Strategy
ESRS 2 SBM-2 – Interests and views of stakeholders
Customer perspectives, interests and rights are integrated into the development of the Lufthansa Group’s business model through feedback on its products and services. Based on this input, the product portfolio is continuously adapted in close consultation with customers. Adjustments are tested and reviewed in the designated Co-Creation Hub. This allows customers to play an active role in shaping and refining products. Decisions made on this basis also influence the development of Lufthansa Group’s strategy and the setting of key priorities. Accordingly, the Lufthansa Group aligns its strategy and business model with customer feedback, customer behaviour and technological advancements. ↗ ESRS 2 SBM-2 – Interests and views of stakeholders.
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
The Lufthansa Group aims to uphold personality rights, security and the protection of personal data for all customers, while also taking individual needs into account, such as those of children, individuals with reduced mobility or leisure travellers.
The Lufthansa Group has identified potential negative impacts associated with certain products and services that could affect health and safety. These include catering services and potential malfunctions of products or services.
To mitigate safety risks related to products or services, the Lufthansa Group provides an internal procedures manual. This manual specifically addresses compliance with internal codes of conduct and procedures related to health and safety, personal security and child protection. Through these measures, the Lufthansa Group aims to ensure the responsible use of its products and services while establishing standards for all employees.
The Lufthansa Group sees significant opportunities in aligning its business model with customer preferences to gain competitive advantages. These include incorporating customer feedback into improvements, establishing loyalty programmes and generating demand for business-class travel among leisure travellers.
Through the introduction and sale of Green Fares and Sustainable Choice offerings at Lufthansa Cargo, the Lufthansa Group also sees an opportunity to gain an edge over competitors that do not offer comparable ticket options or additional purchasable product add-ons. Green Fares and Sustainable Choice enable Lufthansa Group customers to offset the calculated carbon emissions of their flights.
Data protection, privacy and security are customer benefits
As the foundation of a trusted business relationship, the Lufthansa Group is committed to protecting the personal data of its customers. Failure to comply with data protection laws, such as the General Data Protection Regulation (GDPR), and endangering customer security are considered potential risks, as they could lead to fines, penalties and reputational damage. The Lufthansa Group also acknowledges a growing risk of cyberattacks due to increasing digitalisation.
Opportunities arise from trust-based business relationships built on strong data protection practices, leading to enhanced customer satisfaction. Through its information security management system, which operates within the framework of the Group's data protection policy, the Lufthansa Group aims to ensure the systematic and sustainable protection of information while balancing operational and economic considerations. The goal is to safeguard information against manipulation, unauthorised access and loss while maintaining a robust level of security. The required degree of information security depends on the sensitivity of the data being processed and, while taking economic efficiency into account, on the availability of future-proof technologies.
Lufthansa Group is committed to protecting customer health and safety
The Lufthansa Group recognises that its products and services may pose risks to the health and safety of its customers across all customer groups. Identified risks could arise from inadequate maintenance, in-flight catering or hygiene standards. The Lufthansa Group considers global pandemics and disease outbreaks to be potential risks, as these can affect passenger numbers and require enhanced health protocols on aircraft. The Company considers the introduction and enforcement of stringent health and safety standards, coupled with clear communication, as an opportunity and a means of improving trust among passengers. These measures contribute to customer loyalty by ensuring that passengers feel safe and well-informed.
Lufthansa Group pursues responsible marketing practices and product information
Marketing activities present risks for the Lufthansa Group when misleading advertisements or inaccessible product information undermine customer trust or lead to legal liability and compensation claims. The Company is therefore committed to ensuring that its product claims and product information are truthful and not misleading, minimising the risk of lawsuits and associated reputational damage.
Lufthansa Group supports families and people with disabilities
The Lufthansa Group acknowledges both risks and opportunities related to serving families and people with disabilities. While rising operational costs due to evolving global regulations governing the protection of these groups present a risk, opportunities exist in the positive societal impact of offering tailored services.
The Lufthansa Group recognises that families travelling with infants and young children face unique challenges. To address this, the Lufthansa Group provides special safety measures on board, such as specialised seat belts and seats equipped with additional oxygen masks. For unaccompanied minors, the Lufthansa Group offers additional care services to support their safety and well-being during flights.
To further support families, particularly those with young children, Lufthansa Passenger Airlines provides family-friendly services, such as priority boarding for families, in-flight entertainment for children and special meal options. These services enhance child safety while also improving the overall travel experience for families with small children, increasing customer satisfaction.
To improve accessibility for people with disabilities, the Lufthansa Group offers additional assistance beyond the standard passenger processes. This includes special support during boarding and enhanced access to digital information on websites and mobile apps. The introduction of accessible user interfaces, larger font sizes, higher screen contrast and simplified navigation makes the apps easier to use.
Opportunities and risks in thoughtful product design
The Lufthansa Group recognises that the design of its products and services can have both negative impacts and associated risks, as well as opportunities. In the premium segment, for example, high prices for flights and services of the Lufthansa Group may be unaffordable for disadvantaged individuals, potentially excluding them, which has a negative impact. At the same time, premium offerings and the associated limited accessibility and affordability for certain customer groups present financial risks, such as revenue loss and reputational damage. Passengers with limited mobility or special needs may also be affected by negative impacts. Significant impacts arise from potential service gaps for these passengers, such as difficulties faced with regard to airport accessibility or boarding and disembarking. The Lufthansa Group offers a variety of travel classes and service packages to accommodate different needs. For passengers affected by delays, the Lufthansa Group provides services such as rebooking options and hotel accommodation. Any shortcomings along the customer journey are identified through Passenger Satisfaction Tracking (PST).
When designing its products, the Lufthansa Group acknowledges that environmentally conscious consumers are increasingly concerned about climate change and expect more sustainable business travel options. These customers are highly sensitive to companies’ environmental footprints and prioritise sustainable alternatives when choosing their means of transport. For the Lufthansa Group, it is therefore of relevance to understand how strongly these consumers are influenced by environmental concerns and how climate change affects their decision-making patterns. This includes concerns about carbon emissions and the overall environmental impact of air travel. In response, the Lufthansa Group provides customers with information on the carbon emissions of individual flights. The Company is working to better understand these needs and concerns in order to derive targeted measures to reduce its own environmental impact. This includes offerings such as Green Fare tickets and the Sustainable Choice product add-on option from Lufthansa Cargo.
Capital expenditure in digital products and services also presents opportunities for improving the customer experience and product design. Examples include AI-powered customer service, automatic flight rebooking and data-driven personalisation.