Notes to the segment reporting

43. Notes to the reporting segments and segment data

Notes to the reporting segments

As of 31 December 2024, the Lufthansa Group operated in three reporting segments, which constitute its Group activities. The segments are defined in line with the internal reporting and management structure. The airline activities were combined in their respective reporting segments based on the similarity between the economic characteristics of the individual airlines, such as network and sales structures, as well as customers and services. The Passenger Airlines segment comprises the network airlines Lufthansa Airlines, SWISS, Austrian Airlines and Brussels Airlines. The Passenger Airlines segment also features the airlines Eurowings, including the equity investment in SunExpress, Discover Airlines and Edelweiss Air, as well as the regional airlines Lufthansa CityLine, Lufthansa City Airlines and Air Dolomiti. Further information about the individual airlines can be found in the Group management report ↗ Passenger Airlines segment.

The Logistics segment comprises the scheduled airfreight activities of the Lufthansa Cargo group. Lufthansa Cargo is Europe’s leading cargo airline.

The MRO segment is a leading global provider of maintenance, repair and overhaul services for civil and commercial aircraft and is represented by the Lufthansa Technik group.

The business operations of the former Catering segment were sold in October 2023. The business segment was therefore discontinued in the financial year. In the previous year, segment information for this business activity, which was classified as a discontinued operation, was still reported separately as part of segment reporting. Following the sale in the previous year, the comparative figures have been adjusted accordingly, and the financial data previously reported under Catering has been reclassified in the reconciliation column.

Business activities not allocated to a reporting segment are presented in table ↗ T162, in the “Additional Businesses and Group Functions” column, along with the income and expenses of central Group functions. They include the income and expenses of Lufthansa Commercial Holding GmbH, the Lufthansa AirPlus group until its sale in July of 2024, the Lufthansa Systems group, the Lufthansa Aviation Training group and other Group companies.

Notes to segment data and internal management

The accounting policies of the reporting segments are the same as those described in ↗ Note 2.

The Lufthansa Group measures the performance of its segments using both segment result indicators: EBIT and Adjusted EBIT. EBIT is made up of the IFRS operating result and the result from equity investments. Adjusted EBIT is obtained by correcting EBIT for gains and losses on the disposal of assets, impairments and their reversal and earnings attributable to other periods in connection with pension obligations (plan adjustments and plan settlements), expenses for staff-related restructuring measures, material extraordinary legal costs not resulting from normal business operations, material costs in connection with company transactions and material other expenses based on extraordinary external events.

Sales and revenue between reporting segments are based on arm’s length prices. Administrative services are charged as cost allocations.

For information on external traffic revenue, see ↗ Note 3.

The result of the equity valuation for the segment’s equity investments is part of its segment result. However, from a Group perspective, it is attributed to the financial result rather than the operating result.

Capital employed largely comprises segment assets, adjusted for derivative financial instruments, cash and cash equivalents and deferred tax items less non-interest-bearing debt.

The reconciliation column includes both the effects of consolidation activities and the amounts resulting from different definitions of segment item contents compared with the corresponding Group items. Eliminated segment revenue generated with other consolidated segments is shown in the reconciliation column for revenue.

The amounts in the reconciliation column for Group EBIT include the effects of consolidation activities on profit or loss in which income and expense do not match for two companies at the same amount, or in the same period.

T162	SEGMENT INFORMATION FOR THE 2024 REPORTING SEGMENTS
						Reconciliation
in €m	Passenger Airlines	Logistics	MRO	Total reportable operating segments	Additional Businesses and Group Functions	Not allocated	Consolidation	Group⁵⁾

External revenue	28,905	3,213	5,036	37,154	427	–	–	37,581
of which traffic revenue	27,869	3,054	–	30,923	1	515	–	31,439
Inter-segment revenue	785	50	2,405	3,240	518	–	-3,758	–
Total revenue	29,690	3,263	7,441	40,394	945	–	-3,758	37,581
Other operating income	992	93	477	1,562	2,285	–	-886	2,961
Total operating income	30,682	3,356	7,918	41,956	3,230	–	-4,644	40,542
Operating expenses	29,722	3,147	7,292	40,161	3,465	–	-4,529	39,097
of which cost of materials and services	17,761	2,241	4,525	24,527	450	–	-2,584	22,393
of which staff costs	5,997	443	1,700	8,140	854	–	-2	8,992
of which depreciation and amortisation	1,836	198	155	2,189	104	–	44	2,337
of which other expenses	4,128	265	912	5,305	2,057	–	-1,987	5,375
Results of equity investments ¹⁾	86	42	9	137	62	–	1	200
of which result of investments accounted for using the equity method	88	8	-11	85	12	–	–	97
Adjusted EBIT ²⁾	1,046	251	635	1,932	-173	–	-114	1,645
Reconciliation items	70	1	-51	20	65	–	1	86
Impairment losses/gains	-11	–	-27	-38	–	–	–	-38
Effects from pension provisions and restructuring	-17	-1	-9	-27	-18	–	1	-44
Earnings from asset disposal	94	–	1	95	96	–	1	192
Other reconciliation items	4	2	-16	-10	-13	–	-1	-24
EBIT	1,116	252	584	1,952	-108	–	-113	1,731
Other financial result								-155
Profit/loss before income taxes								1,576
Capital employed ³⁾	9,823	2,271	4,650	16,744	1,334	–	-241	17,837
of which from investments accounted for using the equity method	386	44	163	593	4	–	–	597
Segment capital expenditure ⁴⁾	3,275	149	206	3,630	169	–	20	3,819
of which from investments accounted for using the equity method	–	–	22	22	–	–	–	22
Employees at end of period	65,172	4,261	24,499	93,932	7,777	–	–	101,709
Average number of employees	63,952	4,223	23,789	91,964	8,326	–	–	100,290

¹⁾ The result from equity investments does not include impairment losses on the carrying amounts of investments accounted for using the equity method. ²⁾For the reconciliation from Adjusted EBIT to EBIT, see ↗ T022, p. 47, in the Group management report. ³⁾ The capital employed results from total assets adjusted for non-operating items (deferred taxes, positive market values, derivatives), less specific non-interest bearing liabilities (including trade payables and other liabilities and from unused flight documents) and less cash and cash equivalents. ⁴⁾ Capital expenditure on intangible assets, property, plant and equipment, and loans and equity interests in companies. Capital expenditure is shown without capitalised borrowing costs. ⁵⁾ Figures show continuing operations.

T162	SEGMENT INFORMATION FOR THE 2023 REPORTING SEGMENTS
						Reconciliation
in €m	Passenger Airlines	Logistics	MRO	Total reporting operating segments⁵⁾	Additional Businesses and Group Functions	Not allocated	Consolidation⁵⁾	Group⁶⁾

External revenue	27,632	2,927	4,389	34,948	484	–	10	35,442
of which traffic revenue	26,701	2,775	–	29,476	–	450	–	29,926
Inter-segment revenue	705	50	2,158	2,913	436	–	-3,349	–
Total revenue	28,337	2,977	6,547	37,861	920	–	-3,339	35,442
Other operating income	1,306	113	481	1,900	2,325	–	-1,238	2,987
Total operating income	29,643	3,090	7,028	39,761	3,245	–	-4,577	38,429
Operating expenses	27,730	2,933	6,383	37,046	3,499	–	-4,585	35,960
of which cost of materials and services	16,687	2,063	3,844	22,594	428	–	-2,659	20,363
of which staff costs	5,426	419	1,559	7,404	906	–	–	8,310
of which depreciation and amortisation	1,725	182	157	2,064	113	–	51	2,228
of which other expenses	3,892	269	823	4,984	2,052	–	-1,977	5,059
Results of equity investments ¹⁾	120	62	-17	165	48	–	–	213
of which result of investments accounted for using the equity method	125	11	-24	112	9	–	–	121
Adjusted EBIT ²⁾	2,033	219	628	2,880	-206	–	8	2,682
Reconciliation items	31	-5	–	26	-46	–	7	-13
Impairment losses/gains	-38	–	1	-37	-4	–	2	-39
Effects from pension provisions and restructuring⁵⁾	-19	-4	-2	-25	-8	–	-1	-34
Earnings from asset disposal	81	-2	12	91	4	–	6	101
Other reconciliation items	7	1	-11	-3	-38	–	–	-41
EBIT	2,064	214	628	2,906	-252	–	15	2,669
Other financial result								-352
Profit/loss before income taxes								2,317
Capital employed ³⁾	8,530	2,335	4,056	14,921	1,410	–	-131	16,200
of which from investments accounted for using the equity method	256	43	150	449	29	–	-13	465
Segment capital expenditure ⁴⁾	3,095	191	137	3,423	65	–	121	3,609
of which from investments accounted for using the equity method	–	–	19	19	–	–	–	19
Employees at end of period	60,924	4,152	22,870	87,946	8,681	50⁷⁾		96,677
Average number of employees	59,331	4,122	21,925	85,378	8,411	16,475⁷		110,264

¹⁾ The result from equity investments does not include impairment losses on the carrying amounts of investments accounted for using the equity method. ²⁾For the reconciliation from Adjusted EBIT to EBIT, see ↗ T022, in the Group management report. ³⁾ The capital employed results from total assets adjusted for non-operating items (deferred taxes, positive market values, derivatives), less specific non-interest bearing liabilities (including trade payables and other liabilities and from unused flight documents) and less cash and cash equivalents. ⁴⁾ Capital expenditure on intangible assets, property, plant and equipment, and loans and equity interests in companies. Capital expenditure is shown without capitalised borrowing costs. ⁵⁾ Figures adjusted due to the disposal of the Catering segment in 2023. Consolidation column excludes elimination of discontinued operations. Total reporting operating segments column, excluding the Catering segment. ⁶⁾ Group column includes only continuing operations. ⁷⁾Values relate to the Catering segment, which is no longer reported separately in the table due to its disposal in 2023.

Notes on geographical regions in 2024

The allocation of traffic revenue to geographical regions is based on the original location of sale. Non-current assets are allocated according to the location of the relevant asset. The allocation of other revenue to the individual regions is based on the geographical location of the customer.

The regions are defined on a geographical basis. As an exception to this rule, traffic revenue generated in Turkey is attributed to Europe.

The Lufthansa Group steers its air traffic business on the basis of network results and not on the basis of regional earnings contributions. Consequently, the presentation of regional segment results is of no informational value for the Lufthansa Group.

A presentation of traffic revenue generated in the Passenger Airlines and Logistics segments by traffic region, rather than by original location of sale, is included in the information on the respective segments in the management report.

External revenue, non-current assets and capital expenditure are as follows:

T163	EXTERNAL REVENUE AND NON-CURRENT ASSETS BY REGION
	2024							2023
in €m	Europe	North America	Central and South America	Asia/Pacific	Middle East	Africa	Group	Europe	North America	Central and South America	Asia/Pacific	Middle East	Africa	Group

Traffic revenue	20,884	5,743	616	3,216	433	547	31,439	20,173	5,482	612	2,694	450	515	29,926
Other revenue	2,367	1,802	222	1,196	363	192	6,142	2,403	1,511	223	984	270	125	5,516
Non-current assets^{1) 2) 3)}	22,816	168	21	115	1	1	23,122	21,455	151	19	102	2	2	21,731
Capital expenditure on non-current assets ³⁾	3,856	22	2	9	–	–	3,889	3,593	25	3	17	–	–	3,638

¹⁾Non-current assets include property, plant and equipment and intangible assets with the exception of repairable spare parts for aircraft. ²⁾ Aircraft are categorised by their place of registration. ³⁾ Including right-of-use assets from application of IFRS 16

The figures for the main countries are as follows:

T164	EXTERNAL REVENUE AND NON-CURRENT ASSETS BY COUNTRIES
	2024		2023
in €m	Germany	USA	Germany	USA
Traffic revenue	9,160	5,070	8,915	4,842
Other revenue	789	1,320	894	1,190
Non-current assets ^{1) 2)}	15,665	156	14,956	92
Capital expenditure on non-current assets ²⁾	2,782	16	2,505	15

¹⁾Non-current assets include property, plant and equipment and intangible assets with the exception of repairable spare parts for aircraft. ²⁾Aircraft are allocated according to their location of registration.

In the 2024 financial year and in the previous year, no more than 10% of Lufthansa Group revenue was generated with a single customer.

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