Letter from the Executive Board

Ladies and gentlemen, Dear shareholders,

The fascination for flying is unabated, particularly among the younger generations. For the first time, the International Air Transport Association (IATA) predicts more than five billion passengers worldwide this year. In these positive conditions, the Lufthansa Group continued on its growth path in the 2024 financial year. Demand remained strong and had a positive impact on our expansion of capacity, our Passenger Airlines’ traffic volumes and our Logistics business segment. At the same time, 2024 was characterised by enormous challenges and pressures which significantly affected our earnings position. We were therefore unable to match the previous year’s good financial results.

At the start of the year, our Group’s flight operations were particularly affected by strikes staged by various employee groups within the Lufthansa Group as well as employees of system partners. In the second quarter in particular, market-wide capacity growth increased price pressure for the passenger airlines, causing yields to fall. This was particularly so for our Asian traffic. Finally, in the third quarter persistently high cost inflation and the effect of irregularities in flight operations had a negative impact on earnings. In addition, the ongoing delays in the delivery of new aircraft adversely affected our result for the year as a whole – not only due to higher maintenance and fuel costs and the need for a larger number of reserve aircraft, but also because this deprived us of a potential source of income growth.

The Passenger Airlines’ Adjusted EBIT was thus significantly lower than in the previous year. This was almost exclusively due to our core brand Lufthansa Airlines, whose result declined by far the most. Lufthansa Airlines therefore launched a comprehensive turnaround programme in the 2024 financial year to increase its level of efficiency and improve its product quality. This programme aims to make the airline once again fit for the future and profitable on a sustainable basis.

Performance in our Logistics business segment in the 2024 financial year was characterised by persistently high cargo rates and by strong Asian business. In the fourth quarter especially, Lufthansa Cargo registered a significant improvement in earnings. In our MRO business segment, the high level of global demand for flights and delays in the delivery of new aircraft prompted a further rise in the level of demand for maintenance and repair services. Lufthansa Technik benefited from this, as the world market leader in the MRO business, and once again achieved a record result.

In the 2024 financial year, the Lufthansa Group achieved Adjusted EBIT of EUR 1.6bn, which represents a decrease of 39% on the previous year’s high level. Net profit fell by around 18% over the same period. Despite this fall in earnings, we wish to enable our shareholders to participate in our positive result. We will therefore again table a proposal at the Annual General Meeting to pay a dividend of EUR 0.30 per share.

Going forward, for the 2025 financial year we once again envisage capacity and revenue growth as well as Adjusted EBIT significantly higher than in the 2024 financial year.

We implemented important strategic measures to define the Company’s future in 2024. Particularly notable is the progress made in the Lufthansa Group’s transformation from an aviation group into a global airline group with significant synergies. In July 2024, we successfully completed our sale of AirPlus to SEB Kort Bank AG. In addition, in January 2025 we acquired an initial 41% stake in ITA Airways, which we will rapidly integrate into the Lufthansa Group as an additional network airline.

Moreover, in the 2024 financial year we continued to make progress with the modernisation of our fleet and with improvements to the products and services we offer our passengers. We incorporated a total of 18 modern and efficient aircraft in our fleets in the reporting year. In December 2024, we added to our aircraft orders five additional state-of-the-art A350-1000 long-haul aircraft. We thus now have a total of 242 aircraft on order. These new aircraft have up to 30% lower fuel consumption levels and carbon emissions by comparison with their predecessor models. They will make a significant contribution to our fleet’s ongoing development by improving the travel experience for our customers, lowering our operating costs, offering revenue potential, reducing the range of aircraft in our fleet and enabling more sustainable flying.

In addition, in May 2024 the first scheduled flight of an Airbus A350 with Lufthansa’s new Allegris cabin product took off from Munich to Vancouver. There are now nine A350s with our Allegris in-flight product in service. Through their gradual changeover to the seating of the new product generations Lufthansa Allegris and SWISS Senses, Lufthansa Airlines and SWISS are offering their passengers a new travel experience in every class on long-haul routes.

We further expanded our commitment to the environment in the reporting year. Since February 2023, the Lufthansa Group has been the first airline group in the world to offer green fares for more sustainable flying on short and medium-haul routes. This more sustainable fare includes offsetting of the passenger’s individual flight-related carbon emissions. We extended this offering to our long-haul flights and thus to our global route network in the 2024 financial year. We also fitted additional aircraft with our airflow-optimising and thus fuel-saving surface technology AeroSHARK in the reporting year. As of the end of 2024, 21 long-haul aircraft, comprising Boeing 777s and Boeing 777Fs, had already been fitted with AeroSHARK.

Despite all of these challenges and changes, the core objective of our activities remains unchanged.

CONNECTING PEOPLE, CULTURES AND ECONOMIES IN A SUSTAINABLE WAY.

That is and will remain the Lufthansa Group’s purpose – and also the title of our Annual Report 2024.

Our airlines operate some 3,000 flights every day to more than 300 destinations in around 100 countries. We connect families, friends and business partners, promote social interactions, prosperity and international understanding, and secure production and supply chains. Every day we bring the world a little closer together and create opportunities for dialogue and cross-border cooperation.

Together, we aim to lead our Company into a successful future – for the benefit of our shareholders, our passengers and our employees. We are pleased that you are accompanying us on our journey.

Frankfurt, February 2025

Carsten Spohr

Chief Executive Officer