Overall statement by the Executive Board on the expected development of the Lufthansa Group

The market environment for the Lufthansa Group will remain challenging in 2024. Global economic growth is only expected to be subdued. Inflation will remain above the levels targeted by the world’s central banks. Interest rate increases in 2023 are expected to have a mitigating effect, but this will also negatively impact demand.

Despite this, people still have a great desire to travel. We are therefore expecting a further increase in demand for flights in 2024, which will support our operating and financial performance.

We have adapted well to the structural changes in the market environment. We have cut our structural costs and strengthened our balance sheet, which is also reflected in the positive changes to our credit ratings. We are therefore well positioned in 2024 to continue the previous year’s positive development and to set the Company up successfully for long-term profitable growth. For 2024 we anticipate that Adjusted EBIT will be at the
same level as the previous year, without losing sight of our target of an Adjusted EBIT margin of at least 8%.

The outlook for the Company nonetheless remains subject to uncertainty.
The Russian war of aggression in Ukraine and the Middle East conflict are a material risk for the Lufthansa Group’s business. There is also uncertainty about the steps that will be taken by central banks and their impact on inflation and the economic cycle.

Based on the forecast developments for 2024, the Executive Board is convinced that the Company’s liquidity at year-end 2023 and the ongoing measures to boost efficiency and transform the Lufthansa Group will secure the company’s existence beyond the forecast period, even if its actual performance falls short of the forecast presented in this report.