTHANSA GROUP ANNUAL REPORT 2020
273
FURTHER INFORMATION
Independent Auditor’s Limited Assurance Report regarding the Non-Financial Statement

Report of the independent auditor
on the audit of the remuneration report  
pursuant to Sec. 162 (3) AktG  
[“Aktiengesetz”: German Stock Corporation Act]
To Deutsche Lufthansa Aktiengesellschaft
Opinion
We have audited the remuneration report of Deutsche 
Lufthansa Aktiengesellschaft, Cologne, for the fiscal year 
from 1 January to 31 December 2020 to formally verify 
whether the disclosures required by Sec. 162 (1) and (2) AktG 
[“Aktiengesetz”: German Stock Corporation Act] have been 
made. In accordance with Sec. 162 (3) AktG, we have not 
audited the content of the remuneration report.
In our opinion, the disclosures required by Sec. 162 (1) and (2) 
have been made in the attached remuneration report in all 
material respects. Our opinion does not cover the content of 
the remuneration report.
Basis for the opinion
We conducted our audit of the remuneration report in 
accordance with Sec. 162 (3) AktG with due regard to the 
Exposure Draft of IDW Auditing Standard: Audit of the 
Remuneration Report in Accordance with Sec. 162 (3) AktG 
(Draft IDW AsS 870). Our responsibilities under this provision 
and standard are further described in the “Auditor’s responsi-
bilities” section of our report. As an audit firm, we applied 
the standards set forth in IDW Standard on Quality Control: 
Requirements for Quality Control in Audit Firms (IDW QS 1). 
We have complied with the German professional responsibil-
ities in accordance with the WPO [“Wirtschaftsprüferordnung”: 
German Law Regulating the Profession of Wirtschaftsprüfer 
(German Public Auditors)] and the BS WP/vBP [“Berufs-
satzung für Wirtschaftsprüfer/vereidigte Buchprüfer”: Pro-
fessional Charter for German Public Accountants/German 
sworn auditors], including the independence requirements.
Responsibility of the Executive Board and Supervisory Board
The Executive Board and Supervisory Board are responsible 
for the preparation of the remuneration report and the related 
disclosures in compliance with the requirements of Sec. 162 
AktG. In addition, they are responsible for such internal control 
as they determine is necessary to enable the preparation of  
a remuneration report and the related disclosures that are free 
from material misstatement, whether due to fraud or error.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about 
whether the disclosures required by Sec. 162 (1) and (2) AktG 
are made in the remuneration report in all material respects 
and express an opinion on this in a report.
We planned and performed our audit so as to determine the 
formal completeness of the remuneration report by comparing 
the disclosures made in the remuneration report with the 
disclosures required by Sec. 162 (1) and (2) AktG. In accordance 
with Sec. 162 (3) AktG, we have not audited the accuracy  
of the content of the disclosures, the completeness of the 
content of the individual disclosures or the appropriate  
presentation of the remuneration report.
Consideration of misrepresentations
In connection with our audit, our responsibility is to read  
the remuneration report taking into account the knowledge 
obtained from the audit of the financial statements and, in so 
doing, remain alert for indications of whether the remuneration 
report contains misrepresentations in relation to the accuracy 
of the content of the disclosures, the completeness of the 
content of the individual disclosures or the appropriate pres-
entation of the remuneration report.
If, based on the work we have performed, we conclude that 
there is a misrepresentation, we are required to report that 
fact. We have nothing to report in this regard.
Eschborn/Frankfurt am Main, 2 March 2021
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
Prof. Dr. Sven Hayn	
Siegfried Keller
Wirtschaftsprüfer	 	
Wirtschaftsprüfer 
[German Public Auditor]	
[German Public Auditor]
LUFTHANSA GROUP ANNUAL REPORT 2020
274
FURTHER INFORMATION
Report of the independent auditor on the audit of the remuneration report pursuant to Sec. 162 (3) AktG

Ten-year overview
	
	
	
	
	
	
	
	
	
	
	
	
T208  TEN-YEAR OVERVIEW
 
 
2020
2019
20186)
20175)
2016
2015
20144)
2013 3)
2012 2)
2011
Income statement  
Lufthansa Group
 
 
 
 
 
 
 
 
 
 
 
Revenue
€m
13,589
36,424
35,542
35,579
31,660
32,056
30,011
30,027
30,135
28,734
Result
 
Adjusted EBITDA
€m
-2,890
4,718
5,016
5,009
3,338
 
 
 
 
 
Adjusted EBIT (since 2014)/ 
Operating result (until 2013)
€m
– 5,451
2,026
2,836
2,969
1,752
1,817
1,171
699
839
820
Adjusted EBIT margin (since 2014)/ 
Operating margin (until 2013)
%
– 40.1
5.6
8.0
8.3
5.5
5.7
3.9
2.3
2.8
2.9
EBIT
€m
– 7,353
1,857
2,974
3,297
2,275
1,676
1,000
936
1,668
734
Profit/loss before income taxes
€m
– 8,631
1,860
2,784
3,158
2,248
2,026
180
546
1,296
446
Income taxes
€m
1,865
– 615
– 588
– 784
– 445
– 304
– 105
– 220
– 91
– 157
Net profit/loss attributable  
to shareholders of  
Deutsche Lufthansa AG
€m
– 6,725
1,213
2,163
2,340
1,776
1,698
55
313
1,228
– 13
Main cost items
 
Staff costs
€m
6,436
9,121
8,811
8,172
7,354
8,075
7,335
7,356
6,741
6,678
Fees and charges
€m
1,796
4,523
4,457
6,357
5,736
5,651
5,265
5,167
5,167
5,000
Fuel for aircraft
€m
1,875
6,715
6,087
5,232
4,885
5,784
6,751
7,115
7,392
6,276
Depreciation, amortisation  
and impairment
€m
4,389
2,776
2,205
2,383
1,769
1,715
1,528
1,767
1,839
1,722
Net interest
€m
– 334
– 315
– 144
– 195
– 218
– 170
– 256
– 346
– 372
– 288
Balance sheet Lufthansa Group
 
 
 
 
 
 
 
 
 
 
 
Asset structure
 
Non-current assets
€m
29,444
31,374
27,559
24,749
24,504
23,526
22,227
19,419
18,782
18,627
Current assets
€m
10,040
11,285
10,654
11,029
10,193
8,936
8,247
9,689
9,777
9,454
	
of which liquid assets
€m
5,460
3,385
3,235
3,948
3,937
3,093
2,738
4,698
4,966
3,998
Capital structure
 
Shareholders’ equity 
€m
1,387
10,256
9,573
9,110
7,149
5,845
4,031
6,108
4,839
8,044
	
of which issued capital
€m
1,530
1,224
1,217
1,206
1,200
1,189
1,185
1,180
1,177
1,172
	
of which reserves
€m
6,542
7,710
6,083
5,461
4,084
2,881
2,728
4,563
2,374
6,790
Liabilities
€m
38,097
32,403
28,640
26,668
27,548
26,617
26,443
23,000
23,720
20,037
	
of which pension provisions
€m
9,531
6,659
5,865
5,116
8,364
6,626
7,231
4,718
5,844
2,165
	
of which borrowing
€m
15,368
10,030
6,685
6,814
6,575
6,370
5,958
6,337
6,910
6,424
Total assets
€m
39,484
42,659
38,213
35,778
34,697
32,462
30,474
29,108
28,559
28,081
Other financial data  
Lufthansa Group
 
 
 
 
 
 
 
 
 
 
 
Capital expenditure
€m
1,312
3,666
3,805
3,529
2,231
2,568
2,773
2,499
2,358
2,560
	
of which on tangible  
and intangible assets
€m
1,249
3,486
3,709
3,338
2,160
2,454
2,699
2,444
2,291
2,445
	
of which on financial  
investments
€m
63
180
96
191
71
114
74
55
67
115
Cash flow from  
operating activities
€m
– 2,328
4,030
4,109
5,368
3,246
3,393
1,977
3,290
2,842
2,356
(Adjusted) Free cash flow  1)
€m
– 3,669
203
288
2,117
1,138
834
– 297
1,307
1,397
713
Indebtedness
 
 
 
 
 
 
 
 
 
 
 
	
gross
€m
15,382
10,047
6,724
6,832
6,638
6,440
6,156
6,393
6,919
6,440
	
net
€m
9,922
6,662
3,489
2,884
2,701
3,347
3,418
1,695
1,953
2,328
Lufthansa share
 
 
 
 
 
 
 
 
 
 
 
Share price
€
10.82
16.41
19.70
30.72
12.27
14.57
13.83
15.42
14.24
9.19
Dividends proposed/paid
€m
–
–
380
377
234
232
–
207
–
114
Dividend per share proposed/paid
€
–
–
0.80
0.80
0.50
0.50
–
0.45
–
0.25
LUFTHANSA GROUP ANNUAL REPORT 2020
275
FURTHER INFORMATION
Ten-year overview

T208  TEN-YEAR OVERVIEW (continued)
 
 
2020
2019
20186)
20175)
2016
2015
20144)
2013 3)
2012 2)
2011
Operational ratios  
Lufthansa Group
 
 
 
 
 
 
 
 
 
 
 
Return on sales (Profit/loss 
before income taxes /revenue)
% 
– 63.5
5.1
7.8
8.9
7.1
6.3
0.6
1.8
4.3
1.6
Return on capital employed  
(Profit/loss before income taxes 
plus interest on liabilities/ 
total assets)
%
– 20.8
5.3
7.8
9.9
7.3
7.3
2.0
3.6
6.4
3.3
Return on equity  
(Profit/loss after income taxes/
shareholders’ equity)
% 
– 487.8
12.1
22.9
26.1
25.2
29.5
1.9
5.3
25.6
0.0
Return on equity  
(Profit/loss before income  
taxes /shareholders’ equity)
% 
– 622.3
18.1
29.1
34.7
31.4
34.7
4.5
8.9
26.8
5.5
Equity ratio (Shareholders’ 
equity /total assets) 
% 
3.5
24.0
25.1
25.5
20.6
18.0
13.2
21.0
16.9
28.6
Gearing (Net indebtedness  
plus pension provisions/ 
shareholders’ equity)
% 
1,402.5
129.9
97.7
87.8
154.8
170.6
264.2
105.0
161.1
55.9
Leverage (Net indebtedness/
total assets)
% 
25.1
15.6
9.1
8.1
7.8
10.3
11.2
5.8
6.8
8.3
Internal financing ratio  
(Cash flow/capital expenditure)
% 
– 177.4
109.9
108.0
152.1
145.5
132.1
71.3
131.7
120.5
92.0
Adjusted net debt/Adjusted 
EBITDA (since 2017) Debt  
repayment ratio (until 2016)
% 
– 6.6
2.8
1.8
1.5
28.7
30.7
20.8
37.0
34.4
49.7
Revenue efficiency  
(Cash flow/revenue)
% 
– 17.1
11.1
11.6
15.1
10.3
10.6
6.6
11.0
9.7
8.8
Adjusted ROCE (Adjusted EBIT  
plus interest on liquidity less 25% 
taxes)/average capital employed
%
– 16.7
6.6
10.6
11.9
7.0
8.3
5.4
 
 
 
Net working capital (Current 
assets less current liabilities) 
€bn
– 4.6
– 4.7
– 5.6
1.6
– 0.8
– 3.5
– 2.7
– 1.3
0.0
– 0.3
Non-current asset ratio  
(Non-current assets/total assets)
% 
74.6
73.5
72.1
69.2
70.6
72.5
72.9
66.7
65.8
66.3
Depreciation ratio for  
aircraft/reserve engines  
(Accumulated depreciation/ 
accumulated acquisition costs)
% 
55.9
50.7
51.7
52.5
49.7
51.6
51.4
52.6
54.2
54.4
Staff ratios
 
 
 
 
 
 
 
 
 
 
 
Average number of employees
number
125,207
137,784
134,330
128,856
123,287
119,559
118,973
117,414
118,368
119,084
Revenue/employee
€
108,532
264,356
264,587
276,114
256,799
268,119
252,251
255,736
254,587
241,292
Staff costs/revenue
% 
47.4
25.0
24.8
23.0
23.2
25.2
24.4
24.5
22.4
23.2
Traffic figures Lufthansa Group
 
 
 
 
 
 
 
 
 
 
 
Passengers
millions
36.4
145.3
141.9
129.3
109.7
107.7
106.0
104.6
103.6
100.6
Available seat-kilometres
millions
109,828
358,803
349,391
322,875
286,555
273,975
268,104
262,682
260,169
258,263
Revenue seat-kilometres
millions
69,462
296,217
284,639
261,149
226,639
220,396
214,643
209,649
205,015
200,376
Passenger load factor
%
63.2
82.6
81.5
80.9
79.1
80.4
80.1
79.8
78.8
77.6
Available cargo tonne-kilometres  millions
10,591
17,379
16,349
15,754
15,117
14,971
14,659
14,893
14,749
16,260
Revenue cargo tonne-kilometres
millions
7,373
10,664
10,896
10,819
10,071
9,930
10,249
10,285
10,240
10,861
Cargo load factor 
%
69.6
61.4
66.6
68.7
66.6
66.3
69.9
69.1
69.4
66.8
Number of flights 
number 
390,900
1,187,728
1,163,565
1,128,745
1,021,919
1,003,660
1,001,961
1,028,260
1,067,362
1,050,728
Aircraft in service
number 
757
763
763
728
617
600
615
622
627
696
1)	 Since 2018: Adjusted free cash flow, adjusted for the IFRS 16 effect.
2)	The figures for the financial year 2012 were adjusted retrospectively due to the application of the revised IAS 19.
3)	The figures for the financial year 2013 were adjusted retrospectively due to IFRS 11.
4)	The figures for the financial year 2014 were adjusted retrospectively due to the new reporting method.
5)	The figures for the financial year 2017 were adjusted retrospectively to reflect the restated capitalisation of engine maintenance events and IFRS 9.
6)	The figures for the financial year 2018 were adjusted retrospectively to reflect the restated compensation payments for flight cancellations and delays.
LUFTHANSA GROUP ANNUAL REPORT 2020
276
FURTHER INFORMATION
Ten-year overview

Glossary
Aviation terminology 
Hub  In air traffic a hub refers to an airline’s transfer airport, a 
central connecting point for different routes. Passengers and 
goods are transported from the original starting point to the 
airport’s hub. From there they are carried to their destination 
by a second flight alongside passengers and goods from 
other departure points.
IATA  International Air Transport Association – the inter­
national trade association for the airline industry.
Low-cost carrier  Low-cost carrier are airlines which offer 
largely low ticket prices but with reduced service levels and 
sometimes additional charges on board and on the ground. 
Flights are mostly from secondary airports outside the major 
cities (e. g. Hahn in the Hunsrück area outside Frankfurt).
MRO  Short for maintenance, repair and overhaul of aircraft.
Network Airlines  In contrast to low-cost carriers these  
airlines offer a wide-ranging, normally global route network 
via one or more hubs, with synchronised connecting flights.
Passenger-kilometre/tonne-kilometre  Standard output 
units for air transport. An available seat-kilometre (ASK) 
denotes one seat offered flown for one kilometre; a revenue 
passenger-kilometre (RPK) denotes one paying passenger 
transported for one kilometre. An offered tonne-kilometre 
(TKO) denotes the offered capacity equivalent of one tonne 
of load (passengers and/or cargo) for one kilometre; a revenue 
tonne-kilometre (RTK) denotes one tonne of load (passengers 
and/or cargo) transported one kilometre.
Passenger load factor/cargo load factor  Measure of 
capacity utilisation in per cent. The cargo load factor expresses 
the ratio of capacity sold to available capacity. The passenger 
load factor refers to passenger transportation and the cargo 
load factor to freight transport or total traffic.
Unit costs/unit revenues  Key performance indicator for air  
transport. Unit costs (CASK) denote the operating expenses 
divided by offered seat kilometres. Unit revenue (RASK) 
denotes the revenue divided by offered seat kilometres.
Yields  Average traffic revenue earned per unit of output; 
normally based on total passenger-kilometres or tonne-kilo-
metres sold, but they can also be calculated per unit of traffic 
volume, e. g. per passenger carried or per kilometre flown.
Financial terminology
Adjusted EBIT  Main earnings metric for the Company’s 
forecast. This relates to EBIT adjusted for asset valuations 
and disposals and for the measurement of pension provisions. 
Adjusted net debt/Adjusted EBITDA  Measure of the 
Group’s debt-servicing capacity. By using adjusted net debt, 
it also includes pension provisions as well as classic net 
indebtedness.
Call option  The right to purchase a specific underlying 
security within a specified period of time at an agreed price.
Cash flow  Measure of a company’s financial and earnings  
potential. It is calculated as the difference between the 
inflow and outflow of cash and cash equivalents generated 
from ongoing business activities during the financial year. 
Compliance  Institutionalised arrangements for ensuring 
that a company’s management and staff duly comply with  
all statutory provisions and prohibitions.
Deferred taxes  A balance sheet item used to show taxable  
and deductible temporary differences. Deferred taxes reflect 
the temporary differences between assets and liabilities  
recognised for financial reporting purposes and such amounts 
recognised for income tax purposes.
Directors’ dealings  Transactions by members of a company’s 
supervisory, executive or divisional boards, or their family 
members, involving shares in “their” company. 
Dividend yield  Indicator for assessing the profitability of an 
investment in shares. It is determined by dividing the dividend 
by the share price at the close of the reporting year and then 
multiplying it by 100.
EBIT  Financial indicator denoting earnings before interest 
and taxes. From financial year 2015 main earnings indicator. 
This is calculated from total operating income less operating 
expenses plus the result from equity investments.
LUFTHANSA GROUP ANNUAL REPORT 2020
277
FURTHER INFORMATION
Glossary

EBITDA  Financial indicator denoting earnings before interest, 
taxes, depreciation and amortisation. Depreciation relates to 
items of property, plant and equipment and amortisation  
to intangible assets – both terms apply equally to non-current 
and current assets. The figure also includes impairment losses 
on equity investments accounted for under the equity method 
and on assets held for sale.
Equity method  Accounting method for measuring income 
derived from a company’s investments in associated com­
panies and joint ventures. Under this method, investment 
income equals a share of net income proportional to the size 
of the equity investment.
Equity ratio  Financial indicator expressing the ratio of  
share­holders’ equity to total assets.
Free cash flow  Financial indicator expressing the cash flow  
from operating activities remaining in the reporting period 
after deducting net cash used for investing activities.
Free float  Shares of a company that are widely held and 
can be traded on the stock exchange without restrictions
Group of consolidated companies  Group of subsidiaries 
included in a company’s consolidated financial statements.
Impairment  Losses recognised on the carrying amount of 
assets. Impairment charges are recognised when an asset’s 
“recoverable value” (the higher of fair value less costs to sell 
and value in use) is below its carrying amount. By contrast, 
depreciation or amortisation is the systematic allocation of 
the depreciable amount of an asset over its useful life.
Jet fuel crack  Price difference between crude oil and  
kerosene.
Net indebtedness/net liquidity  Financial indicator denoting 
non-current borrowing less cash, cash equivalents and  
current securities.
Rating  A standardised measure used on international  
financial markets to judge and categorise a company’s  
creditworthiness. A rating can enable conclusions to be 
drawn about whether an issuer is capable of meeting in full 
its obligations under the terms of the issue.
Registered shares with transfer restrictions  Registered 
shares that may only be transferred with the approval of the 
company.
Return On Capital Employed – ROCE  Indicator of value 
creation. EBIT, to which interest income on liquidity has been 
added and taxes of 25% subtracted, is divided by the average 
capital employed. The resulting value reflects the relative 
return on the capital employed.
Return on sales  Financial indicator expressing the net profit 
before taxes in relation to sales revenue.
Total shareholder return  Financial indicator expressing  
the overall return that an investor earns from the increase in 
the market capitalisation or share price, plus the dividend 
payment. The total shareholder return is calculated from the 
share price at the close of the reporting year plus the dividend 
paid in respect of the previous year, multiplied by 100 and 
divided by the share price at the close of the previous year.
Trade working capital  Financial indicator for assessing a 
company’s liquidity, measured as the difference between its 
current assets and its current liabilities. 
Traffic revenue  Revenue generated solely from flight opera-
tions. It comprises revenue from transporting passengers 
and cargo as well as related ancillary services.
Weighted Average Cost of Capital – WACC  The average 
return required on the capital employed at a company. The 
return on capital is calculated using the weighted average 
return required for both debt and equity.
Wet lease  Lease of an aircraft from another airline,  
including its cockpit and cabin crew as well as maintenance 
and insurance.
LUFTHANSA GROUP ANNUAL REPORT 2020
278
FURTHER INFORMATION
Glossary

Chart and table overview
Chart
Lufthansa share
C01  Performance of the Lufthansa share
11
C02  Analysts’ recommendations
12
C03  Shareholder structure by nationality
12
Principles of the Group
C04  Lufthansa Group structure
16
C05  Financial strategy
21
C06  Number of employees
29
C07  Employees by business segments
29
C08  Employees by region
29
Economic report
C09  Price development of crude oil and kerosene
33
C10  Business segments’ share of Group external revenue
38
C11  Development of revenue, Adjusted EBIT 
and Adjusted EBIT margin
40
C12  Primary, secondary and financial investments
42
C13  Cash flow and capital expenditure
43
C14  Overview stabilisation measures
43
C15  Maturity profile of borrowings
45
C16  Balance sheet structure
47 
Business segments
C17  Network Airlines: Development of revenue,  
Adjusted EBIT and Adjusted EBIT margin
54
C18  Eurowings: Development of revenue,  
Adjusted EBIT and Adjusted EBIT margin
61
C19  Logistics: Development of revenue,  
Adjusted EBIT and Adjusted EBIT margin
64
C20  MRO: Development of revenue,  
Adjusted EBIT and Adjusted EBIT margin
66
C21  Catering: Development of revenue,  
Adjusted EBIT and Adjusted EBIT margin
69
Opportunities and risk report
C22  Risk management in the Lufthansa Group
71
C23  Lufthansa risk evaluation for qualitative  
and quantitative risks
73
C24  Hedged oil price Lufthansa Group 2021
79
Combined non-financial declaration
C25  Sustainability ratings
87
C26  Aspects, issues and performance indicators
88
C27  The four pillars for climate protection
91
C28  Active noise abatement
95
C29  Core elements of human rights due diligence
110
Forecast
C30  Development of sector net result
119
Corporate Governance
C31  Supervisory Board Committees
124
Remuneration report
C32  Annual bonus 2020: Sustainability target “Customer”
254
C33  Annual bonus 2020: Sustainability target “Employee”
254
C34  LTI 2020: Target achievement Adjusted ROCE
257
C35  LTI 2020: Target achievement Relative  
Total Shareholder Return
257
C36  LTI 2020: Target achievement sustainability target
257
Table
Key figures
T001  Key figures Lufthansa Group
2
T002  Network Airlines
3
T003  Eurowings
3
T004  Logistics
3
T005  MRO
3
T006  Catering
3
Lufthansa share
T007  The Lufthansa share: key figures
12
T008  The lufthansa share: data
13
Principles of the Group
T009  Calculation of Adjusted ROCE and cost of capital
22
T010  Development of ratings
24
T011  Adjusted net debt/Adjusted EBITDA
24
T012  Group fleet – Number of commercial aircraft
25
T013  Fleet orders Lufthansa Group
26
Economic report
T014  GDP development
32
T015  Currency development
32
T016  Interest rate development
32
T017  Sales performance in the airline industry 2020
34
T018  Earnings development in the airline industry
34
T019  Revenue and income
38
T020  Expenses
39
T021  Reconciliation of results
40
T022  Profit breakdown of the Lufthansa Group
41
T023  Abbreviated cash flow statement of the Lufthansa Group
46
T024  Development of earnings, equity,  
equity ratio and return on equity
47
T025  Calculation of net indebtedness
48
T026  Development of significant KPIs
50
Business segments
T027  Key figures Network Airlines
51
T028  Trends in traffic regions Network Airlines
53
T029  Traffic figures Network Airlines
53
T030  Operating figures Network Airlines
53
T031  Operating Expenses Network Airlines
54
T032  Key figures Lufthansa German Airlines
54
T033  Key figures SWISS
56
T034  Key figures Austrian Airlines
57
T035  Key figures Brussels Airlines
58
T036  Key figures Eurowings
59
T037  Traffic figures Eurowings
60
T038  Operating figures Eurowings
60
T039  Operating expenses Eurowings
61
T040  Key figures Logistics
62
T041  Traffic figures and operating figures Logistics
63
T042  Trends in traffic regions Lufthansa Cargo
63
T043  Operating expenses Logistics
64
T044  Key figures MRO
65
T045  Operating expenses MRO
66
T046  Key figures Catering
67
T047  Operating expenses Catering
68
T048  Key figures Additional Businesses and Group Functions
69
Opportunities and risk report
T049  Top risks Lufthansa Group
74
Combined non-financial declaration
T050  GRI Content Index
115
T051  Sustainable Development Goals (SDG)
116
LUFTHANSA GROUP ANNUAL REPORT 2020
279
FURTHER INFORMATION
Chart and table overview

Forecast
T052  GPD development forecast 2020 to 2024  
compared with the previous year
118
Notes to the individual financial statements
T053  Trends in traffic regions of Deutsche Lufthansa AG
129
T054  Income statement for Deutsche Lufthansa AG  
in accordance with HGB
130
T055  Balance sheet for Deutsche Lufthansa AG  
in accordance with HGB
131
Consolidated financial statements
T056  Consolidated income statement
134
T057  Statement of comprehensive income
135
T058  Consolidated statement of financial position –  
Assets
136
T059  Consolidated statement of financial position –  
Shareholders’ equity and liabilities
137
T060  Consolidated statement of changes  
in shareholders’ equity
138
T061  Consolidated cash flow statement
139

General remarks
T062  IFRS-pronouncement  
(applicable from financial year 2020)
143
T063  IFRS-pronouncement (adopted by the EU)
144
T064  IFRS-pronouncement (not yet endorsed by the EU)
144
T065  Exchange rates
149
T066  Useful lives of property, plant and equipment
149
Notes to the consolidated income statement
T067  Traffic revenue by sector 2019/2020
157
T068  Other operating revenue by  
area of operations 2019/2020
158
T069  Changes in inventories and work performed  
by entity and capitalised
159
T070  Other operating income
159
T071  Contractual lease payments (Lessor)
159
T072  Cost of materials and services
160
T073  Staff costs
160
T074  Employees
160
T075  Depreciation, amortisation and impairment
160
T076  Other operating expenses
161
T077  Result from equity investments
162
T078  Net interest
162
T079  Other financial items
162
T080  Income taxes
163
T081  Tax reconciliation
163
T082  Deferred tax assets and liabilities
164
T083  Limits on the use of non-capitalised loss carry-forwards
164
T084  Earnings per share
164
Notes to the consolidated statement of financial position
T085  Goodwill and intangible assets  
with an indefinite useful life
165
T086  Impairment tests of goodwill 2019/2020
166
T087  Impairment tests of slots 2019/2020
167
T088  Impairment tests of brands 2019/2020
168
T089  Other intangible assets
169
T090  Aircraft and reserve engines  
including right-of-use assets
170
T091  Notes on repairable spare parts for aircraft
171
T092  Property, plant and other equipment  
including right-of-use assets
171
T093  Orders of property, plant and equipment  
as of the reporting date
172
T094  Right-of-use assets
172
T095  Lease expenses recognised in profit or loss
173
T096  Disclosures on renewal options and  
variable lease payments 2019/2020
173
T097  Cash outflows for leases
174
T098  Equity investments accounted for  
using the equity method
174
T099  Balance sheet data Günes Ekspres Havacilik  
Anonim Sirketi (SunExpress), Antalya, Turkey
175
T100  Income statement data Günes Ekspres Havacilik  
Anonim Sirketi (SunExpress), Antalya, Turkey
175
T101  Balance sheet data Terminal 2 Gesellschaft  
mbH & Co. oHG, Munich Airport, Germany
175
T102  Income statement data Terminal 2 Gesellschaft  
mbH & Co. oHG, Munich Airport, Germany
175
T103  Income statements data and carrying amounts  
of joint ventures accounted  
for using the equity method
176
T104  Income statements data and carrying amounts  
of associated companies accounted  
for using the equity method
176
T105  Other equity investments and non-current securities
176
T106  Non-current loans and receivables
176
T107  Inventories
176
T108  Contract assets
177
T109  Trade receivables and other receivables
177
T110  Assets and liabilities in the disposal group  
“European business operations of the LSG group”  
after consolidation as of 31 December 2019  
and other receivables
178
T111  Equity and liabilities
179
T112  Notes on other comprehensive income
179
T113  Note on income taxes recognised for  
other comprehensive income
180
T114  Defined-benefit retirement commitments
183
T115  Reconciliation funding status
183
T116  Change in present value of pension obligations
183
T117  Change in fair value of plan assets
184
T118  Pension provisions
184
T119  Expenses and income for defined-benefit pension plans
184
T120  Main actuarial assumptions for German companies
185
T121  Main actuarial assumptions for foreign companies
185
T122  Change in actuarial assumptions, as of 2019/2020
185
T123  Composition of plan assets
187
T124  Forecast maturities of undiscounted  
pension payments, as of 2019/2020
188
T125  Non-current and current other provisions
188
T126  Funding status
188
T127  Changes in other provisions 2019/2020
189
T128  Cash outflows for non-current provisions,  
as of 2019/2020
190
T129  Financial liabilities 31 Dec 2019/31 Dec 2020
191
T130  Maturity analysis of lease liabilities
191
T131  Non-current contract liabilities
191
T132  Non-current advance payments received,  
deferred income and other non-financial liabilities
192
T133  Outperformance option – Overview
192
T134  Performance option – Performance targets
192
T135  Performance option – Payment amounts
192
T136  Relative TSR – Performance and payment  
programme 2019
193
T137  Change in number of options
193
T138  Fair value of option rights  
as of 31 Dec 2019/31 Dec 2020
194
T139  Reference price
195
T140  Projected volatilities
195
T141  Contract liabilities
196
T142  Trade payables and other current financial liabilities
197
T143  Current advance payments received,  
deferred income and other non-financial liabilities
197
LUFTHANSA GROUP ANNUAL REPORT 2020
280
FURTHER INFORMATION
Chart and table overview

Notes to the segment reporting
T144  Segment information for the  
reporting segments 2019/2020
199
T145  External revenue and non-current assets  
by region for 2019/2020
201
T146  External revenue and non-current assets  
by countries for 2019/2020
201
Notes to the consolidated cash flow statement
T147  Significant non-cash income and expenses
203
T148  Financial liabilities 2019/2020
204
Other disclosures
T149  Financial assets in the balance sheet  
as of 31 Dec 2019/as of 31 Dec 2020
205
T150  Financial liabalities in the balance sheet  
as of 31 Dec 2019/as of 31 Dec 2020
206
T151  Net result 2019/2020 for financial assets  
and liabilities by measurement category
207
T152  Financial liabilities
207
T153  Fair value hierarchy of assets  
as of 31 Dec 2019/as of 31 Dec 2020
208
T154  Fair value hierarchy of liabilities  
as of 31 Dec 2019/as of 31 Dec 2020
208
T155  Netting of financial assets  
as of 31 Dec 2019/as of 31 Dec 2020
209
T156  Netting of financial liabilities  
as of 31 Dec 2019/as of 31 Dec 2020
209
T157  Currency exposure, as of 2020
210
T158  USD investment exposure, hedged in EUR
210
T159  Sensitivity analysis by currency
211
T160  Interest rate exposure after hedging
211
T161  Nominal volume of interest rate hedges
211
T162  Sensitivity analysis by interest rate
211
T163  Nominal volume of floating rate financial  
instruments in hedging relationships
212
T164  Fuel exposure
212
T165  Sensitivity analysis by fuel price
212
T166  Derivative financial instruments used for hedging  
as of 31 Dec 2019/as of 31 Dec 2020
213 
T167  Designated hedged items in  
hedging relationships 2019/2020
215
T168  Statement of equity reconciliation  
for cash flow hedges 2019/2020
215
T169  Maturity analysis of liabilities from  
derivative financial instruments
216
T170  Maturity analysis of liabilities from  
non-derivative financial instruments
217
T171  Statement of risk provisions 2019/2020
218
T172  Impairment matrix for trade receivables 2019/2020
219
T173  Concentration of credit risk from  
credit card receivables
219
T174  Securities ratings – Debt instruments
220
T175  Contingent liabilities
220
T176  Auditors’ fees
222
T177  Additional auditors’ fees
222
Composition of the Group
T178  Changes in the group of consolidated companies  
from 1 Jan 2020 to 31 Dec 2020
224
T179  Use of exemption provisions
225
T180  Volume of significant services  
provided to or by related parties
226
T181  Receivables from affiliated companies
227
T182  Liabilities to affiliated companies
227
T183  Executive Board remuneration (IFRS)
228
T184  Major subsidiaries as of 31 Dec 2020
229
T185  Major joint ventures as of 31 Dec 2020
235
T186  Joint operations as of 31 Dec 2020
235
T187  Major associated companies as of 31 Dec 2020
235
T188  Miscellaneous equity investments as of 31 Dec 2020
236
Remuneration report
T189  Overview of changes to the system of  
Executive Board remuneration
251
T190  Executive Board remuneration system 2020
253
T191  Annual Bonus 2020: target achievement  
sustainability targets
255
T192  Individual performance targets 2020
255
T193  Overarching targets for the entire 
Executive Board 2020
256
T194  Amount of annual bonus 2020
256
T195  Contingent share allocation LTI 2020
256
T196  Achievement of environmental target in LTI 2019  
Annual reduction in CO₂ emissions
258
T197  Performance of LTI share programmes
258
T198  Amount of Deferral 2018
259
T199  Share option programme 2016: target achievement
259
T200  LH-performance programme
260
T201  Performance of LH-performance programme
260
T202  Awarded and granted benefits (Paid)
261
T203  Contractual benefits
263
T204  Pension entitlements according to HGB and IFRS
265
T205  Shareholdings of current Executive Board members
266
T206  Development of the remuneration of the  
Executive Board in relation to the remuneration of the  
workforce and the company’s income tax trend
268
T207  Remuneration Supervisory Board
270
Further information
T208  Ten-year overview
276
LUFTHANSA GROUP ANNUAL REPORT 2020
281
FURTHER INFORMATION
Chart and table overview

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
Dennis Weber (Editor) 
Patrick Winter 
Pauline Rau
Photos
Oliver Rösler, Rödermark, Germany
oro photography 
Stephan Zirwes Photography, Stuttgart, Germany
Concept, design and realisation
HGB Hamburger Geschäfts­berichte GmbH & Co. KG,  
Hamburg, Germany
Translation by
EnglishBusiness AG, Hamburg, Germany
Character references
↗  Cross references
  Internet references
Contact
Dennis Weber
+ 49 69 696 – 28001
Svenja Lang
+ 49 69 696 – 28025
Deutsche Lufthansa AG
Investor Relations
LAC, Airportring
60546 Frankfurt / Main
Germany
Phone:	
+ 49 69 696 – 28001
Fax:	
+ 49 69 696 – 90990
E-mail: investor.relations@dlh.de
The latest financial information on the internet:
  www.lufthansagroup.com/investor-relations
Financial calendar 2021
4. Mar	
Release of Annual Report 2020
29. Apr 	
Release of Interim Report January – March 2021
4. May	
Annual General Meeting
5. Aug	
Release of Interim Report January – June 2021
3. Nov	
Release of Interim Report January – September 2021
Disclaimer in respect of forward-looking statements 
Information published in the Annual Report 2020, 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.
LUFTHANSA GROUP ANNUAL REPORT 2020
282

Deutsche Lufthansa AG
Investor Relations
Lufthansa Aviation Center
Airportring
60546 Frankfurt/Main
Germany
Investor.relations@dlh.de
lufthansagroup.com
lufthansagroup.com/investor-relations
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