Lufthansa

Lufthansa Group is Germany's largest aviation company and one of the world's leading airline groups. The publicly traded group owns and operates multiple airlines including Lufthansa, Swiss International Air Lines, Austrian Airlines, Brussels Airlines, ITA Airways (41% stake), and a 10% stake in airBaltic. The group also operates Lufthansa Technik (maintenance, repair, and overhaul), Lufthansa Cargo, and other aviation-related businesses.

Lufthansa Group provides strategic oversight and capital allocation across its various airlines while allowing each carrier to maintain its national identity and operational base. The group structure enables economies of scale in fleet management, purchasing, and network planning. In FY2025, all business segments reported positive operating results, with Lufthansa Cargo increasing its operating profit by 30%.

Lufthansa traces its origins to 1926 when Deutsche Luft Hansa was founded. The current airline was established in 1953 following World War II restrictions and began operations in 1955, reestablishing Germany as a major international aviation player.

Throughout the 1960s and 1970s, Lufthansa expanded rapidly, modernizing its fleet and developing its reputation for quality service and operational excellence. The airline became one of the founding members of the Star Alliance in 1997, enhancing its global connectivity.

In the 2000s and 2010s, Lufthansa expanded through strategic acquisitions, including Swiss International Air Lines in 2005, Austrian Airlines in 2009, and Brussels Airlines in 2009. These acquisitions established Lufthansa Group as one of Europe's largest airline groups.

During the COVID-19 pandemic in 2020, Lufthansa received a EUR 9 billion stabilization package from the German government's Economic Stabilization Fund, which included a 20% equity stake. The company repaid all loans by November 2021 and the government sold its remaining shares in September 2022, returning Lufthansa to fully private ownership.

In January 2025, Lufthansa Group completed the acquisition of a 41% stake in ITA Airways, the successor to Alitalia, for EUR 325 million through a capital increase. ITA Airways became the group's fifth network airline. The European Commission approved the transaction in November 2024 subject to competition remedies. Options for acquiring the remaining 59% stake from the Italian Ministry of Economy and Finance can be exercised through 2029.

In 2025, Lufthansa Group also acquired a 10% stake in Latvian airline airBaltic through convertible bonds for EUR 14 million, approved by the German Federal Cartel Office on June 30, 2025. The stake will convert to common shares if airBaltic goes public, with Lufthansa's stake not falling below 5%.

For FY2025, Lufthansa Group generated the highest revenue in its history at EUR 39.6 billion, up 5% from EUR 37.6 billion in 2024. Adjusted EBIT improved 19% to EUR 2.0 billion, with an Adjusted EBIT margin of 4.9%. Net income was EUR 1.34 billion. The group carried 135 million passengers and generated operating cash flow of EUR 4.4 billion. The core brand Lufthansa Airlines returned to a positive Adjusted EBIT margin of 1.9%, improving its result by approximately EUR 250 million compared to the previous year through its turnaround program.

Lufthansa Group has established sustainability initiatives focused on reducing aviation's environmental impact:

• Sustainable Aviation Fuels (SAF): The group is investing in SAF production and usage to reduce CO2 emissions from flight operations.
• Fleet Modernization: Investment in fuel-efficient aircraft including Airbus A350s and Boeing 787s to reduce fuel consumption and emissions.
• Carbon Offsetting: Offering customers options to offset flight emissions through certified climate protection projects.
• Environmental Compliance: Adherence to EU climate protection regulations and participation in the EU Emissions Trading System.
• Turnaround Program: The Lufthansa Airlines turnaround program includes operational efficiency improvements that contribute to reduced per-passenger emissions.

The group's sustainability strategy aligns with industry targets for carbon-neutral growth and long-term emission reduction goals.

Lufthansa Group has faced several regulatory and public scrutiny issues:

COVID-19 Stabilization and Government Stake: The EUR 9 billion government stabilization package in 2020 generated public debate about state aid for airlines. The German government's 20% stake came with conditions including restrictions on management compensation and dividend payments. The government sold all remaining shares in September 2022 at a profit of EUR 760 million, ending the stabilization period.

ITA Airways Acquisition Antitrust Review: The European Commission conducted an extended antitrust review of Lufthansa's acquisition of a 41% stake in ITA Airways, approving the transaction in July 2024 subject to conditions. Remedies included releasing slots at Milan Linate and Frankfurt airports to competing airlines to maintain competition on key routes.

Flight Disruptions and Strikes: Lufthansa has experienced labor disputes with pilot and ground staff unions over wages and working conditions, resulting in periodic strikes and flight cancellations that have affected passengers and operations.

Environmental Impact: As a major international carrier, Lufthansa faces ongoing scrutiny regarding aviation's contribution to climate change. The group has invested in sustainable aviation fuels and fleet modernization but faces pressure from regulators and environmental groups to accelerate emission reductions.