Significant events
Moody’s raises rating for Deutsche Lufthansa AG to investment grade
The rating agency Moody’s lifted its rating for Deutsche Lufthansa AG from Ba1 to the investment grade Baa3 on 18 January 2024. According to Moody’s, the upgrade was based on the positive trend in operating profitability at the Lufthansa Group, which had improved significantly in 2023.
The upgrade by Moody’s means that Deutsche Lufthansa AG is again rated investment grade by all the leading rating agencies. ↗ Financial strategy and value-based management.
Lufthansa Group again receives top scores in ESG ratings
The Lufthansa Group received positive ratings for its ESG performance from several rating agencies once more in 2024.
In the reporting year, the internationally recognised US rating agency MSCI once again analysed sustainability management at the Lufthansa Group, and the Group’s MSCI ESG rating of AA is significantly above the average for the sector for the third year in a row.
In the ISS ESG Corporate Rating 2024 the Lufthansa Group was again given Prime Status with a C+, one of just two airlines to receive this accolade.
In addition, at the start of 2024, the 2023 global climate ranking compiled by the non-profit organisation CDP (previously known as the Carbon Disclosure Project) awarded the Lufthansa Group the top rating of A- for its carbon reduction strategy and its implementation of that strategy, matching the previous year’s rating. ↗ Combined non-financial declaration.
Restructuring of the Executive Board of Deutsche Lufthansa AG
The Supervisory Board of Deutsche Lufthansa AG voted to carry out a wide-ranging reorganisation of the Executive Board at its meeting on 22 February 2024, which was implemented in the reporting year. The Executive Board was reduced from six to five members and responsibilities were redistributed.
Christina Foerster, Harry Hohmeister and Detlef Kayser left the Executive Board as of 30 June 2024, and Remco Steenbergen left the Executive Board at the close of 7 May 2024, the date of the Annual General Meeting.
New members Grazia Vittadini and Dieter Vranckx were appointed to the Executive Board as of 1 July 2024.
Grazia Vittadini was previously at Rolls-Royce Holdings plc, London, as Chief Technology Officer and Member of the Executive Team, most recently active as a special consultant. She has taken charge of the MRO & IT function as Chief Technology Officer, which also includes responsibility for sustainability; she has received a contract with a term of three years.
Dieter Vranckx, previously CEO of SWISS International Airlines, was appointed Chief Commercial Officer and heads the new Global Markets & Commercial Management Hubs function, which comprises Commercial Customer Offer, Sales & Distribution, Customer Journey, Digital Customer Solutions and Group Brand Portfolio. His contract will also run for three years.
On 6 May 2024, the Supervisory Board of Deutsche Lufthansa AG appointed Till Streichert to the Executive Board of the Company. He took charge of Finance with effect as of 15 September 2024. Till Streichert, previously CFO of the Amadeus IT Group in Madrid, has been awarded a contract with a term of three years. ↗ Business activities and Group structure.
Deutsche Lufthansa AG signs significant wage and collective agreements
Deutsche Lufthansa AG signed a number of significant new pay settlements in 2024.
On 28 March 2024, the Employers’ Federation for Air Transport Companies (AGVL) and the trade union Vereinigte Dienstleistungsgewerkschaft e. V. (ver.di) reached a wage agreement for the approximately 20,000 ground staff of Deutsche Lufthansa AG, Lufthansa Technik, Lufthansa Cargo and other companies following successful arbitration. The wage agreement has a term of at least 24 months and offers, in particular, mean wage increases of up to 12.5% in two phases as well as the payment of inflation compensation bonuses totalling EUR 3,000 net. ver.di had previously called for multiple strikes.
On 11 April 2024, the Employers’ Federation for Air Transport Companies (AGVL) and the cabin staff union Unabhängige Flugbegleiter Organisation e.V. (UFO) reached a long-term wage agreement for the approximately 19,000 cabin crew at Lufthansa Airlines. The wage agreement has a term of at least 36 months and includes a wage increase totalling 16.5% in several phases over this term. UFO had previously called for a two-day strike.
On 25 April 2024, Austrian Airlines, the trade union vida and the works council for cabin staff reached an agreement on the conclusion of a collective agreement for around 2,400 flight attendants and roughly 1,000 pilots. The collective agreement runs until December 2026 and offers, in particular, average salary increases of around 19.4% in three stages and a ban on strikes for the term of the agreement. ↗ Employees.
New Allegris cabin product introduced at Lufthansa Airlines
On 1 May 2024, the first scheduled flight of an Airbus A350 with the new Lufthansa cabin product Allegris took off from Munich to Vancouver. At the end of the 2024 financial year, there were already seven A350s with the Allegris in-flight product in service; since November 2024 some of these have featured the new Allegris First Class.. ↗ Lufthansa Airlines.
Shareholders approve all Annual General Meeting agenda items
The virtual Annual General Meeting of Deutsche Lufthansa AG took place on 7 May 2024. The shareholders
approved all of the items on the agenda by a large majority.
The agenda items included the use of distributable earnings, with the distribution of a dividend of EUR 0.30 per share envisaged, as well as the election of Supervisory Board members. Sara Hennicken, CFO of Fresenius Management SE, was elected to the Supervisory Board for the first time. Dr Thomas Enders, former CEO of Airbus SE, Harald Krüger, former Chairman of the Executive Board of Bayerische Motorenwerke Aktiengesellschaft, and Britta Seeger, member of the Executive Board of Mercedes-Benz Group AG, were re-elected to the Supervisory Board. The members were elected for a three-year term up to the 2027 Annual General Meeting.
Deutsche Lufthansa AG successfully places bond on the capital market
On 13 May 2024, Deutsche Lufthansa AG successfully issued an unsecured bond with a total volume of EUR 750m. The bond with a denomination of EUR 1,000 bears interest at a rate of 4.0% per year and matures on 21 May 2030.
Overall, Deutsche Lufthansa AG issued three bonds with a total volume of EUR 1,734m in financial year 2024.
These favourable financing conditions are based on the investment-grade rating which Deutsche Lufthansa AG now once again holds according to all of the leading rating agencies. ↗ Financing.
Lufthansa City Airlines starts flight operations
On 26 June 2024, Lufthansa City Airlines launched its flight operations. The airline offers competitive hub traffic and short-haul feeder services. At the end of the reporting year the airline operated four A319 aircraft out of Munich. ↗ Lufthansa Airlines.
European Commission approves the Lufthansa Group’s stake in ITA Airways, subject to conditions
On 3 July 2024, the European Commission’s competition authority approved Deutsche Lufthansa AG’s planned acquisition of a 41% stake in ITA Airways, subject to conditions.
Once the concessions negotiated with the European Commission had been implemented, the transaction was finally approved by the European Commission on 29 November 2024.
The transaction was finally completed on 17 January 2025. The Lufthansa Group initially received 41% of ITA shares in return for a capital contribution of EUR 325m. ↗ Events after the reporting date.
The Lufthansa Group and the Italian Ministry of Economy and Finance (MEF) have agreed options for the acquisition of the remaining shares in ITA Airways and these may first be exercised over the course of 2025.
ITA Airways will be closely integrated into the Lufthansa Group as a fifth network airline while retaining its brand.
Lufthansa Group closes sale of AirPlus
On 31 July 2024, the Lufthansa Group completed the sale of AirPlus International GmbH (formerly Lufthansa AirPlus Servicekarten GmbH).
With the completion of the transaction, AirPlus, along with all international subsidiaries and branches, was transferred from Lufthansa Group to SEB Kort Bank AB, headquartered in Stockholm. The sale was contractually agreed in June 2023. The purchase price was approximately EUR 450m.
The sale of the payment expert forms part of the Lufthansa Group’s strategy of focusing more on its core business.
Lufthansa Airlines launches turnaround programme
Lufthansa Airlines launched a turnaround programme in the third quarter of 2024 with the goal of increasing efficiency, reducing complexity and improving quality, and thereby making the airline stronger for the future.
The turnaround plan includes shifting more short-haul traffic to more efficient flight operations that are better aligned with each market segment. Further efficiency gains are set to be achieved through network optimisation and increasing flexibility and automation. ↗ Lufthansa Airlines.
Lufthansa Group purchases more latest-generation long-haul aircraft
The Lufthansa Group ordered five more Airbus A350-1000 long-haul aircraft on 20 December 2024. With this, the Lufthansa Group’s confirmed orders for aircraft of this type have increased from ten to 15. The cutting-edge aircraft will be delivered between 2028 and 2030. ↗ Passenger Airlines business segment.