Notes to the segment reporting
43. Notes to the reporting segments and segment data
Notes to the reporting segments
As of 31 December 2025, the Lufthansa Group operated in three reporting segments, which constitute its Group activities. The segments are defined in line with the internal reporting and management structure. The airline activities were combined in their respective reporting segments based on the similarity between the economic characteristics of the individual airlines, such as network and sales structures, as well as customers and services. The Passenger Airlines segment comprises the network airlines Lufthansa Airlines, SWISS, Austrian Airlines and Brussels Airlines, and since 2025 also the equity investment in ITA Airways. The Passenger Airlines segment also features the airlines Eurowings, including the equity investment in SunExpress, Discover Airlines and Edelweiss Air, as well as the regional airlines Lufthansa CityLine, Lufthansa City Airlines and Air Dolomiti. Further information about the individual airlines can be found in the Group management report ↗ Passenger Airlines business segment.
The Logistics segment comprises the scheduled airfreight activities of the Lufthansa Cargo group. Lufthansa Cargo is Europe’s leading cargo airline.
The MRO segment is a leading global provider of maintenance, repair and overhaul services for civil and commercial aircraft and is represented by the Lufthansa Technik group.
Business activities not allocated to a reporting segment are presented in table ↗ T162, in the “Additional Businesses and Group Functions” column, along with the income and expenses of central Group functions. They include the income and expenses of Lufthansa Commercial Holding GmbH, the Lufthansa Systems group, the Lufthansa Aviation Training group and other Group companies.
Segmentation was changed by comparison with the financial statements as of 31 December 2024. The Lufthansa Industry Solutions group, which consists of four consolidated and three non-consolidated companies, was allocated to the Additional Companies and Group Functions as of 1 January 2025, having previously formed part of the MRO segment. This reflects the fact that Lufthansa Technik AG is no longer responsible for these companies’ strategic management. The figures for the previous year in the segment reporting were adjusted accordingly. External revenue for the consolidated entities in the Lufthansa Industry Solutions group came to EUR 136m in financial year 2025 (previous year: EUR 138m). Adjusted EBIT for this group came to EUR 40m in the segment presentation (previous year: EUR 28m).
Notes to segment data and internal management
The accounting policies of the reporting segments are the same as those described in ↗ Note 2.
The Lufthansa Group measures the performance of its segments using both segment result indicators: EBIT and Adjusted EBIT. EBIT is made up of the IFRS operating result and the result from equity investments. Adjusted EBIT is obtained by correcting EBIT for gains and losses on the disposal of assets, write-downs and write-backs and earnings attributable to other periods in connection with pension obligations (plan adjustments and plan settlements), expenses for staff-related restructuring measures, material extraordinary legal costs not resulting from normal business operations, material costs in connection with company transactions and material other expenses based on extraordinary external events.
Sales and revenue between reporting segments are based on arm’s length prices. Administrative services are charged as cost-based allocations.
For information on external traffic revenue, see ↗ Note 3.
The result of the equity valuation for the segment’s equity investments is part of its segment result. However, from a Group perspective, it is attributed to the financial result rather than the operating result.
Capital employed largely comprises segment assets, adjusted for derivative financial instruments, cash and cash equivalents and deferred tax items less non-interest-bearing debt.
The reconciliation column includes both the effects of consolidation activities and the amounts resulting from different definitions of segment item contents compared with the corresponding Group items. Eliminated segment revenue generated with other consolidated segments is shown in the reconciliation column for revenue.
The amounts in the reconciliation column for Group EBIT include the effects of consolidation activities on profit or loss in which income and expense do not figure for two companies at the same amount, or in the same period.
| T162 | Segment information for the 2025 reporting segments | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Reconciliation | |||||||||
| in €m | Passenger Airlines | Logistics | MRO | Total reportable operating segments | Additional Businesses and Group Functions | Not allocated | Consolidation | Group5) | |
| External revenue | 29,760 | 3,355 | 6,044 | 39,159 | 438 | – | – | 39,597 | |
| of which traffic revenue | 28,623 | 3,189 | – | 31,812 | – | 513 | – | 32,325 | |
| Inter-segment revenue | 816 | 48 | 2,005 | 2,869 | 728 | – | -3,597 | – | |
| Total revenue | 30,576 | 3,403 | 8,049 | 42,028 | 1,166 | – | -3,597 | 39,597 | |
| Other operating income | 1,075 | 82 | 656 | 1,813 | 2,073 | – | -985 | 2,901 | |
| Total operating income | 31,651 | 3,485 | 8,705 | 43,841 | 3,239 | – | -4,582 | 42,498 | |
| Operating expenses | 30,688 | 3.209 | 8,124 | 42,021 | 3,400 | – | -4,622 | 40,799 | |
| of which cost of materials and services | 18,199 | 2,263 | 5,221 | 25,683 | 436 | – | -2,538 | 23,581 | |
| of which staff costs | 6,441 | 470 | 1,609 | 8,520 | 1,122 | – | -3 | 9,639 | |
| of which depreciation and amortisation | 1,872 | 201 | 152 | 2,225 | 97 | – | 47 | 2,369 | |
| of which other expenses | 4,176 | 275 | 1,142 | 5,593 | 1,745 | – | -2,128 | 5,210 | |
| Results of equity investments 1) | 124 | 48 | 22 | 194 | 69 | – | -2 | 261 | |
| of which result of investments accounted for using the equity method | 122 | 10 | 13 | 145 | 14 | – | – | 159 | |
| Adjusted EBIT 2) | 1,087 | 324 | 603 | 2,014 | -92 | – | 38 | 1,960 | |
| Reconciliation items | 73 | 1 | 6 | 80 | 2 | – | -12 | 70 | |
| Impairment losses/gains | -32 | – | -2 | -34 | -3 | – | 1 | -36 | |
| Effects from pension provisions and restructuring | -10 | -2 | 6 | -7 | -21 | – | -1 | -28 | |
| Earnings from asset disposal | 65 | 3 | 2 | 70 | 33 | – | -12 | 91 | |
| Other reconciliation items | 50 | – | – | 51 | -7 | – | – | 43 | |
| EBIT | 1,160 | 325 | 609 | 2,094 | -90 | – | 26 | 2,030 | |
| Other financial result | -110 | ||||||||
| Profit/loss before income taxes | 1,920 | ||||||||
| Capital employed 3) | 12,631 | 2,110 | 4,719 | 19,460 | 1,008 | – | -180 | 20,288 | |
| of which from investments accounted for using the equity method | 817 | 40 | 163 | 1,020 | 15 | – | -1 | 1,034 | |
| Segment capital expenditure 4) | 4,047 | 110 | 230 | 4,387 | 135 | – | 112 | 4,634 | |
| of which from investments accounted for using the equity method | 326 | – | 8 | 334 | – | – | – | 334 | |
| Employees at end of period | 66,128 | 4,322 | 22,989 | 93,439 | 9,816 | – | – | 103,255 | |
| Average number of employees | 66,364 | 4,308 | 22,580 | 93,252 | 9,849 | – | – | 103,101 | |
| 1) The result from equity investments does not include impairment losses on the carrying amounts of investments accounted for using the equity method. 2) For the reconciliation from Adjusted EBIT to EBIT, see ↗ T022, in the Group management report. 3) The capital employed results from total assets adjusted for non-operating items (deferred taxes, positive market values, derivatives), less specific non-interest bearing liabilities (including trade payables and other liabilities and from unused flight documents) and less cash and cash equivalents. 4) Capital expenditure on intangible assets, property, plant and equipment, and loans and equity interests in companies. Capital expenditure is shown without capitalised borrowing costs. 5) Figures show continuing operations. | |||||||||
| T162 | Segment information for the 2024 reporting segments | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Reconciliation | |||||||||
| in €m | Passenger Airlines | Logistics | MRO5) | Total reportable operating segments5) | Additional Businesses and Group Functions5) | Not allocated | Consolidation5) | Group6) | |
| External revenue | 28,905 | 3,213 | 4,898 | 37,016 | 565 | – | – | 37,581 | |
| of which traffic revenue | 27,869 | 3,054 | – | 30,923 | 1 | 515 | – | 31,439 | |
| Inter-segment revenue | 785 | 50 | 2,285 | 3,120 | 681 | – | -3,801 | – | |
| Total revenue | 29,690 | 3,263 | 7,183 | 40,136 | 1,246 | – | -3,801 | 37,581 | |
| Other operating income | 992 | 93 | 470 | 1,555 | 2,291 | – | -885 | 2,961 | |
| Total operating income | 30,682 | 3,356 | 7,653 | 41,691 | 3,537 | – | -4,686 | 40,542 | |
| Operating expenses | 29,722 | 3,147 | 7,055 | 39,924 | 3,744 | – | -4,571 | 39,097 | |
| of which cost of materials and services | 17,761 | 2,241 | 4,511 | 24,513 | 459 | – | -2,579 | 22,393 | |
| of which staff costs | 5,997 | 443 | 1,493 | 7,933 | 1,062 | – | -3 | 8,992 | |
| of which depreciation and amortisation | 1,836 | 198 | 150 | 2,184 | 110 | – | 43 | 2,337 | |
| of which other expenses | 4,128 | 265 | 901 | 5,294 | 2,113 | – | -2,032 | 5,375 | |
| Results of equity investments 1) | 86 | 42 | 9 | 137 | 63 | – | – | 200 | |
| of which result of investments accounted for using the equity method | 88 | 8 | -11 | 85 | 12 | – | – | 97 | |
| Adjusted EBIT 2) | 1,046 | 251 | 607 | 1,904 | -144 | – | -115 | 1,645 | |
| Reconciliation items | 70 | 1 | -52 | 19 | 65 | – | 2 | 86 | |
| Impairment losses/gains | -11 | – | -27 | -38 | – | – | – | -38 | |
| Effects from pension provisions and restructuring5) | -16 | -1 | -2 | -19 | -18 | – | – | -37 | |
| Earnings from asset disposal | 94 | – | 1 | 95 | 96 | – | 1 | 192 | |
| Other reconciliation items | 3 | 2 | -24 | -19 | -13 | – | 1 | -31 | |
| EBIT | 1,116 | 252 | 555 | 1,923 | -79 | – | -113 | 1,731 | |
| Other financial result | -155 | ||||||||
| Profit/loss before income taxes | 1,576 | ||||||||
| Capital employed 3) | 10,056 | 2,272 | 4,690 | 17,018 | 989 | – | -241 | 17,766 | |
| of which from investments accounted for using the equity method | 386 | 44 | 163 | 593 | 4 | – | – | 597 | |
| Segment capital expenditure 4) | 3,275 | 149 | 206 | 3,630 | 169 | – | 20 | 3,819 | |
| of which from investments accounted for using the equity method | – | – | 22 | 22 | – | – | – | 22 | |
| Employees at end of period | 65,172 | 4,261 | 22,313 | 91,746 | 9,963 | – | 101,709 | ||
| Average number of employees | 63,952 | 4,223 | 21,618 | 89,793 | 10,497 | – | 100,290 | ||
| 1) The result from equity investments does not include impairment losses on the carrying amounts of investments accounted for using the equity method. 2) For the reconciliation from Adjusted EBIT to EBIT, see ↗ T022, in the Group management report. 3) The capital employed results from total assets adjusted for non-operating items (deferred taxes, positive market values, derivatives), less specific non-interest bearing liabilities (including trade payables and other liabilities and from unused flight documents) and less cash and cash equivalents. 4) Capital expenditure on intangible assets, property, plant and equipment, and loans and equity interests in companies. Capital expenditure is shown without capitalised borrowing costs. 5) Figures adjusted due to the reclassification of the Lufthansa Industry Solutions group from the MRO segment to Additional Businesses and Group Functions. 6) Group column only includes continuing operations. | |||||||||
Notes on geographical regions in 2025
The allocation of traffic revenue to geographical regions is based on the original location of sale. Non-current assets are allocated according to the location of the relevant asset. The allocation of other revenue to the individual regions is based on the geographical location of the customer.
The regions are defined on a geographical basis. As an exception to this rule, traffic revenue generated in Turkey is attributed to Europe.
The Lufthansa Group controls its air traffic operations on the basis of network results and not on the basis of regional earnings contributions. Consequently, the presentation of regional segment results is of no informational value for the Lufthansa Group.
A presentation of traffic revenue generated in the Passenger Airlines and Logistics segments by traffic region, rather than by original location of sale, is included in the information on the respective segments in the management report.
External revenue, non-current assets and capital expenditure are as follows:
| T163 | External revenue and non-current assets by region | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | ||||||||||||||
| in €m | Europe | North America | Central and South America | Asia/Pacific | Middle East | Africa | Group | Europe | North America | Central and South America | Asia/Pacific | Middle East | Africa | Group | |
| Traffic revenue | 21,440 | 6,032 | 648 | 3,166 | 442 | 597 | 32,325 | 20,884 | 5,743 | 616 | 3,216 | 433 | 547 | 31,439 | |
| Other revenue | 2,579 | 2,244 | 306 | 1,448 | 448 | 247 | 7,272 | 2,367 | 1,802 | 222 | 1,196 | 363 | 192 | 6,142 | |
| Non-current assets 1) 2) 3) | 24,236 | 165 | 19 | 66 | 1 | 2 | 24,489 | 22,816 | 168 | 21 | 115 | 1 | 1 | 23,122 | |
| Capital expenditure on non-current assets 3) | 4,333 | 32 | 2 | 7 | – | – | 4,374 | 3,856 | 22 | 2 | 9 | – | – | 3,889 | |
| 1) Non-current assets include property, plant and equipment and intangible assets with the exception of repairable spare parts for aircraft. 2) Aircraft are categorised by their place of registration. 3) Including right-of-use assets from application of IFRS 16 | |||||||||||||||
The figures for the main countries are as follows:
| T164 | External revenue and non-current assets by country | ||||
|---|---|---|---|---|---|
| 2025 | 2024 | ||||
| in €m | Germany | USA | Germany | USA | |
| Traffic revenue | 9,448 | 5,336 | 9,160 | 5,070 | |
| Other revenue | 958 | 1,711 | 789 | 1,320 | |
| Non-current assets 1) 2) | 17,152 | 158 | 15,665 | 156 | |
| Capital expenditure on non-current assets 2) | 2,905 | 29 | 2,782 | 16 | |
| 1) Non-current assets include property, plant and equipment and intangible assets with the exception of repairable spare parts for aircraft. 2) Aircraft are allocated according to their location of registration. | |||||
In the 2025 financial year and in the previous year, no more than 10% of Lufthansa Group revenue was generated with any one customer.
The integration of the Network Airlines, Lufthansa Airlines, SWISS, Austrian Airlines and Brussels Airlines, was further deepened at the start of the 2026 financial year. The airline-specific activities for these airlines, such as network planning, aircraft management and distribution are mainly managed by Group Functions, whereas the respective airlines remain responsible for operating activities and premium customer services, among other aspects. This change in the organisational structure and management also impacts the reporting that is relevant for segmentation. Since the Eurowings Group is less integrated into this management model, the Eurowings Group, including the equity investment in SunExpress, will be presented as a separate segment from the 2026 financial year onwards. All other passenger airlines remain grouped together in a Hub Airlines segment.