Assets

17. Goodwill and intangible assets with an indefinite useful life

All goodwill and intangible assets with an indefinite useful life were subjected to a regular impairment test in the 2024 financial year as required by IAS 36. Furthermore, there is an obligation to perform an impairment test where there is an indication of impairment. During 2024, due to negative variances from planned figures in the Lufthansa Airlines business segment and its low market capitalisation, ad hoc impairment tests were carried out for this unit. These tests did not indicate any impairment.

The tests were performed at the level of the smallest cash-generating unit (CGU) on the basis of fair value less costs to sell.

All impairment testing is based on approved four-year corporate planning. The assumptions on revenue growth applied are based on this planning as well as external industry-specific sources (for example IATA). On the basis of financial planning by the individual business units, discounts were made at Group level to reflect uncertainties in the planning. In the course of Group planning, the discounts were set at approximately 9% (previous year: 10%) of Adjusted EBIT on a long-term basis and were allocated to the units on a pro rata basis during the impairment tests.

Demand for air travel has increased significantly since the pandemic, although this catch-up effect has been much slower in Germany than the rest of Europe and globally, where passenger air traffic had already exceeded pre-crisis levels by 2024. Current plans anticipate that the seat-kilometre capacity available to Lufthansa Passenger Airlines companies will not return to pre-crisis levels until 2026. The assumption is that markets will continue to grow until the end of the detailed planning period; some customer segments, particularly the business travel market, will initially remain below their historic capacities, whereas others, such as leisure travel, will perform better. Average yields are forecast to rise only slightly. Further pricing developments, both in sales and purchasing markets, and the ability to pass on rising costs (due to geopolitical effects, macroeconomic challenges or regulatory measures, for example) are considered key success factors. A comprehensive package of measures has been initiated specifically for Lufthansa Airlines. This is expected to contribute more than EUR 2.5bn to earnings. In addition to the delayed introduction of more efficient aircraft, operational stabilisation and the resolution of spare parts issues, the package includes improved customer satisfaction, higher productivity and efficiency gains through process streamlining and automation. Full implementation is expected by the end of the planning period. Generally, the margins applied are based on past experience or developed on the basis of expected unit revenues and cost-cutting measures. Fuel cost planning assumes a price of USD 100/bbl, based on average prices in 2024. Expenditure on CO₂ emissions was calculated using an assumed certificate market price of EUR 72/t, taking into account existing ETS holdings and the free allocations still available until 2026. Current market prices were used for the future cost of acquiring CORSIA certificates, with an additional risk premium applied to account for potential future price risks. The statutory blending quotas up to 2028 and conservatively estimated prices based on current market premiums were used for SAF blends. The assumption is that any additional costs in future periods will not result in a lasting margin reduction. Long-term investment rates are based on past experience and take account of the procurement of production resources and their financing as envisaged in fleet planning. Costs of the central functions were charged to individual units based on their use of these functions.

The weighted average cost of capital is calculated using market data to derive leverage ratios, beta factors and borrowing costs from a peer group that is reviewed annually. A market risk premium of 7.5% was applied as a basis (previous year: 7.5%). Regional risks are taken into account by applying appropriate risk premiums.

Intangible assets with indefinite useful lives consist of slots purchased as part of company acquisitions (where tradeable) and acquired brand names. Acquired slots have an indefinite useful life due to their lasting legal and economic significance. The carrying amounts for the slots and the brands were included in the impairment test for the smallest cash-generating unit (CGU) to which they are allocated. As described above for goodwill, the impairment tests were then performed on the basis of corporate planning for all assets, including slots and/or brands, of the respective units.

Even if the assumptions for revenue growth are reduced and the discount rates used are increased by one percentage point compared with the figures in table ↗ T113 IMPAIRMENT TESTING, the recoverable amounts for the units are still higher than the carrying amounts. Similarly, worsening the scenarios by one percentage point in each case in terms of planned Adjusted EBIDA margins for the impairment tests would not reduce the recoverable amounts below the respective carrying amounts for these CGUs, with the exception of Lufthansa Cargo. In the case of the Lufthansa Cargo CGU, a reduction in the Adjusted EBIDA margin of more than 0.9 percentage points leads to a deficit. The sensitivity analysis takes account of changes in one assumption at a time, with the other assumptions from the original calculation remaining unchanged.

Table T113 summarises the carrying amounts and the assumptions for the tests described above:

18. Other intangible assets

Non-capitalised research and development costs for intangible assets of EUR 54m (previous year: EUR 56m) were incurred in the period. Firm orders have been placed for intangible assets worth EUR 3m (previous year: EUR 1m), but these are not yet at the economic disposal of the Lufthansa Group.

19. Aircraft and reserve engines including right-of-use assets

This item includes 90 aircraft with a carrying amount of EUR 2,651m (previous year: 97 aircraft with a carrying amount of EUR 2,716m), which have mostly been sold to and leased back from foreign leasing companies with the aim of obtaining favourable financing conditions. The leasing companies are fully consolidated as structured entities. The Lufthansa Group is entitled to buy the aircraft back at a fixed price and at a given point in time. Another four aircraft (previous year: four) with a carrying amount of EUR 309m (previous year: EUR 332m) were pledged as collateral under loan agreements.

In the reporting year, borrowing costs of EUR 135m (previous year: EUR 95m) were capitalised. The financing rate applied was 3.4% (previous year: 3.0%).

Additions relate to 17 new aircraft (previous year: 26) and rights of use for 17 aircraft (previous year: 15). Further additions include reserve engines and rights of use for reserve engines as well as the capitalisation of engine maintenance and aircraft overhaul events.

Reclassifications to aircraft held for sale include EUR 560m for 15 aircraft sold during the financial year that were leased back from the buyer immediately after the sale ↗ Note 22. Of these 15 aircraft, five were added during the reporting year.

Order commitments for aircraft and reserve engines amount to EUR 20.9bn (previous year: EUR 20.0bn). The order commitment increased due to orders for five Airbus A350 aircraft and 19 reserve engines being placed during the reporting period, as well as price increases for existing orders linked to price adjustment clauses and exchange rate effects. This was compensated for by down payments and final payments for current orders.

20. Repairable spare parts for aircraft

Additions in the financial year (netted against disposals) amounted to EUR 210m (previous year: EUR 364m); the net change in depreciation recognised in profit or loss was EUR 80m (previous year: EUR -50m).

The tabular presentation of repairable aircraft spare parts previously shown in table T116, which distinguished between pool material and non-pool material, has been discontinued. This change reflects a shift in the predominant usage pattern of non-pool material over the years from a durable good to a consumable good, leading to a reclassification from non-current assets to current inventories. The accounting method has been altered to provide a more appropriate presentation of the situation. This was prompted by the continual expansion of business with non-Group customers which is currently under way and expected to continue over the next few years, the related increase in trade in non-pool materials and changes to technical requirements, which mean that the Group generally no longer retains most of these materials on a long-term basis; it is therefore more appropriate to report them under inventories. This change was implemented as of 31 December 2024. In this context, EUR 482m was reclassified to inventories. The prior-year closing balance and the opening balance of the previous year were adjusted by EUR 424m (acquisition cost of EUR 602m less cumulative depreciation of EUR 178m) and EUR 353m (acquisition cost of EUR 562m less cumulative depreciation of EUR 209m), respectively. The remaining stocks of non-pool material that were presented here separately in the previous year and are not affected by the reclassification were combined with stocks of pool material, because these will stay in the Group and be used on a long-term basis.

21. Other property, plant and equipment including right-of-use assets

Land at Frankfurt Airport with a carrying amount at amortised cost of EUR 30m is not used for the Group’s operations and is therefore classified as an investment property.

As in the previous year, there are no charges over land and property. A third-party pre-emption right is registered for land held at EUR 174m (previous year: EUR 161m).

Other property, plant and equipment owned by the Group that did not consist of right-of-use assets was not used as collateral for existing financing arrangements, as in the previous year.

The following items of property, plant and equipment have been ordered, but are not yet at the economic disposal of the Lufthansa Group:

22. Leases

Table T119 shows the carrying amounts of the recognised right-of-use assets and the changes during the reporting period:

The Lufthansa Group mainly leases aircraft and property, particularly at airports. Leases may include renewal and termination options. The terms of leases are negotiated individually and cover a wide range of different areas. Longer-term leases relate to property in particular. There is a remaining lease term of up to 31 years for land and buildings (previous year: up to 32 years) as of the reporting date. The average remaining term of building leases as of 31 December 2024 was three years (previous year: four years).

The average remaining term of aircraft leases as of 31 December 2024 was four years (previous year: four years). Right-of-use assets for 17 aircraft were recognised in 2024. This includes the aircraft added in the course of sale-and-lease-back transactions.

The Lufthansa Group concluded the sale and lease-back of 15 short-haul aircraft from the Airbus A320 family in the second half of 2024. The aircraft will be leased back for a period of 72 months, with no extension option. The aircraft were between two and 28 months old at the time of the transaction and are currently operated by Eurowings, SWISS and Brussels Airlines. The transactions reflect the Group’s strategy of financing capital expenditure in new aircraft with a mix of cash, Japanese operating leases (JOLCOs) and other leases. The transactions were concluded with companies managed by BANC OF AMERICA LEASING IRELAND, Dublin, Ireland, NBB-11594 LEASE PARTNERSHIP NBB Ibis Co., Ltd., Tokyo, Japan, and Gratedell Limited, Dublin, Ireland. Proceeds of EUR 761m were generated by the sale, which are shown in the cash flow statement as cash inflows from investing activities. The right-of-use assets added amounted to EUR 220m as of the transaction date and the resulting lease obligation came to EUR 283m. The book gain of EUR 99m resulting from the sale is presented in EBIT. This book gain is not included in Adjusted EBIT.

In the reporting period, the amounts shown in the income statement were as follows:

The Lufthansa Group’s leases for properties and aircraft include renewal options and variable lease payments. They are used to achieve the greatest possible flexibility in terms of capacities. Variable lease payments and options that are not sufficiently certain to be exercised are not included in the measurement of lease liabilities. Potential future lease payments for periods after the exercise date of the renewal options are summarised in table T121.

Where termination options were in place for individual leases, their exercise was considered unlikely. As a result, additional lease payments were already taken into account in the corresponding lease liability.

Amounts included in the cash flow statement are shown in table T122:

Lease payments are shown as cash flows from financing activities unless they are lease payments not included in the measurement of lease liabilities, which are shown as operating cash flow.

The maturity analysis of lease liabilities is shown under financial liabilities, ↗ Note 37.

Information about operating leases in which the Lufthansa Group is the lessor can be found in ↗ Note 6.

23. Equity investments accounted for using the equity method

Individual interests in companies accounted for using the equity method

Tables T124 to T127 contain summarised aggregated data from the income statement and statement of financial position for the individual material joint ventures accounted for using the equity method.

The functional currency of SunExpress is the euro.

The item “Other” in the reconciliation with the carrying amount for SunExpress primarily includes the difference from the first-time consolidation of the company.

EUR 4m (previous year: EUR 6m) of the earnings of Terminal 2 Gesellschaft mbH & CO. OHG was not recognised through profit or loss in the financial year as previously unrecognised losses from prior years existed in this amount. As of 31 December 2024, there were no longer any losses not previously recognised in the carrying amount (previous year: EUR 4m).

Table T128 contains summarised aggregated data from the income statement and the carrying amounts for the individual immaterial joint ventures accounted for using the equity method.

The depreciation, amortisation and impairment relate to the remaining carrying amounts of LG-LHT Aircraft Solutions GmbH and LG-LHT Passenger Solutions GmbH, whose liquidation was decided during the financial year.

Cumulative losses of EUR 11m (previous year: EUR 11m) for the immaterial joint ventures were not recognised through profit or loss previously, as the carrying amounts of the equity interests were too low. Total losses of EUR 10m were not recognised through profit or loss in the financial year because the carrying amounts of the equity interests were too low.

Table T129 contains summarised aggregated data from the income statement and the carrying amounts for the individual immaterial associated companies accounted for using the equity method.

24. Other equity investments and non-current securities

Shares in related parties include shares in affiliated companies, joint ventures and associates that are not consolidated for reasons of materiality. These shares are carried at amortised cost. Disclosures on the equity investments and non-current securities can be found in ↗ Note 45.

25. Non-current loans and receivables

Non-current loans and receivables are carried at amortised cost.

EUR 157m (previous year: EUR 142m) of the other loans and receivables are owed by the AURELIUS group. These relate to the disposal of the LSG group and represent deferred purchase price receivables. The resulting interest income is recognised in net interest. The term of the loans expires in October 2025 and can be extended by Aurelius until October 2028, as assumed in the statement of financial position as at 31 December 2024. The interest rate is 10% p.a. and 12% p.a. from November 2025.

No CO₂ emissions certificates (previous year: EUR 201m) were sold and simultaneously repurchased on the market on a forward basis in what are known as repo agreements as of the reporting date. For the impairment test for emissions certificates, please refer to the disclosures on the cash-generating units (CGU) in ↗ Note 17.

As in the previous year, no non-current receivables were used as collateral for liabilities.

26. Inventories

Due to the accounting policy change for Non-Pool-material inventories increased by EUR 482m compared with 31 December 2024. This amount was reclassified from repairable spare parts for aircraft to inventories. The prior-year value was adjusted by EUR 424m ↗ Note 20.

The gross value of value-adjusted inventories as of 31 December 2024 was EUR 1,936m (previous year: EUR 1,254m). Inventories with a carrying amount of EUR 1,268m (previous year: EUR 725m) are held at their net realisable value. Write-downs to net realisable value of EUR 716m were made at the beginning of the financial year (previous year: EUR 449m). In the reporting year, new impairments of EUR 15m were recorded (previous year: EUR 95m), mostly related to the MRO segment. Impairment of EUR 64m from previous years were reversed (previous year: EUR 15m).

No inventories have been pledged as collateral for loans.

27. Contract assets

The Lufthansa Group recognised the following contract assets in 2024:

28. Trade receivables and other receivables

As in the previous year, no receivables were used as collateral for loans.

There are factoring agreements for some of the trade receivables. Since the risk of late payment and default was almost completely transferred to the factor, the EUR 55m in assets transferred (previous year: EUR 47m) was fully derecognised except for the amount of the continuing engagement of EUR 1m (previous year: EUR 1m).

Impairment testing for the emissions certificates took place in the course of impairment testing for the cash-generating units (CGU) that hold them ↗ Note 17.

As in the previous year, there is no collateral for trade receivables and no reimbursements are expected for obligations for which provisions have been recognised.

For disclosures on impairment losses, credit risks and term structures, we refer to ↗ Note 45.

Other receivables of EUR 111m (previous year: EUR 164m serve to secure the negative market values of derivatives.

29. Prepaid expenses

Prepaid expenses consist of various services paid for in advance for subsequent periods.

30. Interest-bearing securities and similar investments

Current securities are fixed income securities, participation certificates, shares and investments in money market funds. This position also includes term deposits with maturities of more than three to twelve months.

31. Cash and cash equivalents

This item includes cash and cash equivalents and fixed-term deposits with a term of up to three months. Bank balances in foreign currencies are translated at the exchange rate on the balance sheet date.

32. Assets held for sale

Assets and liabilities held for sale as of 31 December 2024 are made up as follows:

Four CRJ900-series aircraft with a carrying amount of EUR 12m were held for sale as of 31 December 2024 and are allocated to the Passenger Airlines segment.

In the previous year, all the assets and liabilities held for sale stemmed from the contract signed on 20 June 2023 and finally closed on 31 July 2024 with SEB Kort Bank AB of Stockholm for the sale of the AirPlus Group.