Adjusted EBIT

Main earnings metric for the Company’s forecast. This relates to EBIT (earnings before interest and taxes) adjusted by non-recurring, non-operating effects.

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.


Institutionalised arrangements for ensuring that a company’s management and staff duly comply with all statutory provisions and prohibitions.

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.


Average traffic revenue generated per unit of output. Based on total seat/passenger-kilometres or tonne-kilometres sold, but they can also be calculated per unit of traffic volume, e. g. per passenger carried or per kilometre flown.


Financial indicator denoting earnings before interest and taxes. This is calculated from total operating income less operating expenses plus the result from equity investments.


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 ratio

Financial indicator expressing the ratio of shareholders’ equity to total assets.

Equity method

Accounting method for measuring income derived from a company’s investments in associated companies and joint ventures. Under this method, investment income equals a share of net income proportional to the size of the equity investment.

Free cash flow

Financial indicator expressing the operating cash flow remaining in the reporting period after deducting net cash used for investing activities.


In the aviation industry 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.


International Air Transport Association – the international trade association for the airline industry.

Jet fuel crack

Price difference between crude oil and kerosene.

Group of consolidated companies

Group of subsidiaries included in a company's consolidated financial statements.

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.

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).

Net indebtedness / net liquidity

Financial indicator denoting non-current borrowing less cash, cash equivalents and current securities.


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.


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.

Return On Capital Employed – ROCE

Parameter for measuring 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.

Seat-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 for 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 cargo transport or total traffic.

Free float

Shares of a company that are widely held and can be traded on the stock exchange without restrictions.

Unit costs / unit revenues

Key performance indicator for air transport. Unit costs (CASK) denote the operating expenses divided by available seat-kilometres. Unit revenue (RASK) denotes the revenue divided by available seat-kilometres.

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. 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.

Return on sales

Financial indicator expressing the net profit before taxes in relation to sales revenue.

Traffic revenue

Revenue generated solely from flight operations. It comprises revenue from transporting passengers and cargo as well as related ancillary services.

Registered shares with transfer restrictions

Registered shares that may only be transferred with the approval of the company.

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.

Impairment charges

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.

Wet lease

Leasing of an aircraft from another airline, including its cockpit and cabin crews as well as maintenance and insurance.

Lufthansa Group Annual Report 2023