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 adjusted in close consultation with customers. These adjustments are tested and reviewed in the designated Co-Creation Hub, for instance. This allows customers to play an active role in shaping and refining products. Decisions made on this basis also influence the development of the 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.
In addition, the Lufthansa Group is committed to respect human rights and strives to protect them in connection with its operations, suppliers and customers. The basis for its activities includes recognised international standards such as the UN Universal Declaration of Human Rights and the UN Guiding Principles on Business and Human Rights. Further information can be found in ↗ G1-1 – Lufthansa Group Code of Conduct defines the framework for moral and responsible behaviour.
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model
Potential impacts and risks arise from product design and service offerings. The Lufthansa Group has identified potential negative impacts associated with certain products and services that could affect customers’ 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 procedural instructions related to health and safety, personal safety 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 considers equal access to products and services and protection against discrimination to be core aspects of responsible business conduct. As a global airline group, potentially negative impacts may arise if individual customer groups are disadvantaged due to physical limitations, socio-economic barriers or a lack of digital accessibility.
Gaining competitive advantages through alignment with customer preferences
The Lufthansa Group sees significant opportunities in aligning its business model with customer preferences to gain competitive advantages. For example, customer feedback or structural analysis of sales and customer data can be used to gain insights into passenger behaviour and identify trends and patterns. These findings are factored into the development of targeted products and personalised recommendations which may help to increase revenues. In addition, the insights gained enable process and product improvements, the further development of loyalty programmes, and the promotion of demand for travel in higher-value cabin classes such as Premium Economy, Business and First Class.
Data protection, privacy and security are customer benefits
As the foundation of a trust-based 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. In relation to data protection, the Lufthansa Group acknowledges a 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, the availability of future-proof technologies.
Lufthansa Group 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 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 supports families and people with disabilities
The Lufthansa Group acknowledges both risks and opportunities related to serving families and people with disabilities. Rising operational costs due to new or evolving global regulations on the protection of these groups present a risk, while targeted consideration of the needs of families and persons with disabilities presents opportunities. By developing and providing tailored services, the Lufthansa Group intends to increase its customers’ level of satisfaction and open up new market potential.
The Lufthansa Group recognises that families travelling with infants and young children face unique challenges. The Passenger Airlines in the Lufthansa Group have therefore implemented special safety measures. These include special seat belts and seats equipped with additional oxygen masks on board, as required by law, as well as the infant carriers which the Lufthansa Group voluntarily provides on long-haul flights. For unaccompanied minors, the Lufthansa Group offers additional care services to support their safety and wellbeing during flights.
To further support families, particularly those with young children, the Lufthansa Group’s Passenger Airlines provide family-friendly services, such as priority boarding for families, in-flight entertainment for children and special meal options. These services are not only intended to contribute to child safety but also improve 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 its standard processes. This includes special support during boarding and enhanced access to digital information on websites and IT applications. The introduction of accessible user interfaces, larger font sizes, higher screen contrast and simplified navigation makes the applications easier to use. In the reporting year, the Lufthansa Group held an Accessibility Conference for the first time in Frankfurt am Main. This aimed to improve the travel experience for persons with disabilities. Initially, members of various associations and representatives of the Lufthansa Group met to discuss their current experiences along the travel chain and to consider improvements. They agreed to work together more closely in future. This is intended to pave the way for future product developments that take into account the special needs of passengers with disabilities.
In addition, Lufthansa Airlines and SWISS joined the “Sunflower Initiative” in the reporting year. This global initiative is intended to improve how people with non-visible disabilities are treated. Lufthansa Group employees at its hubs in Frankfurt and Munich and on board aircraft are being made aware of the initiative, so that they can offer affected passengers an accommodating and conscious travel experience and, where necessary, proactively support them.
Lufthansa Group pursues responsible marketing practices and product information
Activities to boost its brand recognition and promote sales present risks for the Lufthansa Group when false or misleading advertising messages or inaccessible product information undermine customer trust or lead to 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.
Opportunities and risks in appropriate 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 reduced accessibility and affordability for certain customer groups present financial risks in terms of a decline in revenue 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.
To counter these impacts, the Lufthansa Group is continuously working on ensuring discrimination-free and easier access to its flights and services. This includes improving accessibility in all travel classes and sales channels, targeted awareness-raising and training programmes for employees with customer contact as well as systematic monitoring of customer feedback and complaints procedures. The Passenger Airlines are thus seeking to identify and eliminate potential disadvantages early on. In addition, socio-economic barriers can be reduced by means of dynamic pricing and differentiated fares in all booking classes.
When designing its products, the Lufthansa Group acknowledges that environmentally conscious consumers are increasingly concerned about the impacts of climate change and expect more sustainable travel options. Companies’ environmental footprints and more sustainable alternatives are particularly important to the business traveller customer group. This includes their choice of means of transport. To meet their needs, the Lufthansa Group is analysing how strongly these consumers are influenced by environmental concerns and which climate change impacts are affecting their decision-making patterns. This includes concerns about CO₂ emissions and the overall environmental impact of air travel. In response, the Lufthansa Group is providing its customers with information on the environmental impacts of flying, for example, and developing specific measures to reduce them. Lufthansa’s more sustainable offerings include its “Green Fare” tickets and Lufthansa Cargo’s “Sustainable Choice” product add-on option. ↗ S4-4 – Lufthansa Group offers sustainability initiatives and services for its customers.
An insufficiently inclusive design for products or services or one which does not meet passengers’ needs may pose risks for the Lufthansa Group. These include reputational damage, legal liability risks and potential decreases in revenue due to limited accessibility or a lack of affordability for certain customer groups. In the long term, this type of loss of customer satisfaction and trust could weaken Lufthansa’s market position and lead to a decline in customer loyalty. The Lufthansa Group therefore places strong emphasis on the continuous improvement of accessibility, user-friendliness and service quality.
Capital expenditure on digital products and services also presents opportunities for improving the customer experience and related product design. Examples include AI-powered customer service, automatic flight rebooking and data-driven personalisation.