Shareholders’ equity and liabilities

33. Issued capital

Share capital

Deutsche Lufthansa AG’s share capital totals EUR 3,070,164,211.20. It is divided into 1,199,282,895 registered shares with transfer restrictions, with each share representing EUR 2.56 of the share capital.

Authorised capital

A resolution passed at the Annual General Meeting on 7 May 2024 authorised the Executive Board until 6 May 2029, subject to approval by the Supervisory Board, to increase the Company’s share capital by up to EUR 1,000,000,000 by issuing new registered shares on one or more occasions for payment in cash or in kind (Authorised Capital A). In certain cases, the shareholders’ subscription rights can be excluded with the approval of the Supervisory Board.

A resolution passed at the Annual General Meeting on 9 May 2023 authorised the Executive Board until 8 May 2028, subject to approval by the Supervisory Board, to increase the share capital by EUR 100,000,000 by issuing new registered shares to employees (Authorised Capital B) for payment in cash. Existing shareholders’ subscription rights are excluded. As of 31 December 2025, the issued capital was increased under this authorisation by a total of EUR 9,720,962.56, with the result that Authorised Capital B still amounted to EUR 90,279,037.44 as of the reporting date.

The Executive Board is authorised, in the event of the fulfilment of the requirements stipulated in Section 4 Paragraph 3 of the German Aviation Compliance Documentation Act (LuftNaSiG) and with the consent of the Supervisory Board, to increase the issued capital by up to 10% by issuing new shares in return for payment in cash and without subscription rights for existing shareholders. The issue price for the new shares must be determined subject to the agreement of the Supervisory Board and may not be significantly lower than the market price. The authorisation may only be made use of insofar as this is necessary in order to achieve the non-applicability of the conditions stipulated in Section 4 Paragraph 3 LuftNaSiG.

The Executive Board is authorised, according to Section 5 Paragraph 2 LuftNaSiG and subject to the approval of the Supervisory Board, to require shareholders to sell some or all of their shares and to provide the Company with proof of this sale without delay insofar as this is necessary for compliance with the requirements for the maintenance of air traffic rights and in the sequence prescribed in Section 5 Paragraph 3 LuftNaSiG, subject to an appropriate time limit and while indicating the otherwise possible legal consequence of the loss of their shares in accordance with Section 5 Paragraph 7 LuftNaSiG.

Contingent capital

On 10 May 2022, the Annual General Meeting contingently increased the Company’s issued capital by up to EUR 306,044,326.40. The contingent capital increase serves to provide shares to the holders or creditors of conversion and/or option rights from convertible bonds that may be issued by the Company or its Group companies until 9 May 2027. In certain cases, the shareholders’ subscription rights can be excluded with the approval of the Supervisory Board.

Authorisation to purchase treasury shares

A resolution passed at the Annual General Meeting held on 9 May 2023 authorised the Executive Board pursuant to Section 71 Paragraph 1 No. 8 of the German Stock Corporation Act (AktG) to purchase treasury shares until 8 May 2028. The acquisition is limited to 10% of current issued capital and can be purchased on the stock exchange or by a public purchase offer to all shareholders. The authorisation states that the Executive Board can use the shares in particular for the purposes defined in the resolution passed at the Annual General Meeting. According to the resolution of the Annual General Meeting held on 9 May 2023, the Executive Board is also authorised to purchase treasury shares by means of derivatives and to conclude corresponding derivative transactions.

In the 2025 financial year, Deutsche Lufthansa AG issued 966,222 shares from Authorised Capital B at a price of EUR 7.43 in order to distribute them to employees as part of the profit-sharing scheme for 2024. As of 31 December 2025, Deutsche Lufthansa AG held 17,987 treasury shares, which originated from capital increases from Authorised Capital B over the past two years. These shares are reserved exclusively for issuance to employees.

Capital management

The aim of capital management is to cover future funding requirements at low cost and to ensure that financial liabilities can be repaid, by ensuring good access to the capital markets. This is to be achieved in particular by maintaining a long-term investment-grade credit rating. Gearing, measured by the ratio of Adjusted net debt to Adjusted EBITDA, is a key criterion in this regard. As of 31 December 2025, this ratio stood at 1.8 (previous year: 2.0). The Adjusted Net Debt metric includes net financial debt as well as net pension obligations, with the hybrid bond issued in 2025 only being included at 50% in the calculation of net indebtedness.

The balance sheet ratios for equity and debt were as follows as of 31 December 2025 and 2024:

Despite a positive net profit, the equity ratio declined by 0.4 percentage points to 24.2% in the 2025 financial year. This was mainly due to the negative development in the market value of derivative instruments used to hedge foreign exchange and interest rate risks, while the volume of debt-financed aircraft investments remained high.

Deutsche Lufthansa AG’s Articles of Association do not stipulate any capital requirements.

34. Reserves

Capital reserves only include the share premium paid on capital increases and a convertible bond that was redeemed in full in previous years. The other reserves consist of other retained earnings.

The following table shows changes in other neutral reserves in the 2025 financial year:

The neutral tax expenses in connection with the revaluation of defined-benefit pension plans were also affected in the reporting year by adjustments of EUR 139m to deferred taxes resulting from the reductions in corporation tax rates adopted from 2028 onwards. Further information on the effects of the change in corporation tax rates is provided in ↗ Note 14. The overall change in shareholders' equity is shown in table ↗ T088 Consolidated statement of changes in shareholders’ equity.

35. Pension provisions

The Lufthansa Group’s pension obligations comprise both defined benefit and defined contribution plans and include both obligations to make current payments and entitlements to future pension payments.

In addition to various actuarial risks such as interest rate risk, life-expectancy risk and the risk of salary increases, the pension plans expose the Group primarily to financial risks in connection with plan assets.

Obligations under defined benefit pension plans for employees of the Lufthansa Group related mostly to pension obligations in Germany, Switzerland, Austria and the USA. Various commitments have been made to different groups of employees.

Germany

Between 2015 and 2017, all employee groups transitioned from defined benefit plans to defined contribution plans with a capital guarantee during the vesting period. Specific regulations and transition dates differ for the various employee groups (ground staff, cockpit and cabin crew), but pension entitlements accrued under the previous schemes up to the respective transition dates have been retained unchanged. Under the new system, each employee has an individual contribution account, to which the employing company regularly credits contributions based on salary levels. The value of the contribution account depends on the performance of specially designated age-group funds, in which contributions are generally fully funded. The Company guarantees the preservation of contributions for ground and cabin crew employees, while cockpit crew members receive a minimum return equal to the guaranteed interest rate of life insurers (currently 1% per year). Employees may also make voluntary contributions to their accounts. When an employee reaches retirement age, the accumulated balance is converted into an annuity on the basis of the applicable BilMoG interest rate in accordance with Section 253 Paragraph 2 HGB, subject to a pension adjustment of 1% per annum. Employees in all three professional groups also have the option to receive their pension assets as a lump sum or in instalments.

In addition to their retirement benefits, cockpit crew members are additionally entitled to a transitional pension arrangement covering the period from the end of their active in-flight service until the beginning of their statutory/Company pension plans. Transitional benefits depend on the number of years of service and the final salary before retirement (final salary plan). Contributions to the individual pension accounts continue to be credited while transitional benefits are being received. Since 2021, the projected average retirement age for pilots has been 60.

In the Company retirement benefit scheme for ground, cabin and cockpit staff, the obligations from the capital market-oriented components are recognised at the fair value of the securities credited to individual benefit accounts, but not less than the actuarial present value of the guaranteed benefits. Plan assets and benefit obligations are presented on a net basis. The service cost for these commitments corresponds to the employer contributions credited to the contribution accounts in the financial year.

To fund and secure future pension payments and fully finance pension obligations, the Company employs trust arrangements in the form of a two-tiered bilateral contractual trust arrangement (CTA).

Lufthansa Pension Trust e. V. is the primary asset trustee securing the remaining traditional defined benefit plan components. It is a separate legal entity and is subject to German regulatory requirements. Deutsche Lufthansa AG and the trustees/other trustors agree on contributions and, if such a contribution is determined, make a payment to Lufthansa Pension Trust e. V. Deutsche Lufthansa AG and its subsidiaries Lufthansa Technik AG and Lufthansa Cargo AG are parties to the contractual trust arrangement. The trust assets are largely held by a Maltese corporate vehicle. The Investment Board of Lufthansa Malta Pension Holding decides on the fund’s asset allocation. The asset management itself is delegated to fund management companies, who invest the assets in accordance with the general investment principles defined by the Investment Board.

Assets to defined contribution fund pension obligations for other German subsidiaries have been invested with Deutsche Treuinvest Stiftung with the same investment strategy.

The assets covering pension obligations under the defined contribution plans are also managed under a contractual trust arrangement by Deutsche Treuinvest Stiftung as trustee. Capital is invested in what are known as age group funds, whose investment strategy is based on a life cycle model. As employees get older, less and less is invested in asset classes with a higher risk-return profile and a greater percentage in more conservative asset classes. The Company has set up an Investment Committee that is responsible for defining and monitoring the investment strategy, e.g. how the age group funds are composed and how the asset allocation changes over time.

There are no minimum funding requirements in Germany. The pension contributions for employees calculated in the financial year were transferred in full to the plan assets. A total of EUR 290m (previous year: EUR 325m) was withdrawn from the plan assets for German pension obligations to cover pension payments made during the current financial year.

Switzerland

Pension obligations in Switzerland are largely based on statutory obligations. The retirement benefits are funded via pension funds. In addition to retirement benefits, the plans cover disability and surviving dependant persons’ benefits. Beneficiaries can choose between an annuity and a lump sum payment. The retirement age for the plans generally lies between 58 and 65 years. Contributions to the pension funds are made by employers and employees; the Company contributions must be at least equal to the employee contributions defined in the terms of the plan. Contributions are deducted from the qualifying salary according to a sliding scale. If there is a deficit of plan assets, employer and employee contributions can be increased, a lower return can be determined or other steps permissible by law can be taken. The decision is taken by the trustees of the pension fund concerned. The trustees’ strategies for making good a deficit are based on the report by a pension fund expert and must be presented to the regulatory authority. The approval of the authority is not required, however.

Austria

The pension obligations for employees of Austrian Airlines AG are mostly on a defined contribution basis and have been outsourced to a pension fund. They consist of retirement, occupational disability and surviving dependant persons’ benefits.

Obligations under defined benefit plans at Austrian Airlines AG relate to former directors and Executive Board members and others already receiving their pensions. Obligations under defined benefit plans for ground staff are now contribution-free and are determined by converting plan assets into an annuity. As a result of a collective agreement and a legislative change in 2023, the existing defined pension obligations were transferred to a pension fund. In this context, Austrian Airlines AG was obliged to make payments to the pension fund of EUR 46m in total. All outstanding payments were made in 2025. The pension obligation and the corresponding plan assets were then derecognised, since there are no longer any further obligations towards the beneficiaries.

There are also entitlements to severance payments when employment comes to an end.

USA and other countries

There is also a small number of retirement benefit commitments for other staff abroad, based mainly on length of service and salary earned. As a rule, benefits are financed by means of external funds. No new entitlements can be acquired in the US and UK pension plans, which are the largest by volume. Obligations began to be transferred to an insurance company in the UK in the financial year. This process is expected to be completed and the pension plan finally derecognised in the 2027 financial year. Settlement expenses of EUR 8m were recognised in this context.

Amounts shown in the statement of financial position for defined benefit commitments are made up as follows:

The asset ceiling arises for plans in Switzerland where the fair value of plan assets exceeds the defined benefit obligation. However, this surplus cannot be withdrawn from the plan through payouts or future contributions to the plan assets that are less than the service cost. Plans in Switzerland account for EUR 276m of this surplus and plans in Germany for EUR 132m.

The total amount of defined benefit obligations is distributed among the beneficiaries as follows:

The weighted duration of pension obligations was 15 years as of 31 December 2025 (previous year: 16 years).

The changes between the opening balance and the closing balance of the pension obligation, the plan assets and the pension provision are as follows:

Interest expenses on pension provisions and interest income on plan assets are shown in the financial result. The current service cost and past service cost are recognised in staff costs.

The past service cost incurred in the reporting year is due to retrospective benefit increases in connection with termination agreements in Germany. Income from plan adjustments in Switzerland reduced the amount of expenses.

Actuarial gains/losses from changes in financial assumptions primarily include gains due to the increase in the discount rate compared with the previous year. They were offset above all by changes in the value of investments for the capital market-based pension obligations in Germany and unanticipated higher pension-related fees in Switzerland, which resulted in higher obligations and, as a result, to losses based on past experience.

The plan assets generated a gain of EUR 599m in the 2025 financial year (previous year: gain of EUR 1,205m). This amount is made up of the interest income recognised in the income statement and the revaluation component for plan assets.

Information on tax assets related to pension obligations can be found in table ↗ T110 Deferred tax assets and liabilities.

The main actuarial assumptions used to calculate pension obligations and the corresponding plan assets are shown below:

The Heubeck 2018 G actuarial tables were used in the biometric calculations for the German companies in the Group.

The BVG 2020 actuarial tables are used as a basis for the biometric calculations for Switzerland.

The following table shows how the present value of the defined benefit obligations would have been affected by changes in the relevant actuarial assumptions for the main pension plans described above.

A reduction of 10% in the mortality rates used to calculate the pension obligations increases the life expectancy of the beneficiaries by a given amount depending on their individual ages. It roughly corresponds to an increase of one year in the life expectancy of a male employee who is 55 years old today. A 10% reduction in the mortality rates would therefore increase the present value of the main benefit obligations in Germany and Switzerland by EUR 304m as of 31 December 2025 (previous year: EUR 343m).

The sensitivity analysis examines changes in one assumption and leaves the other assumptions unchanged compared with the original calculation. The effects of any interaction between the individual assumptions are therefore not taken into account.

The plan assets are made up as follows:

The plan assets for defined benefit pension obligations consist mainly of fixed-income securities, shares, property and cash and cash equivalents. They do not include financial instruments issued by companies in the Group nor properties used by Group companies.

Plan assets serve solely to meet the defined benefit obligations. Funding these benefit obligations with assets provides security for future payments. In some countries, this takes place on the basis of statutory regulations, while in others (Germany, for example), this takes place on a voluntary basis.

The responsible decision-making bodies within the Lufthansa Group manage and monitor the financial risks that arise from funding the defined benefit pension obligations.

Within the Lufthansa Group, the pension plans aim to cover the German and Swiss pension obligations by means of plan assets and positive capital market returns in the medium to long term. The key factors for achieving this are the performance of the investments and, for the Swiss plans, the structure of the contribution system and the interest rate policy.

The allocation of the funds to asset classes (e.g. shares) for the defined-benefit plans is carried out on the basis of asset-liability matching (ALM) studies. The ALM study is conducted periodically, generally every three years, with an external adviser in order to review the funding strategy on a regular basis and to make adjustments as necessary. The results of the study should indicate what combination of investments (annuities, shares, etc.) can be used to cover the long-term pension obligations. Step one of this process is for the actuary to draft a long-term forecast charting how the pension obligations will develop.

In addition to this, target figures are needed for the relative return and relative risk as regards coverage of the obligations. Last but not least, a risk budget must also be defined. A simulation is used to test all permissible investment allocations for their future compliance with these objectives. Those which do not fulfil the criteria are eliminated. Preference is given to allocations that are return-oriented yet conservative and that have a high probability of achieving the investment target. The results of the ALM study show whether there will be strategic shifts in the existing allocation.

The funding ratio for the defined-benefit pension obligations at Deutsche Lufthansa AG, Lufthansa Cargo AG and Lufthansa Technik AG is nearly 100% (previous year: nearly 100%). To stabilise the funding ratio, 75% of the investment portfolio (previous year: 75%) is now allocated in accordance with a liability-driven investment (LDI) strategy.

The LDI strategy requires capital to be invested in such a way that the assets replicate the interest rate risk for the pension obligations. This reduces fluctuations due to interest rate changes in the net pension obligations presented in the consolidated statement of financial position. It entails capital investments largely in fixed-income corporate bonds and in derivative interest rate swaps that establish the same sensitivity to interest rates for both assets and liabilities. As of 31 December 2025, around 75% (previous year: around 75%) of these pension obligations were hedged against a target interest rate risk. Derivative financial instruments are also used to manage foreign exchange risks.

The investment strategy for the capital market-based pension plans was also initially defined by the Company and is regularly reviewed in the course of an ALM study. Where necessary, it is adjusted by the Investment Committee to reflect changes in capital market requirements. This may result in changes to the investment strategy for amounts that have already been invested.

Based on current knowledge, an estimated EUR 688m is expected to be transferred to pension plans in the 2026 financial year (previous year: EUR 658m). In Germany, they only relate to capital market-oriented schemes.

Over the next ten years, the following pension payments are forecast for the defined benefit commitments in existence as of the reporting date:

The projected maturities for pension payments do not include possible allocations to or funding from plan assets. As a result, the cash flow effects from payments in respect of pension plans may be higher or lower than the projected pension payments, primarily depending on the Company’s ability to continue its past funding policy in the future.

Contributions for defined-contribution retirement commitments came to EUR 556m in 2025 (previous year: EUR 507m). These mainly relate to contributions to statutory pension schemes, but also include collective bargaining contributions or voluntary contributions to other pension schemes. The increase stemmed mainly from higher statutory pension contributions, particularly due to higher salaries and an increase in the number of employees.

36. Other provisions

Other provisions disclosed in the statement of financial position as non-current and current other provisions are made up as follows:

The obligations from partial retirement contracts result from collective bargaining agreements in Germany. In 2025, the obligations were measured using an interest rate of 2.80% (previous year: 3.00%).

To protect outstanding obligations under partial retirement agreements in the event of insolvency, funds were transferred to an external trust and reinsurance policies were taken out. These assets, which fulfil the requirements for plan assets and therefore reduce the gross amount of obligations accordingly, are measured at fair value on the balance sheet date.

The funding status for provisions for obligations to employees under partial retirement contracts is as follows:

The obligation was reduced in the financial year because the option to conclude new partial retirement contracts in the collective agreement expired.

Provisions for other staff costs mainly relate to staff anniversary bonus obligations and other current obligations.

The provisions for the obligation to return emissions certificates cover the obligations to submit certificates under the emissions trading schemes applicable to the Lufthansa Group. The obligations are offset by certificates that are presented under other receivables. ↗ Note 25 and ↗ Note 28. The increase in the financial year was due to both a reduced number of certificates allocated free of charge, higher certificate prices and higher emissions relevant to the systems.

The provisions for expected losses from onerous contracts relate in particular to maintenance contracts at Lufthansa Technik AG, where agreed revenues will not cover the attributable expenses.

Provisions for environmental restoration are based on surveyors’ findings and the assumption that all contamination is removed within ten years without any further legal requirements.

Provisions for pending litigation were based on an assessment of the likely outcome of the proceedings.

The provisions for restructuring and severance payments are based on concluded termination agreements or proposed contract terminations which the Lufthansa Group can no longer avoid.

The provisions for the overhaul of leased aircraft mainly relate to obligations for the maintenance, overhaul and repair of these aircraft. The increase was mainly due to the rise in the number of leased aircraft.

Provisions for warranties were mainly recognised for warranty claims in the MRO segment.

Changes in individual provisions in 2025 were as follows:

Changes in individual provisions in the previous year were as follows:

The following cash outflows are estimated for the non-current portion of the other groups of provisions:

37. Financial liabilities

Financial liabilities consist of a non-current portion with a residual term of more than one year and a current portion of less than one year, which is shown under current liabilities. Table T153 Financial liabilities shows the total amount of financial liabilities.

The Lufthansa Group pursues the strategy of converting financial liabilities in all currencies into financial liabilities in euros by means of interest rate derivatives.

The bonds comprise seven bonds with fixed redemption amounts issued under the Euro Medium Term Notes programme. As of the reporting date, bonds with a nominal volume of EUR 5.0bn, interest rates between 2.875% and 4.125% per year and maturities between May 2026 and September 2032 had been issued under the programme. The programme enables bonds to be issued up to a total volume of EUR 10bn. Also included in the item are a new convertible bond issued in 2025, a new hybrid bond issued in 2025 and a hybrid bond issued in 2015. The new convertible bond was issued with a nominal volume of EUR 600m and can be converted into new and/or existing registered shares in Deutsche Lufthansa AG at a conversion price of EUR 10.755. The unconverted portion of the bond is due for repayment with accrued interest at 102.66% of its nominal value on 10 September 2032. The hybrid bond from 2015 has a volume of EUR 500m, matures in August 2075 and has an interest rate of 4.382% per year. It can be terminated in a five-year cycle, the next time on 12 February 2026. The hybrid bond issued at the start of 2025 also has a volume of EUR 500m, matures in January 2055 and has an interest rate of 5.250% per year. It can first be terminated in the period from 15 October 2030 to 15 January 2031 and thereafter on an annual basis from 15 January 2032.

Of the liabilities to banks, borrower's note loans account for EUR 470m. One borrower's note loan with a carrying amount of EUR 47m was secured by an aircraft.

The lease liabilities correspond to the present value of the remaining payment obligations from contracted leases. Further details on the contracts concluded can be found in ↗ Note 22.

The Lufthansa Group’s lease liabilities have the term structure set out below. The disclosures are based on contractual undiscounted payments.

Under other loans, EUR 3,716m (previous year: EUR 3,798m) was attributable to structured leasing companies and other aircraft financing models (↗ Note 19). This amount was secured by the respectively financed aircraft. Another six aircraft was refinanced in this way in 2025 and twelve such financing arrangements expired.

In both the 2025 and 2024 financial years, all payment obligations and requirements from the loan agreements described have been fulfilled. No financial covenant requirements are in place.

38. Non-current contract liabilities

Non-current contract liabilities consist of long-term deferrals for construction contracts where the payments received exceed the performance to date.

39. Non-current advance payments received, deferred income and other non-financial liabilities

Deferred income includes EUR 2m (previous year: EUR 2m) for government grants and subsidies for capital expenditure, which are realised over the useful life of the assets in the following years.

Other non-financial liabilities include obligations under share-based remuneration agreements for Executive Board members, managers and non-payscale employees.

A variable remuneration system is in place for the Executive Board, in which 80% of performance is measured by financial parameters and 20% by sustainability parameters. 30% of the relative Total Shareholder Return (TSR) of the Lufthansa share relative to the NYSE Arca Global Airline Index sector index and 50% of the average adjusted return on capital employed (Adjusted ROCE) during the performance period serve as financial targets. The performance period is four years. For the TSR component, the 60 trading days immediately preceding the beginning of the performance period and the 60 trading days immediately preceding the end of the performance period are used in the performance period. Performance against the target for average Adjusted ROCE is based on a comparison of the average Adjusted ROCE for the four-year performance period against a strategic target set in the grant year, which stipulates coverage of the weighted average cost of capital (WACC) as a lower threshold. The sustainability parameters are set by the Supervisory Board for each performance period.

For the performance targets not dependent on the market, an expected target achievement of 50.00% for Adjusted ROCE and 0% for the sustainability parameter was assumed as part of the measurement for 2023; for 2024, an expected target achievement of 1.67% was assumed for Adjusted ROCE and 200% for the sustainability parameter, and for 2025 an expected target achievement of 102.41% was assumed for Adjusted ROCE and 140% for the sustainability parameter. At the beginning of each performance period, a number of virtual shares are awarded, which are calculated by dividing the individual target amount of the long-term variable remuneration by the average price of Deutsche Lufthansa AG shares during the 60 trading days immediately following the beginning of each performance period. The payment is calculated by multiplying the degree of target achievement for this performance target by the number of virtual shares at the beginning of the performance period and the average price of Deutsche Lufthansa AG shares during the 60 trading days immediately preceding the end of the last year of each performance period.

Managers and non-payscale employees of Deutsche Lufthansa AG and other consolidated and non-consolidated Group companies also have a multi-year incentive programme in the form of share-based remuneration. Adjusted ROCE accounts for 50% of target achievement. Another 30% depends on the relative performance of the Deutsche Lufthansa AG share against the performance of the shares in the NYSE Arca Global Airline Index (TSR target). The remaining 20% of the target amount is tied to sustainability targets relating to reductions in carbon emissions. The range of target achievement for the individual performance criteria is from 0% to 200%. The vesting period begins on 1 January of each programme year and lasts for three years. The plan is to pay a potential bonus, half in cash and half in Lufthansa shares. The fair value of the share component is therefore shown in shareholders’ equity and initially measured at fair value at the time of the award. The cash component, which amounts to EUR 18.7m (previous year: EUR 7.5m) and is also part of the other non-financial obligations, was measured at fair value on the reporting date and increases staff costs accordingly by EUR 11.2m (previous year: EUR 1.3m).

As in the previous year, no payment was made from the expired 2021 share programme for managers.

Overall, the number of options changed as follows:

The fair values of the option rights and the virtual shares in the ongoing share programmes were calculated using Monte Carlo simulations. This involves simulating the future returns of the shares in the comparative index and of Deutsche Lufthansa AG and calculating the value of the option rights and virtual shares as the forecast amount of a dividend. The weighted average share prices at the calculation date were used in the Monte Carlo simulation. As stated in the terms of the programme, these are 60-day averages for Deutsche Lufthansa AG shares and the NYSE Arca Global Airline Index. The volatilities and correlations used are forecasts for a specific date and maturity on the basis of current market estimates.

Overall, the fair values shown in table T 158 were calculated. While the number of shares held by the Executive Board is an agreed figure, in the case of the managers and non-payscale employees this is a variable figure which is based on the closing price calculated on the specified date, at the time of settlement on the Frankfurt Stock Exchange (Xetra). The figure shown in the table was calculated on the basis of the share price on 30 December 2025 (EUR 8.41).

The measurement of virtual shares for the Executive Board therefore results in an obligation of EUR 28.9m as of the reporting date (previous year: EUR 26.3m), of which EUR 17.3m (previous year: EUR 14.1m) is shown under non-current liabilities. The payout for expired virtual share options of EUR 9.6m in the financial year (previous year: EUR 1.1m) reduced the liability. Changes in the value of virtual shares and the award of additional virtual shares during the financial year resulted in total additional staff costs of EUR 14.8m (previous year: reduction of EUR 6.2m). The measurement for the 2023 programme took into account a remaining term of 13 months and a risk-free interest rate of 1.90%, for the 2024 programme a remaining term of 25 months and a risk-free interest rate of 1.92%, and for the 2025 programme a remaining term of 37 months and a risk-free interest rate of 2.15%.

The fair value of equity-settled share commitments for the 2023, 2024 and 2025 programmes for managers and non-payscale employees was EUR 22.4m (previous year: EUR 13.9m) and was measured based on a valuation model. At the time of the award the model used an expected weighted volatility of 43% for 2023, 37% for 2024 and 31% for 2025 and a share price of EUR 8.94 for 2023, EUR 7.23 for 2024 and EUR 7.70 for 2025 for the Lufthansa share. The expected volatility was derived from historic volatilities. A risk-free interest rate of 2.96% for 2023, 2.60% for 2024 and 2.24% for 2025 was applied for the model. Assumptions for correlations between the Lufthansa share price and the performance of the NYSE Arca Global Airline Index were based on historical share and index performance. The proportion of commitments intended to be settled by equity instruments increases shareholders’ equity by EUR 8.5m (previous year: EUR 8.3m) to a total of EUR 22.4m. Changes in the value of options and option rights and the award of additional option rights in the financial year are recognised in staff costs for a total of EUR 17.9m.

40. Current contract liabilities

The Lufthansa Group recognised the following contract liabilities:

Of the contract liabilities as of 31 December 2024, EUR 241m (previous year: EUR 267m) could not be realised and was refunded to customers. A total of EUR 2,358m (previous year: EUR 2,366m) in ticket refunds was issued for tickets sold in 2025.

Liabilities from customer loyalty programmes as of 31 December 2025 included 262 billion miles/points from bonus miles programmes (previous year: 263 billion miles/points). As a rule, the miles that are expected to expire are recognised pro rata over the general validity period of three years.

The remaining performance obligation under existing long-term service contracts came to EUR 11.0bn in total, assuming that the services are performed as agreed, of which EUR 2.0bn relate to the next twelve months. These essentially consist of maintenance contracts in the MRO segment for the long-term maintenance and overhaul of airline sub-fleets. To calculate the outstanding performance obligations, the number of maintenance inspections derived from the respective flight plans and agreed in the contracts are taken into account, along with the expected revenue and fixed prices for certain services (VIP and cabin modifications). 67% of performance obligations beyond twelve months are expected to have been fulfilled by 2031.

As in the previous year, no revenue was recognised in 2025 for performance obligations fulfilled in prior financial years.

In line with the simplification rules of IFRS 15, disclosures are not made on performance obligations as of 31 December 2025 or 31 December 2024 that have a forecast original term of one year or less. The option of rebooking flights means that there may be a period of time between the conclusion of the contract and the provision of the service that exceeds one year, although this cannot be foreseen when the contract is concluded. Due to the advance booking period of a maximum of one year and short-term rebooking possibilities, the Group assumes that the application of the simplification rule is justified. Award miles can be redeemed for at least three years, but may also be redeemed at short notice and for this reason are also reported as current.

41. Trade payables and other current financial liabilities

No other liabilities serve to secure positive market values of derivatives (previous year: EUR 63m).

The Lufthansa Group takes part in a Supply Chain Finance (SCF) programme to optimise working capital and cash flow and to strengthen supplier relationships. The provider of the programme is CRX Markets AG, Munich, and is free of charge for participating suppliers. Supplier participation in the programme is voluntary; suppliers can receive earlier payment of their receivables from the participating banks at a discount. The Lufthansa Group then pays the original invoice to the bank on the due date. This does not result in any additional costs for the Lufthansa Group in relation to the participating banks. As of 31 December 2025, the SCF programme was used by the Group companies Deutsche Lufthansa AG, Lufthansa Cargo AG, Austrian Airlines AG and Swiss International Airlines Ltd. As of the reporting date, 18 suppliers with an outstanding trade payables volume of EUR 510m (previous year: EUR 583m) participated. Payment terms of liabilities in the programme do not exceed payment terms with suppliers not participating in the programme. The payment terms under the SCF programme range from 90 to 190 days, while the range for comparable invoices outside the SCF programme is from 0 to 185 days. All relevant contractual payment terms are also negotiated with suppliers outside the programme on a bilateral basis, which is why participation in the SCF programme does not change the nature of the supplier liability. Consequently, the disclosure of the trade payables remains unchanged. The cash flows from these liabilities continue to be presented as operating cash flow in the cash flow statement under the item “Changes in trade working capital”.

In addition, the Lufthansa Group participates in another supply chain finance (SCF) programme offered by cflox GmbH, Hamburg, Germany. This programme allows payment terms to be extended by 90 days without affecting suppliers, as they continue to receive their payments on the agreed date. This creates another short-term financial liability to the payment service provider, which makes the payment on behalf of the Lufthansa Group. Consequently, the cash flows continue to be presented as operating cash flow in the cash flow statement under the item “Changes in trade working capital”. As of 31 December 2025, Deutsche Lufthansa AG was using this programme. As of the reporting date, other short-term financial liabilities related to this programme amounted to EUR 299m (previous year: EUR 258m), originally attributable to ten suppliers.

42. Current advance payments received, deferred income and other non-financial liabilities

The advance payments received include EUR 86m from the two Boeing 747 aircraft held for sale.

Other non-financial liabilities also include the current portion of obligations under share-based remuneration agreements measured at fair value (↗ Note 39).