Overall statement on opportunities and risks

The Lufthansa Group reported a significant recovery in demand in financial year 2023. The Lufthansa Group Passenger Airlines were able to expand their capacity further as a result and significantly improve their earnings compared with the previous year. The recovery is expected to continue in 2024. The good business performance had a positive impact on liquidity. An additional instrument for forward-looking identification and management of liquidity risks is the continuous reporting of risk-bearing capacity. Higher demand also means a stabilisation of earnings risks.

On the other hand, geopolitical conflicts, resource and supply-chain bottlenecks and economic developments have caused certain risks to increase.

In this challenging environment, 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 Executive Board of Deutsche Lufthansa AG is not aware of any material or systemic matters that are inconsistent with the suitability and effectiveness of risk management as a whole. However, it must be remembered that, irrespective of the design, risk management cannot provide absolute assurance. The Executive Board continues to strive for a balance between opportunities and risks.