Financial position

Capital expenditure

Gross capital expenditure increases year-on-year to EUR 4,278m

Compared with the previous year, the Lufthansa Group’s gross capital expenditure (without acquisition of equity investments) increased by 14% to EUR 4,278m in the 2025 financial year (previous year: EUR 3,743m). It is made up of primary, secondary and financial investments.

Primary investment in down payments and final payments for aircraft, aircraft components, as well as aircraft and engine overhauls were 13% higher than the previous year at EUR 3,649m (previous year: EUR 3,237m). This accounts for 85% of gross capital expenditure. EUR 1,785m was attributable to advance payments for future deliveries, particularly for long-haul aircraft (previous year: EUR 1,065m).

Capital expenditure for other items of property, plant and equipment and for intangible assets, known collectively as secondary investment, increased by 39% to EUR 583m (previous year: EUR 420m). Property, plant and equipment, such as technical equipment and machinery, and operating and office equipment accounted for EUR 490m of the total (previous year: EUR 333m). This included the renovation of the Cargo Center in Frankfurt, the construction of the new Technik plant in Portugal, fittings in aircraft lounges and new flight simulators for the training business. EUR 93m (previous year: EUR 87m) was invested in intangible assets such as licences and software.

Financial investments (without acquisition of equity investments) with a total volume of EUR 46m (previous year: EUR 86m) comprised mainly cash outflows from loans to joint ventures.

Looking at the individual segments in the Lufthansa Group, the Passenger Airlines accounted for the bulk of capital expenditure with EUR 4,047m (+24% year-on-year). Capital expenditure of EUR 110m (⁠-⁠26% on the previous year) in the Logistics segment consisted mainly of the expansion and refurbishment of the Cargo Center in Frankfurt. Capital expenditure of EUR 230m in the MRO business segment (+12% year-on-year) was mainly for technical operating equipment and the purchase of land for the new plant in Portugal. ↗ Business segments.

Cash flow from investing activities in the reporting year reaches EUR 2,781m

Cash flow from investing activities at the Lufthansa Group increased by 16% to EUR 2,781m (previous year: EUR 2,392m) in the 2025 financial year. The figure includes payments for repairable spare parts for aircraft and share purchases, as well as income from the sale of assets and dividend and interest income.

Further additions of repairable spare parts reflected the expansion of business activities and the build-up of inventory comprising spare parts for new aircraft models. The corresponding cash outflow amounted to EUR 243m and thus matched the previous year’s volume (previous year: EUR 241m).

Share purchases accounted for expenses of EUR 358m (previous year: EUR 76m), of which EUR 326m were for the purchase of a 41% interest in ITA Airways.

Income from the disposal of non-current assets and assets held for sale of EUR 1,609m (previous year: EUR 1,260m) mainly related to the sale of a total of 26 aircraft, of which 19 were sold as part of sale-and-leaseback transactions (EUR 1,273m), in which aircraft received in the 2025 financial year were sold to external lessors and leased back for periods of six or twelve years.

Interest and dividend income went up by 20% to EUR 489m (previous year: EUR 408m), primarily due to higher interest income from tax audit results.

Compared with the previous year, net capital expenditure (without purchases and disposals of equity interests) declined by 9% to EUR 2,460m (previous year: EUR 2,698m) in the reporting year.

As of 31 December 2025, there were order commitments of EUR 17.9bn (previous year: EUR 21.6bn) for capital expenditure on property, plant and equipment, including repairable spare parts, and for intangible assets. Financing, particularly of capital expenditure on aircraft, is based on a mixture of unsecured corporate finance arrangements, specific aircraft financing models and leasing.

Cash flow

Cash flow from operating activities comes to EUR 4,037m

The cash flow from operating activities at the Lufthansa Group in the 2025 financial year was 4% higher than the previous year at EUR 4,037m (previous year: EUR 3,892m). This increase is largely attributable to the higher Adjusted EBITDA. It was supported by cash inflows from taxes in connection with tax audits completed in Germany. This was partly offset by lower cash inflows from the change in working capital.

The cash inflow from the change in trade working capital amounted to EUR 238m in the reporting year (previous year: EUR 525m). This was associated with increased liabilities from unused flight documents, which picked up by EUR 206m (previous year: EUR 202m). Effects from higher receivables and contract assets came to EUR ⁠-⁠51m (previous year: EUR ⁠-⁠197m); higher liabilities and contract obligations came to EUR 226m (previous year: EUR 676m). Higher inventories resulted in an outflow of EUR ⁠-⁠31m (previous year: EUR ⁠-⁠216m). There was a EUR ⁠-⁠112m (previous year: EUR +60m) change in other assets and obligations in trade working capital, due in particular to advance payments to suppliers and service partners. EUR 721m of the operating cash flow related to payments to former employees on the basis of pension obligations (previous year: EUR 669m). In addition, allocations were made to pension plans in the amount of EUR 527m (previous year: EUR 417m), while investment income from plan assets of EUR 472m (previous year: EUR 549m) was used in connection with pension payments. Cash flowing into or out of the plan assets was also reported in cash flow from operating activities, resulting in a net cash outflow of EUR 776m in connection with pensions (previous year: net outflow of EUR 537m).

Adjusted free cash flow of EUR 1,188m

After deducting cash flow from investing activities, free cash flow for the 2025 financial year was positive at EUR 1,256m (previous year: EUR 1,500m).

Adjusted free cash flow rose by 41% to EUR 1,188m (previous year: EUR 840m). This figure includes outflows for leases (repayment portion) of EUR 389m (previous year: EUR 354m). However, it does not include investments and divestments in shares in other entities. These payments, mainly for the purchase of ITA shares, came to a net figure of EUR 321m in the reporting year (previous year inflows: EUR ⁠-⁠306m).

Financing

Financing activities result in cash outflow of EUR 1,638m

Financing activities in the 2025 financial year led to a net cash outflow of EUR 1,638m (previous year: outflow of EUR 1,450m).

This arose from repayments of financial liabilities in the overall amount of EUR 2,748m, mainly for a bond (EUR 750m), a convertible bond (EUR 595m), borrower’s note loans (EUR 306m), leasing and aircraft financing (EUR 1,048m) and interest and dividend payments, including the related payments for hedging transactions (EUR 1,156m).

It was offset by the cash inflow from new financing measures on the capital market amounting to EUR 2,266m. They consisted of a convertible bond (EUR 600m), a hybrid bond (EUR 495m), eight borrower’s note loans (EUR 380m) and six aircraft financing transactions (EUR 752m).

Furthermore, the Lufthansa Group has bilateral credit lines with banks. At the end of the 2025 financial year, the revolving credit line amounting to EUR 2.5bn was unused. On 31 December 2025, unused credit lines totalled EUR 2,567m (31 December 2024: EUR 2,549m).

Liquidity

Total available liquidity of EUR 10.7bn

Balance-sheet liquidity (total of cash, current securities and fixed-term deposits) came to EUR 8,148m at year-end 2025 (31 December 2024: EUR 8,488m). EUR 7,341m was available centrally to Deutsche Lufthansa AG at year-end 2025 (31 December 2024: EUR 7,664m).

Including its freely available credit lines at year-end 2025, the Company’s available liquidity thus amounted to EUR 10.7bn (31 December 2024: EUR 11.0bn).