Overall statement on opportunities and risks

The Lufthansa Group reported a continued increase in demand for air travel in the 2025 financial year. The Lufthansa Group Passenger Airlines was able to increase its capacity and revenue further as a result. Implementing measures to improve operating stability also reduced risks from irregularities in flight operations and contributed to revenue improvements. Against this backdrop, the results of the Lufthansa Group performed well compared with the previous year.

By contrast, geopolitical conflicts, trade policy tensions, raw material and supply bottlenecks, lower yields in individual markets and delays in the delivery of new aircraft had an adverse effect on the Lufthansa Group’s results.

Even in this challenging environment the Lufthansa Group’s liquidity remained above the target range as of the reporting date. As a rule, the continuous reporting of risk-bearing capacity is a relevant instrument for forward-looking identification and management of liquidity risks.

Capacity expansion of 4% and a significant increase in Adjusted EBIT are expected for 2026. Performance will depend largely on further developments in demand, changes in the fuel price, the effectiveness of the initiated measures and earnings improvement programmes, especially at Lufthansa Airlines. In this challenging environment, the Lufthansa Group continues to rely on its ability to adjust its capacities and resources flexibly to changing market conditions and to use this flexibility to seize opportunities for the Company’s long-term development.

The Executive Board of Deutsche Lufthansa AG is not aware of any material or systemic matters that are inconsistent with the suitability and effectiveness of risk management as a whole. However, it must be remembered that, irrespective of the design, risk management cannot provide absolute assurance. The Executive Board continues to strive for a balance between opportunities and risks.