Slide 1: Investor Presentation
Investor Presentation Lufthansa Group Investor Relations June 2025
Slide 2: Agenda
Recent Financial Results Strategy Update Investment in ITA Airways Operational and Financial Outlook Appendix Page 2
Slide 3: FY 2024 recap: strong revenue, cost pressures and strikes impacted performance
Recap FY 2024 Details Q1 2025 Despite strong revenue momentum in FY 2024, cost pressures and strikes impacted overall performance (in EUR million) FY24 FY23 Change in % Revenues 37,581 35,442 +6.0 Operating income 40,542 38,429 +5.5 Operating expenses 39,097 35,960 +8.7 Material cost 22,393 20,363 +
Slide 4: Q1 earnings improvement limited by anticipated cost headwinds
Recap FY 2024 Details Q1 2025 Q1 earnings improvement versus prior year has been limited due to anticipated cost headwinds (in EUR million) Q1’25 Q1’24 Change in % Revenues 8,127 7,392 +9.9 Operating income 8,827 8,175 +8.0 Operating expenses 9,511 9,011 +5.5 Material cost ex fuel 3,702 3,204 +15.5
Slide 5: Fees & charges and personnel cost largest cost drivers in Passenger Airlines
Recap FY Variante A 2024 Details Q1 2025 Fees & charges and personnel cost were the largest cost drivers in the passenger airlines segment Breakdown of operating expenses in EUR million Passenger Airlines: CASK+3.1% 50 -205 9,511 280 29 -22 24 113 95 9,011 136 Includes: ▪ +19% ATC charges ▪ +12% Air
Slide 6: Long-haul yields supported RASK, Easter shift prevented earnings improvement
Recap FY 2024 Details Q1 2025 Long-haul yields and IRREG-related revenue relief supported RASK, while Easter shift prevented y-o-y earnings improvement of Passenger Airlines Operational KPIs Adjusted EBIT/(margin) Comments in EUR million Easter shift effect: ▪ Without the Easter shift, Passenger Q1
Slide 7: Lufthansa Cargo and Lufthansa Technik strong start into 2025
Recap FY 2024 Details Q1 2025 Lufthansa Cargo and Lufthansa Technik both with a strong start into 2025 Adjusted EBIT in EUR million / margin margin Comments 7.4% -3.2% ▪ Increased yields and loads supported Lufthansa Cargo’s strong Q1 result +84 ▪ Strong demand from China as well as 62 stocking effe
Slide 8: Adjusted Free Cashflow benefits from booking inflows and lower net CAPEX
Recap FY 2024 Details Q1 2025 Adjusted Free Cashflow benefits from seasonally strong booking inflows and lower net CAPEX Q1 2025 Adjusted EBIT / Adjusted free cashflow Q1 ‘24: in EUR million 1,300 1,766 28 Q1 ‘24: -829 305 835 1,817 -102 643 -722 Adjusted EBIT D&A Trade Other Operating Net CAPEX Rep
Slide 9: Balance Sheet strength continues
Recap FY 2024 Details Q1 2025 Balance Sheet strength continues Liquidity Net debt and net pension liabilities1) Comments in EUR billion in EUR billion 11.0 11.4 Net debt / 2.0x 1.7x Excellent Liquidity Profile EBITDA 2.5 2.6 Target liquidity: Investment Grade Rating EUR 8 - 10bn 8.3 7.5 2.6 ▪ Strong
Slide 10: Agenda
Recent Financial Results Strategy Update Investment in ITA Airways Operational and Financial Outlook Appendix Page 10
Slide 11: Delivering on key strategic priorities
Lufthansa Group is delivering on its key strategic priorities Customer New Product Multi-Airline Transformation into Experience Generation Multi-Hub an Airline Group Page 11
Slide 12: Improved customer satisfaction driven by reliable operations
Customer Product Multi-Airline Airline Group Improved customer satisfaction is driven by reliable operational performance as well as continuous enhancements along the entire customer journey Customer KPIs Q1 2025 Enhanced Customer Touch Points ▪ Online rebooking incl. seat reservations 97% +3%p vs.
Slide 13: Product and service innovations to define premium in Europe
Customer Product Multi-Airline Airline Group Comprehensive product and service innovations underline our aspiration to define premium in the European airline industry Lufthansa Allegris ▪ First flight in May 2024 from Munich to Vancouver ▪ Five Business Class seating options with EUR 2.5bn All-Aisle
Slide 14: Emission reduction targets validated by SBTi
Customer Product Multi-Airline Airline Group Group’s emission reduction targets successfully validated by Science Based Targets initiative (SBTi) Index LHG CO2 Emissions (not to scale) 110 Major levers for CO2 Reduction: First European airline Growth Fleet (SBTi relevance) group and second Reduction
Slide 15: Multi-Hub and Multi-Brand strategy key to success
Customer Product Multi-Airline Airline Group Multi-Hub and Multi-Brand strategy is key for the success of Lufthansa Group Customer centricity: • Strong national brands with unique identity • Customer offering tailored to market- specific needs • Connected networks offer maximum connectivity JOINT OP
Slide 16: Focus on synergetic core of the Group sharpened
Customer Product Multi-Airline Airline Group Focus on the synergetic core of the Group further sharpened Active consolidation Airline Synergetic core business aviation services 1) Passenger Airlines … MRO, Cargo Business, Portfolio cleanup IT Services, Aviation 2) Lufthansa Training … City Airlines
Slide 17: Agenda
Recent Financial Results Strategy Update Investment in ITA Airways Operational and Financial Outlook Appendix Page 17
Slide 18: Transaction rationale: ITA, Italy as a market, Rome FCO hub
Attractive transaction rationale for LHG: ITA as a company, Italy as a market, and Rome FCO as a 5 Star hub LHG Italy Attractive investment case, Most important broader access to LHG market Italian market and outside our home Rome FCO resources markets and US ITA One of Newly established Europe’s be
Slide 19: Transaction terms minimize financial risk and create optionality
Transaction terms minimize the Group’s financial risk and create optionality ▪ Acquisition of 41% of shares in ITA Airways through a capital increase ▪ Investment into the company’s equity, no payment to Italian Ministry of Economy and Finance (MEF) Key terms ▪ Capital increase of EUR 325 million fu
Slide 20: Remedy package addresses European Commission concerns
Remedy package addresses concerns of the European Commission while maintaining economic feasibility of the deal Concerns of EU Commission Remedies Overlaps on ‘neighborhood’ traffic New competitor (short-haul remedy taker) ➢ Transaction security: Closing and Short-Haul between Italy and existing LHG
Slide 21: ITA acquisition extends multi-hub, multi-brand strategy
The ITA acquisition is an extension of our multi-hub, -brand and –AOC strategy that made Lufthansa Group Europe’s leading airline group Customer centricity ▪ ITA is a strong local brand with maximum identification ▪ New travel options for customers by offering connections via Rome 13 Internationaliz
Slide 22: Plug and Play system enables fast integration into Lufthansa Group
Plug and Play system enables fast integration into Lufthansa Group ITA Integration LUFTHANSA GROUP Steering Synergies and standards „One kitchen“ functions Sales & Network IT (Digital Fleet ▪ Large LHG team with revenue planning Delivery etc.) management dedicated experts ramped management up … Furt
Slide 23: Largest part of synergies implementable prior to full consolidation
Largest part of synergies can be implemented prior to full consolidation After full consolidation 100% Central aircraft Technical fleet Step 2: Financing of synergies ownership management & MRO Majority shareholding after option exercise Step 1: 2026 - 2027 Minority shareholding Star Alliance & Opti
Slide 24: Agenda
Recent Financial Results Strategy Update Investment in ITA Airways Operational and Financial Outlook Appendix Page 24
Slide 25: Lufthansa Technik continues track record with Ambition 2030
Lufthansa Technik will continue its unprecedented track record as key source of value creation by “Ambition 2030” Global expansion Digital push Defense business Main target: remain global MRO leader – TechOps ecosystem expanded into Partnerships to strengthen defense underlined by global production
Slide 26: Booking trends predict a strong summer season
While booking trends as of now predict a strong summer season ahead of us we remain attentive and well equipped to manage uncertain times Spotlight: Demand on the North Atlantic Outlook: LHG vs. Market Growth Rates compared to PY (Q2+Q3 2025e) Q1 Review: LHG (excl. ITA) growth rate in ASK vs. PY Int
Slide 27: Expected fuel cost decreased by EUR 0.6 bn versus March guidance
Expected fuel cost of EUR 7.3 bn decreased by EUR 0.6 bn compared to March guidance of EUR 7.9 billion Lufthansa Group’s fuel price exposure is well hedged in 2025 1), 2), 3) Expected fuel price sensitivity after hedging (FY 2025) | excl. SAF LH mixed JET rate in USD/mt as of April 24, 2025 Q2 FY 20
Slide 28: FY2025 guidance re-confirmed
FY2025 guidance re-confirmed Q1 progress and current outlook support FY2025 guidance, but we continue to monitor impact of macro risk on our business FY 2025 Outlook ASK increase of Adj. EBIT to Net CAPEX Adj. Free Cashflow Dividend policy: around 4% vs. significantly between EUR 2.7 – expected stab
Slide 29: Appendix - supplementary information
Appendix - supplementary information - Page 29
Slide 30: Traffic Data Q1 2025
Traffic Data Q1 2025 Jan vs. 2024 Feb vs. 2024 Mar vs. 2024 Q1 vs. 2024 Passengers in 1,000 7,324 -1.1% 7,545 -1.7% 9,422 +1.6% 24,291 -0.3% Available seat-kilometers (m) 22,484 +1.9% 21,284 +1.7% 26,153 +9.6% 69,921 +4.6% Revenue seat-kilometers (m) 17,717 +2.4% 16,742 +1.7% 20,560 +5.3% 55,019 +3.
Slide 31: Operating KPIs of Passenger Airlines by region
Operating KPIs of Passenger Airlines by region vs. 2024 (unless stated otherwise) Total Q1’25 Europe Q1’25 Asia Pacific Q1’25 ASK +5.1% ASK +1.6% Number of flights +3.5% RPK -0.2% RPK +4.5% ASK +4.6% SLF -4.0%p SLF +2.3%p Regional RASK 1) -6.9% Regional RASK 1) +3.2% RPK +3.3% SLF -1.0%p Americas Q1
Slide 32: Calculation of operational airline KPIs RASK CASK
Calculation of operational airline KPIs Passenger Airlines, Q1 2025 1) Traffic revenues (€m) 5,444 1) Total Revenues (€m) 5,919 2) Not assignable (€m) 573 2) Other operating income (€m) 255 Yield = 3) Basis for Yield (1)–(2) (€m) 4,870 3) Reversal of provisions (€m) 46 RASK 4) RPK (m) 1) 55,019 4) F
Slide 33: Performance of Group Airlines in Q1 2025
Performance of Group Airlines in Q1 2025 ASK Revenue Adj. EBIT Adj. EBIT Q1 2025 vs. 2019 [m EUR] [m EUR] margin Lufthansa Airlines 82.4% 3,423 -553 -16.2% SWISS 95.7% 1,385 -10 -0.7% Austrian Airlines 102.0% 458 -111 -24.2% Brussels Airlines 89.4% 304 -53 -17.4% Eurowings 97.7% 406 -201 -49.5% Pass
Slide 34: Group P&L
Group P&L Lufthansa Group (in EUR m) Q1’25 vs. Q1’24 Revenues 8,127 +10% Total operating income 8,827 +8% Operating expenses 9,511 +6% Of which fees & charges 1,197 +14% Of which fuel 1,679 -1% Of which staff 2,367 +5% Of which depreciation 601 +5% Result from equity investments -38 -192% Adjusted E
Slide 35: EBIT / Adjusted EBIT bridge Q1 2025
EBIT / Adjusted EBIT bridge Q1 2025 in EUR million 5 (17) (4) (3) -722 -741 Adjusted EBIT Net book gains Past service/settlements Impairment losses Others EBIT and deviations Page 35
Slide 36: Adjusted EBIT / Net Income Q1 2025
Adjusted EBIT / Net Income Q1 2025 in EUR million (19) -722 (78) (64) 4 (6) -885 Adjusted EBIT adjustments Interest result Others Tax result Profit/loss Net EBIT attributable to Income minority interests Page 36
Slide 37: Cashflow statement
Cashflow statement Lufthansa Group (in m EUR) Q1’ 25 vs. Q1’ 24 EBT (earnings before income taxes) -883 +56 Lufthansa Airlines received first repayments Depreciation & amortization (incl. repairable MRO materials) 647 +40 1 from tax audit Net proceeds from disposal of non-current assets -3 +4 Result
Slide 38: Multi-year financial overview
Multi-year financial overview Lufthansa Group (in EUR million, as reported) 2016 2017 2018 20191 2020 2021 20224 2023 2024 Operating KPIs (change vs. prior year) Regional RASK ex currency -5.9% +1.9% -0.5% -2.5% -26.7% -6.1% -6.1% +11.0% -2.4% CASK ex currency, ex fuel2 -2.5% -1.8% -1.7% -1.5% +84.6
Slide 39: Maturity profile of borrowings as of March 31, 2025
Maturity profile of borrowings as of March 31, 2025 3,000 2,500 2,000 1,500 1,000 500 0 2025 2026 2027 2028 2029 2030 2031 2032 2033 Straight Bond Convertible Bond Aircraft Finance (secured) Hybrid Schuldscheindarlehen Other* *Mainly bilateral loans – does not include operating lease payments Page 3
Slide 40: Disclaimer
Disclaimer IMPORTANT: The following applies to this document and the oral presentation of the information in this document by Deutsche Lufthansa Aktiengesellschaft (the “Company”, and together with its consolidated subsidiaries, the “Group”) or any person on behalf of the Company, any question-and-a
Slide 41: Disclaimer
Disclaimer This Presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue, or the solicitation of an offer to purchase, subscribe to or acquire, securities of the Company, its affiliates or an inducement to enter into investment activity in the Unite