Deutsche Lufthansa AG — Interim / Quarterly Report 2012

May 23, 2012

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1-2012

Lufthansa Group overview

Key fi gures Lufthansa Group

		Jan. – March 2012	Jan. – March 2011	Change in %
Revenue and result
Total revenue	€m	6,619	6,268	5.6
of which traffi c revenue	€m	5,349	5,064	5.6
Operating result	€m	– 381	– 169	– 125.4
EBIT	€m	– 418	– 518	19.3
EBITDA	€m	55	– 88
Net profi t / loss for the period	€m	– 397	– 507	21.7
Key balance sheet and cash fl ow statement fi gures
Total assets	€m	29,177	30,005	– 2.8
Equity ratio	%	26.3	26.9	– 0.6 pts
Net indebtedness	€m	2,143	1,424	50.5
Cash fl ow from operating activities	€m	833	755	10.3
Capital expenditure (gross)	€m	592	744	– 20.4
Key profi tability and value creation fi gures
Adjusted operating margin 1)	%	– 5.6	– 2.4	– 3.2 pts
EBITDA margin	%	0.8	– 1.4	2.2 pts
Lufthansa share
Share price at the quarter-end	€	10.50	14.96	– 29.8
Earnings per share	€	– 0.87	– 1.11	21.6
Traffi c fi gures
Passengers	thousands	21,867	20,857	4.8
Passenger load factor	%	74.2	72.9	1.3 pts
Freight and mail	thousand tonnes	486	528	– 7.9
Cargo load factor	%	66.7	67.4	– 0.7 pts
Available tonne-kilometres	millions	9,479	9,531	– 0.5
Revenue tonne-kilometres	millions	6,740	6,751	– 0.2
Overall load factor	%	71.1	70.8	0.3 pts
Flights	number	242,186	247,545	– 2.2
Employees 2)
Employees as of 31.3.	number	120,898	117,325	3.0

1) Performance indicator to enable comparison with other airlines: (operating result + write-backs of provisions) / revenue.

2) Including bmi.

Date of publication: 3 May 2012.

Contents

• 1 To our shareholders
• 31 Further information
• 2 Interim management report
• 32 Credits/Contact
• 21 Interim fi nancial statements
• Financial calendar 2012/2013

Ladies and gentlemen,

The fi rst quarter of 2012 provided a further demonstration of the extent to which the performance of the aviation industry is affected by external factors. An eventful quarter brought this message home to us as well. While we were battling against further increases in the oil price, our operations were subjected to, in some cases massive, disruption due to several external strikes. Since the beginning of the year this has been exacerbated by participation of airlines in the European Emissions Trading Scheme and the night-fl ight ban at Frankfurt Airport that was confi rmed in early April. These are all challenges that we must and will tackle. In contrast to some of our competitors, we can only rely on our own profi tability to make up for these additional burdens. In the past our business segments have nonetheless shown that they can confront and deal successfully with these challenges.

In the fi rst three months of 2012 our airlines increased the Group's revenue considerably in comparison with last year, above all by means of active capacity and yield management. The operating result for this seasonally weak quarter was, especially in the Passenger Airline Group segment, signifi cantly lower than last year's however, due in large part to the very high oil price.

The Logistics segment was also hit by the massive rise in fuel costs. By sharply adjusting capacities, however, Lufthansa Cargo was able to generate an operating profi t. This was also possible in the

MRO and IT Services segments, while the Catering segment had to report a slight operating loss for the fi rst quarter.

We are prepared for the fact that these challenges for aviation and the Lufthansa Group will continue in the future. Responding to them promptly and actively is the declared aim of our Group-wide programme SCORE – Change for Success. Individual contributions from all business segments, airlines and Group functions and the realisation of synergies are intended to improve our operating result structurally and sustainably by at least EUR 1.5bn over the three-year duration of the programme versus 2011. Austrian Airlines too makes important progress in the course of its restructuring programme. With the successful closing of the sale of British Midland to IAG we have also disassociated ourselves of a persistently loss-making subsidiary.

Dear shareholders, our course continues to be set on profi table growth. The decisions taken, some of which have already been put into practice, provide a lasting boost to the Group's profi tability. We continue to assume that revenue in the fi nancial year 2012 will increase. The operating result (excluding restructuring costs) will be in the mid three-digit million euro range. To get there we will build on our proven experience in capacity and cost management and thereby on the expertise and commitment of our managers and staff.

We thank you for your trust.

Christoph Franz Chairman of the Executive Board

Stephan Gemkow Member of the Executive Board Chief Financial Offi cer

Stefan Lauer Member of the Executive Board Chief Offi cer Group Airlines and Corporate Human Resources

Carsten Spohr Member of the Executive Board Chief Offi cer Lufthansa German Airlines

Lufthansa share

After the losses incurred in 2011, stock markets saw a general recovery in the fi rst quarter of 2012. European airline shares were able to participate in the recovery, although to a lesser extent and with greater fl uctuations. The DAX climbed 17.8 per cent to reach 6,946 at the end of the quarter. The Lufthansa share gained 14.3 per cent to close on 31 March 2012 at EUR 10.50. This put the share price 12 per cent below analysts' average target price of EUR 11.95.

Shareholder structure by nationality in % (as of 31.3.2012)

The free fl oat for Lufthansa shares is 100 per cent. As of the end of the quarter, 67.8 per cent of Lufthansa shares were held by German investors. The largest individual shareholders were Franklin Templeton with 5.00 per cent and BlackRock Inc. with 4.97 per cent.

Information on analyst recommendations and the shareholder structure is updated regularly and published on our website at i www.lufthansa.com/investor-relations.

140 120 100 80 DAX Lufthansa International Airlines Group Air France-KLM 31.12. 2011 31.3. 2012

Performance of the Lufthansa share, indexed as of 31.12.2011, compared with the DAX and competitors

Interim management report

Economic environment and sector performance

GDP growth 2012 * compared with previous year

in %	Q1	Q2	Q3	Q4	Full year
World	2.5	2.7	2.8	3.2	2.8
Europe	0.0	– 0.1	– 0.1	0.4	0.1
Germany	0.8	0.7	0.4	1.0	0.7
North America	2.0	2.2	2.3	2.1	2.2
South America	2.6	3.2	3.5	4.5	3.5
Asia / Pacifi c	4.6	5.2	5.1	5.6	5.1
China	8.1	8.2	8.5	8.8	8.4
Middle East	4.1	4.0	3.9	4.0	4.0
Africa	3.6	4.6	5.4	5.9	4.9

Source: Global Insight World Overview as of 13.4.2012. * Forecast.

Macroeconomic situation Global economic activity picked up again in the fi rst quarter of 2012, albeit to a lesser degree than in the same period last year. Performance differed from region to region, however (see table).

The economic revival was strongest in emerging markets, whereas growth rates in industrialised economies were much more modest; a stagnation of the economy was observed in Europe. Altogether the global economy grew by 2.5 per cent in the fi rst quarter.

Since the beginning of the year, the oil price has risen sharply from USD 107/bbl to USD 123/bbl as of 31 March 2012. The average price of USD 118/bbl was 12 per cent higher than in the previous year. At the same time the jet crack (price difference between crude oil and kerosene) was around 13 per cent lower than last year. Overall the kerosene price went up year on year by an average of 9 per cent (see table on p. 3 ). This had a much greater effect on the Group's fuel costs as the gains from price hedging were lower in the context of the rolling hedging strategy.

The euro was weaker in the fi rst quarter than in the same period last year. The appreciation of the US dollar had a particular impact on costs, whereas the appreciation of other currencies such as the pound sterling and the Japanese yen had a positive overall effect on revenue. In total, exchange rate movements trimmed just EUR 9m from the Group's operating result.

Development of crude oil, kerosene and currency

		Minimum	Maximum	Average	31.3. 2012
ICE Brent	in USD / bbl	109.81	126.22	118.42	122.88
Kerosene	in USD / t	1,003.50	1,111.50	1,056.68	1,087.75
USD	1 EUR / USD	1.2667	1.3458	1.3119	1.3343
JPY	1 EUR / JPY	97.26	110.75	104.16	110.56
GBP	1 EUR / GBP	0.8245	0.8494	0.8346	0.8327
CHF	1 EUR / CHF	1.2040	1.2189	1.2079	1.2041

Sector developments Global passenger traffi c also participated in the fi rst quarter's modest economic growth. In the fi rst two months of the year revenue passenger-kilometres went up by a total of 7.2 per cent. Sales growth for the European airlines was at a comparable level at 6.7 per cent.

The performance of the premium segment was positive, too. Premium traffi c grew in the fi rst two months by 4.4 per cent compared with the same period last year.

The freight business only performed modestly in the fi rst quarter, however. Revenue tonne-kilometres for the fi rst two months were 1.5 per cent down on the previous year. For the European cargo airlines the decline over the period was particularly distinct at 5.4 per cent.

High oil prices and intense competition resulted in further structural shifts in the industry. In Europe, the fi rst quarter of 2012 saw two airlines declare insolvency already: Spanair and Malev. Air Berlin received fi nancial support and a 29 per cent equity investment by Etihad. In March it also joined the oneworld alliance. In the same month StarAlliance accepted the Taiwanese airline EVA Air as a future member in the rapidly growing Asian market.

Course of business

Overview For the Lufthansa Group the fi rst three months of the year were particulary dominated by the effects of the continuing rise in fuel costs. Flight operations were also disrupted, sometimes severely, by third-party strike action.

In view of a continuous demand and an active capacity and yield management the Lufthansa Group was able to increase revenue signifi cantly compared with last year. However, the high oil price was largely responsible for the fact that the operating result came in substantially lower compared with last year. This trend was also refl ected in the Passenger Airline Group segment, where the price and revenue increases were not suffi cient to compensate for the higher costs. Despite sharp cuts in capacity the Logistics business segment also suffered from the high fuel costs but was able to report an operating profi t. The service companies delivered a usual positive earnings contribution altogether. The operating profi t in the MRO segment was lower than last year, whereas the IT Services segment matched last year's earnings. The Catering business segment yet reported an operating loss in the fi rst quarter of 2012.

Signifi cant events The Group-wide programme "SCORE – Change for Success" was launched at the beginning of 2012 in order to raise the Group's earnings structurally and sustainably by at least EUR 1.5bn. The programme is scheduled to run for three years, so that its full potential will be seen in 2015. All segments, airlines and Group functions are included in this programme with individual contributions. A further focus lies on making use of comprehensive synergies. A central project team reporting directly to the Executive Board works closely with the SCORE-project owners in all business segments.

The fi rst joint projects have already been implemented, such as the realignment of coporate sourcing, which, with growing synergies, shall generate an earnings contribution of EUR 200m in the current year already. Furthermore, a decision has also been taken to cut costs in administrative functions by 25 per cent, which is to be achieved primarily by a reduction of staff costs. Other projects are to be developed and implemented continously in close coordination between the project team, the business segments and the Executive Board.

The Federal Administrative Court in Leipzig ruled on 4 April 2012 that the night-fl ight regulation defi ned in the planning approval notice for the new runway in Frankfurt cannot be sustained. This confi rmed the provisional night-fl ight ban for Frankfurt Airport that was imposed in mid October 2011. It covers the period from 11 p.m. to 5 a.m. and has in particular a massive impact on operations at Lufthansa Cargo. Lufthansa fears severe long-term adverse effects for Frankfurt's position as an air traffi c site.

The fi rst three months of the year were also hallmarked by an unusual rash of external strikes, which in some cases had an extremely adverse effect on Group companies' operations. They included, in February, a strike of several days by apron controllers in Frankfurt in the course of a collective bargaining dispute between Fraport and the air traffi c control union (GdF), as well as several warning strikes organised by the trade union ver.di at various sites in Germany on 27 March 2012.

On 30 March 2012 the EU competition authorities approved the sale of British Midland (bmi) to IAG (International Airlines Group) as agreed in December 2011, subject to certain conditions. The transaction was closed on 19 April 2012.

Since the beginning of the year 2012 all airlines have been required to hold emission rights in the form of CO2 certifi cates for fl ights to and from Europe. Since then Lufthansa includes the costs of buying the certifi cates into the existing kerosene surcharge.

Staff and management On 26 January 2012 the Air Transport Employers' Federation (ATEF) and the trade union ver.di agreed on a new wage settlement that is to run for 13 months. The agreement provides for a 3.5 per cent pay increase, backdated to 1 January 2012, for ground staff employed in Germany. On an annual basis this represents a pay increase of 3.2 per cent. Other benefi ts and allowances were also moderately increased. The trade union UFO rejected the agreement, thereby abandoning the collective bargaining partnership it had only just formed with ver.di.

Changes in reporting standards and in the group of consoli-

dated companies The standards and interpretations mandatory for the fi rst time as of 1 January 2012 did not have a signifi cant effect on the Group's net assets, fi nancial and earnings position. For further details, see the notes to the consolidated fi nancial statements from p. 26 .

There were no signifi cant changes to the group of consolidated companies compared with the same period last year. The individual changes compared with year-end 2011 and 31 March 2011, respectively, are shown in the table on p. 26 . These changes had no signifi cant effect on the consolidated balance sheet and income statement in comparison with the same period last year.

The particular accounting treatment of bmi since the successful signing of the contract for its sale to IAG is discussed in the following section "Earnings position".

Earnings position

Traffi c fi gures of the Lufthansa Group's airlines

		Jan. – March 2012	Jan. – March 2011	Change in %
Passengers carried	thousands	21,867	20,857	4.8
Available seat-kilometres	millions	59,648	58,136	2.6
Revenue seat-kilometres	millions	44,242	42,365	4.4
Passenger load factor	%	74.2	72.9	1.3 pts
Freight / mail	thousand tonnes	486	528	– 7.9
Available cargo tonne-kilometres	millions	3,080	3,354	– 8.2
Revenue cargo tonne-kilometres	millions	2,140	2,343	– 8.7
Cargo load factor	%	66.7	67.4	– 0.7 pts
Total available tonne-kilometres	millions	9,479	9,531	– 0.5
Total revenue tonne-kilometres	millions	6,740	6,751	– 0.2
Overall load factor	%	71.1	70.8	0.3 pts
Flights	number	242,186	247,545	– 2.2

As a result of the contract for the sale of bmi to IAG signed by Lufthansa and IAG on 22 December 2011, bmi is to be presented in the Group's income statement as a discontinued operation in line with IFRS 5. This particular form of presentation applies to the after-tax result for bmi and to changes in the valuation or proceeds of disposal for the discontinued operation compared with the 2011 fi nancial statements and which in this case are the proceeds of the aforementioned contractual agreement. The fi gures for the previous year have been adjusted accordingly. Details of the result from discontinued operations can be found in the Notes to the consolidated fi nancial statements on p. 27 .

Revenue and income

	Jan. – March 2012	Jan. – March 2011	Change
	in €m	in €m	in %
Traffi c revenue	5,349	5,064	5.6
Other revenue	1,270	1,204	5.5
Total revenue	6,619	6,268	5.6
Changes in inventories and work performed by the entity and capitalised	45	29	55.2
Other operating income	516	707	– 27.0
Total operating income	7,180	7,004	2.5

Course of business Earnings position

External revenue share of the business segments in % (as of 31.3.2012) Catering 6.6 IT Services 0.9

Revenue and income Traffi c at the Lufthansa Group increased in the fi rst quarter of 2012 compared with the same period last year. The range differs widely between the passenger and freight business, however. The airlines in the Group carried 21.9 million or 4.8 per cent more passengers, whereas the amount of freight and mail fell by 7.9 per cent to 486 thousand tonnes (see table on p. 4 ). The individual performance data for the separate segments is presented in the respective chapters.

The overall increase in traffi c in the fi rst quarter lifted traffi c revenue by 5.6 per cent to EUR 5.3bn. This increase in revenue was attributable to developments in volumes (2.5 per cent), higher prices (2.0 per cent, including surcharges for fuel and air traffi c tax) as well as exchange rate effects (1.1 per cent). The Passenger Airlines Group accounted for EUR 4.6bn (+ 8.3 per cent) of traffi c revenue and the Logistics segment for EUR 633m (– 10.1 per cent).

At EUR 1.3bn, other revenue was 5.5 per cent up on the previous year. Of this, the MRO segment generated EUR 596m (+ 2 .4 per cent), IT Services EUR 59m (+ 3.5 per cent) and Catering EUR 437m (+ 10.9 per cent). The airborne companies in the Passenger Airline Group and Logistics segments contributed EUR 178m (+ 4.1 per cent) to other revenue.

Compared with the same period last year Group revenue therefore rose by 5.6 per cent to EUR 6.6bn. The following diagram shows the revenue fi gures for the last fi ve years. The Passenger Airline Group's share of total revenue rose to 73.6 per cent (+ 1.8 percentage points). The distribution of revenue by segment and region is shown in the segment reporting on p. 29 .

Other operating income decreased sharply by 27.0 per cent to EUR 516m. In addition to non-recurring income last year (reimbursement of air traffi c control charges and compensation payments), this decline is also due to lower exchange rate gains (EUR – 85m). A corresponding fall in exchange rate losses was recognised in other operating expenses. Other items did not vary signifi cantly compared with the previous year.

Total operating income therefore went up by EUR 176m or 2.5 per cent to EUR 7.2bn.

Expenses Operating expenses rose overall by EUR 436m (6.1 per cent) to EUR 7.6bn. This increase is largely attributable to 9.4 per cent growth in the cost of materials and services, which came in at EUR 4.2bn. This stemmed from the considerable EUR 304m (+ 23.0 per cent) climb in fuel costs to EUR 1.6bn. In addition to the 19.6 per cent increase in fuel prices (after hedging), the movement of the US dollar also added 3.9 per cent to expenses. The smaller number of fl ights therefore led to a slight reduction in the effect of volumes (– 0.5 per cent). Fuel costs included a positive result of price hedging of EUR 114m. Other raw materials, consumables and supplies were up slightly by 2.0 per cent at EUR 648m.

Expenses

Jan. – March 2012	Jan. – March 2011	Change
in €m	in €m	in %
4,170	3,810	9.4
1,624	1,320	23.0
1,200	1,144	4.9
36	34	5.9
1,734	1,653	4.9
463	410	12.9
1,192	1,250	– 4.6
7,559	7,123	6.1

Fees and charges rose by 4.9 per cent to EUR 1.2bn, in particular due to greater traffi c. The main drivers were increases in passenger fees (+ 12.6 per cent), take-off and landing fees (+ 6.0 per cent) and air traffi c control charges (+ 10.2 per cent). Expenses for the air traffi c tax went up signifi cantly by 22.1 per cent to EUR 83m, partly due to the tax that has been levied in Austria since 1 April 2011. Other purchased services totalled EUR 698m, 1.8 per cent less than last year, due primarily to lower charter expenses.

Staff costs rose by 4.9 per cent in conjunction with a 3.1 per cent increase in the average annual number of employees to 117,198, not counting the staff at bmi. This was primarily attributable to higher additions to pension provisions, cost increases due to exchange rate movements and the new wage settlements.

Depreciation and amortisation rose to EUR 463m (+ 12.9 per cent). Depreciation of aircraft accounted for just EUR 14m of the increase (+ 4.3 per cent). Total impairment losses of EUR 45m (previous year: EUR 8m) related to three Boeing 747-400s and eight Boeing 737-300s, which have been decommissioned or are held for disposal. Impairment losses of EUR 10m were also incurred on one Airbus A330-200 and fi ve Avro RJs shown in the balance sheet as assets held for sale. These impairment charges are recognised in other operating expenses.

Other operating expenses were 4.6 per cent down on the previous year at EUR 1.2bn. This decline stems mainly from lower exchange rate losses (EUR – 73m), which correspond to lower exchange rate gains in other operating income.

Reconciliation of results

		Jan. – March 2012		Jan. – March 2011
in €m	Income statement	Reconciliation with operating result	Income statement	Reconciliation with operating result
Total revenue	6,619	–	6,268	–
Changes in inventories	45	–	29	–
Other operating income	516	–	707	–
of which book gains and current fi nancial investments	–	– 16	–	– 33
of which income from reversal of provisions	–	– 12	–	– 16
of which write-ups on capital assets	–	– 1	–	– 2
of which period-end valuation of non-current fi nancial liabilities	–	– 47	–	– 81
Total operating income	7,180	– 76	7,004	– 132
Cost of materials and services	– 4,170	–	– 3,810	–
Staff costs	– 1,734	–	– 1,653	–
of which past service cost	–	– 1	–	27
Depreciation, amortisation and impairment	– 463	–	– 410	–
of which impairment losses	–	45	–	8
Other operating expenses	– 1,192	–	– 1,250	–
of which impairment losses on assets held for sale – non-operating	–	10	–	2
of which expenses incurred from book losses and current fi nancial investments	–	5	–	13
of which period-end valuation of non-current fi nancial liabilities	–	15	–	32
Total operating expenses	– 7,559	74	– 7,123	82
Profi t / loss from operating activities	– 379	–	– 119	–
Total from reconciliation with operating result	–	– 2	–	– 50
Operating result	–	– 381	–	– 169
Result from equity investments	– 23	–	– 14	–
Other fi nancial items	– 16	–	– 385	–
EBIT	– 418		– 518
Write-downs (included in profi t from operating activities)	463	–	410	–
Write-downs on fi nancial investments, securities and assets held for sale	10	–	20	–
EBITDA	55	–	– 88	–

Earnings position Cash fl ow and capital expenditure

To our shareholders Interim management report | Interim fi nancial statements | Further information

By contrast, expenses were infl ated by higher write-downs on current assets (EUR + 20m) and higher staff-related expenses (EUR + 24m). The individual other items did not vary signifi cantly compared with last year.

Earnings development In the seasonally weak fi rst quarter the loss from operating activities came to EUR – 379m (previous year: EUR – 119m). The operating result, which is regularly adjusted for the items shown in the table on p. 6 , was down EUR 212m on last year's fi gure at EUR – 381m. The adjusted operating margin declined by 3.2 percentage points to – 5.6 per cent. This is calculated as operating result plus write-backs of provisions divided by revenue.

Operating result and net profi t / loss for the period in €m (Jan. – March)

The result from equity investments fell in the reporting period by EUR 9m to EUR – 23m. The cause of the decline was a commensurate fall in the result of the equity valuation, which was depressed in turn by the equity investments in SN Airholding and SunExpress. Net interest sank slightly by EUR 4m to EUR – 83m.

The result from other fi nancial items improved signifi cantly by EUR 369m to EUR – 16m. This stemmed largely from changes in the time value of options used for hedging (mostly fuel hedging) recognised in profi t or loss. In the same quarter last year this resulted in expenses of EUR 289m, whereas in the fi rst quarter of 2012 higher time values generated income of EUR 53m. Both the unusually strong positive performance compared to the previous year and the substantial expense last year are a refl ection of the earnings volatility caused by IAS 39. Income or expenses arising from changes in the time value of options must also be viewed in connection with realised hedging gains and losses and changes to the intrinsic value of hedging transactions, which are recognised

directly in equity and made a positive contribution of EUR 114m and EUR 108m, respectively, in the fi rst quarter of 2012, too. Negative changes in the value of hedging instruments deemed as trading under the defi nition of IAS 39 gave rise to expenses of EUR 68m (previous year: EUR 78m).

Earnings before interest and taxes (EBIT) refl ect the changes in the operating result, the result from equity investments and from other fi nancial items and improved by EUR 100m to EUR – 418m at the end of the fi rst quarter due to the factors described above.

Earnings before taxes (EBT) rose by a similar amount (EUR + 96m) to EUR – 501m. As the pre-tax result was negative, income taxes diminished the loss by EUR 105m. The result from continuing operations therefore came to EUR – 396m (previous year: EUR – 442m).

Including the result of discontinued operations (EUR 2m, see "Notes" on p. 27 ) and after minority interests (EUR 3m), the net loss for the period came to EUR – 397m (previous year: EUR – 507m). Earnings per share amounted to EUR – 0.87 (previous year: EUR – 1.11).

Cash fl ow and capital expenditure

In the fi rst quarter of 2012, the Lufthansa Group increased cash fl ow from operating activities to EUR 833m (previous year: EUR 755m). Based on a EUR 96m increase in earnings before income taxes, non-cash expenses of EUR 15m from changes in the market value of fi nancial derivatives (previous year: EUR 367m) were added when calculating cash fl ow. Eliminating non-cash depreciation and amortisation added a further EUR 54m to cash fl ow. Changes in working capital and income tax payments also resulted in improvements to cash fl ow from operating activities of EUR 185m and EUR 123m, respectively, compared with last year. Starting with the fi nancial statements for 2011 the calculation of cash fl ow from operating activities also includes retirement benefi ts paid to former staff from external pension funds, which are included in changes in working capital. The fi gures for the previous year have been adjusted accordingly.

Gross capital expenditure came to EUR 592m, of which twelve aircraft (two Airbus A330s, four A321s, two A320s, two A319s and two Embraer 195s) as well as aircraft overhauls and down payments accounted for EUR 527m. An additional EUR 45m was invested in other property, plant and equipment. Intangible assets accounted for EUR 11m of the remaining capital expenditure. Financial investments of EUR 9m related solely to loans.

Repairable spare parts for aircraft were purchased for EUR 55m. The funding requirement was partly covered by interest and dividend income (EUR 131m in total) and proceeds of EUR 223m from the disposal of assets – in particular aircraft and non-current securities. The purchase and sale of current securities and funds resulted in a net cash outfl ow of EUR 158m. A total of EUR 451m in net cash was therefore used for capital expenditure and cash management activities (previous year: EUR 112m).

Free cashfl ow, defi ned as cash fl ow from operating activities less net capital expenditure, came to EUR 540m and was therefore EUR 206m higher than last year.

The balance of fi nancing activities was a net cash outfl ow of EUR 268m. New borrowing of EUR 211m, especially in connection with aircraft fi nancing, was offset by scheduled capital repayments of EUR 310m and interest payments of EUR 167m.

Cash and cash equivalents rose by EUR 28m to EUR 915m. This includes an increase of EUR 2m in cash balances due to exchange rate movements. Cash of EUR 88m was shown in the balance sheet under assets held for sale.

The internal fi nancing ratio was 140.7 per cent (previous year: 101.5 per cent). Overall, cash including securities at the end of the fi rst quarter sank to EUR 4.2bn (previous year: EUR 5.2bn) as planned. The detailed cash fl ow statement can be found on p. 25 .

Assets and fi nancial position

As of 31 March 2012 total assets were EUR 1.1bn higher than the fi gure at year-end 2011. Non-current assets fell by EUR 134m, whereas current assets increased by EUR 1.2bn.

Within non-current assets, the item aircraft and reserve engines rose slightly by EUR 69m to EUR 11.7bn.

The decline in equity investments accounted for under the equity method (EUR – 43m) was largely due to negative earnings contributions from SN Airholding and SunExpress. The increase of EUR 40m in other equity investments is largely due to the changes in the market value of the shares in Amadeus IT Holding S.A. (EUR + 47m) and in JetBlue (EUR – 17m), which are not recognised in profi t or loss. Derivative fi nancial instruments fell by a total of EUR 79m, principally due to currency and interest-rate hedges, offset by an increase in fuel hedges.

Non-current securities declined by EUR 114m largely due to the disposal of a borrower's note loan.

In current assets, receivables went up by EUR 857m, mainly for seasonal and billing reasons. The increase in current fi nancial derivatives (EUR + 64m) stems primarily from fuel hedging, offset by lower market values for foreign exchange and interest rate hedges. Cash and cash equivalents, consisting of current securities, bank balances and cash-in-hand, went down by EUR 170m to EUR 4.2bn. The proportion of non-current assets in the balance sheet total declined from 66.3 per cent at year-end 2011 to 63.4 per cent currently.

Shareholders' equity (including minority interests) fell by EUR 372m (– 4.6 per cent) to EUR 7.7bn as of the reporting date. The reduction is largely due to the negative after-tax result of EUR – 394m. The equity ratio fell accordingly to 26.3 per cent (year-end 2011: 28.6 per cent).

Non-current liabilities and provisions went up slightly by EUR 54m to EUR 10.3bn, while current borrowing was increased by EUR 1.4bn to EUR 11.2bn.

Assets and fi nancial position

Within non-current borrowing the pension provisions increased by EUR 55m and fi nancial liabilities by EUR 47m. The increase of EUR 44m in derivative fi nancial instruments came mainly from currency and interest rate hedges. The sharp fall of EUR 163m in deferred tax liabilities is mainly due to the loss before income taxes.

Within the current liabilities, fi nancial liabilities decreased by a total of EUR 180m. In addition, trade payables and other fi nancial liabilities climbed sharply (EUR + 542m) for seasonal and billing reasons, as did liabilities from unused fl ight documents (EUR + 961m).

Net indebtedness fell to EUR 2.1bn as of 31 March 2012 (year-end 2011: EUR 2.3bn). Gearing including pension provisions increased slightly to 56.9 per cent (year-end 2011: 55.9 per cent) but continues to remain within the target corridor of 40 to 60 per cent.

Calculation of net indebtedness and gearing

	31 March 2012 in €m	31 Dec. 2011 in €m	Change as of 31 Dec. 2011 in %
Liabilities to banks	1,386	1,456	– 4.8
Bonds	2,112	2,119	– 0.3
Other non-current borrowing	2,793	2,849	– 2.0
	6,291	6,424	– 2.1
Other bank borrowing	20	16	25.0
Group indebtedness	6,311	6,440	– 2.0
Cash and cash equivalents	915	887	3.2
Securities	3,253	3,111	4.6
Non-current securities (liquidity reserve) *	–	114	– 100.0
Net indebtedness	2,143	2,328	– 7.9
Pension provisions	2,220	2,165	2.5
Net indebtedness and pensions	4,363	4,493	– 2.9
Gearing in %	56.9	55.9	1.0 pts

* Realisable at any time.

Group fl eet – Number of commercial aircraft as of 31.3.2012

Manufacturer / type	LH Passenger Airlines1)	SWISS	Austrian	bmi 2)	LH Cargo	Group fl eet	of which fi nance lease	of which operating lease	Change as of 31.12.11	Change as of 31.3.11
Airbus A310	24)					2			–	–
Airbus A319	64	7	7	11		89	4	25	+ 2	+ 4
Airbus A320	46	27	9	7		89	11	6	+ 2	+ 4
Airbus A321	60	7	6	7		80	5	5	+ 4	+ 12
Airbus A330	15	19		2		36		6	+ 2	+ 2
Airbus A340	50	13	23)			65	2	2	–	– 1
Airbus A380	8					8			–	+ 2
Boeing 737	55		11	14		80	3	11	–	– 7
Boeing 747	28					28			– 2	– 2
Boeing 767			6			6	2		–	–
Boeing 777			4			4			–	–
Boeing MD-11F					18	18			–	–
Bombardier CRJ	59		2			61		2	– 4	– 13
Bombardier Q-Series			14			14			–	– 4
ATR	11					11		7	–	– 4
Avro RJ	7	20				27		8	– 2	– 8
Embraer	32	44)	34)	19		58	2	9	+ 2	+ 6
Fokker F70			9			9	1		–	–
Fokker F100			15			15			–	–
Cessna Citation						0			–	– 4
Total aircraft	437	97	88	60	18	700	30	81	4	– 13

1) Including regional airlines and Germanwings.

2) Discontinued operations.

3) Let to SWISS.

4) Leased to company outside the Group.

Passenger Airline Group business segment

Key fi gures Passenger Airline Group						of which Lufthansa Passenger Airlines 3)
		Jan. – March 2012	Jan. – March 2011	Change in %	Jan. – March 2012	Change in %
Revenue	€m	5,040	4,678	7.7	3,648	6.9
of which with companies of the Lufthansa Group	€m	168	179	– 6.1
Operating result	€m	– 445	– 321	– 38.6	– 384	– 38.1
Segment result	€m	– 533	– 361	– 47.6
EBITDA 1)	€m	– 94	50	–	– 101
Segment capital expenditure	€m	492	628	– 21.7
Employees as of 31.3.	number	55,845	54,235	3.0	40,981	3.5
Passengers 2)	thousands	21,867	20,857	4.8	15,751	4.1
Available seat-kilometres 2)	millions	59,648	58,136	2.6	43,591	1.6
Revenue seat kilometres 2)	millions	44,242	42,365	4.4	32,180	3.5
Passenger load factor 2)	%	74.2	72.9	1.3 pts	73.8	1.3 pts

1) Before profi t/loss transfer from other companies. 2) Lufthansa Passenger Airlines, SWISS and Austrian Airlines.

3) Including Germanwings. Previous year's fi gures have been adjusted.

Segment structure and course of business The business segment is made up of Lufthansa Passenger Airlines (including Germanwings), SWISS and Austrian Airlines. They are joined by equity investments such as those in Brussels Airlines and Sun-Express. The Passenger Airline Group's multi-hub strategy gives customers a high degree of fl exibility in planning their travel thanks to the different hubs in the Group and allows the companies to realise cost synergies.

By agreeing to sell bmi to IAG Lufthansa has disassociated from a persistently loss-making subsidiary. The European Commission approved the sale subject to conditions on 30 March 2012. The transaction was closed in the second quarter (19 April 2012).

Further increases in fuel prices and slower global economic growth had a substantial impact on business of the Passenger Airline Group in the fi rst quarter of 2012. Several strikes by third parties also had an adverse effect on traffi c fi gures, as did the night-fl ight ban at Frankfurt Airport, which was upheld by the Federal Administrative Court in Leipzig on 4 April 2012. As a result of these negative factors the operating result in the traditionally weak fi rst quarter was down on last year's.

Operating performance The companies in the Passenger Airline Group carried 21.9 million passengers in the fi rst quarter. This represents an increase of 4.8 per cent. The available seatkilometres went up by 2.6 per cent in the same period. The additional capacity came mainly from the deployment of larger aircraft, as the number of fl ights fell year on year by 2.2 per cent. As revenue seat-kilometres rose by 4.4 per cent, the passenger load factor also improved by 1.3 percentage points to 74.2 per cent. In the process, average yields were increased by 3.7 per cent, with the result that overall traffi c revenue climbed by 8.3 per cent.

In Europe sales grew sharply. Average yields picked up by 3.7 per cent at the same time. Traffi c revenue went up by 9.9 per cent.

Sales in the Americas traffi c region also increased. Average yields climbed by 9.9 per cent, giving this region the strongest growth in traffi c revenue of 12.5 per cent.

Sales in the Asia/Pacifi c region developed also well. There was a slight drop of 1.8 per cent from last year's high average yields but traffi c revenue rose overall by 4.9 per cent.

In the Middle East/Africa traffi c region sales fell slightly while at the same time capacity was reduced by a greater amount. Average yields (+ 1.1 per cent) nearly made up for these developments, so that traffi c revenue remained stable overall (– 0.2 per cent).

In the fi rst quarter of 2012 the Star Alliance accepted the Taiwanese airline EVA Air as a future member. This addition to the airline alliance refl ects the strategy of steadily expanding the network and moving into new regions with great economic potential and strong performance. It gives passengers of the Passenger Airline Group an even better range of connection possibilities in Asia.

Revenue and earnings development Increased traffi c meant that the segment's traffi c revenue climbed year on year to EUR 4.6bn (+ 8.3 per cent). In addition to the 4.4 per cent increase in sales volumes, higher prices (+ 2.7 per cent) and exchange rate effects (+ 1.2 per cent) also lifted revenue. In total, revenue climbed to EUR 5.0bn (+ 7.7 per cent).

Other operating income tumbled by 30.9 per cent to EUR 233m. As well as lower exchange rate gains (EUR – 12m) this stems above all from the non-recurring income received in the same quarter last year (reimbursement of air traffi c control charges and compensation payments).

Total operating income therefore went up altogether by 5.1 per cent to EUR 5.3bn.

Compared with the previous year, operating expenses grew by 7.2 per cent to EUR 5.7bn. The 24.8 per cent leap in fuel expenses to EUR 1.5bn was the main reason for the increase. This drove the cost of materials and services up sharply to EUR 3.6bn (+ 11.1 per cent).

Fees and charges were also up by a total of 6.0 per cent to EUR 1.1bn, mainly due to higher traffi c fi gures. The main components of the increase were higher passenger fees (+ 12.6 per cent), the air traffi c tax (+ 22.1 per cent), take-off and landing fees (+ 5.6 per cent) and air traffi c control charges (+ 10.2 per cent).

While the workforce expanded by 3.0 per cent, staff costs rose by 4.9 per cent. Higher additions to pension provisions, cost increases due to exchange rate movements as well as the new wage settlements were the main drivers.

Depreciation and amortisation was up by 6.8 per cent to a total of EUR 344m mainly due to new aircraft deliveries this year and last year.

Other operating expenses were down by 6.1 per cent to EUR 757m. Lower expenses from exchange rate losses were partly offset by higher indirect staff costs.

The operating result for the fi rst quarter of EUR – 445m was EUR 124m below that for the same period last year. Comments on the earnings contributions from the individual airlines can be found on the following pages.

	Net traffi c revenue in €m external revenue		Number of passengers in thousands		Available seat-kilometres in millions		Revenue seat-kilometres in millions		Passenger load factor in %
	Jan. – March 2012	Change in %	Jan. – March 2012	Change in %	Jan. – March 2012	Change in %	Jan. – March 2012	Change in %	Jan. – March 2012	Change in pts
Europe	2,087	9.9	17,279	5.6	20,117	3.7	13,201	6.0	65.6	1.4
America	1,136	12.5	1,860	1.9	17,567	– 0.5	14,040	2.4	79.9	2.2
Asia / Pacifi c	916	4.9	1,489	5.8	14,422	6.8	11,587	6.8	80.3	0.0
Middle East / Africa	433	– 0.2	1,078	– 1.7	6,525	– 4.3	4,671	– 1.3	71.6	2.2
Total scheduled services	4,572	4.6	21,707	4.9	58,631	2.2	43,499	4.2	74.2	1.4
Charter	35	– 10.2	161	0.9	1,017	32.8	743		73.1	– 7.0
Total	4,607	8.3	21,867	4.8	59,648	2.6	44,242	4.4	74.2	1.3

Trends in traffi c regions Passenger Airline Group *

* Lufthansa Passenger Airline, SWISS and Austrian Airlines.

Other segment income of EUR 13m (previous year: EUR 30m) was attributable above all to income from write-backs of provisions (EUR 9m) and book gains on the disposal of non-current assets (EUR 2m).

Other segment expenses came to EUR 55m (previous year: EUR 38m). They include impairment losses of EUR 45m related to three Boeing 747-400s and eight Boeing 737-300s, which have been decommissioned or are held for disposal. Impairment losses of EUR 10m were also incurred on one Airbus A330-200 and fi ve Avro RJs shown in the balance sheet as assets held for sale. The result of the equity valuation of EUR – 46m (previous year: EUR – 32m) relates particularly to SunExpress and SN Airholding. The segment result fell overall by EUR 172m to EUR – 533m.

Segment capital expenditure of EUR 492m was 21.7 per cent lower than last year's and was mainly incurred for new aircraft. In the fi rst quarter two Airbus A330s, four A321s, two A320s, two A319s and two Embraer 195s were delivered as part of the ongoing fl eet renewal.

Forecast The price and revenue increases achieved in the fi rst quarter were not suffi cient to make up for the steeper rise in fuel expenses. Cost pressure from kerosene prices is expected to persist for the remainder of the year. At the same time, advance bookings for the months ahead look encouraging. The market environment is nevertheless characterised by a high degree of uncertainty, so that further, wide fl uctuations in demand are possible. The companies in the Passenger Airline Group manage their capacities with a close eye on demand trends. For the current fi nancial year the plan is now to expand available capacity by 1 per cent only. With the reduced fl eet this will be realised solely by means of effi ciency increases and larger aircraft. In addition to their individual targets, all the airlines are working on sustainable, joint models for realising more synergies as part of SCORE.

In the 2012 fi nancial year the Passenger Airline Group is still forecasting to increase its revenue and generate an operating profi t. The absolute earnings level nonetheless depends on the uncertainties described above in view of the external infl uences.

Lufthansa Passenger Airlines

For Lufthansa Passenger Airlines the fi rst quarter of 2012 was largely defi ned by rising fuel costs and strike action by third parties at important sites. Compared with the same period last year, however, which was shaken by a series of crises, capacity sold better overall.

Since the beginning of 2012 the fi gures for Germanwings have been consolidated with those of Lufthansa Passenger Airlines. Last year's fi gures have been adjusted accordingly. Altogether, Lufthansa Passenger Airlines transported 15.8 million passengers in the fi rst quarter, 4.1 per cent more than last year. The number of fl ights fell by 1.7 per cent but capacity was expanded by 1.6 per cent. As sales grew more sharply at 3.5 per cent, the passenger load factor picked up by 1.3 percentage points to 73.8 per cent. Traffi c revenue grew by 7.7 per cent to EUR 3.4bn, buoyed by higher average yields (+ 4.1 per cent). In total, revenue rose to EUR 3.6bn (+ 6.9 per cent). Compared with last year, operating expenses went up by EUR 271m. These largely related to higher expenses for fuel (EUR + 215m), along with fees and charges (EUR + 38m). The operating result of EUR – 384m was therefore EUR 106m below last year's.

In its 2012 summer fl ight timetable Lufthansa Passenger Airlines serves 216 destinations in 83 countries. There are two new long-haul fl ights to the Chinese cities of Shenyang and Qingdao. Lufthansa is to offer 28 new routes from the new airport in Berlin due to open on 3 June 2012, taking the number of destinations served from Germany's capital to a total of 39. Unit costs there have been reduced signifi cantly by means of a package of measures that includes stationing crews locally on com petitive terms.

When the fi rst Boeing 747-8i enters service in the second quarter of 2012 Lufthansa Passenger Airlines will introduce their new Business Class seat on long-haul routes. With a full-fl at sleeping surface that is 1.98 m long, the new seat guarantees the ultimate in comfortable sleep. Since early March 2012 leisure travellers have been able to book complete holiday packages online, consisting of fl ights and hotel accommodation, under the name of Lufthansa Holidays. Lufthansa is cooperating on this service with the tour operator Thomas Cook Germany.

For the full year 2012 Lufthansa Passenger Airlines is anticipating further uncertainty in terms of economic developments and greater cost pressure. The company nevertheless continues to expect higher revenue. Whether it is possible to meet the target of an operating profi t depends largely on whether the ongoing steps and those taken in the course of Climb 2011 are suffi cient to compensate for the enormous leap in fuel prices.

Other Group airlines

SWISS
		Jan. – March 2012	Jan. – March 2011	Change in %
Revenue	€m	967	871	11.0
Operating result	€m	– 6	17
EBITDA	€m	69	84	– 17.9
Passengers carried	thousands	3,766	3,590	4.9
Employees as of 31.3.	number	8,090	7,696	5.1

Further information on SWISS can be found at www.swiss.com.

For SWISS the start to the year 2012 was marred by a diffi cult market environment. High crude oil prices and the consequences of the strong Swiss franc depressed the result. Business in the fi rst three months was also subject to unprecedented volatility. In the fi rst quarter SWISS reported a loss of EUR 6m, compared with a profi t of EUR 17m in the same period last year. Revenue climbed 11 per cent to EUR 967m. The substantial percentage increase came largely from the wide swings in the exchange rate between the euro and the Swiss franc, which appreciated by 6.5 per cent on average.

Passenger numbers rose by 4.9 per cent in the fi rst three months to 3.8 million. Sales were up by 5.9 per cent and capacity was extended by 5.0 per cent. This includes the new intercontinental route from Zurich to Beijing, fl own since February. From April, the destination Newark will be served by one of the company's own A330-300s.

SWISS currently serves 70 destinations in 37 countries with 97 aircraft. As scheduled, the fl eet was expanded in the fi rst quarter of 2012 by two new Airbus A330-300s and two A320-200s; another A330-300 is to be delivered in October.

In the fi rst quarter of 2012 SWISS completed preparations for taking over technical responsibility, including daily aircraft maintenance, for its entire Airbus fl eet as of 1 April 2012. This also entailed recruiting some 200 new employees for the SWISS Technical Division.

The diffi cult operating environment is currently expected to continue throughout 2012. Despite the forecast in revenue growth it is therefore unlikely that last year's operating result can be matched. Right from the start of the year, SWISS management therefore decided on operational steps to improve earnings for 2012. Various structural measures were also implemented as a sustainable response to changes in market conditions. They form part of the Group-wide programme SCORE.

Austrian Airlines

		Jan. – March 2012	Jan. – March 2011	Change in %
Revenue	€m	441	411	7.3
Operating result	€m	– 67	– 64	– 4.7
EBITDA	€m	– 27	– 23	– 17.4
Passengers carried	thousands	2,350	2,131	10.1
Employees as of 31.3.	number	6,774	6,943	– 2.4

Further information on Austrian Airlines can be found at www.austrian.com.

The diffi cult market environment in the fi rst quarter led to falling ticket prices combined with rising kerosene prices. In this period Austrian Airlines increased passenger numbers by 10.1 per cent to around 2.4 million. An extra 6.4 per cent capacity was more than matched by sales growth of 9.8 per cent. The load factor rose by 2.1 percentage points to 70.6 per cent and revenue also climbed by 7.3 per cent to EUR 441m. The sharp rise in the fuel price caused the operating result to decline year on year to EUR – 67m (– 4.7 per cent). The full effect of the air traffi c tax introduced in Austria in April 2011 also weighed on earnings.

In January 2012 Austrian Airlines launched a wide-ranging restructuring programme that is intended to take the company to sustainable profi tability. The package requires contributions from all stakeholders and is made up of two thirds cost reductions and one third additional income. Cost-cutting measures include reducing external average costs per passenger, modernising the wage agreements and further harmonising the fl eet, for example by swapping eleven Boeing 737s for up to seven Airbus A320s. The aim of the programme is to make savings of at least EUR 220m. For its fi nancing in March 2012 the Lufthansa Supervisory Board approved a contingent capital increase of up to EUR 140m.

On 19 April 2012 the Supervisory Board of Austrian Airlines authorised the Executive Board to transfer the fl ight operations to the subsidiary Tyrolean Airways. With the cost level of Tyrolean Austrian Airlines has a competitive and sustainable basis for its future development. After discussions with the works council did not come to a common solution for the restructuring of the fl ight operations, on 30 April 2012 the Executive Board decided to transfer the company's fl ight operations to the subsidiary Tyrolean. It will come into effect on 1 July 2012. The measures adopted will result in one-off restructuring expenses that will depress profi ts and, depending on size, may also reduce the operating result to below that of last year. However, they contribute to substantially and durably strengthening the profi tability of Austrian Airlines.

Logistics business segment

Key fi gures Logistics

		Jan. – March 2012	Jan. – March 2011	Change in %
Revenue	€m	662	742	– 10.8
of which with companies of the Lufthansa Group	€m	7	6	16.7
Operating result	€m	19	64	– 70.3
Segment result	€m	25	62	– 59.7
EBITDA *	€m	41	85	– 51.8
Segment capital expenditure	€m	34	14	142.9
Employees as of 31.3.	number	4,602	4,503	2.2
Freight and mail	thousand tonnes	426	469	– 9.3
Available cargo tonne-kilometres	millions	3,080	3,354	– 8.2
Revenue cargo tonne-kilometres	millions	2,140	2,343	– 8.7
Cargo load factor	%	69.5	69.9	– 0.4 pts

* Before profi t / loss transfer from other companies.

Segment structure and course of business In addition to Lufthansa Cargo AG, the Logistics segment includes Lufthansa Cargo Charter Agency GmbH, the airfreight container specialist Jettainer GmbH and the equity investment in the cargo airline AeroLogic GmbH. Lufthansa Cargo also markets freight capacities on passenger aircraft operated by Lufthansa Passenger Airlines and Austrian Airlines. Furthermore, the company holds equity interests in various sales support and handling companies.

Lufthansa Cargo earned an operating profi t in the fi rst quarter of 2012 under challenging circumstances. However, in the face of higher fuel prices and the night-fl ight ban it was not possible to repeat the extremely strong performance achieved in the same period last year.

The Chinese cargo airline Jade Cargo International, in which Lufthansa Cargo holds a stake of 25 per cent, is undergoing fi nancial restructuring, during which fl ight operations have been temporarily suspended. In February 2012 the shareholders signed a letter of intent on the sale of their shares to the Chinese logistics company UniTop. Preparations are currently underway for a resumption of fl ight operations.

Product and route network Lufthansa Cargo has expanded its product range in the express freight segment with "Courier. Solutions". With even shorter collection times and even faster transit times than the "td.Flash" product, the new product is aimed at customers with extremely time-critical and sensitive cargo.

In March Lufthansa Cargo became one of fi ve airlines in the world to receive a platinum seal for its own quality management as part of the IATA industry initiative Cargo 2000. Airlines with this seal stand out among the around 80 airlines, forwarders and airfreight partners for their excellent quality and the great extent to which they have integrated the Cargo 2000 quality philosophy and contributed to developing this system for the entire industry.

As part of a quality offensive for the German market in place since 2010, Lufthansa Cargo gave its Quality Award 2011 for best delivery quality to the forwarder Quick Cargo Services.

Operating performance The fi rst quarter of 2012 could not match last year's successful start. Whereas the same period last year still bore the mark of strong demand from summer 2010, the fi rst quarter of 2012 was characterised by the distinctly declining demand experienced since summer 2011. Tonnage was down by 9.3 per cent and tonne-kilometres transported by 8.7 per cent compared with last year. Having anticipated this development, Lufthansa Cargo had reduced capacity by 8.2 per cent, however, so that the cargo load factor stayed stable (– 0.4 percentage points), see table on p. 15 .

In the Asia/Pacifi c region volumes fell more steeply than average: minor increases in exports from China and India were overwhelmed by sharp increases in market capacity. Thanks to its capacity management Lufthansa Cargo was nevertheless able to improve the load factor. Some of the reduced capacity was switched to America, where sales fell by slightly less than average. In the Europe and Middle East/Africa regions the load factor stabilised at a lower level of tonnage.

Revenue and earnings development In the reporting period Lufthansa Cargo's revenue fell by 10.8 per cent to EUR 662m. This was mainly due to lower traffi c revenue of EUR 633m (– 10.1 per cent). Other revenue sank year on year to EUR 24m (– 29.4 per cent), in particular due to reduced income from aircraft charters. Other operating income totalled EUR 14m, 17.6 per cent less than last year, due primarily to lower exchange rate gains.

Total operating income therefore sank to EUR 676m. This represents a decrease of 10.9 per cent.

Operating expenses went down by 5.5 per cent to EUR 657m in the period under review. The decline was largely due to the lower cost of materials and services, which fell by 7.2 per cent to EUR 477m. This includes fuel expenses, which despite much reduced transport volumes went up to EUR 121m (+ 4.3 per cent) as a consequence of the kerosene price increase. MRO expenses went up by 6.7 per cent to EUR 32m due to higher prices and more service inspections. These additional costs were more than offset by lower charter expenses of EUR 299m (– 14.9 per cent).

Staff costs picked up by 5.7 per cent to EUR 93m because of higher basic pay as well as a slight increase in staff numbers. In the reporting period the business segment had an average of 4,602 employees, or 2.2 per cent more than the previous year.

Depreciation and amortisation was 27.3 per cent lower than in the previous year at EUR 16m. This was mainly because depreciation of further MD-11 freighters had come to an end.

Other operating expenses amounted to EUR 71m and were at the same level as last year.

In the fi rst quarter of 2012 Lufthansa Cargo generated an operating profi t of EUR 19m. As expected, this was below last year's fi gure of EUR 64m.

Other segment income and expenses remained very low. The segment result was EUR 25m (previous year: EUR 62m). This includes pro rata income of EUR 5m (previous year: EUR – 2m) from equity investments accounted for using the equity method.

Segment capital expenditure went up to EUR 34m in the reporting period (previous year: EUR 14m). The increase is principally due to down payments for the purchase of fi ve Boeing 777F aircraft as well as to higher capital expenditure on operating and offi ce equipment.

Forecast Lufthansa Cargo is assuming that its business will continue to perform well over the remainder of the year. With fl ex ible, demand-driven capacity management the aim is to keep load factors high despite the challenging market environment. Strict cost management is to be intensifi ed. For the fi nancial year 2012 Lufthansa Cargo is therefore still expecting an operating profi t in the three-digit million euro range. A repeat of last year's very strong result is not to be expected, however, as demand for airfreight remains hesitant in many markets and due to the effects of the night-fl ight ban in Frankfurt as confi rmed by the Federal Administrative Court. The night-fl ight ban has a lasting and extremely detrimental impact on business development for Lufthansa Cargo in particular. The annual economic damage is estimated at some EUR 40m. Lufthansa Cargo will now examine how it can limit the damage to its own and its customers' business and what effect these developments will have on its long-term investment plans for the site in Frankfurt.

		Trends in traffi c regions Lufthansa Cargo

	Net traffi c revenue in €m external revenue *		Freight /mail in thousand tonnes		Available cargo tonne kilometres in millions		Revenue cargo tonne kilometres in millions		Cargo load factor in %
	Jan. – March 2012	Change in %	Jan. – March 2012	Change in %	Jan. – March 2012	Change in %	Jan. – March 2012	Change in %	Jan. – March 2012	Change in pts
Europe	60	0.0	148	– 5.6	176	– 10.5	87	– 6.5	49.3	2.1
America	254	– 3.8	131	– 8.2	1,324	– 0.4	932	– 5.7	70.3	– 4.0
Asia / Pacifi c	268	– 16.5	114	– 14.3	1,268	– 15.3	940	– 11.9	74.1	2.8
Middle East / Africa	51	– 13.6	33	– 11.6	312	– 6.0	181	– 7.0	58.2	– 0.6
Total	633	– 10.1	426	– 9.3	3,080	– 8.2	2,140	– 8.7	69.5	– 0.4

* Not including Extracharter.

MRO business segment

Key fi gures MRO

		Jan. – March 2012	Jan. – March 2011	Change in %
Revenue	€m	1,026	1,027	– 0.1
of which with companies of the Lufthansa Group	€m	430	445	– 3.4
Operating result	€m	62	69	– 10.1
Segment result	€m	75	78	– 3.8
EBITDA *	€m	113	120	– 5.8
Segment capital expenditure	€m	33	15	120.0
Employees as of 31.3.	number	20,423	19,823	3.0

* Before profi t / loss transfer from other companies.

Segment structure and course of business The Lufthansa Technik group includes 33 technical maintenance operations around the world, including the main site in Hamburg. The company also holds direct and indirect stakes in 56 companies worldwide. Demand for maintenance, repair and overhaul (MRO) services continues to stabilise at much lower price levels. The current challenges for Lufthansa Technik are in the global expansion of MRO capacities and the tense fi nancial situation of some airline customers. Customer insolvencies and fl eet decommissioning at the beginning of the year as well as strong demand from Lufthansa Passenger Airlines last year meant that strong revenue and earnings in the same period last year could not quite be matched in the fi rst quarter of 2012.

Products Its product portfolio makes Lufthansa Technik the global market leader in MRO services for civil aircraft. The company prepared itself early to take over responsibility for servicing the new aircraft models Boeing 787 and B747-8 that are about to be delivered. The site in Malta was upgraded in the fi rst quarter 2012 to handle extensive cabin modifi cations and the scope of cooperation agreements, for example with Boeing and Panasonic, was extended. Now that the installation of the new Europa cabin for Lufthansa Passenger Airlines has been successfully completed, further product innovations are being implemented, such as Business and First Class refi ts and FlyNet installations.

Operating performance In February 2012 the overhaul capacities for wide-body aircraft were successfully expanded in Manila. In addition, Lufthansa Technik has been the sole owner of Airliance Materials since taking over the remaining shares in January 2012. So far Lufthansa Technik has signed some 82 new contracts with a volume of EUR 254m for the full year 2012, adding to the number of customers and aircraft serviced. The existing Total

Component Support contract for the Airbus A320 and Boeing 737 fl eets of Asiana Airlines, a long-established customer, was expanded and extended by ten years. The activities of the ESP@LHT programme were transferred to the Group-wide SCORE programme. Far-reaching restructuring activities and adjustments to the organisational structure were also announced. They focus on the engine overhaul unit in Hamburg, where demand has fallen sharply, but also on Lufthansa Technik Switzerland, which is faced with a diffi cult market situation and a persistently high exchange rate, as well as other European overhaul sites.

Revenue and earnings development Revenue at Lufthansa Technik was unchanged at EUR 1.0bn. Internal revenue fell by 3.4 per cent to EUR 430m and external revenue rose by 2.4 per cent to EUR 596m. Other operating income fell to EUR 43m due to exchange rate movements (previous year: EUR 62m). Total operating income therefore remained slightly down year on year at EUR 1.1bn (– 1.8 per cent).

Total operating expenses also sank by 1.3 per cent to EUR 1.0bn. The cost of materials and services declined by 2.3 per cent to EUR 517m. The number of employees rose by 3.0 per cent to 20,423. This was largely due to two additions to the group of consolidated companies. In combination with the wage increase in place since the start of the year and additional partial retirement agreements this drove up staff costs by 11.7 per cent to EUR 306m. Depreciation and amortisation came to EUR 23m (EUR + 1m). Other operating expenses fell by 17.4 per cent to EUR 161m due to currency movements and last year's provisions for impending losses in connection with long-term contracts. Lufthansa Technik generated an operating profi t of EUR 62m (previous year: EUR 69m). Other segment income went up to EUR 9m, whereas the result of the equity valuation fell to EUR 4m. Altogether, Lufthansa Technik reported a segment result of EUR 75m (– 3.8 per cent). Segment capital expenditure came to EUR 33m (EUR + 18m). Major investments were made in expanding the infrastructure at some sites as well as in the procurement of reserve engines.

Forecast Lufthansa Technik is facing up to competitive pressure and the task of sustainably enhancing its own competitive position by cutting costs and building on its modern product portfolio. Initial SCORE projects focus on the restructuring of individual sites and on the group structure. Other lasting activities are currently under development. Against the backdrop of the initiated cost-cutting measures and sales activities Lufthansa Technik still expects a moderate increase in revenue for 2012 and a slightly higher operating profi t than last year. This is subject to the condition that the result is not undermined by further major customer insolvencies and fl eet decommissioning.

MRO IT Services To our shareholders Interim management report | Interim fi nancial statements | Further information

IT Services business segment

Key fi gures IT Services

		Jan. – March 2012	Jan. – March 2011	Change in %
Revenue	€m	146	147	– 0.7
of which with companies of the Lufthansa Group	€m	87	90	– 3.3
Operating result	€m	3	3	0.0
Segment result	€m	3	3	0.0
EBITDA	€m	12	11	9.1
Segment capital expenditure	€m	6	7	– 14.3
Employees as of 31.3.	number	2,800	2,876	– 2.6

Segment structure and course of business Lufthansa Systems offers its clients a comprehensive portfolio of consultancy and IT services. In the aviation industry the company is one of the world's leading IT providers. In the German market Lufthansa Systems is an acknowledged specialist in IT consultancy and systems integration and has a focus on selected industries. In addition to its headquarters and branches in Germany, the company has additional sites in 16 countries around the world. Lufthansa Systems was able to continue last year's successful progress in the fi rst quarter of 2012. Revenue and operating result were the same as last year. The company is profi ting from the structural adjustments made as part of the realignment by the Jetzt! programme.

Products As a full-service provider Lufthansa Systems accompanies its customers throughout the entire IT process chain. Given the growing proliferation of mobile devices the company has developed innovative mobile solutions including the in-fl ight entertainment solution BoardConnect, the navigation chart solution Lido/iRouteManual for the iPad as well as other apps. Outside the airline industry, Lufthansa Systems offers IT services spanning everything from consultancy to developing industry solutions and managing routine operations.

Operating performance The fi rst quarter of 2012 saw a strong infl ow of new orders. The regional airline Eurowings outsourced its data centre operations and the management of SAP applications to Lufthansa Systems. With Air France, another airline has chosen the fl ight dispatch solution Lido/Flight and Czech Airlines extended its contract. All Nippon Airways is a new customer for the electronic staff ticketing system myIDTravel. It now has around 130 customers worldwide. The Australian airline Qantas carried out successful test fl ights with BoardConnect at the beginning of the year.

Following its successful introduction the IT workplace model desk-Base is now to be rolled out to other companies in the Lufthansa Group. The contract with Lufthansa Cargo for the management of its global data network was renewed. In addition, the contract with AirPlus to operate all business-critical processes for credit card processing was extended. In the industrial sector the company continued its IT consultancy work for Volkswagen and Glaxo-SmithKline. The existing contract for SAP operations with Bosch Thermotechnik was renewed. Hamburg Port Authority appointed Lufthansa Systems to carry out additional service work alongside the major ongoing project to modernise the IT of the port railway.

Revenue and earnings development In the fi rst quarter of the current fi nancial year Lufthansa Systems reported revenue of EUR 146m (EUR – 1m). Revenue of EUR 87m (EUR – 3m) was generated from activities with Lufthansa Group companies. External customers contributed revenue of EUR 59m (EUR + 2m). Other operating income came to EUR 4m (previous year: EUR 6m). As a result, total operating income sank by EUR 3m to EUR 150m.

Total operating expenses also fell by EUR 3m to EUR 147m. The cost of materials and services went down to EUR 17m (previous year: EUR 20m). At 2,800 employees the headcount was 2.6 per cent below the fi gure for last year. Staff costs were stable in the period under review at EUR 59m, due to a wage increase of 3.5 per cent which came into effect at the beginning of the year. Depreciation and amortisation came to EUR 9m (previous year: EUR 8m). Other operating expenses fell slightly by EUR 1m to EUR 62m.

In the reporting period Lufthansa Systems generated an operating result of EUR 3m, which was unchanged compared with the same period last year. The segment result was likewise unchanged at EUR 3m. In the fi rst three months of 2012, Lufthansa Systems' segment capital expenditure was EUR 6m (previous year: EUR 7m).

Forecast The restructuring in 2011 laid the groundwork for Lufthansa Systems to return to profi table growth again in 2012. While business with Lufthansa Passenger Airlines will initially continue to decrease as a result of the switch to new and cheaper technologies, the greater customer orientation and faster response times should lead to more new business in external markets. For the current year Lufthansa Systems is expecting to put in a good performance with rising revenue and operating result.

Catering business segment

Key fi gures Catering

		Jan. – March 2012	Jan. – March 2011	Change in %
Revenue	€m	568	520	9.2
of which with companies of the Lufthansa Group	€m	131	126	4.0
Operating result	€m	– 5	2
Segment result	€m	– 4	4
EBITDA	€m	10	27	– 63.0
Segment capital expenditure	€m	10	14	– 28.6
Employees as of 31.3.	number	29,481	28,425	3.7

Segment structure and course of business The LSG Sky Chefs group consists of 148 companies with approximately 200 sites in 52 countries. The parent company for the group, LSG Lufthansa Service Holding AG, is based in Neu-Isenburg. The group of consolidated companies was expanded compared with the previous year by a total of 16 companies in Germany, the United Kingdom, Switzerland, Argentina, France and the USA.

In March LSG Sky Chefs signed a memorandum of understanding with Finnair on taking over its catering activities. It is subject to the approval of LSG Sky Chefs and Lufthansa boards as well as the Finnish competition authorities. LSG Sky Chefs and Alpha Flight Group received clearance from the British competition authority for their joint venture in the United Kingdom.

The fi rst quarter of 2012 did not see any major turbulence, with passenger numbers rising moderately worldwide. LSG Sky Chefs recorded revenue increases in all regions. The operating result was still negative, however.

Products There is increasing customer interest in LSG Sky Chef's expanded equipment and logistics portfolio. The Business Class amenity kits and numerous textile products have been in use at Qatar Airways and Virgin Atlantic, respectively. In early March the lightweight Quantum trolley, an in-house development, was introduced on various Lufthansa long-haul fl ights. From the summer it is to be rolled out at Condor as well. More innovations for greater sustainability were presented at the "World Travel Catering and Onboard Services Expo" in Hamburg. The company's creativity was again acknowledged in the fi rst quarter of 2012 with several awards.

Operating performance LSG Sky Chefs renewed the contract with Thomson Airways in the United Kingdom until 2015. The long-established partnership with TUIfl y in Germany was not confi rmed, however, and ends at the end of October 2012. A new wage agreement running until 2015 was signed for around 8,000 employees in the USA. In Germany a wage freeze was agreed for the 8,000 employees until the beginning of 2013.

Revenue and earnings development Revenue for the Catering segment developed positively in the fi rst three months. It rose year on year by 9.2 per cent (adjusted for exchange rates: + 6.9 per cent) to EUR 568m. The increase is mainly due to higher volumes. The newly consolidated companies also contributed EUR 12m to the increase in revenue. External revenue climbed to EUR 437m (+ 10.9 per cent), while internal revenue increased by 4.0 per cent to EUR 131m.

Other operating income was well up on the previous year at EUR 23m (EUR + 15m), principally thanks to higher exchange rate gains. Overall, total operating income went up by 11.9 per cent to EUR 591m.

At EUR 596m, total operating expenses were 13.3 per cent higher than in the previous year and so rose by a greater fraction than revenue. The cost of materials and services went up in parallel to revenue by 9.8 per cent to EUR 258m.

In the fi rst quarter LSG Sky Chefs group had an average of 29,481 employees (+ 3.7 per cent). Exchange rate movements, changes in the group of consolidated companies and one-off wage payments in the USA lifted staff costs by 9.7 per cent to EUR 215m. Depreciation and amortisation went up by 14.3 per cent to EUR 16m, mainly as a result of greater capital expenditure in 2011. Other operating expenses rose to EUR 107m (+ 32.1 per cent) mainly due to higher volumes and higher exchange rate losses.

LSG Sky Chefs posted an operating loss of EUR 5m for the fi rst three months of 2012 (previous year: profi t of EUR 2m). The balance of other segment income and expense was roughly zero, same as last year. The result of the equity valuation was EUR 1m down on last year at EUR 1m. The segment result for LSG Sky Chefs was therefore EUR – 4m altogether (previous year: EUR 4m). Segment capital expenditure of EUR 10m was EUR 4m lower than in the fi rst quarter of 2011.

Forecast LSG Sky Chefs is expecting a modest increase in passenger numbers for the full year 2012. Higher oil prices mean cost pressure from airlines will increase, and therefore accelerate the consolidation process in the airline catering sector. As part of the SCORE programme the company is broadening the scope of its optimisation initiatives to include structural topics in the saturated markets of Germany and North America. They include adjusting collective bargaining structures, making the production network more fl exible and increasing effi ciency in administrative areas. For the fi nancial year 2012 LSG Sky Chefs is expecting higher revenue and an operating result at least on par with last year.

Catering Other Risk and opportunities report To our shareholders Interim management report | Interim fi nancial statements | Further information

Other

Other

		Jan. – March 2012	Jan. – March 2011	Change in %
Total operating income	€m	348	361	– 3.6
Operating result	€m	– 5	30
Segment result	€m	– 5	38
EBITDA *	€m	– 12	48
Segment capital expenditure	€m	3	7	– 57.1
Employees as of 31.3.	number	4,047	3,818	6.0

* Before profi t / loss transfer from other companies.

Structure The segment Other includes the Service and Financial Companies which incorporate the Lufthansa Group's fi nancial and service activities. They include AirPlus, Lufthansa Flight Training and Lufthansa Commercial Holding. The central Group functions of Deutsche Lufthansa AG are also assigned to this segment.

Companies' performance AirPlus profi ted from generally stable growth in international business travel markets in the fi rst quarter of 2012, billing a total of 11 per cent more fl ights than in the same period last year. Billing revenue for business travel products was even 13 per cent up on last year. Total operating income came to EUR 79m (+ 8.2 per cent). At the same time the operating result improved by 11.1 per cent to EUR 10m.

Lufthansa Flight Training was also able to close a successful fi rst quarter. Capacity utilisation for the simulators was high. As of 1 January 2012 the company's services were reorganised into three segments: Simulator Training, Safety & Service Training and Flight Schools. Lufthansa Flight Training generated total operating income of EUR 47m in the fi rst quarter (+ 4.4 per cent). The operating result was unchanged year on year at EUR 11m.

The earnings contribution of the Group functions was again defi ned by changes in exchange rates. Its total operating income fell by 23.3 per cent to EUR 178m, whereas operating expenses declined by the lesser amount of 8.4 per cent. The operating result came to EUR – 29m (previous year: EUR 6m).

Revenue and earnings development The segment Other posted a total operating income of EUR 348m in the reporting period (– 3.6 per cent). Operating expenses increased mainly due to exchange rates by 6.6 per cent to EUR 353m. This produced an operating result for the segment of EUR – 5m (previous year: EUR 30m). The segment result also came to EUR – 5m (previous year: EUR 38m).

Risk and opportunities report

As an international aviation company Lufthansa is exposed to macroeconomic, sector-specifi c and Company risks. These are primarily market and competition risks which affect capacity and load factors. They are fl anked by political risks, operational and collective bargaining risks, legal risks and contingencies, procurement risks, IT risks and fi nancial and treasury risks.

Our permanently updated management systems make it possible to identify risks and opportunities at an early stage and act accordingly. For detailed information on the opportunity and risk management system and the Group's risk situation, please see p. 114 of the "Annual Report 2011".

In the fi rst quarter of 2012 the opportunities and risks for the Group described in detail in the annual report materialised or developed as follows.

As expected, the global economy lost momentum under the pressure of the sovereign debt crisis in the euro area, considerable uncertainty in the fi nancial sector and a surprisingly low growth rate in the emerging markets. Confi dence indicators, however, improved compared with year-end 2011. An upswing in the general economy can only be expected in the second half of the year, however. Under these circumstances the airlines in the Group have adjusted their capacities to changes in sales projections. Similar adjustments can currently be observed at many other airlines.

Crude oil and kerosene prices are much higher than last year. They are not only affected by macroeconomic demand, but to a large extent by geopolitical uncertainty as well, such as that resulting from the crises in the Middle East. A further price increase can therefore not be ruled out, which would have a considerable impact on airlines' fuel bills despite expected hedging gains. Lufthansa has responded by increasing the surcharges on ticket prices. In the current competitive environment it nevertheless seems that it will not be possible to recoup all the additional costs.

The confi rmation of the absolute night-fl ight ban at Frankfurt Airport will further distort competition, in particular against state-subsidised airlines and air traffi c systems.

Considering the assessments of macroeconomic developments and all other known issues and circumstances, there are however currently no identifi able developments which could endanger the Company's continued existence.

Supplementary report

The Executive Board of Austrian Airlines on 30 April 2012 decided to transfer the company's fl ight operations to its subsidiary, Tyrolean Airways, as of 1 July 2012. The decision was preceded by negotiations with the works council, however it proved impossible to reach an agreement on the restructuring of the fl ight operations.

On 25 April 2012 Stephan Gemkow (52), Chief Financial Offi cer of Deutsche Lufthansa AG, requested the Supervisory Board to release him from his contract of service to enable him to pursue personal career opportunities. A successor shall be found promptly.

The insuffi ciently funded pension fund at bmi is to be replaced and will enter the British Pension Protection Fund. The ensuing losses to staff will largely be made good by a payment of GBP 84m from Lufthansa to an equalisation fund.

Forecast

GDP development

in %	2012*	2013*	2014*	2015*	2016*
World	2.8	3.6	4.3	4.2	4.0
Europe	0.1	1.3	2.1	2.4	2.4
Germany	0.7	1.6	1.8	1.6	1.7
North America	2.2	2.4	3.4	3.2	2.7
South America	3.5	4.5	4.9	4.3	4.5
Asia / Pacifi c	5.1	5.8	6.2	6.1	5.8
China	8.4	8.6	8.5	8.2	7.9
Middle East	4.0	4.5	4.7	4.4	4.1
Africa	4.9	5.7	5.5	5.2	4.9

Source: Global Insight World Overview as of 13.4.2012. * Forecast.

Macroeconomic outlook The outlook for the further development of the world economy has stabilised, which can also be seen in the upturn in confi dence levels. It nevertheless remains to be seen how fi rm this confi dence in the future development turns out to be. There is no expectation of a robust upswing, partly due to defl ationary effects in connection with the consolidation of public budgets but also due to deleveraging in the private sector. Global economic growth of 2.8 per cent overall is expected in 2012. This is slightly higher than the estimate at year-end, but still below last year's growth rate of 3.0 per cent.

Minimal growth of 0.1 per cent is anticipated for Europe in 2012, but at year-end the experts were still expecting a slight contraction. Germany is still benefi ting from robust domestic demand and exports should also gradually gather momentum. Growth here is forecast at 0.7 per cent for 2012. Growth remains stronger in Asian markets.

Futures rates reveal the expectation of slightly falling oil prices. They are likely to remain highly exposed to geopolitical developments, however. High fuel prices are therefore still to be expected, especially as the hedging effect of rolling hedge structures diminishes if prices stay high.

Under these circumstances the gratifying demand trends will not be fully refl ected in the profi ts. For 2012 IATA is currently forecasting a net profi t of USD 3.0bn (previous year: USD 7.9bn) for the airline industry.

Lufthansa Group After a diffi cult start to the year, the expectation of persistent cost pressure over the remainder of the year is being confi rmed from today's perspective, in particular with regards to fuel. The prevailing economic uncertainty makes developments in demand diffi cult to forecast. The mood has lightened overall, however, and this, together with capacity discipline across the industry allows the airlines to perform an active price and yield management. Their implementation in the market will determine earnings development in 2012 as much as the success of the cost measures. We again expect the Group's service companies to have a stabilising effect on earnings performance.

At the same time all the business segments are working very energetically at improving their sustainable earnings quality and are deeply committed to the SCORE programme. Altogether, around one third of the SCORE volume is to be achieved by reducing staff costs across the Group. This is to take place by means of productivity increases, collective bargaining parameters and staff reductions. This also includes the targeted reduction of around 3,500 full-time jobs worldwide in administrative functions.

We continue to expect that it will be possible to increase Group revenue year on year in the fi nancial year 2012. The operating result will be in the mid three-digit million euro range. Any restructuring costs in connection with staff reductions as part of the SCORE programme are not included in this earnings forecast and may have an adverse effect on the result for the current fi nancial year. They will be quantifi ed depending on the progress of the earnings improvement package.

Consolidated income statement

January – March 2012

in €m	Jan. – March 2012	Jan. – March 2011
Traffi c revenue	5,349	5,064
Other revenue	1,270	1,204
Total revenue	6,619	6,268
Changes in inventories and work performed by entity and capitalised	45	29
Other operating income	516	707
Cost of materials and services	– 4,170	– 3,810
Staff costs	– 1,734	– 1,653
Depreciation, amortisation and impairment	– 463	– 410
Other operating expenses	– 1,192	– 1,250
Profi t / loss from operating activities	– 379	– 119
Result of equity investments accounted for using the equity method	– 36	– 27
Result of other equity investments	13	13
Interest income	37	44
Interest expenses	– 120	– 123
Other fi nancial items	– 16	– 385
Financial result	– 122	– 478
Profi t / loss before income taxes	– 501	– 597
Income taxes	105	155
Profi t / loss from continuing operations	– 396	– 442
Profi t / loss from discontinued operations	2	– 61
Profi t / loss after income taxes	– 394	– 503
Profi t / loss attributable to minority interests	– 3	– 4
Net profi t / loss attributable to shareholders of Deutsche Lufthansa AG	– 397	– 507
Basic / diluted earnings per share in €	– 0.87	– 1.11
of which from continuing operations	– 0.87	– 0.98
of which from discontinued operations	0.00	– 0.13

Statement of comprehensive income

January – March 2012

in €m	Jan. – March 2012	Jan. – March 2011
Profi t / loss after income taxes	– 394	– 503
Other comprehensive income
Differences from currency translation	– 10	– 100
Subsequent measurement of available-for-sale fi nancial assets	70	– 95
Subsequent measurement of cash fl ow hedges	– 47	522
Other comprehensive income from investments accounted for using the equity method	2	2
Other expenses and income recognised directly in equity	– 1	– 6
Income taxes on items in other comprehensive income	14	– 87
Other comprehensive income after income taxes	28	236
Total comprehensive income	– 366	– 267
Comprehensive income attributable to minority interests	– 1	2
Comprehensive income attributable to shareholders of Deutsche Lufthansa AG	– 367	– 265

Consolidated balance sheet

as of 31 March 2012

Assets
in €m	31.3.2012	31.12.2011	31.3.2011
Intangible assets with an indefi nite useful life *	1,194	1,191	1,558
Other intangible assets	374	384	323
Aircraft and reserve engines	11,661	11,592	11,329
Repairable spare parts for aircraft	867	840	860
Property, plant and other equipment	2,102	2,118	2,076
Investments accounted for using the equity method	351	394	350
Other equity investments	938	898	1,033
Non-current securities	20	134	131
Loans and receivables	607	616	617
Derivative fi nancial instruments	264	343	279
Deferred charges and prepaid expenses	22	24	24
Effective income tax receivables	61	60	61
Deferred tax assets	32	33	83
Non-current assets	18,493	18,627	18,724
Inventories	636	620	655
Trade receivables and other receivables	4,294	3,437	4,240
Derivative fi nancial instruments	478	414	779
Deferred charges and prepaid expenses	178	171	150
Effective income tax receivables	113	128	144
Securities	3,253	3,111	3,956
Cash and cash equivalents	915	887	1,210
Assets held for sale	817	686	147
Current assets	10,684	9,454	11,281
Total assets	29,177	28,081	30,005

* Including goodwill.

Shareholders' equity and liabilities

in €m	31.3.2012	31.12.2011	31.3.2011
Issued capital	1,172	1,172	1,172
Capital reserve	1,366	1,366	1,366
Retained earnings	3,795	3,800	4,075
Other neutral reserves	1,654	1,624	1,871
Net profi t / loss	– 397	– 13	– 507
Equity attributable to shareholders of Deutsche Lufthansa AG	7,590	7,949	7,977
Minority interests	82	95	88
Shareholders' equity	7,672	8,044	8,065
Pension provisions	2,220	2,165	2,614
Other provisions	622	578	634
Borrowings	5,855	5,808	5,489
Other fi nancial liabilities	146	128	118
Advance payments received, deferred income and other non-fi nancial liabilities	1,165	1,156	1,088
Derivative fi nancial instruments	99	55	230
Deferred tax liabilities	201	364	315
Non-current provisions and liabilities	10,308	10,254	10,488
Other provisions	757	818	843
Borrowings	436	616	1,181
Trade payables and other fi nancial liabilities	4,769	4,227	4,674
Liabilities from unused fl ight documents	3,320	2,359	3,306
Advance payments received, deferred income and other non-fi nancial liabilities	986	939	1,151
Derivative fi nancial instruments	34	37	141
Effective income tax obligations	91	71	156
Liabilities related to assets held for sale	804	716	–
Current provisions and liabilities	11,197	9,783	11,452
Total shareholders' equity and liabilities	29,177	28,081	30,005

Consolidated statement of changes in shareholders' equity

as of 31 March 2012

in €m	Issued capital	Capital reserve	Fair value measure ment of fi nancial instru ments	Currency differ ences	Revalu - ation reserve (due to business combi nations)	Other neutral reserves	Total other neutral reserves	Retained earnings	Net profi t / loss	Equity attrib - ut able to share holders of Deutsche Lufthansa AG	Minority interests	Total share holders' equity
As of 31.12.2010	1,172	1,366	856	241	193	339	1,629	2,944	1,131	8,242	98	8,340
Capital increases / reductions	–	–	–	–	–	–	–	–	–	–	–	–
Reclassifi cations	–	–	–	–	–	–	–	1,131	– 1,131	–	–	–
Dividends to Lufthansa shareholders / minority interests	–	–	–	–	–	–	–	–	–	–	– 8	– 8
Consolidated net profi t / loss attributable to Lufthansa shareholders / minority interests	–	–	–	–	–	–	–	–	– 507	– 507	4	– 503
Other expenses and income recognised directly in equity	–	–	340	– 100	–	2	242	–	–	242	– 6	236
As of 31.3.2011	1,172	1,366	1,196	141	193	341	1,871	4,075	– 507	7,977	88	8,065
As of 31.12.2011	1,172	1,366	766	322	193	343	1,624	3,800	– 13	7,949	95	8,044
Capital increases / reductions	–	–	–	–	–	–	–	–	–	–	–	–
Reclassifi cations	–	–	–	–	–	–	–	– 13	13	–	–	–
Dividends to Lufthansa shareholders / minority interests	–	–	–	–	–	–	–	–	–	–	– 6	– 6
Transactions with minority interests	–	–	–	–	–	–	–	8	–	8	– 8	–
Consolidated net profi t / loss attributable to Lufthansa shareholders / minority interests	–	–	–	–	–	–	–	–	– 397	– 397	3	– 394
Other expenses and income recognised directly in equity	–	–	37	– 10	–	3	30	–	–	30	– 2	28
As of 31.3.2012	1,172	1,366	803	312	193	346	1,654	3,795	– 397	7,590	82	7,672

Consolidated statement of changes in shareholders' equity Consolidated cash fl ow statement

Consolidated cash fl ow statement

January – March 2012

in €m	Jan. – March 2012	Jan. – March 2011
Cash and cash equivalents 1.1.	887	1,097
Net profi t / loss before income taxes	– 501	– 597
Depreciation, amortisation and impairment losses on non-current assets (net of reversals)	465	427
Depreciation, amortisation and impairment losses on repairable spare parts for aircraft (net of reversals)	25	9
Net proceeds on disposal of non-current assets	– 4	– 13
Result of equity investments	23	14
Net interest	83	79
Income tax payments / reimbursements	– 13	– 136
Measurement of fi nancial derivatives through profi t or loss	15	367
Change in working capital 1)	795	610
Cash fl ow from continuing operations	888	760
Cash fl ow from discontinued operations	– 55	– 5
Cash fl ow from operating activities	833	755
Capital expenditure for property, plant and equipment and intangible assets	– 583	– 674
Capital expenditure for fi nancial investments	– 9	– 58
Increase / decrease in repairable spare parts for aircraft	– 55	– 2
Proceeds from disposal of non-consolidated equity investments	0	1
Proceeds from disposal of consolidated equity investments	0	0
Cash outfl ows for acquisitions of non-consolidated equity investments	0	– 12
Cash outfl ows for acquisitions of consolidated equity investments	0	0
Proceeds from disposal of intangible assets, property, plant and equipment and other fi nancial investments	223	192
Interest income	116	118
Dividends received	15	14
Net cash from / used in investing activities	– 293	– 421
of which from discontinued operations	38	– 9
Purchase of securities / fund investments 2)	– 383	– 502
Disposal of securities / fund investments	225	811
Net cash from / used in investing and cash management activities	– 451	– 112
of which from discontinued operations	38	– 5
Capital increase	–	–
Non-current borrowing	211	75
Repayment of non-current borrowing	– 310	– 399
Other fi nancial debt	4	7
Dividends paid	– 6	– 8
Interest paid	– 167	– 183
Net cash from / used in fi nancing activities	– 268	– 508
of which from discontinued operations	– 5	– 16
Net increase / decrease in cash and cash equivalents	114	135
Changes due to currency translation differences	2	– 22
Cash included in assets held for sale	– 88	–
Cash and cash equivalents 31.3.	915	1,210
Securities	3,253	3,956
Total liquidity	4,168	5,166
Net increase / decrease in total liquidity	170	– 214

1) Working capital consists of inventories, receivables, liabilities and provisions.

2) Previous year adjusted to current year's presentation.

Notes

1) Standards applied and changes in the group of consolidated companies

The consolidated fi nancial statements of Deutsche Lufthansa AG and its subsidiaries have been prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), taking account of interpretations by the IFRS Interpretations Committee (IFRS IC) as applicable in the European Union (EU).

This interim report as of 31 March 2012 has been prepared in condensed form in accordance with IAS 34. In preparing the interim fi nancial statements the standards and interpretations applicable as of 1 January 2012 have been applied. The standards and interpretations mandatory for the fi rst time as of 1 January 2012 did not have a signifi cant effect on the Group's net assets, fi nancial and earnings position. The changes to the group of consolidated companies (see table) also had no signifi cant infl uence on the Group's net assets, fi nancial and earnings position.

Changes in the group of consolidated companies in the period 1.4.2011 to 31.3.2012

Name, registered offi ce	Additions	Disposals	Reason
Passenger Airline Group segment
ALIP No. 4 Co., Ltd., Tokyo, Japan	26.10.11		Established
ALIP No. 6 CO., Ltd., Tokyo, Japan	26.10.11		Established
Gina Leasing Co. Ltd., Tokyo, Japan	16.12.11		Established
NBB Cologne Lease Co., Ltd., Tokyo, Japan	23.12.11		Established
TimBenNico Finance 2011 S.N.C., Paris, France	5.7.11		Established
AUA A320/A321 2001 Ltd., George Town, Cayman Islands		15.12.11	Liquidation
Lufthansa Leasing GmbH & Co. Fox-Alfa oHG, Grünwald, Germany		11.7.11	Company purpose suspended
Lufthansa Leasing GmbH & Co. Fox-Delta oHG, Grünwald, Germany		1.7.11	Merger
Lufthansa Leasing GmbH & Co. Fox-Echo oHG, Grünwald, Germany		1.7.11	Merger
Lufthansa Leasing GmbH & Co. Fox-Hotel oHG, Grünwald, Germany		11.7.11	Company purpose suspended
MRO segment
Lufthansa Technik Component Services LLC, Dallas, USA	1.1.12		Consolidated for the fi rst time
Lufthansa Technik Logistik Services GmbH, Hamburg, Germany	1.1.12		Consolidated for the fi rst time
Catering segment
Constance Food Group, Inc., New York, USA	1.11.11		Acquisition
LSG France SAS, Paris, France	28.9.11		Established
LSG Sky Chefs - First Catering Schweiz AG, Basserdorf, Switzerland	24.5.11		Established
LSG Sky Chefs Argentina S.A., Buenos Aires, Argentina	1.6.11		Consolidated for the fi rst time
LSG Sky Chefs Berlin GmbH, Neu-Isenburg, Germanybbb	1.7.11		Established
LSG Sky Chefs Bremen GmbH, Neu-Isenburg, Germanybbbbbb	1.7.11		Established
LSG Sky Chefs Düsseldorf GmbH, Neu-Isenburg, Germany	1.7.11		Established
LSG Sky Chefs Frankfurt International GmbH, Neu-Isenburg, Germany	1.7.11		Established
LSG Sky Chefs Frankfurt ZD GmbH, Neu-Isenburg, Germany	1.7.11		Established
LSG Sky Chefs Hamburg GmbH, Neu-Isenburg, Germany	1.7.11		Established
LSG Sky Chefs Hannover GmbH, Neu-Isenburg, Germany	1.7.11		Established
LSG Sky Chefs Köln GmbH, Neu-Isenburg, Germany	1.7.11		Established
LSG Sky Chefs Leipzig GmbH, Neu-Isenburg, Germanybbbb	1.7.11		Established
LSG Sky Chefs München GmbH, Neu-Isenburg, Germanybbbbb	1.7.11		Established
LSG Sky Chefs Nürnberg GmbH, Neu-Isenburg, Germany	1.7.11		Established
LSG Sky Chefs Stuttgart GmbH, Neu-Isenburg, Germanybb	1.7.11		Established
Oakfi eld Farms Solutions Europe Ltd., Feltham, United Kingdom	1.4.11		Consolidated for the fi rst time
LSG Sky Chefs Germany GmbH, Neu-Isenburg, Germany		1.7.11	Split-off
Other
Blitz F12-fünf-acht-sieben GmbH, Frankfurt am Main, Germany	21.3.12		Acquisition
Blitz F12-fünf-acht-acht GmbH & Co.KG, Germany	21.3.12		Acquisition

2) Notes to the income statement, balance sheet, cash fl ow statement and segment reporting

Assets held for sale

in €m	Group 31.3.2012	Financial statements 31.12.2011	Group 31.3.2011
Assets
Aircraft and reserve engines	206	172	145
Financial assets	43	47	2
Other assets	568	467	–
Equity / liabilities associated with assets held for sale
Shareholders' equity	–	–	–
Liabilities	804	716	–

The British Midland Group represented a separate cash-generating unit within the Passenger Airline Group segment of the Lufthansa Group. It is therefore a separate line of business within the meaning of IFRS 5, to which clearly defi ned cash fl ows are attributed for operating and accounting purposes. As a result of the contract for the sale of British Midland Ltd. (bmi) to International Consolidated Airlines Group, S.A. (IAG) signed by Deutsche Lufthansa AG and IAG on 22 December 2011, bmi is to be presented in the Group's income statement as a discon tinued operation in line with IFRS 5. This form of presentation in the present interim report applies to the after-tax result for bmi and to changes in the valuation or proceeds of disposal for the discontinued operation compared with the 2011 fi nancial statements and which in this case are the proceeds of the afore mentioned contractual agreement. The fi gures for the previous year have been adjusted in accordance with the presentation in the reporting period.

The following table shows the result of the discontinued operations at British Midland Group:

in €m	Jan. – March 2012	Jan. – March 2011
Income	186	190
Expenses	– 255	– 255
Current result from discontinued operations before taxes	– 70	– 65
Taxes on income and earnings for discontinued operations	13	4
Current result from discontinued operations after taxes	– 57	– 61
Valuation / disposal proceeds from discontinued operations	68	–
Taxes on valuation / disposal proceeds	– 9	–
Valuation / disposal proceeds from discontinued operations after taxes	59	0
Result from discontinued operations	2	– 61

The assets (EUR 699m) and liabilities (EUR 779m) attributable to bmi have, in accordance with IFRS 5, been presented in the balance sheet as of 31 March 2012 as assets held for sale and liabilities related to assets held for sale.

Detailed comments on the income statement, the balance sheet, the cash fl ow statement and the segment reporting can also be found in the management report on p. 2 – 20 .

3) Seasonality

The Group's business is mainly exposed to seasonal effects via the Passenger Airline Group segment. As such, revenue in the fi rst and fourth quarters is generally lower as people travel less, while higher revenue and operating profi ts are normally earned in the second and third quarters.

4) Contingencies and events after the balance sheet date

Contingent liabilities
in €m	31.3.2012	31.12.2011
From guarantees, bills of exchange and cheque guarantees	854	873
From warranty contracts	950	977
From providing collateral for third-party liabilities	36	35

Several provisions could not be made because an outfl ow of resources was not suffi ciently probable. The potential fi nancial effect of these provisions on the result would have been EUR 154m for subsequent years. As of the year-end 2011 reporting date the fi gure came to EUR 161m. Contracts signed at the end of 2011 for the sale of one Canadair Regional Jet 200 resulted in profi ts up to 31 March 2012 of EUR 0.4m and cash infl ows of EUR 2m. Signed contracts for the sale of one Boeing 747-400 and two Canadair Regional Jet 200s are expected to give rise to cash infl ows of a further EUR 11m by the end of 2012. At the end of March 2012, there were order commitments of EUR 7.1bn for capital expenditure on property, plant and equipment and intangible assets. As of 31 December 2011, the order commitments came to EUR 7.7bn. We refer to the comments on p. 20 of the management report for events after the balance sheet date.

5) Earnings per share

		31.3.2012	31.3.2011
Basic earnings per share	€	– 0.87	– 1.11
Consolidated net profi t / loss	€m	– 397	– 507
Weighted average number of shares		457,937,292	457,937,573
Diluted earnings per share	€	– 0.87	– 1.11
Consolidated net profi t / loss	€m	– 397	– 507
+ interest expenses on the convertible bonds	€m	–	–
– current and deferred taxes	€m	–	–
Adjusted net profi t / loss for the period	€m	– 397	– 507
Weighted average number of shares		457,937,292	457,937,573

6) Issued capital

A resolution passed at the Annual General Meeting on 24 April 2009 authorised the Executive Board until 23 April 2014, subject to approval by the Supervisory Board, to increase the Company's issued capital by up to EUR 25m by issuing new registered shares to employees for payment in cash. The new shares are to be offered for sale solely to employees of Deutsche Lufthansa AG and its affi liated companies. Existing shareholders' subscription rights are excluded. The Executive Board and Supervisory Board will propose the payment of a dividend of EUR 0.25 per share at the Annual General Meeting to be held on 8 May 2012. The conver tible bonds still outstanding as of 31 December 2011, which entitled holders to convert them into 336,404 shares in Deutsche Lufthansa AG at a share price of EUR 19.86, were redeemed in full on 4 January 2012.

7) Segment reporting

Segment information by operating segment January – March 2012

in €m	Passenger Airline Group	Logistics	MRO	IT Services	Catering	Total reportable operating segments		Other Reconciliation	Group
External revenue	4,872	655	596	59	437	6,619	–	–	6,619
of which traffi c revenue	4,607	633	–	–	–	5,240	–	109	5,349
Inter-segment revenue	168	7	430	87	131	823	–	– 823	–
Total revenue	5,040	662	1,026	146	568	7,442	–	– 823	6,619
Other operating income	233	14	43	4	23	317	348	– 180	485
Total operating income	5,273	676	1,069	150	591	7,759	348	– 1,003	7,104
Operating expenses	5,718	657	1,007	147	596	8,125	353	– 993	7,485
of which cost of materials and services	3,627	477	517	17	258	4,896	25	– 751	4,170
of which staff costs	990	93	306	59	215	1,663	74	– 2	1,735
of which depreciation and amortisation	344	16	23	9	16	408	10	–	418
of which other operating expenses	757	71	161	62	107	1,158	244	– 240	1,162
Operating result 1)	– 445	19	62	3	– 5	– 366	– 5	– 10	– 381
Other segment income	13	1	9	0 *	0 *	23	4	49	76
Other segment expenses	55	0 *	0 *	0 *	0 *	55	4	15	74
of which impairment losses	55	–	–	–	–	55	–	–	55
Result of investments accounted for using the equity method	– 46	5	4	–	1	– 36	0 *	–	– 36
Segment result 2)	– 533	25	75	3	– 4	– 434	– 5	24	– 415
Other fi nancial result									– 86
Profi t / loss before income taxes									– 501
Segment assets 3)	16,130	822	3,046	273	1,277	21,548	1,961	5,668	29,177
of which from investments accounted for using the
equity method	32	58	175	–	80	345	6	–	351
Segment liabilities 4)	10,861	448	1,612	132	493	13,546	1,891	6,068	21,505
Segment capital expenditure 5) of which on investments accounted for using the equity method	492 –	34 –	33 –	6 –	10 –	575 –	3 –	14 –	592 –
Employees on balance sheet date	55,845	4,602	20,423	2,800	29,481	113,151	4,047	3,700	120,898

* Rounded below EUR 1m. 1) See page 6 of the interim management report for reconciliation between operating result and profi t from operating activities.

2) Profi t from operating activities including result of investments measured at equity.

3) Intangible assets, property, plant and equipment, investments accounted for using the equity method, inventories, trade receivables

and other assets constitute assets. Under the heading "Group" all assets are shown.

4) All liabilities with the exception of fi nancial debt, liabilities to Group companies, derivative fi nancial instruments,

other deferred income and tax obligations. Under the heading "Group" all liabilities are shown.

5) Capital expenditure for intangible assets, property, plant and equipment, and investments accounted for using the equity method.

Segment information by operating segment January – March 2011

in €m	Passenger Airline Group	Logistics	MRO	IT Services	Catering	Total reportable operating segments		Other Reconciliation	Group
External revenue	4,499	736	582	57	394	6,268	–	–	6,268
of which traffi c revenue	4,255	704	–	–	–	4,959	–	105	5,064
Inter-segment revenue	179	6	445	90	126	846	–	– 846	–
Total revenue	4,678	742	1,027	147	520	7,114	–	– 846	6,268
Other operating income	337	17	62	6	8	430	361	– 187	604
Total operating income	5,015	759	1,089	153	528	7,544	361	– 1,033	6,872
Operating expenses	5,336	695	1,020	150	526	7,727	331	– 1,017	7,041
of which cost of materials and services	3,264	514	529	20	235	4,562	20	– 772	3,810
of which staff costs	944	88	274	59	196	1,561	68	– 2	1,627
of which depreciation and amortisation	322	22	22	8	14	388	10	4	402
of which other operating expenses	806	71	195	63	81	1,216	233	– 247	1,202
Operating result 1)	– 321	64	69	3	2	– 183	30	– 16	– 169
Other segment income	30	1	4	0 *	0 *	35	18	79	132
Other segment expenses	38	1	0 *	0 *	0 *	39	10	33	82
of which impairment losses	9	0 *	–	–	0 *	9	–	1	10
Result of investments accounted for using the equity method	– 32	– 2	5	–	2	– 27	0 *	–	– 27
Segment result 2)	– 361	62	78	3	4	– 214	38	30	– 146
Other fi nancial result						–			– 451
Profi t / loss before income taxes						–			– 597
Segment assets 3)	15,571	822	3,041	221	1,181	20,836	1,666	7,503	30,005
of which from investments accounted for using the
equity method	79	48	151	–	66	344	6	–	350
Segment liabilities 4)	10,755	479	1,435	212	449	13,330	1,551	7,059	21,940
Segment capital expenditure 5)	628	14	15	7	14	678	7	59	744
of which on investments accounted for using the equity method	–	6	–	–	–	6	–	–	6
Employees on balance sheet date	54,235	4,503	19,823	2,876	28,425	109,862	3,818	3,645	117,325

* Rounded below EUR 1m. 1) See page 6 of the interim management report for reconciliation between operating result and profi t from operating activities.

2) Profi t from operating activities including result of investments shown at equity.

3) Intangible assets, property, plant and equipment, investments accounted for using the equity method, inventories, trade receivables

and other assets constitute assets. Under the heading "Group" all assets are shown.

4) All liabilities with the exception of fi nancial debt, liabilities to Group companies, derivative fi nancial instruments,

other deferred income and tax obligations. Under the heading "Group" all liabilities are shown.

5) Capital expenditure for intangible assets, property, plant and equipment, and investments accounted for using the equity method.

Figures by region January – March 2012

Traffi c revenue *	3,625	1,560	665	511	133	695	141	90	5,349
Other operating revenue	578	241	302	249	40	242	59	49	1,270
Total revenue	4,203	1,801	967	760	173	937	200	139	6,619

* Traffi c revenue is allocated according to the original location of sale.

Figures by region January – March 2011

in €m	Europe	thereof Germany	North America	thereof U.S.A.	Central and South America	Asia / Pacifi c	Middle East	Africa	Total
Traffi c revenue *	3,397	1,445	651	580	107	676	132	101	5,064
Other operating revenue	547	223	258	219	35	231	74	59	1,204
Total revenue	3,944	1,668	909	799	142	907	206	160	6,268

* Traffi c revenue is allocated according to the original location of sale.

8) Related party disclosures

As stated in "Note 49" to the consolidated fi nancial statements for 2011 from p. 203 , the operating segments in the Lufthansa Group render numerous services to related parties within the scope of their ordinary business activities and also receive services from them. These extensive supply and service relationships take place unchanged on the basis of market prices. There have been no signifi cant changes in comparison with the balance sheet date. The contractual relationships with the group of related parties described in "Note 50" from p. 205 of the 2011 consolidated fi nancial statements also still exist unchanged, but are not of material signifi cance for the Group.

Declaration by the legal representatives

We declare that to the best of our knowledge and according to the applicable accounting standards for interim reporting the consolidated interim fi nancial statements give a true and fair view of the net assets, fi nancial and earnings position of the Group and that the Group interim management report gives a true and fair view of the course of business, including the business result, and the situation of the Group, and suitably presents the opportunities and risks to its future development in the remainder of the fi nan cial year.

Executive Board, 2 May 2012

Christoph Franz Chairman of the Executive Board

Stephan Gemkow Member of the Executive Board Chief Financial Offi cer

Stefan Lauer Member of the Executive Board Chief Offi cer Group Airlines and Corporate Human Resources

Carsten Spohr Member of the Executive Board Chief Offi cer Lufthansa German Airlines

Credits

Published by

Deutsche Lufthansa AG Von-Gablenz-Str. 2– 6 50679 Cologne Germany

Entered in the Commercial Register of Cologne District Court under HRB 2168

Editorial staff

Frank Hülsmann (Editor) Claudio Rizzo Christian Schmidt

Deutsche Lufthansa AG, Investor Relations

Concept, design and realisation HGB Hamburger Geschäftsberichte GmbH & Co. KG, Hamburg, Germany

Translation by

EnglishBusiness GbR, Hamburg, Germany

Druck

Broermann Druck + Medien GmbH, Troisdorf, Germany Printed on Circlesilk Premium White (100 per cent recycled paper bearing the EU Ecolabel, registration number FR/011/003)

Printed in Germany ISSN 1616-0231

Contact

Frank Hülsmann

Head of Investor Relations + 49 69 696 – 28001

Gregor Schleussner

• 49 69 696 – 28012

Deutsche Lufthansa AG Investor Relations LAC, Airportring 60546 Frankfurt am Main Germany Phone: + 49 69 696 – 28008 Fax: + 49 69 696 – 90990 E-Mail: investor.relations@dlh.de

The Lufthansa 1st Interim Report is a translation of the original German Lufthansa Zwischenbericht 1/2012. Please note that only the German version is legally binding.

You can order the Annual and Interim Reports in German or English via our website – www.lufthansa.com/investor-relations – or from the address above.

The latest fi nancial information on the internet: www.lufthansa.com/investor-relations

This Interim Report was produced using climateneutral printing. The greenhouse gases resulting from this process were offset by relevant climate protection activities.

Financial calendar 2012 / 2013

2012

2013

8 May	Annual General Meeting in Cologne		14 March Press Conference and Analysts' Conference on 2012 results
2 Aug.	Release of Interim Report January – June 2012	2 May	Release of Interim Report January – March 2013
31 Oct.	Release of Interim Report January – September 2012	7 May	Annual General Meeting in Cologne
		1 Aug.	Release of Interim Report January – June 2013

31 Oct. Release of Interim Report January – September 2013

Disclaimer in respect of forward-looking statements

Information published in the 1st Interim Report 2012, with regard to the future development of the Lufthansa Group and its subsidiaries consists purely of forecasts and assessments and not of defi nitive historical facts. Its purpose is exclusively informational identifi ed by the use of such cautionary terms as "believe", "expect", "forecast", "intend", "project", "plan", "estimate" or "intend". These forward-looking statements are based on all discernible information, facts and expectations available at the time. They can, therefore, only claim validity up to the date of their publication.

Since forward-looking statements are by their nature subject to uncertainties and imponderable risk factors – such as changes in underlying economic conditions – and rest on assumptions that may not or divergently occur, it is possible that the Group's actual results and development may differ materially from those implied by the forecasts. Lufthansa makes a point of checking and updating the information it publishes. It cannot, however, assume any obligation to adapt forward-looking statements to accommodate events or developments that may occur at some later date. Accordingly, it neither expressly nor conclusively accepts liability, nor gives any guarantee, for the actuality, accuracy and completeness of this data and information.

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