Significant events
Deutsche Lufthansa AG successfully issues hybrid and convertible bonds on capital markets
On 8 January 2025, Deutsche Lufthansa AG successfully issued an unsecured euro hybrid bond with a total volume of EUR 500m. The bond bears interest at 5.25% per annum and has a term of 30 years, with a first issuer call date after six years, i.e. on 15 January 2031. This transaction underlines the trust that the capital markets have in the Lufthansa Group, and enables the early refinancing of the hybrid bond issued in 2015. Strong demand enabled advantageous conditions and the term until the first repayment date optimally complements the maturity profile.
On 11 February 2025, Deutsche Lufthansa AG repaid a EUR 750m bond from 2021 under the Euro Medium-Term Note (EMTN) programme.
On 3 September 2025, Deutsche Lufthansa AG successfully placed unsecured and unsubordinated convertible bonds with a total nominal value of EUR 600m. These bonds are issued in denominations of EUR 100,000 and have a fixed-rate annual coupon of 0%. The transaction was oversubscribed several times.
The proceeds from the placement of the new convertible bonds were used for general business purposes, including the refinancing of existing liabilities, and to finance the buyback of EUR 300m of the outstanding convertible bonds that matured in 2025. ↗ Financial position.
Lufthansa Group closes 41% investment in ITA Airways and drives integration forward
The acquisition of a 41% stake in ITA Airways by Deutsche Lufthansa AG was completed on 17 January 2025 by means of a EUR 326m capital contribution. As a result, the Italian airline is now part of the Lufthansa Group and the Group’s fifth network carrier. Jörg Eberhart, previously Head of Strategy & Organizational Development at the Lufthansa Group, and Lorenza Maggio, previously Vice President of Sales EMEA at Lufthansa Group Airlines, have been appointed to the five-member Board of Directors and the operational management of ITA Airways.
The Lufthansa Group made substantial progress in its integration of ITA Airways over the course of the year. ITA Airways moved to the terminal areas for Lufthansa Group Airlines in Frankfurt and Munich at the end of March 2025. This means passengers benefit from faster transfer times. Since April 2025, ITA Airways has been officially included in the Star Alliance integration process. This represents a significant step towards its full integration within the Lufthansa Group’s global network. In addition, the Lufthansa Group and ITA Airways have expanded their code-share partnership. As well as European connections, selected joint long-haul flights are now also bookable, thus significantly improving the offering for passengers. Moreover, since 1 July 2025 status customers have benefited from harmonised benefits such as lounge access and priority services on flights operated by ITA Airways and the Lufthansa Group’s airlines. Lufthansa Cargo has also been marketing ITA Airways’ freight capacities on selected flight segments since June 2025.
Shareholders approve all Annual General Meeting agenda items
Deutsche Lufthansa AG’s Annual General Meeting took place on 6 May 2025. Its shareholders approved all of the items on the agenda by large majorities.
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.
Erich Clementi, Chairman of the Supervisory Board of E.ON SE, Astrid Stange, Chief Executive Officer of ELEMENT Insurance AG, and Angela Titzrath, former Chief Executive Officer of Hamburger Hafen und Logistik AG, were re-elected to the Supervisory Board. Alexis von Hoensbroech, Chief Executive Officer of the Canadian airline WestJet Airlines, was newly elected to the Supervisory Board. The members were in each case elected for a three-year term of office.
German Federal Cartel Office approves Lufthansa Group’s acquisition of a stake in airBaltic
On 30 June 2025, the German Federal Cartel Office approved the Lufthansa Group’s acquisition of a stake in the Latvian airline airBaltic.
Previously, on 29 January 2025 the Lufthansa Group had signed a purchase agreement for convertible bonds that represents a 10% stake in airBaltic. The transaction price was EUR 14m. The Lufthansa Group also gets a seat on the Supervisory Board of airBaltic.
The transaction builds on the existing wet lease between the Lufthansa Group and airBaltic and is intended to strengthen airBaltic as a strategic partner. The convertible bonds will be converted to common shares if airBaltic goes public. The Lufthansa Group’s stake will not fall below 5%.
Immediate tax investment programme comes into effect
The German law for an immediate tax investment programme to strengthen Germany as a business location entered into force on 19 July 2025. This includes a gradual reduction in corporation tax rates in Germany. If earnings remain at their current level, in future this will mean lower tax payments in Germany. Accordingly, capitalised deferred tax assets were reduced by a total of EUR 447m in the reporting year. EUR 308m thereof was recognised in profit and loss and EUR 139m was recognised in equity without effect on profit or loss.
Change at the top of Lufthansa’s Supervisory Board in the coming year
Johannes Teyssen introduced himself to the members of Deutsche Lufthansa AG’s Supervisory Board prior to its meeting on 16 September 2025. On the recommendation of the Nomination Committee, Johannes Teyssen’s election to the Supervisory Board is to be proposed at the Annual General Meeting on 12 May 2026. Following his election by the Annual General Meeting, the Supervisory Board will elect him as its Chairman and the successor of Karl-Ludwig Kley.
Karl-Ludwig Kley is then set to retire from Deutsche Lufthansa AG’s Supervisory Board upon expiry of his mandate following a 13-year term and eight years of service as the Supervisory Board’s Chairman. ↗ Report of the Supervisory Board.
Lufthansa Group sets out strategic orientation and provides details of new mid-term financial targets
At its Capital Markets Day, which took place in Munich on 29 September 2025, the Lufthansa Group set out its strategic orientation and published mid-term financial targets.
It intends to maximise the synergies within the Group by consistently expanding its integrated and networked cooperation model, for example by adjusting the organisational and operational structure. In addition, transformation programmes and fleet modernisations for the Network Airlines are intended to pave the way to greater profitability. This is intended to deliver attractive long-term returns for shareholders. ↗ Changes in business and organisation.
Moreover, in the period from 2028 to 2030 the Company aims to realise an Adjusted EBIT margin of 8% to 10%, a pre-tax Adjusted ROCE (return on capital employed) of 15% to 20% and Adjusted free cash flow in excess of EUR 2.5bn per year.
It aims to maintain a strong balance sheet as a basis for the realisation of its financial targets. For this purpose, the Lufthansa Group will continue to strive for an investment grade rating from leading rating agencies in the future. To hedge against possible crises, the Lufthansa Group will continue to maintain a conservative minimum liquidity level of EUR 8bn to 10bn.
In addition, the Company will adhere to its current dividend policy which envisages the distribution of 20% to 40% of the Group’s net profit to its shareholders. ↗ Financial strategy and value-based management.