Assets

17. Goodwill and intangible assets with an indefinite useful life

All goodwill and intangible assets with an indefinite useful life were subjected to a regular impairment test in the 2025 financial year as required by IAS 36.

The tests were performed at the level of the smallest cash-generating unit (CGU) on the basis of fair value less costs to sell.

All impairment testing is based on approved four-year corporate planning. The assumptions on revenue growth applied are based on this planning as well as external industry-specific sources (for example IATA). On the basis of financial planning by the individual business units, discounts were made at Group level to reflect uncertainties in the planning. In the course of Group planning, the discounts were set at approximately 12% (previous year: 9%) of Adjusted EBIT on a long-term basis and were allocated to the units on a pro rata basis during the impairment tests.

Although demand for flights continued to develop well, growth in available capacity at the Lufthansa passenger airlines – with the exception of Eurowings – was subdued. This is partly due to the poor performance of the Lufthansa Group’s German home market, and partly to the restrictions as a result of delays in aircraft deliveries. As a result, capacity is still lower than it was before the coronavirus pandemic. Current plans anticipate that the seat-kilometre capacity available to the Group’s passenger airlines will not exceed pre-crisis levels until 2027. The assumption is that markets will continue to grow until the end of the detailed planning period; some customer segments, particularly the business travel market, will remain below their historic capacities, whereas others, such as leisure travel, will perform better. Average yields are forecast to grow only slightly. Further pricing developments, both in sales and purchasing markets, and the ability to pass on rising costs (due to geopolitical effects, macroeconomic challenges or regulatory measures, for example) are considered key success factors. A comprehensive package of measures has been initiated specifically for Lufthansa Airlines. This is expected to contribute more than EUR 2.5bn to earnings. In addition to the delayed introduction of more efficient aircraft, operational stabilisation and the resolution of spare parts issues, the package includes improved customer satisfaction, higher productivity and efficiency gains through process streamlining and automation. Some measures have already been successful in the current year. Operating stability and customer satisfaction improved significantly. Full implementation is expected by 2028. Generally, the margins applied are based on past experience or developed on the basis of expected unit revenues and cost-cutting measures. Fuel cost planning assumes a price of USD 89/bbl, based on average prices in 2025. Expenditure on carbon emissions was calculated using an assumed certificate market price of EUR 73/t, taking into account existing ETS holdings and the free allocations still available until 2026. Current market prices were used for the assumed future cost of EUR 15/t for acquiring CORSIA certificates. The statutory blending quotas up to 2029 and conservatively estimated prices based on current market premiums were used for SAF blends. This resulted in an initial surcharge of around EUR 1,600/t SAF. The assumption is that any additional costs in periods after the current planning period ends will not result in a lasting margin reduction. Long-term investment rates are based on past experience and take account of the procurement of production resources and their financing as envisaged in fleet planning. Costs of the central functions were charged to individual units based on their use of these functions.

The weighted average cost of capital is calculated using market data to derive leverage ratios, beta factors and borrowing costs from a peer group that is reviewed annually. A market risk premium of 6.75% was applied as a basis (previous year: 7.5%). Regional risks are taken into account by applying appropriate risk premiums.

Intangible assets with indefinite useful lives consist of slots purchased as part of company acquisitions (where tradeable) and acquired brand names. Acquired slots have an indefinite useful life due to their lasting legal and economic significance. The carrying amounts for the slots and the brands were included in the impairment test for the smallest cash-generating unit (CGU) to which they are allocated. As described above for goodwill, the impairment tests were then performed on the basis of corporate planning for all assets, including slots and/or brands, of the respective units.

If the discount rates used are increased by one percentage point compared with the figures in table ↗ T114 Impairment testing, the recoverable amounts for all the units tested are still higher than the carrying amounts. If the scenarios were to worsen by one percentage point in terms of the planned Adjusted EBIDA margin and planned revenue growth, this would result in a shortfall for the CGUs Lufthansa Cargo and Eurowings. This would occur for Lufthansa Cargo if margins decline by 0.9 percentage points or revenue growth slows by 0.7 percentage points. The carrying amounts for Eurowings would no longer be covered if both indicators fell by 0.3 percentage points. For all other cash generating units, the recoverable amounts would still be higher than the carrying amounts if the planned Adjusted EBIDA margins and the planned revenue growth fell by one percentage point. The sensitivity analysis takes account of changes in one assumption at a time, with the other assumptions from the original calculation remaining unchanged.

Table T114 summarises the carrying amounts and the assumptions for the tests described above:

18. Other intangible assets

Non-capitalised research and development costs for intangible assets of EUR 105m (previous year: EUR 54m) were incurred in the period. They related mainly to software development projects. Firm orders have been placed for intangible assets worth EUR 2m (previous year: EUR 3m), but these are not yet at the economic disposal of the Lufthansa Group.

19. Aircraft and reserve engines including right-of-use assets

This item includes 84 aircraft with a carrying amount of EUR 3,050m (previous year: 90 aircraft with a carrying amount of EUR 2,651m), which have mostly been sold to and leased back from foreign leasing companies with the aim of obtaining favourable financing conditions. The leasing companies are fully consolidated as structured entities. The Lufthansa Group is entitled to buy the aircraft back at a fixed price and at a given point in time. One aircraft (previous year: four) with a carrying amount of EUR 61m (previous year: EUR 309m) was pledged as collateral under a loan agreement.

In the reporting year, borrowing costs of EUR 133m (previous year: EUR 135m) were capitalised. The financing rate applied was 3.1% (previous year: 3.4%).

Additions relate to 23 new aircraft (previous year: 17), five aircraft acquired after the end of the lease period (previous year: zero), and right-of-use assets relating to 19 aircraft (previous year: 17). Further additions include reserve engines and rights of use for reserve engines as well as the capitalisation of engine maintenance and aircraft overhaul events.

Reclassifications to aircraft held for sale include EUR 1,181m (previous year: EUR 560m) for 19 aircraft sold during the financial year (previous year: 15) that were leased back from the buyers immediately after the sale ↗ Note 22. Of these 19 aircraft, 12 were added during the reporting year.

Order commitments for aircraft and reserve engines amount to EUR 17.0bn (previous year: EUR 20.9bn). The decrease in order commitments was largely due to foreign exchange effects, deliveries and advance payments. They were offset by new orders for reserve engines and price increases for existing orders under price escalation clauses.

20. Repairable spare parts for aircraft

Additions in the financial year (netted against disposals) amounted to EUR 171m (previous year: EUR 210m); the net change in depreciation recognised in profit or loss was EUR 55m (previous year: EUR 80m).

21. Other property, plant and equipment including right-of-use assets

Land at Frankfurt Airport with a carrying amount at amortised cost of EUR 30m is not used for the Group’s operations and is therefore classified as an investment property.

As in the previous year, there are no charges over land and property. A third-party pre-emption right is registered for land held at EUR 191m (previous year: EUR 174m).

Other property, plant and equipment owned by the Group that did not consist of right-of-use assets was not used as collateral for existing financing arrangements, as in the previous year.

The following items of property, plant and equipment have been ordered, but are not yet at the economic disposal of the Lufthansa Group:

22. Leases

Table T120 shows the carrying amounts of the recognised right-of-use assets and the changes during the reporting period:

The Lufthansa Group mainly leases property, particularly at airports, as well as aircraft. Leases may include renewal and termination options. The terms of leases are negotiated individually and cover a wide range of different areas. Longer-term leases relate to property in particular. There is a remaining lease term of up to 30 years for land and buildings (previous year: up to 31 years) as of the reporting date. The average remaining term of the land and building leases as of 31 December 2025 was four years (previous year: three years).

The average remaining term of aircraft leases as of 31 December 2025 was four years (previous year: four years). Right-of-use assets for 21 aircraft and eight seasonally chartered aircraft (previous year: 17 aircraft) were recognised in 2025. This includes the aircraft added in the course of sale-and-lease-back transactions.

The Lufthansa Group concluded sale-and-lease-back transactions for 15 short-haul aircraft from the Airbus A320 family and four long-haul aircraft from the Airbus A350 family in the second half of 2025. The short-haul aircraft will be leased back for a period of 72 months and the long-haul aircraft for a period of 144 months, with no extension option. The aircraft were between zero and 59 months old at the time of the transaction and are currently operated by Deutsche Lufthansa, Lufthansa City Airlines, SWISS Airlines and Brussels Airlines. The transactions reflect the Group’s strategy of financing capital expenditure in new aircraft with a mix of cash, Japanese operating leases (JOLCOs) and other leases. The counterparties for the transactions are managed by SMBC Aviation Capital Limited, Dublin, Ireland, Babcock & Brown Aircraft Management LLC, San Francisco, USA, Nomura Babcock & Brown Co. Ltd., Tokyo, Japan, and CCB Financial Leasing Co., Ltd., Beijing, China. Proceeds of EUR 1,273m were generated by the sale, which are shown in the cash flow statement as cash inflows from investing activities. The right-of-use assets added amounted to EUR 615m as of the transaction date and the resulting lease obligation came to EUR 638m. The book gain of EUR 37m resulting from the sale is presented in EBIT. This book gain is not included in Adjusted EBIT.

In the reporting period, the amounts shown in the income statement were as follows:

The Lufthansa Group’s leases for properties and aircraft include renewal options and variable lease payments. They are used to achieve the greatest possible flexibility in terms of capacities. Variable lease payments and options whose exercise is not sufficiently certain are not included in the measurement of lease liabilities. Potential future lease payments for periods after the exercise date of the renewal options are summarised in table T122.

Where termination options were in place for individual leases, their exercise was considered unlikely. As a result, additional lease payments were already taken into account in the corresponding lease liability.

Amounts included in the cash flow statement are shown in table T123:

Lease payments are shown as cash flows from financing activities unless they are lease payments not included in the measurement of lease liabilities, which are shown as operating cash flow.

The maturity analysis of lease liabilities is shown under financial liabilities, ↗ Note 37.

Information about operating leases in which the Lufthansa Group is the lessor can be found in ↗ Note 6.

23. Equity investments accounted for using the equity method

Individual interests in companies accounted for using the equity method

Tables T125 to T130 contain summarised aggregated data from the income statement and statement of financial position for the individual material joint ventures accounted for using the equity method. The equity interest of 41% in Italia Trasporto Aereo S.p.A. acquired in the financial year was included in the presentation as a material joint venture. The Lufthansa Group and the Italian Ministry of Economy and Finance (MEF) have agreed options for the acquisition of the remaining shares in Italia Trasporto Aereo S.p.A. and these may be exercised at the earliest in 2026.

The functional currency of SunExpress is the euro.

The item “Other” in the reconciliation with the carrying amount for SunExpress primarily includes the difference from the first-time consolidation of the company.

Table T131 contains summarised aggregated data from the income statement and the carrying amounts for the individual immaterial joint ventures accounted for using the equity method.

Cumulative losses of EUR 23m (previous year: EUR 21m) for the immaterial joint ventures were not recognised through profit or loss previously, as the carrying amounts of the equity interests were too low. Total losses of EUR 2m were not recognised through profit or loss in the financial year because the carrying amounts of the equity interests were too low.

Table T132 contains summarised aggregated data from the income statement and the carrying amounts for the individual immaterial associated companies accounted for using the equity method.

24. Other equity investments and non-current securities

Shares in related parties include shares in affiliated companies, joint ventures and associates that are not consolidated for reasons of materiality. These shares are carried at amortised cost. Disclosures on the equity investments and non-current securities can be found in ↗ Note 45.

25. Non-current loans and receivables

Non-current loans and receivables are carried at amortised cost.

EUR 184m (previous year: EUR 157m) of the other loans and receivables are owed by the AURELIUS group. These relate to the disposal of the LSG group and represent deferred purchase price receivables. The resulting interest income is recognised in net interest. The loans expire in October 2027 and October 2028 respectively. The interest rate as of November 2025 is 12% p.a.

For developments in the surplus of pension plan assets, please refer to the disclosures on the pension provisions in ↗ Note 35.

The higher figure for holdings of emissions certificates results from a greater need to submit certificates due to a reduced number of certificates allotted free of charge, an increase in certificate prices and higher emissions relevant to the systems. For the impairment test for emissions certificates, please refer to the disclosures on the cash-generating units (CGU) in ↗ Note 17.

As in the previous year, no non-current receivables were used as collateral for liabilities.

26. Inventories

The gross value of written-down inventories as of 31 December 2025 was EUR 1,996m (previous year: EUR 1,936m). Inventories with a carrying amount of EUR 1,348m (previous year: EUR 1,268m) are held at their net realisable value. Write-downs to net realisable value of EUR 665m were made at the beginning of the financial year (previous year: EUR 716m). In the reporting year, new impairments of EUR 21m were recorded (previous year: EUR 15m), mostly related to the MRO segment. Impairment losses of EUR 38m from previous years were reversed (previous year: EUR 64m).

No inventories have been pledged as collateral for loans.

27. Contract assets

The Lufthansa Group recognised the following contract assets in 2025:

28. Trade receivables and other receivables

As in the previous year, no receivables were used as collateral for loans.

There are factoring agreements for some of the trade receivables. Since the risk of late payment and default was almost completely transferred to the factor, the EUR 59m in assets transferred (previous year: EUR 55m) was fully derecognised except for the amount of the continuing engagement of EUR 1m (previous year: EUR 1m).

Impairment testing for the emissions certificates took place in the course of impairment testing for the cash-generating units (CGU) that hold them. ↗ Note 17.

As in the previous year, there is no collateral for trade receivables and no reimbursements are expected for obligations for which provisions have been recognised.

For disclosures on impairment losses, credit risks and term structures, we refer to ↗ Note 45.

Other receivables of EUR 307m (previous year: EUR 111m) serve to secure the negative market values of derivatives.

29. Prepaid expenses

Prepaid expenses consist of various services paid for in advance for subsequent periods.

30. Interest-bearing securities and similar investments

Current securities are fixed income securities, participation certificates, shares and investments in money market funds. This position also includes term deposits with maturities of more than three to twelve months.

31. Cash and cash equivalents

This item includes cash and cash equivalents and fixed-term deposits with a term of up to three months. Bank balances in foreign currencies are translated at the exchange rate on the balance sheet date.

32. Assets held for sale

The aircraft held for sale as of 31 December 2025 comprised two aircraft from the Boeing 747 series, two aircraft from the Airbus 350 series and two from the Airbus 340 series, one aircraft from the Airbus 320 series and one Embraer 195, with a total carrying amount of EUR 401m. All aircraft are allocated to the Passenger Airlines segment.

Four CRJ900-series aircraft with a carrying amount of EUR 12m were held for sale in the previous year and were allocated to the Passenger Airlines segment.