Deutsche Lufthansa AG

Quarterly Report • May 12, 2023

1st Interim Report January – March 2023

WE GROW. WE SHAPE. WE LEAD.

The Lufthansa Group

KEY FIGURES

		Jan - M ar 202 3	Jan - M ar 202 2	Cha nge in %
ult1 ) Rev nd enu e a res
Tot al re ven ue	€m	7,0 17	5,0 02	40
of w hich ffic tra rev enu e	€m	5,70 8	3,8 36	49
Ope rati ng e xpe nse s	€m	7,94 6	5,9 82	33
Adj ed EBI TDA ust	€m	272	-32
Adj ed EBI T ust	€m	-27 3	-57 7	53
EBI T	€m	-30 4	-60 8	50
Net fit/ loss pro	€m	-46 7	-58 4	20
Key ba lanc e sh d c ash flo nt f igu eet tate an w s me res
Tot al a ts sse	€m	44, 904	44, 386	1
Equ ity	€m	7,5 50	5,4 26	39
Equ ity rati o	%	16.8	12.2	4.6 pts
Net ind ebt edn ess	€m	6,71 7	8,2 83	-19
Net n ob liga nsio tion pe s	€m	1,99 2	5,2 60	-62
Cas h fl from ing iviti erat act ow op es	€m	1,58 1	1,49 6	6
s2) Gro al e ndit apit ss c xpe ure	€m	1,00 0	640	56
Net pita l ex ditu ca pen res	€m	1,04 0	637	63

KEY FIGURES (CONTINUED)

		Jan - M ar 202 3	Jan - M ar 202 2	Cha nge in %
s3) Tra ffic fig ure
Flig hts	ber num	185 ,93 0	135 ,577	37
Pas sen ger s	tho nds usa	21,6 43	13,1 73	64
Ava ilab le s -kilo eat met res	mill ions	59, 347	45, 656	30
Rev at-k ilom etre enu e se s	mill ions	47,3 16	29, 860	58
Pas loa d fa cto sen ger r	%	79.7	65. 4	14.3 pts
Ava ilab le c -kilo o to met arg nne res	mill ions	3,4 57	3,14 0	10
Rev kilo ton met enu e ca rgo ne- res	mill ions	2,0 31	2,13 7	-5
Car load fac tor go	%	58. 7	68. 1	-9.4 pts

1) Previous year's figures have been adjusted due to the agreed sale of the LSG Group. ↗ Notes, p. 29.

2) Without acquisition of equity investments.

3) Previous year's figures have been adjusted.

Date of publication: 3 May 2023.

Contents

period

21 Forecast

3 Interim management report

3 Course of business 3 Significant events 4 Events after the reporting

4 Financial performance 11 Business segments 20 Opportunities and risk report

22 Interim financial statements 39 Further information

• 39 Declaration by the
• legal representatives
• 40 Credits/Contact Financial calendar 2023

Equ ity rati o	%	16.8	12.2	4.6 pts
Net ind ebt edn ess	€m	6,71 7	8,2 83	-19
Net n ob liga nsio tion pe s	€m	1,99 2	5,2 60	-62
Cas h fl from ing iviti erat act ow op es	€m	1,58 1	1,49 6	6
s2) Gro al e ndit apit ss c xpe ure	€m	1,00 0	640	56
Net l ex ditu pita ca pen res	€m	1,04 0	637	63
Adj d fr ash flo uste ee c w	€m	482	780	-38
es1) Key fita bilit y fi pro gur
Adj ed EBI TDA rgin ust ma	%	3.9	-0.6	4.5 pts
Adj ed EBI T m in ust arg	%	-3.9	-11.5	7.6 pts
EBI T m in arg	%	-4.3	-12. 2	7.9 pts
Luf tha sh nsa are
Sha rice of 3 1 M h re p as arc	€	10.2 6	7.36	39
Ear ning r sh s pe are	€	-0.3 9	-0.4 9	20
Em plo yee s

Employees as of 31 March number 112,392 104,034 8

• 22 Consolidated income statement

• 23 Consolidated statement of comprehensive income

  • 24 Consolidated statement of
  • 26 Consolidated statement of

• 28 Notes

• financial position

• changes in shareholders'

equity

• 27 Consolidated cash flow
• statement

Course of business

OVERVIEW OF THE COURSE OF BUSINESS

The Lufthansa Group's course of business is shaped by its continued recovery following the coronavirus pandemic

• — In the first quarter of 2023, demand for flights continued to recover in the wake of the coronavirus pandemic; earnings improved significantly relative to the same period in the previous year, when demand had still been strongly affected by the spread of the Omicron variant.
• — The Passenger Airlines segment thus further expanded its capacity, which, in the first quarter of 2023, was 30% higher than in the previous year, but still 25% below its 2019 pre-crisis level.
• The Lufthansa Group's revenue therefore increased by 40% year-on-year to EUR 7,017m (previous year: EUR 5,002m).
• Adjusted EBIT in the first quarter of 2023 came to EUR -273m (previous year: EUR -577m); the Adjusted EBIT margin was -3.9% (previous year: -11.5%); the Lufthansa Group thus reduced its operating loss by more than half year-on-year; this operating loss is mainly attributable to the pronounced seasonality typical of the airline business and the still limited level of capacity by comparison with the planning for the remainder of the year.
• — Adjusted EBIT was positive in both the Logistics and MRO business segments; in the Logistics business segment, earnings declined due to the industry-wide normalisation of freight rates, while earnings in the MRO business segment picked up on account of the further rise in demand for maintenance and repair services.

Adjusted free cash flow decreased by 38% in the first quarter of 2023 to EUR 482m (previous year: EUR 780m); the increase in cash flow from operating activities was more than made up for by the rise in net capital expenditure; the latter was associated with the acceleration of the fleet modernisation as well as postponements of aircraft deliveries which had been planned for the previous year. ↗ Financial performance, p. 4.

SIGNIFICANT EVENTS

Lufthansa submits offer to acquire equity interest in ITA Airways

• On 18 January 2023, Deutsche Lufthansa AG submitted an offer in the form of a letter of intent to the Italian Economics and Finance Ministry to acquire an equity investment in Italy's national airline, ITA Airways; the Italian Economics and Finance Ministry and ITA Airways signed this letter of intent on 27 January 2023.
• It is envisaged that Deutsche Lufthansa AG will initially acquire a minority interest; furthermore, options are to be agreed for the purchase of the remaining interests at a later date; if an agreement is reached, the transaction would require the approval of the competent authorities in particular.

Lufthansa Group receives top marks in prestigious CDP climate ranking

In February 2023, the 2022 global climate ranking compiled by the non-profit organisation CDP (previously known as the Carbon Disclosure Project) awarded the Lufthansa Group a top rating for its CO2 reduction strategy and its implementation; the Lufthansa Group has thus achieved a further improvement year-on-year.

On a scale of "A" (top mark) to "D-", with a rating of "A-" the Company was allocated to the highest ranking class (previous year: "B"); the Lufthansa Group is thus among the top 5 airlines worldwide to have received this leading rating.

Contracts of Carsten Spohr and Remco Steenbergen extended ahead of schedule

• On 2 March 2023, the Supervisory Board of Deutsche Lufthansa AG appointed Carsten Spohr as Chairman of the Executive Board for another five years and Remco Steenbergen as Chief Financial Officer for another five years.
• Carsten Spohr has been a member of the Executive Board of Deutsche Lufthansa AG since 2011 and its Chairman since 2014; his contract was extended until the end of December 2028.
• Remco Steenbergen has been a member of the Executive Board of Deutsche Lufthansa AG since 2021 as Chief Financial Officer; his contract has likewise been extended to the end of December 2028.

Nominations for elections to the Supervisory Board of Deutsche Lufthansa AG

On 2 March 2023, the Supervisory Board of Deutsche Lufthansa AG resolved to propose to the Annual General Meeting held on 9 May 2023 that the following persons be elected to the Supervisory Board: Karl-Ludwig Kley, current Supervisory Board Chairman, Carsten Knobel, Chairman of the Executive Board and CEO of Henkel AG & Co. KGaA, and Karl Gernandt, Executive Chairman of Kühne Holding AG; it is proposed that they be elected for a three-year term of office up to the 2026 Annual General Meeting.

↗ Business segments, p. 11.

Lufthansa Group purchases 22 latest-generation long-haul aircraft

• The Executive Board of Deutsche Lufthansa AG has decided to order ten Airbus A350-1000, five A350-900 and seven Boeing 787-9 Dreamliner long-haul aircraft.
• The Supervisory Board of Deutsche Lufthansa AG agreed to the acquisition of these aircraft on 2 March 2023.
• They are due to be delivered to the Lufthansa Group from the middle of the decade onwards; according to their list prices, the overall order volume is around USD 7.5bn and is in line with the Group's medium-term financial planning.

Financial performance

EARNINGS POSITION

Impact of LSG Group sale on the earnings position

— Due to the sale of the LSG Group to AURELIUS, all the income and expenses associated with the discontinued Catering business have been separated from the respective items in the income statement and presented as a combined item under earnings after taxes in the line item "Profit/loss from discontinued operations" immediately above the "Net profit/loss" line item; this item also includes valuation adjustments made in connection with the measurement in accordance with IFRS 5; the figures for the previous year have been adjusted accordingly.

Traffic revenue up significantly year-on-year

Capacity (available seat-kilometres) in the Passenger Airlines segment in the Lufthansa Group increased by 30% year-on-year in the first quarter of 2023; compared with the pre-crisis level, i.e. the first quarter of the 2019 financial year, capacity came to 75%; sales (revenue seatkilometres) were up by 58% year-on-year with the passenger load factor rising by 14.3 percentage points to

EVENTS AFTER THE REPORTING PERIOD

LSG Group to be sold to the AURELIUS Group

• Deutsche Lufthansa AG has signed an agreement with the private equity firm, AURELIUS, on the sale of its remaining interest in the LSG Group.
• This carve-out transaction covers the full range of traditional catering activities as well as onboard retail and food commerce business; it also includes all the LSG Group brands, including the 131 LSG Sky Chefs catering facilities in the Americas (USA and Latin America), EMMA (Emerging Markets) and Asia-Pacific regions, the

onboard retail specialist Retail InMotion (RiM), which is headquartered in Europe, as well as SCIS Air Security Services in the United States; the LSG Group has around 19,000 employees and is involved in 36 joint ventures worldwide.

• The transaction is expected to be completed in the third quarter of 2023, subject to external approvals and internal carve-out activities.
• The sale of its Catering division forms part of the Lufthansa Group's strategy of focusing more on its core airline business; the LSG Group's European activities were already sold to gategroup in 2019.

79.7%; traffic revenue in the passenger business increased by 91% to EUR 4,806m (previous year: EUR 2,513m), partly due to significantly higher yields.

• In the first quarter of 2023, the Lufthansa Group's cargo business declined by comparison with the previous year, as expected; capacity (available cargo tonne-kilometres) was up by 10% on the previous year as a result of increased belly capacities, thus reaching 85% of the precrisis level; the industry-wide increase in belly capacities in passenger aircraft as a result of the recovery, together with the decline in the level of demand on account of the general economic slowdown, resulted in an industry-wide normalisation of global freight rates; sales (revenue cargo tonne-kilometres) thus fell by 5% on the previous year; the cargo load factor of 58.7% was 9.4 percentage points lower than in the previous year and traffic revenue for the cargo business therefore declined by 32% to EUR 902m (previous year: EUR 1,323m).
• Overall, compared with the previous year, traffic revenue at Lufthansa Group airlines rose by 49% to EUR 5,708m (previous year: EUR 3,836m) in the first quarter of 2023.

Revenue up by 40% year-on-year

• Other revenue rose by 12% to EUR 1,309m (previous year: EUR 1,166m), mainly due to the increased level of business activities and the related higher volume of income in the MRO business segment and for AirPlus.
• Revenue (comprising traffic revenue and other revenue) increased by 40% to EUR 7,017m (previous year: EUR 5,002m); other operating income rose by 52% to EUR 674m (previous year: EUR 442m) due in particular to foreign exchange gains; operating income increased by 41% to EUR 7,691m (previous year: EUR 5,444 m).

ther factor; after adjusting for the number of employees in the Catering business segment, the increase amounted to 4%. —

• Depreciation and amortisation of EUR 545m was at the same level as last year (previous year: EUR 545m) and related mainly to aircraft and reserve engines. —

Other operating expenses rose by 38% to EUR 1,110m (previous year: EUR 807m) in particular due to higher foreign exchange losses, increased sales and marketing costs and higher travel expenses due to the expansion of flight operations. REVENUE, INCOME AND EXPENSES in €m Jan - Mar 2023 Jan - Mar 20221) Change in % Traffic revenue 5,708 3,836 49 Other revenue 1,309 1,166 12 Total revenue 7,017 5,002 40 Other operating income 674 442 52 Total operating income 7,691 5,444 41 Cost of materials and services 4,372 3,016 45 of which fuel 1,686 987 71 of which other raw materials, con- sumables and supplies and pur- chased goods 661 524 26 of which fees and charges 909 678 34 of which external services MRO 455 380 20 Staff costs 1,919 1,614 19 Depreciation 545 545 0 Other operating expenses 1,110 807 38 Total operating expenses 7,946 5,982 33 Operating result from equity investments -18 -39 54 Adjusted EBIT -273 -577 53 Total reconciliation EBIT -31 -31 0 EBIT -304 -608 50 Net interest -90 -81 -11 Other financial items -136 33 Profit/loss before income taxes -530 -656 19 Income taxes 109 104 5 Profit/loss from continuing opera tions -421 -552 24 Profit/loss from discontinued opera tions -44 -30 -47 Profit/loss after income taxes -465 -582 20 Profit/loss attributable to minority interests -2 -2 0 Net profit/loss attributable to shareholders of Deutsche Lufthansa AG -467 -584 20 1) Previous year's figures have been adjusted due to the agreed sale of the LSG Group. ↗ Notes, p. 29.

Operating expenses up by 33% year-on-year

• In the first quarter of 2023, the Lufthansa Group's operating expenses rose by 33% year-on-year to EUR 7,946m (previous year: EUR 5,982m); this mainly reflected its business growth as well as inflation-related cost increases.
• — The Lufthansa Group's cost of materials and services of EUR 4,372m was 45% higher year-on-year (previous year: EUR 3,016m); fuel expenses rose by 71% to EUR 1,686m (previous year: EUR 987m); this change is attributable to higher prices for crude oil as well as jet crack (the price difference between crude oil and kerosene); the increased level of consumption and negative currency effects also had a noticeable impact; the result of price hedging was EUR -26m (previous year: EUR 179m); in addition, fees and charges rose by 34% to EUR 909m (previous year: EUR 678m), primarily due to the Lufthansa Group's business growth.
• — Operating staff costs rose by 19% to EUR 1,919m (previous year: EUR 1,614m); this increase was mainly due to salary increases under collective bargaining agreements and the end of the short-time work scheme; the 8% increase in the average number of employees was a fur-

Operating loss in the first quarter of 2023 more than halved by comparison with the previous year

• The operating result from equity investments amounted to EUR -18m in the first quarter of 2023 (previous year: EUR -39m); this trend is mainly based on the lower volume of losses incurred by joint venture companies in the passenger business, by comparison with the previous year, as well as the improved income from subsidiaries, joint ventures and associates in the Additional Businesses and Group Functions business segment.
• Adjusted EBIT thus amounted to EUR -273m (previous year: EUR -577m), and the Adjusted EBIT margin, i.e. the ratio of Adjusted EBIT to revenue, was -3.9% (previous year: -11.5%).

• — In the first quarter of 2023, EBIT amounted to EUR -304m (previous year: EUR -608m); unlike Adjusted EBIT, this mainly comprises impairments in the amount of EUR 13m recognised on aircraft held for sale as well as book losses of EUR 10m for aircraft and reserve engines; in the previous year, the adjustments related to expenses directly associated with the war in Ukraine as well as net income in connection with the reversal of provisions for restructuring measures.

• Net interest came to EUR -90m (previous year: EUR -81m).

• Other financial items amounted to EUR -136m (previous year: EUR 33m) and mainly related to negative effects from the recognition in profit or loss of the convertible bond measurement, from cash flow hedges and from strategic interest rate swaps.
• Income taxes amounted to EUR 109m (previous year: EUR 104m); no deferred taxes were recognised for the current year's losses at companies with a history of losses, resulting in an effective tax ratio of 21%.
• The result from continuing operations therefore came to EUR -421m (previous year: EUR -552m).

• The profit/loss from discontinued operations relates to the sale of the LSG Group and amounts to EUR -44m (previous year: EUR -30m); this includes an impairment loss of EUR 40m due to the difference between the expected sales price and the net asset value of this business area as of the reporting date.

• The net result attributable to shareholders of Deutsche Lufthansa AG in the first quarter of 2023 came to EUR -467m (previous year: EUR -584m).

• Earnings per share amounted to EUR -0.39 (previous year: EUR -0.49).

RECONCILIATION OF RESULTS

	Jan - M	ar 2 023	Jan - M	1) ar 2 022
in € m	Inco me sta tem ent	Rec iliat ion onc Adj ed EBI T ust	Inco me stat ent em	Rec iliat ion onc Adj ed EBI T ust
Tot al r eve nue	7,0 17		5,0 02
Cha d w ork form ed by e d ca lise d s in inv ent orie ntit pita nge s an per y an	124		116
Oth atin g in er o per com e	552		409
of w hich bo ok g ains		-1		-14
of w hich ital and held for sal ite- ets ets wr ups on cap ass ass e		-1		–
of w hich bac ks o f pr for ifica nt l and bu bina ite- ovis truc turi ign itig atio sts sine tion st wr ons res ng e xpe nse s, s n co ss c om s co		-1		-70
of w hich oth ord xtra inar y in er e com e		-1		–
Tot al o atin g in per com e	7,6 93	-4	5,5 27	-84
Cos f m rials d se ts o ate rvic an es	-4,3 71		-3,0 57
of w hich rdin f m rial ext ts o ate rao ary cos		–		41
Sta ff c ost s	-1,9 22		-1,6 32
of w hich ts/s ettl st s ice ent pa erv cos em s		–		–
of w hich turi truc res ng e xpe nse s		3		18
Dep iatio rec n	-54 5		-55 9
of w hich nt l im pair me oss es		–		14
Oth atin er o per g ex pen ses	-1,14 1		-84 8
of w hich nt l s he ld f ale im pair set me oss es o n as or s		13		-1
of w fro hich es i rred m b ook los exp ens ncu ses		10		6
of w hich f sig nific liti ion ant gat exp ens es o		–		–
of w f bu hich sine bina tion exp ens es o ss c om s		8		–
of w hich oth ord inar xtra er e y ex pen ses		1		37
Tot al o atin per g e xpe nse s	-7,9 79	35	-6,0 96	115
fit/ fro Pro loss atin ctiv itie m o per g a s	-28 6		9 -56
Res ult f uity inv est nts rom eq me	-18		-39
of w hich im pair nt l n in ted for usi he e quit eth od tme nts ng t me oss es o ves acc oun y m		–		–
EBI T	-30 4		-60 8
Tot al a of ncil n A djus ted EB IT iatio unt mo reco		31		31
Adj ed EBI T ust		-27 3		-57 7
Dep iatio rec n		545		545
Adj ed EBI TDA ust		272		-32

1) Previous year's figures adjusted due to the agreed sale of the LSG Group. ↗ Notes, p. 29.

FINANCIAL POSITION

Impact of LSG Group sale on the financial position

— The consolidated cash flow statement includes both continuing and discontinued operations; the impact of the Catering business is insignificant here; free cash flow from the discontinued operation amounted to EUR -41m (previous year: EUR -6m).

Investment volume up on previous year

• — The Lufthansa Group's gross capital expenditure increased by 56% in the first quarter of 2023 year-onyear to EUR 1,000m (previous year: EUR 640m) and primarily consisted of advance payments on future aircraft purchases, capitalised major maintenance events and final payments for six delivered aircraft, including those whose delivery had already been planned for in the fourth quarter of the previous year.
• Net capital expenditure in particular, taking into consideration payments for spare parts for aircraft and income from interest and dividends – increased by 63% to EUR 1,040m (previous year: EUR 637m).

Positive cash flow from operating activities of EUR 1,581m achieved

In the first quarter of 2023, the Lufthansa Group achieved a positive cash flow from operating activities in the amount of EUR 1,581m; this was thus 6% higher than in the previous year (previous year: EUR 1,496m); the improvement is mainly due to the increase in EBITDA and the higher inflow resulting from the change in working capital (EUR 1,547m, previous year: EUR 1,292m).

The inflow resulting from the change in working capital was associated with a higher volume of liabilities due to unused flight documents, which picked up by EUR 2,314m in the first quarter of 2023 (previous year: EUR 2,020m); in connection with the increase in ticket sales, receivables and contract assets rose by EUR 632m, in particular due to receivables from sales partners and credit card customers, while liabilities and contract liabilities declined by EUR 141m; these two trends relate to the changes in the carrying amounts for continuing operations and discontinued operations.

Adjusted free cash flow of EUR 482m

Adjusted free cash flow fell by 38% to EUR 482m (previous year: EUR 780m) in the first quarter of 2023, with the increase in net capital expenditure more than making up for the increase in cash flow from operating activities.

¹⁾ Capital payments of operating lease liabilities within cash flow from financing activities.

Financing activities result in cash outflow

• The balance of financing activities resulted in a net cash outflow of EUR 336m (previous year: EUR 586m).
• This resulted from repayments in the overall amount of EUR 250m, mainly due to aircraft financing as well as interest and dividend payments of EUR 160m and compared with the cash inflow from new financing measures on the capital market in the amount of EUR 74m, which was primarily attributable to aircraft financing.

Total available liquidity of EUR 10.5bn

• Balance-sheet liquidity (total of cash, current securities and fixed-term deposits from continuing operations) came to EUR 8,361m on 31 March 2023 (31 December 2022: EUR 8,301m); of this amount, EUR 7,608m was centrally available to Deutsche Lufthansa AG; in addition, cash and cash equivalents held by the discontinued Catering business amounted to EUR 140m.
• Additionally, there were unused credit lines of EUR 2,101m.
• As of 31 March 2023, the Company therefore had EUR 10,462m of available liquidity from continuing operations in total (31 December 2022: EUR 10,420m).

NET ASSETS

Impact of LSG Group sale on the net assets

• — In line with IFRS 5, the assets and liabilities attributable to the Catering business segment have been separately presented in the statement of financial position as of 31 March 2023 as "Assets held for sale" and "Liabilities in connection with assets held for sale"; the figures for the previous year have not been adjusted.
• — To enable a better comparability with the previous year, significant effects are quantified in the following comments.

Total assets climb by around EUR 1.6bn

— As of 31 March 2023, total Group assets rose by EUR 1,569m over year-end 2022 to EUR 44,904m (31 December 2022: EUR 43,335m).

Non-current assets up by EUR 115m

As of 31 March 2023, non-current assets of EUR 28,195m were EUR 115m higher than at the end of 2022 (31 December 2022: EUR 28,080m); the increase in value for aircraft and reserve engines (EUR +497m) and for deferred tax assets on account of the net loss for the period (EUR +275m) were partly made up for by the decline in other property, plant and equipment as a result of the reclassification of the Catering business (EUR -406m) and derivative financial instruments (EUR -175m). The value of the aircraft and reserve engines rose to EUR 16,387m (31 December 2022: EUR 15,890m); down payments made on existing orders and investments in major maintenance events and new aircraft (three Boeing 787s and three Airbus A320s) exceeded the volume of depreciation as well as disposals; as of 31 March 2023, the Lufthansa Group's fleet comprised a total of 710 aircraft.

Current assets increase by around EUR 1.5bn

• Current assets as of 31 March 2023 rose by EUR 1,454m to EUR 16,709m (31 December 2022: EUR 15,255m); adjusted for the reclassification of the Catering business, current trade receivables are up by EUR 1,020m and cash and cash equivalents by EUR 200m.
• The increase in assets held for sale (EUR +951m) is mainly attributable to the assets in the Catering business (EUR 967m), of which EUR 537m related to previously non-current assets; on the other hand, derivative financial instruments decreased (EUR -228m).

Non-current provisions and liabilities decline by EUR 174m

• As of 31 March 2023, non-current provisions and liabilities were down by EUR 174m to EUR 16,979m (31 December 2022: EUR 17,153m).
• Non-current financial liabilities of EUR 13,154m were EUR 116m lower than at the end of 2022 (31 December 2022: EUR 13,270m); this decrease mainly reflects the reclassi-

fication of the financial liabilities attributable to the Catering business as well as scheduled repayments for aircraft financing, partly compensated for by valuation effects for the convertible bond.

The net pension obligations, i.e. the pension provisions less asset surpluses for individual pension plans – which are separately reported under non-current assets – of EUR 1,992m were at the same level as at the end of 2022 (31 December 2022: EUR 1,993m); pension provisions decreased by EUR 13m to EUR 2,056m (31 December 2022: EUR 2,069m) with the interest rate used to dis count the pension obligations in Germany and Austria declining by 0.1 percentage point to 4.1%; this effect was largely made up for by the positive performance of the plan assets. Current provisions and liabilities increase by around EUR 2.7bn —

As of 31 March 2023, current provisions and liabilities rose by EUR 2,667m to EUR 20,375m (31 December 2022: EUR 17,708m), primarily as a result of the increase in liabilities from flight tickets not yet used (EUR +2,315m) as well as the liabilities from assets held for sale on account of the resolved sale of the LSG Group (EUR +612m); this was partly offset by the lower current trade payables and other liabilities (EUR -368m) which decreased mainly due to the reclassification of the liabili ties in the Catering business.

Shareholders' equity down by EUR 924m

• By comparison with the end of 2022, shareholders' equity as of 31 March 2023 decreased by EUR 924m to EUR 7,550m (31 December 2022: EUR 8,474m); this was primarily due to the loss in the first quarter of the financial year and negative valuation effects for financial instruments recognised directly in equity.
• The equity ratio fell by 2.8 percentage points compared with year-end 2022 to 16.8% (31 December 2022: 19.6%).
• — Due to the positive free cash flow, net indebtedness of EUR 6,717m was EUR 154m below the level at the end of 2022 (31 December 2022: EUR 6,871m); Adjusted net debt – the sum total of net indebtedness and net pension obligations less 50% of the hybrid bond issued in 2015 – fell by EUR 155m relative to the end of 2022 to EUR 8,462m (31 December 2022: EUR 8,617m).
• — The ratio of Adjusted net debt/Adjusted EBITDA was thus 2.1 (31 December 2022: 2.3).

CALCULATION OF NET INDEBTEDNESS

	31.0 3.2 023	31.1 2.2 022	Cha nge
	in € m	in € m	in %
Bon ds	-6,8 64	-6,6 59	-3
er`s Bor te l row no oan s	-1,2 45	-1,2 42	0
Cre dit line s	-20	–
Airc raft fin ing anc	-4,3 51	-4,4 07	1
Lea sing liab ilitie s	-2,2 59	-2,4 43	8
Oth er b win orro gs	-32 1	-40 0	20
Fina ncia l lia bilit ies	-15 ,06 0	-15 ,151	1
Ban k ov erd raft	-18	-21	14
Gro ind ebt edn up ess	-15 ,07 8	-15 ,172	1
Cas h an d ca sh e quiv alen ts	1,43 2	1,79 0	-20
Sec urit ies	6,9 29	6,5 11	6
Net ind ebt edn ess	-6,7 17	-6,8 71	2
Pen sion visi pro ons	-2,0 56	-2,0 69	1
Pen sion rplu su s	64	76	-16
Net blig nsio atio pe n o ns	-1,9 92	-1,9 93	0
Net ind ebt edn d n ion et p ess an ens obl igat ions	-8,7 09	-8,8 64	2

Business segments

PASSENGER AIRLINES BUSINESS SEGMENT

KEY FIGURES

		Jan - M ar 202 3	Jan - M ar 202 2	Cha nge in %
Rev enu e	€m	5,2 11	3,0 20	73
of w hich ffic tra rev enu e	€m	4,8 06	2,5 13	91
Tot al o atin g in per com e	€m	5,5 14	3,15 8	75
Ope rati ng e xpe nse s	€m	5,9 97	4,2 38	42
Adj ed EBI TDA ust	€m	-91	-67 6	87
Adj ed EBI T ust	€m	-512	-1,11 4	54
EBI T	€m	-53 1	-1,0 47	49
Adj ed EBI T m ust in arg	%	-9.8	-36 .9	27.1 pts
Seg al e ndit nt c apit me xpe ure	€m	774	610	27
Em ploy of 3 1.03 ees as	ber num	57,8 60	55, 482	4
hts1 ) Flig	ber num	183 ,44 7	133 ,56 2	37
Pas sen ger s	tho nds usa	21,6 43	13,1 73	64
Ava ilab le s -kilo eat met res	mill ions	59, 347	45, 656	30
s1) Rev at-k ilom etre enu e se	mill ions	47,3 16	29, 860	58
Pas loa d fa cto sen ger r	%	79.7	65. 4	14.3 pts

1) Previous year's figures have been adjusted.

• — In the first quarter of 2023, the operating performance of the Lufthansa Group's Passenger Airlines segment significantly improved year-on-year; however, the result was negative despite a strong level of demand due to seasonality effects as well as the preparations for the expansion of flight operations in the summer months; strikes also had an averse impact on earnings; in terms of demand, the operating performance in the first quarter of the previous year had been strongly affected by the spread of the Omicron variant.
• — The Lufthansa Group is investing in the modernisation of its fleet and has resolved to order a further 22 latestgeneration long-haul aircraft: ten Airbus A350-1000, five A350-900 and seven Boeing 787-9 Dreamliner long-haul aircraft. ↗ Significant events, p. 3.
• The Lufthansa Group is continuing to expand its portfolio of sustainable travel products; since 15 February 2023 it has been the first airline group worldwide to offer "Green Fares"; the flight-related carbon offsets already included in the fare enable passengers throughout Europe and North Africa to choose a more sustainable flight option; the use of sustainable aviation fuels provides 20% of this offsetting, while 80% is covered via a contribution to high-quality climate protection projects.
• In the first quarter of the 2023 financial year, available capacity in the Passenger Airlines segment was 30% higher than in the previous year, but remained 25% below the 2019 pre-crisis level; the number of flights increased by 37% year-on-year; sales increased by 58%; the

passenger load factor of 79.7% was 14.3 percentage points higher than in the previous year.

• As a result of the increase in traffic in the first quarter of 2023 relative to the previous year, traffic revenue in the Passenger Airlines segment increased by 91% year-onyear to EUR 4,806m (previous year: EUR 2,513m); revenue of EUR 5,211m was 73% higher than last year (previous year: EUR 3,020m); yields rose by 22.5%.
• Unit revenues went up by 33.6% year-on-year, thanks to the higher yields and load factors and were therefore 24.9% above their pre-crisis level in 2019.
• Operating expenses rose by 42% to EUR 5,997m (previous year: EUR 4,238m); expenses for fuel in particular

were significantly higher than in the previous year (EUR +692m), due to increased flight operations and higher kerosene prices; in addition, fees and charges were up on the previous year (EUR +224m); staff costs rose due to salary increases agreed in collective bargaining agreements, the end of the short-time work scheme and the 4% increase in the average workforce (EUR +244m).

• — Unit costs excluding fuel and emissions trading expenses fell year-on-year by 0.6% thanks to positive economies of scale on account of increased traffic as well as further progress made in implementing the cost-cutting programme; they were 17.6% higher than the pre-crisis level.
• The operating loss in the Passenger Airlines segment more than halved in the first quarter of 2023 year-onyear; Adjusted EBIT amounted to EUR -512m (previous year: EUR -1,114m).
• In the first quarter of 2023, EBIT came to EUR -531m (previous year: EUR -1,047m); the difference relative to Adjusted EBIT in the reporting period is mainly attributable to impairments recognised on aircraft held for sale as well as book losses on aircraft and reserve engines; in the previous year, the difference resulted from the partial reversal of provisions created in previous years for restructuring measures, following their successful implementation.
• Segment capital expenditure was up by 27% to EUR 774m (EUR 610m) and primarily related to advance payments for orders, major maintenance events and new aircraft.
• The number of employees as of 31 March 2023 increased by 4% year-on-year to 57,860 (previous year: 55,482), above all due to new employee hires as a result of expanding business operations.

	Jan - M ar 2 023	Jan - M ar 2 022	Cha in % nge	Exc han rate ge- adju d c han ste ge in %
€ C ent	9.1	7.4	22. 5	21.5
€ C ent	9.0	6.8	33. 6	32. 2
€ C ent	7.1	7.1	-0.6	-1.9

S IN TRE ND TR AFF	IC R EG ION S
	Tra ffic	Num ber rev enu e		of p Ava ilab le s -kilo eat met ass eng ers res		Rev enu e se	at-k ilom etre s		Pas loa d fa cto sen ger r
	Jan - M ar 2 023	Cha nge	Jan - M ar 2 023	Cha nge	Jan - M ar 2 023	Cha nge	Jan - M ar 2 023	Cha nge	Jan - M ar 2 023	Cha nge
	in € m	in %	in t hou ds san	in %	in m illio ns	in %	in m illio ns	in %	in %	in p ts
Eur ope	1,76 5	89	16,8 51	65	20, 500	30	15,7 04	53	76. 6	11.4 pts
Am eric a	1,25 9	68	2,10 7	41	20, 239	15	16,0 81	39	79. 5	13.7 pts
Asi a/P acif ic	704	282	1,03 7	192	9,6 24	103	8,2 48	207	85. 7	29. 0 p ts
Mid dle Eas t/A fric a	560	64	1,64 8	46	8,9 84	20	7,28 3	37	81.1	10.5 pts
Non allo cab le	518	71
Tot al	4,8 06	91	21,6 43	64	59, 347	30	316 47,	58	79. 7	14.3 pts

Lufthansa German Airlines1)

KEY FIG UR ES		Jan - M ar 202 3	Jan - M ar 202 2	Cha nge in %
Rev enu e	€m	3,0 52	9 1,75	74
Tot al o atin g in per com e	€m	3,2 55	1,85 3	76
Ope rati ng e xpe nse s	€m	3,6 16	2,5 60	41
Adj ed EBI TDA ust	€m	-166	-49 7	67
Adj ed EBI T ust	€m	-36 6	-715	49
EBI T	€m	-38 1	-64 8	41
Em ploy of 3 1.03 ees as	ber num	35, 072	34, 443	2
Flig hts	ber num	95, 186	72,1 58	32
Pas sen ger s	tho nds usa	11,3 42	7,19 3	58
Ava ilab le s -kilo eat met res	mill ions	34, 460	27,0 85	27
Rev at-k ilom etre enu e se s	mill ions	27,3 43	17,6 92	55
Pas loa d fa cto sen ger r	%	79.3	65. 3	14.0 pts

1) Including regional partners and Eurowings Discover.

• — Lufthansa German Airlines is continuing to modernise its fleet; in the first quarter of 2023, it took delivery of aircraft including three Boeing 787 Dreamliners in Frankfurt; its Boeing 787 fleet thus now consists of five aircraft.
• — The tourism-related leisure travel segment which Lufthansa serves through Eurowings Discover is also being further expanded; in January 2023, the twelfth A330 and tenth A320 entered service at Eurowings Discover; these aircraft had previously been used by other Lufthansa Group airlines.
• — Lufthansa German Airlines is investing in the expansion of its premium positioning; for all of its travel classes on long-haul routes (i.e. Economy, Premium Economy, Business and First Class), the airline has introduced a new high-end product, Allegris, which has been exclusively designed for the Lufthansa Group; the largest investment in premium products in the Company's history underlines

Lufthansa German Airlines' commitment to be the leading Western premium airline.

• In addition, Lufthansa German Airlines is continuing to expand its services for passengers; in February 2023, the airline broadened its Onboard Delights catering offering and introduced the new Lufthansa app, which now serves as a digital travel companion and makes travel even easier and even more comfortable.
• Heiko Reitz has been the new Chief Commercial Officer (CCO) of Lufthansa German Airlines since 1 March 2023; he changed position with Stefan Kreuzpaintner, who is now in charge of network, alliance and partner management for all of the Lufthansa Group's passenger airlines.
• The significant increase in demand for air travel and higher unit revenues drove up revenue year-on-year at Lufthansa German Airlines by 74% to EUR 3,052m in the first quarter of 2023 (previous year: EUR 1,759m).
• Operating expenses of EUR 3,616m were 41% higher year-on-year (previous year: EUR 2,560m), primarily due to the volume, price and currency-related increase in expenses for fuel as well as higher fees and charges, higher MRO expenses and increased staff costs due to new employee hires, newly negotiated wage settlements and the savings realised in the previous year due to shorttime work.
• The operating loss thus roughly halved year-on-year; Adjusted EBIT in the first quarter of 2023 was EUR -366m (previous year: EUR -715m).
• EBIT amounted to EUR -381m (previous year: EUR -648m); the difference relative to Adjusted EBIT in the reporting period is mainly attributable to impairment losses recognised on aircraft held for sale as well as book losses on aircraft and reserve engines; in the previous year, the difference resulted from the partial reversal of

provisions created in previous years for restructuring measures, following their successful implementation.

SWISS1)

KEY FIG UR ES		Jan - M ar 202 3	Jan - M ar 202 2	Cha nge in %
Rev enu e	€m	1,19 7	746	60
Tot al o atin g in per com e	€m	1,24 1	771	61
Ope rati ng e xpe nse s	€m	1,16 4	833	40
Adj ed EBI TDA ust	€m	184	49	276
Adj ed EBI T ust	€m	77	-62
EBI T	€m	77	-62
Em ploy of 3 1.03 ees as	ber num	9,0 89	8,4 94	7
Flig hts	ber num	30, 793	20, 509	50
Pas sen ger s	tho nds usa	3,6 69	2,15 1	71
Ava ilab le s -kilo eat met res	mill ions	11,9 58	8,78 8	36
Rev at-k ilom etre enu e se s	mill ions	9,77 3	5,6 23	74
Pas loa d fa cto sen ger r	%	81.7	64. 0	17.7 pts

1) Including Edelweiss Air.

• SWISS has strengthened its premium positioning in the growing tourism-related leisure travel segment and has fitted its four A340-300 aircraft with Premium Economy Class; two out of the three aircraft types in SWISS' longhaul fleet thus now include this new travel class.

• With its "SWISS Senses" programme, SWISS has embarked on the most extensive cabin renewal in its history; from 2025, the airline will gradually offer its passengers an entirely new, more personal travel experience in all travel classes; the new interior will initially be installed in its Airbus A330-300 fleet and subsequently in its Boeing 777-300ER fleet; SWISS' newly ordered Airbus A350- 900s are already being delivered with the new cabin design.

• — In the first quarter of 2023, increased flight operations and higher unit revenues enabled revenue at SWISS to rise by 60% year-on-year to EUR 1,197m (previous year: EUR 746m).

• Operating expenses increased by 40% year-on-year to EUR 1,164m (previous year: EUR 833m), primarily due to the volume, price and currency-related increase in fuel expenses, higher fees and charges and staff costs.
• — SWISS thus achieved a positive operating result in the first quarter of 2023; Adjusted EBIT and EBIT amounted to EUR 77m respectively (previous year: EUR -62m).

Austrian Airlines

KEY FIG UR ES		Jan - M ar 202 3	Jan - M ar 202 2	Cha nge in %
Rev enu e	€m	400	201	99
Tot al o atin g in per com e	€m	413	208	99
Ope rati ng e xpe nse s	€m	486	317	53
Adj ed EBI TDA ust	€m	-46	-77	40
Adj ed EBI T ust	€m	-73	-109	33
EBI T	€m	-73	-110	34
Em ploy of 3 1.03 ees as	ber num	5,76 6	5,6 11	3
Flig hts	ber num	21,2 38	13,3 45	59
Pas sen ger s	tho nds usa	2,2 54	1,13 4	99
Ava ilab le s -kilo eat met res	mill ions	4,6 66	3,3 13	41
Rev at-k ilom etre enu e se s	mill ions	3,6 03	2,0 94	72
Pas loa d fa cto sen ger r	%	77.2	63. 2	14.0 pts

• — On 21 March 2023, the Supervisory Board of Austrian Airlines re-appointed Michael Trestl as a member of the Executive Board and Chief Commercial Officer (CCO) for a further period of five years up to 31 December 2028.

• In the first quarter of 2023, increased traffic and higher unit revenues made revenue at Austrian Airlines rise yearon-year by 99% to EUR 400m (previous year: EUR 201m).

• Operating expenses of EUR 486m were 53% higher than last year (previous year: EUR 317m), in particular due to a volume and price-related increase in fuel expenses as well as higher staff costs.

• Austrian Airlines thus significantly reduced its operating loss in the first quarter of 2023 year-on-year; Adjusted EBIT amounted to EUR -73m (previous year: EUR -109m); EBIT likewise came to EUR -73m (previous year: EUR -110m).

Brussels Airlines

KEY FIG UR ES		Jan - M ar 202 3	Jan - M ar 202 2	Cha nge in %
Rev enu e	€m	280	157	78
Tot al o atin g in per com e	€m	307	165	86
Ope rati ng e xpe nse s	€m	350	227	54
Adj ed EBI TDA ust	€m	-16	-35	54
Adj ed EBI T ust	€m	-43	-62	31
EBI T	€m	-44	-62	29
Em ploy of 3 1.03 ees as	ber num	3,3 11	3,14 2	5
hts1 ) Flig	ber num	12,6 47	8,14 6	55
Pas sen ger s	tho nds usa	1,59 0	874	82
Ava ilab le s -kilo eat met res	mill ions	3,74 7	2,74 6	36
s1) Rev at-k ilom etre enu e se	mill ions	2,9 29	1,84 3	59
r1) Pas loa d fa cto sen ger	%	78. 2	67.1	11.1 pts

1) Previous year's figures have been adjusted.

• Brussels Airlines has signed a wet lease agreement with CityJet for the 2023 summer season; in the period from 26 March to 28 October 2023, two CRJ-900 aircraft will reinforce the Brussels Airlines fleet and two further Airbus A320s are set to be added to the airline's fleet.
• Dorothea von Boxberg has been the new Chairwoman of the Executive Board (CEO) of Brussels Airlines since 15 April 2023; she previously was CEO of Lufthansa

Cargo and replaces Peter Gerber, who left the Lufthansa Group on 31 January 2023.

• In the first quarter of 2023, increased flight operations and higher unit revenues enabled revenue at Brussels Airlines to rise year-on-year by 78% to EUR 280m (previous year: EUR 157m).
• Operating expenses went up by 54% to EUR 350m (previous year: EUR 227m), primarily due to the volume, price and currency-related increase in fuel expenses as well as the volume-related increase in expenses for fees and charges.
• Brussels Airlines thus significantly reduced its operating loss in the first quarter of 2023; Adjusted EBIT amounted to EUR -43m (previous year: EUR -62m); EBIT came to EUR -44m (previous year: EUR -62m).

Eurowings

FIG ES KEY UR		Jan - M ar 202 3	Jan - M ar 202 2	Cha nge in %
Rev enu e	€m	327	186	76
Tot al o atin g in per com e	€m	359	201	79
Ope rati ng e xpe nse s	€m	438	338	30
Adj ed EBI TDA ust	€m	-63	-113	44
Adj ed EBI T ust	€m	-103	-163	37
EBI T	€m	-104	-163	36
of 3 1.03 Em ploy ees as	ber num	22 4,6	3,79 2	22
Flig hts	ber num	23, 583	19,4 04	22
Pas sen ger s	tho nds usa	2,78 8	1,82 0	53
Ava ilab le s -kilo eat met res	mill ions	4,5 16	3,72 5	21
Rev at-k ilom etre enu e se s	mill ions	3,6 67	2,6 08	41
Pas loa d fa cto sen ger r	%	81.2	70. 0	11.2 pts

• In the first quarter of 2023, Eurowings registered a strong level of demand for tourist flights and expanded its capacity accordingly; within the scope of its restructuring, Eurowings has aligned its capacity more strongly with seasonal fluctuations in demand, in particular the high level of demand for leisure travel during the summer months.
• Eurowings is set to introduce the Airbus A321 to its fleet; six A321ceo aircraft which are to be taken over from other Group airlines will gradually be deployed from May 2023; in addition, four brand-new Airbus A321neos will be added to the fleet by the end of 2023.

• The transfer of Eurowings Europe GmbH, Austria, to Eurowings Europe Limited, Malta, was successfully completed on 28 March 2023; following its official founding in May 2022, the new company already received its air operator certificate (AOC) in October 2022.

• In the first quarter of 2023, Eurowings' revenue rose by 76% to EUR 327m (previous year: EUR 186m) due to volume and price factors.

• Operating expenses increased by 30% to EUR 438m (previous year: EUR 338m), primarily due to the volume, price and currency-related increase in fuel expenses as well as higher fees and charges due to the expansion of the flight programme.
• Eurowings significantly reduced its operating loss in the first quarter of 2023; Adjusted EBIT amounted to EUR -103m (previous year: EUR -163m); this improvement is mainly attributable to the expansion of the flight programme, higher yields and an improved passenger load factor for the aircraft; in the first quarter of 2023, EBIT amounted to EUR -104m (previous year: EUR -163m).

LOGISTICS BUSINESS SEGMENT KEY FIGURES

		Jan - M ar 202 3	Jan - M ar 202 2	Cha nge in %
Rev enu e	€m	823	1,16 9	-30
of w hich ffic tra rev enu e	€m	775	1,13 1	-31
Tot al o atin g in per com e	€m	848	1,19 0	-29
Ope rati ng e xpe nse s	€m	703	701	0
Adj ed EBI TDA ust	€m	195	535	-64
Adj ed EBI T ust	€m	151	495	-69
EBI T	€m	149	481	-69
Adj ed EBI T m in ust arg	%	18.3	42. 3	-24 .0 p ts
Seg apit al e ndit nt c me xpe ure	€m	146	7	1,98 6
Em ploy of 3 1.03 ees as	ber num	4,0 90	4,10 8	0
res1 ) Ava ilab le c -kilo o to met arg nne	mill ions	2,8 21	2,5 95	9
res1 ) Rev kilo ton met enu e ca rgo ne-	mill ions	1,72 7	1,78 7	-3
tor1 ) Car load fac go	%	61.2	68. 9	-7.7 pts

1) Previous year's figures have been adjusted.

• — The operating performance in the Logistics business segment in the first quarter of 2023 fell short of the record level seen in the previous year, as expected; during the coronavirus pandemic, the reduction of freight capacities in the bellies of passenger aircraft together with the high level of demand due to the supply chain disruptions had resulted in record revenue; the continued recovery of passenger traffic also prompted an expansion of freight capacity; in addition, demand declined due to the general economic slowdown, leading to a normalisation of global freight rates.
• The world's first Boeing 777F freighter fitted with an AeroSHARK film took off on 3 February 2023; this new type of surface technology improves fuel efficiency and thus helps to reduce carbon emissions.
• — Ashwin Bhat has been the new Chairman of the Executive Board (CEO) of Lufthansa Cargo since 15 April 2023; previously Chief Commercial Officer (CCO) at the freight

airline, he replaces Dorothea von Boxberg, who is the new CEO of Brussels Airlines; a third Executive Board member is to be appointed in the near future.

• Capacity of Lufthansa Cargo was increased by 9% in the reporting period relative to the previous year, above all due to the recovery of passenger flight operations and the related expansion of belly capacities; sales declined by 3% year-on-year and the cargo load factor of 61.2% was 7.7 percentage points lower than last year (previous year: 68.9%); yields fell in all of Lufthansa Cargo's traffic regions and were 29.2% lower than in the previous year; they were thus 62.9% higher than the 2019 pre-crisis level.

• Traffic revenue declined by 31% year-on-year in the first quarter of 2023 to EUR 775m (previous year: EUR 1,131m) due to the reduced volume of sales and the lower yields; revenue dropped by 30% to EUR 823m (previous year: EUR 1,169m).

• Despite the inflation-related cost pressure, operating expenses of EUR 703m were almost at the same level as in the previous year (previous year: EUR 701m); reduced charter expenses as well as efficiency boosting and cost reduction measures helped to largely compensate for higher staff costs and inflation effects.

• In the first quarter of 2023, Adjusted EBIT thus amounted to EUR 151m year-on-year (previous year: EUR 495m).
• EBIT came to EUR 149m (previous year: EUR 481m).
• Segment capital expenditure in the first quarter of 2023 came to EUR 146m (previous year: EUR 7m) and comprises, in particular, prepayments made for two further 777F freighters.
• The number of employees as of 31 March 2023 of 4,090 was at the same level as the previous year's figure (previous year: 4,108).

TRENDS IN TRAFFIC REGIONS

	Tra ffic	rev enu e	Ava ilab le c -kilo Rev kilo o to met ton met arg nne res enu e ca rgo ne- res		Car go	load fac tor
	Jan - M ar 2 023	Cha nge		Cha nge	Jan - M ar 2 023	Cha nge	Jan - M ar 2 023	Cha nge
	in € m	in %	in m illio ns	in %	in m illio ns	in %	in %	in p ts
Eur ope	64	-10	148	18	70	4	47.2	-6.2 pts
Am eric a	324	-41	1,38 1	3	801	-11	58. 0	-8.9 pts
Asi a/P acif ic	322	-26	1,01 9	14	718	5	70. 5	-6.1 pts
Mid dle Eas t/A fric a	65	-13	273	14	138	-3	50. 5	-8.6 pts
Tot al	775	-31	2,8 21	9	1,72 7	-3	61.2	-7.7 pts

MRO BUSINESS SEGMENT KEY FIGURES

		Jan - M ar 202 3	Jan - M ar 202 2	Cha nge in %
Rev enu e	€m	1,53 7	1,32 6	16
of w hich wit h co anie s of the Lu ftha Gr mp nsa oup	€m	508	373	36
Tot al o atin g in per com e	€m	1,63 5	1,39 4	17
Ope rati ng e xpe nse s	€m	1,49 6	1,26 1	19
1) Adj ed EBI TDA ust	€m	174	174	0
T1) Adj ed EBI ust	€m	135	129	5
T1) EBI	€m	135	50	170
in1) Adj ed EBI T m ust arg	%	8.8	9.7	-0.9 pts
Seg al e ndit nt c apit me xpe ure s	€m	21	14	50
Em ploy of 3 1.03 ees as	ber num	21,0 23	20, 008	5

1) The results of equity investments of the associated company "Ameco" is reported under Additional Businesses and Group Functions due to the change in responsibility in Group management; the previous year's figures have been adjusted accordingly.

• — Lufthansa Technik registered a positive course of business in the first quarter of 2023: the continuing strong level of demand for flights prompted a further rise in demand for maintenance and repair services with revenue and earnings accordingly increasing year-onyear; this therefore made up for the effect of the depreciation of the US dollar on the earnings figure.
• Lufthansa Technik's revenue increased by 16% year-onyear in the first quarter of 2023 to EUR 1,537m (previous year: EUR 1,326m).
• Operating expenses rose by 19% to EUR 1,496m (previous year: EUR 1,261m); this was mainly due to the volume and price-related increase in the cost of materials and services and the higher staff costs.
• Adjusted EBIT improved by 5% to EUR 135m (previous year: EUR 129m); EBIT likewise amounted to EUR 135m (previous year: EUR 50m), with the previous year's figure having been affected by impairments due to the sanctions imposed on Russia.
• Segment capital expenditure went up by 50% to EUR 21m in the first quarter of 2023 (previous year: EUR 14m).
• The number of employees as of 31 March 2023 increased by 5% year-on-year to 21,023 (previous year: 20,008).

CATERING BUSINESS SEGMENT KEY FIGURES

		Jan - M ar 202 3	Jan - M ar 202 2	Cha nge in %
Rev enu e	€m	523	373	40
of w hich wit h co anie s of the Lu ftha Gr mp nsa oup	€m	16	9	78
Tot al o atin g in per com e	€m	529	386	37
Ope rati ng e xpe nse s	€m	537	396	36
Adj ed EBI TDA ust	€m	13	5	160
Adj ed EBI T ust	€m	-6	-14	57
EBI T	€m	-46	-33	-39
Adj ed EBI T m in ust arg	%	-1.1	-3.8	2.7 pts
Seg al e ndit apit nt c me xpe ure	€m	9	6	50
Em ploy of 3 1.03 ees as	ber num	21,3 32	16,5 20	29

• — Deutsche Lufthansa AG signed an agreement for the sale of the LSG Group with the private equity firm AURELIUS; the transaction is expected to be completed in the third quarter of 2023, subject to external approvals and internal carve-out activities; the earnings contributions provided by the Catering operation are presented separately in the consolidated income statement under "Profit/loss from discontinued operations". ↗ Significant events, p. 3, Financial performance, p. 4.
• — The positive business performance of the LSG Group continued in the first quarter of 2023 in all its regions, but above all in the North America and Asia markets.
• — The LSG Group signed and extended significant new agreements during the first quarter of 2023, including with Qantas, American Airlines and Turkish Airlines, and

Retail inMotion concluded a new onboard retail contract with Marabu Airlines.

• Holger Fleige has been the new Chief Financial Officer (CFO) of LSG Group since 1 April 2023; previously Head of Controlling at Passenger Airlines, Aviation Services & Group ReStructure at the Lufthansa Group, he replaces Wilken Bormann, who has left the Company.
• In the first quarter of 2023, the revenue of the LSG Group increased by 40% to EUR 523m (previous year: EUR 373m) due to the positive business performance.

• Operating expenses increased by 36% to EUR 537m (previous year: EUR 396m), primarily due to the volume and price-related increase in the cost of materials and services and staff costs, as well as higher revenue-based airport fees.

• Adjusted EBIT came to EUR -6m in the first quarter of 2023 (previous year: EUR -14m).

• EBIT amounted to EUR -46m (previous year: EUR -33m); the difference relative to Adjusted EBIT in the reporting period is primarily attributable to impairments on goodwill in the amount of EUR 40m and is associated with the resolved sale of the Catering business; the figure for the previous year was affected by the impairments and expenses relating to the war in Ukraine.
• Segment capital expenditure rose by 50% to EUR 9m (previous year: EUR 6m).
• Thanks to the recovery of business, the number of employees as of 31 March 2023 increased by 29% yearon-year to 21,332 (previous year: 16,520).

ADDITIONAL BUSINESSES AND GROUP FUNCTIONS

KEY FIGURES

		Jan - M ar 202 3	Jan - M ar 202 2	Cha nge in %
Ope rati inco ng me	€m	762	518	47
Ope rati ng e xpe nse s	€m	801	583	37
1) Adj ed EBI TDA ust	€m	-2	-43	95
T1) Adj ed EBI ust	€m	-30	-72	58
T1) EBI	€m	-39	-74	47
Seg al e ndit apit nt c me xpe ure s	€m	5	13	-62
of 3 1.03 Em ploy ees as	ber num	8,0 87	7,91 6	2

1) Figures include the results of equity investments of the associated company "Ameco", which was previously reported in the MRO business segment; previous year's figures have been adjusted accordingly.

• — Higher revenue, especially at the AirPlus group, and higher exchange rate gains caused operating income for Additional Businesses and Group Functions to increase by 47% year-on-year to EUR 762m (previous year: EUR 518m) in the reporting period.
• Operating expenses rose by 37% to EUR 801m (previous year: EUR 583m), primarily due to higher foreign exchange rate losses and increased commercial activity at the companies.
• Adjusted EBIT amounted to EUR -30m (previous year: EUR -72m); supported by an improvement in earnings at

AirPlus as well as an improved exchange rate result, EBIT came to EUR -39m (previous year: EUR -74m).

The number of employees as of 31 March 2023 increased by 2% year-on-year to 8,087 (previous year: 7,916); the number of employees in the Group functions fell by 4%.

Opportunities and risk report

The opportunities and risks for the Group described in detail in the Annual Report 2022 materialised or developed as follows:

• — The coronavirus-related health risks to customers and employees of the Lufthansa Group have now declined significantly thanks to increasing immunity within the population. However, there remains a risk of potentially significant economic impacts in the event that new virus variants emerge which are able to evade the immunity in the population and cause severe illness. However, there are no concrete indications of this at the present time.
• — The staff shortages that became very obvious in summer 2022 as a result of the operational difficulties in many of the functional areas necessary for the smooth processing of international air traffic (including security checks, ground services, baggage handling, and air traffic control) have now been reduced, but have still not been fully overcome. Further flight delays and cancellations thus remain possible, particularly during the coming summer season. This entails risks for the operating airlines, which range from reputational damage to rising costs for compensating and supporting the passengers affected. Numerous steps to further improve the operating processes were therefore taken in coordination with service providers and system partners, and additional staff were recruited to increase internal capacities. As the first test for

the summer 2023 flight schedule, flight operations during the Easter holidays were completed without any significant disruptions and with a stable operational performance.

• The Lufthansa Group sources most of its IT infrastructure from external service providers. The operational and commercial risks that by nature accompany this kind of outsourcing are assessed and managed on a continuous basis. The IT failures which occurred in the first quarter of 2023, and for which two IT service providers were responsible, are undergoing intensive analyses as of the reporting date. The findings will be translated into appropriate measures in order to mitigate the identified risks.
• The strike risk remains, since some collective bargaining agreements are still being negotiated in the Group. Flight operations at Eurowings Germany are one case in point, where demands from cockpit and cabin staff might in future be backed up with strike action. No new wage and framework agreement was reached with the Vereinigung Cockpit pilots' union for the cockpit crew at Deutsche Lufthansa AG and Lufthansa Cargo either. The pay increase obtained was only associated with an agreement not to strike again until the end of June 2023. After the Vereinigung Cockpit pilots' union left the negotiating tunnel – an agreement for confidential talks – at the end of March 2023, regular collective bargaining is set to re-

sume and there is a growing risk of industrial action fol lowing the end of the no-strike period in late June 2023. —

• In the context of newly concluded wage agreements, the flight attendants of Deutsche Lufthansa AG, the payscale ground staff of Deutsche Lufthansa AG, Lufthansa Technik AG and Lufthansa Cargo AG, among others, and all of the employees of SWISS and Austrian Airlines are currently bound by an agreement not to strike. The strike risk in the aforementioned areas thus continues to be reduced. Ver.di and Ufo have urged the Employers' Federation for Air Transport Companies (AGVL) to enter into negotiations over an inflation bonus. If the trade unions are successful in their demands, this may result in higher staff costs. Strikes can also lead to reputational damages and tangible economic impacts for the Lufthansa Group. —
• The target hedging level for fuel hedging was increased from 75% to 85% in the first quarter of 2023. The aim of fuel hedging is to reduce fluctuations in fuel prices. On the basis of the further improvement in business perfor-

mance and the scenario on which its financial planning is based, the Executive Board does not consider that the con tinued existence of the Lufthansa Group is at risk.

Forecast

Impact of LSG Group sale on the financial outlook

— The sale of the LSG Group to AURELIUS is not expected to have any significant impact on the Group's financial development in 2023; the earnings of the LSG Group will be consolidated up to the completion of the transaction, which is expected to occur in the third quarter of 2023.

Outlook subject to material uncertainties

— In view of booking cycles in the passenger business which remain shorter than they were prior to the crisis and the largely spot market-driven cargo business together with the uncertain macroeconomic and geopolitical environment, the Lufthansa Group's financial outlook is subject to a high level of forecast uncertainty; its operating and financial performance depends on factors including the further course of the war in Ukraine and its effects on fuel costs in particular; uncertainty in relation to the macroeconomic outlook – above all, the unclear impact of the major global central banks' current monetary policy stance on the development of the economy – may potentially have a significant effect on customer demand, particularly in the case of business travellers; in addition, persistently high inflation might result in higher than expected cost increases.

↗ Opportunities and risk report, p. 20.

Lufthansa Group expects to see continued recovery in demand and further increase in capacity

• — The Lufthansa Group assumes that the positive course of business in the previous year will continue in the 2023 financial year; this expectation is based in particular on the ongoing strong demand, which in the first quarter of 2023 continued to be reflected in the form of continued positive developments in new bookings in the passenger business.
• — Accordingly, the Lufthansa Group assumes that demand will continue to rise over the course of the year; in addition to the leisure travel segment, where demand is forecast to be almost as high as before the crisis, a

contribution will come from the further recovery in demand in the business travel segment.

• For this reason, flight capacity is to be continuously expanded over the course of the 2023 financial year; capacity is also to be added for tourist traffic in the summer; on long-haul routes, the increase in capacity will be primarily shaped by the development of connections to Asia, above all due to the opening of major markets such as China and Japan.
• Overall, the Lufthansa Group anticipates that available capacity for the Passenger Airlines segment in the 2023 financial year will be between 85% and 90% of its precrisis level; capacity will thus increase by around 20% on the previous year.

Lufthansa Group envisages significant increases in revenue and Adjusted EBIT

• The Lufthansa Group expects revenue to increase significantly in the 2023 financial year by comparison with the previous year; the continued recovery of the Passenger Airlines especially is expected to be the main factor here.
• In the 2023 financial year, the Lufthansa Group expects Adjusted EBIT to improve significantly year-on-year, above all thanks to the positive performance forecast for the Passenger Airlines, the continued strong result in the Logistics segment compared with pre-crisis levels, and a further positive performance in the MRO segment.

Adjusted free cash flow expected to be significantly positive

• Net capital expenditure by the Lufthansa Group in the 2023 financial year is expected to be between EUR 2.5bn and EUR 3bn.
• Including the forecast earnings improvement and other improvements in working capital management, Adjusted

free cash flow for the Group is therefore projected to be significantly positive in the 2023 financial year, but below the previous year's figure.

Positive outlook for the business segments; Logistics to decline but remain at a high level

• For the Passenger Airlines segment, the Lufthansa Group is expecting the recovery to continue and forecasts an increase in revenue, based on strong demand and consistently higher yields; a significantly positive Adjusted EBIT is thus predicted for the Passenger Airlines segment.
• For the Logistics business segment, given the market-wide normalisation in the wake of the coronavirus pandemic, the Lufthansa Group expects to see a decrease in freight rates and thus a significant decline in revenue; however, freight rates are likely to remain significantly higher compared with the pre-crisis level. Due to the envisaged decrease in revenue, the Lufthansa Group thus predicts an Adjusted EBIT significantly below the previous year's level.
• In the MRO business segment, revenue is expected to pick up significantly while an Adjusted EBIT figure at the same level as in the previous year is anticipated; this reflects the ongoing recovery of the MRO market together with inflation-related cost increases.
• The Lufthansa Group forecasts that the Catering business segment will achieve a further increase in revenue, especially in Asia in the course of the continuing market recovery; a significant rise in the Adjusted EBIT figure year-onyear is also expected; in the consolidated income statement, the segment result in 2023 is included in the line item "Profit/loss from discontinued operations" on account of the sale; it will thus no longer be included in the Adjusted EBIT figure at Group level.

Further details on the Group's financial outlook can be found in the ↗ Annual Report 2022 starting on p. 149.

Interim financial statements

CO NS OL IDA TED IN CO ME ST ATE ME NT
in € m	Jan - M ar 2 023	Jan - M ar 2 022
Tra ffic rev enu e	5,70 8	3,8 36
Oth er r eve nue	1,30 9	1,16 6
Tot al r eve nue	7,0 17	5,0 02
Cha d w ork form ed by e d ca lise d s in inv orie ntit pita ent nge s an per y an	124	116
e¹⁾ Oth atin g in er o per com	552	409
Cos t of als and teri vice ma ser s	-4,3 71	-3,0 57
Sta ff c ost s	-1,9 22	-1,6 32
nt²⁾ Dep d im iatio rtis atio pair rec n, a mo n an me	-54 5	-55 9
³⁾ Oth atin er o per g ex pen ses	-1,14 1	-84 8
Pro fit/ loss fro atin ctiv itie m o per g a s	-28 6	-56 9
Res ult of e quit y in ted for usi he e quit eth od tme nts ng t ves acc oun y m	-27	-41
Res ult of o the uity inv est nts r eq me	9	2
Inte inc rest om e	43	18
Inte rest exp ens es	-133	-99
Oth er f inan cial ite ms	-136	33
Fina ncia l re sult	-24 4	-87
Pro fit/ loss be fore inc e ta om xes	-53 0	-65 6
Inco tax me es	109	104
Pro fit/ loss fro inu ing rati ont m c ope ons	-42 1	2 -55
Pro fit/ loss fro m d ued isco ntin ions erat op	-44	-30
Pro fit/ loss aft er i tax nco me es	-46 5	-58 2
The reof fit/ loss ribu tab le to rolli inte att ont rest pro no n-c ng s	2	2
The f ne ofit /los trib ble har eho lde f D sch e L ufth a A G t pr s at uta to s eut reo rs o ans	-46 7	-58 4
Bas ic/d ilut ed sh € nin in ear gs per are	-0.3 9	-0.4 9
of w hich fro ont inui atio m c ng o per ns	-0.3 5	-0.4 6
of w hich fro m d ued isco ntin erat ions op	-0.0 4	-0.0 3

^¹⁾ The total amount includes EUR 24m (previous year: EUR 17m) from the reversal of write-downs and allowances on receivables.

^²⁾ The total amount includes EUR 0m (previous year: EUR 0m) for write-downs on non-current receivables.

^³⁾ The total amount includes EUR 10m (previous year: EUR 6m) for the recognition of loss allowances on current receivables.

CO NS OL IDA TED ST ATE ME NT OF CO MP REH ENS IVE IN CO ME
in € m	Jan - M ar 2 023	Jan - M ar 2 022
fit/ aft Pro loss er i tax nco me es	-46 5	-58 2
Oth hen sive inc er c om pre om e
Oth hen sive inc ith sub clas sifi ion he inco t re cat to t sta tem ent er c om pre om e w seq uen me
Diff s fr latio cy t ere nce om cur ren rans n	-37	45
Sub f fin ial a t fa lue hou t ef fec fit a nd loss t m nt o ts a ir va wit t on seq uen eas ure me anc sse pro	-7	-35
Sub f he dge h fl hed t m nt o seq uen eas ure me s - cas ow ge rese rve	-39 4	1,03 2
Sub f he dge f he dge t m nt o ts o seq uen eas ure me s - cos s	-36	-101
Oth hen e fr d fo the tho d sive inc inve ing uity stm ent nte er c om pre om om s ac cou r us eq me	–	–
Oth d in d d tly nise irec in e quit er e xpe nse s an com e re cog y	–	–
Inco n it s in oth hen sive inc tax me es o em er c om pre om e	91	-185
	-38 3	756
Oth hen itho ubs lass ific the sive inc ut s ent atio n to inc e st ate nt er c om pre om e w equ rec om me
Rev alua tion of def ined -be nef it p ion plan ens s	-57	1,35 7
Sub f fin ial a t fa ir va lue t m nt o ts a seq uen eas ure me anc sse	2	1
Oth hen sive inc e fr inve d fo ing the uity tho d stm ent nte er c om pre om om s ac cou r us eq me	–	–
Oth d in nise d d irec tly in e quit er e xpe nse s an com e re cog y	–	54
Inco n it s in oth hen sive inc tax me es o em er c om pre om e	48	-45 9
	-7	953
Oth hen sive inc e af inco ter tax er c om pre om me es	-39 0	1,70 9
Tot al c hen sive inc om pre om e	-85 5	1,12 7
The reof reh ive inco ibut able lling int attr to ntro sts co mp ens me non co ere	2	18
The reof reh ibut able sha reh old of D sch e Lu ftha AG ive inco attr to eut co mp ens me ers nsa	-85 7	1,10 9

CONSOLIDATED STATEMENT OF FINANCIAL POSITION - ASSETS

in € m	31/ 03/ 202 3	31/1 2/2 022	31/ 03/ 202 2
fe¹⁾ fini sef Inta ngib le a ith an i nde ul li ts w te u sse	992	1,05 5	1,19 6
Oth ngib le a er i nta ts sse	336	373	408
raft Airc d re gine an serv e en s	16,3 87	15,8 90	20 15,5
Rep aira ble for air craf arts t spa re p	2,12 7	2,0 34	1,85 3
nt2) Pro plan d o the uip ty, t an per r eq me	2,9 25	3,3 31	3,3 04
Inve d fo ing the uity tho d stm ent nte s ac cou r us eq me	322	392	385
Oth quit y in tme nts er e ves	232	236	231
Non ities t se -cu rren cur	39	37	39
Loa nd ivab les ns a rece	538	532	841
Der ivat ive fina ncia l ins trum ent s	945	1,12 0	1,06 3
Def d c harg nd paid erre es a pre exp ens es	86	88	70
Effe ctiv e in ceiv able e ta com x re s	63	64	63
Def d ta set erre x as s	3,2 03	2,9 28	4,2 01
Non t as set -cu rren s	28, 195	28, 080	29, 174
Inve nto ries	791	812	701
Con trac t as set s	281	342	243
Tra de ivab les and oth ivab les rece er r ece	4,8 96	4,10 2	4,3 97
Der fina l ins ivat ive ncia trum ent s	633	861	1,10 8
Def d c harg nd paid erre es a pre exp ens es	243	287	314
Effe able ctiv e in ceiv e ta com x re s	234	231	246
Sec urit ies	6,9 29	6,5 11	5,4 67
Cas h an d ca sh e alen quiv ts	1,43 2	1,79 0	2,4 85
Ass held for sal ets e	1,27 0	319	251
Cur t as set ren s	16,7 09	15,2 55	15,2 12
Tot al a ts sse	44, 904	43, 335	44, 386

1) Including Goodwill.

2) These include investment property of EUR 30m (as of 31.12.2022: EUR 30m).

CO NS OL IDA TED ST ATE ME NT OF FIN AN CIA L P OS ITIO N - SH AR EHO LDE RS' EQ UIT Y A ND LIA BIL ITIE S
in € m	31/ 03/ 202 3	31/1 2/2 022	31/ 03/ 202 2
Issu ed ital cap	3,0 60	3,0 60	3,0 60
Cap ital rese rve	252	252	956
Ret aine d e ings arn	2,8 50	2,0 68	-76 4
Oth ral r eut er n ese rves	1,79 3	2,23 4	2,70 0
Net fit/ loss pro	-46 7	791	-58 4
Equ ibu tab le t har eho lde f D sch e L ufth a A G ity attr eut o s rs o ans	7,4 88	8,4 05	5,3 68
Min orit y in tere sts	62	69	58
Sha reh old ' eq uity ers	50 7,5	8,4 74	26 5,4
Pen sion visi pro ons	2,0 56	2,0 69	5,71 1
Oth isio er p rov ns	785	757	780
Bor ings row	13,1 54	13,2 70	14,5 10
Con t lia bilit ies trac	29	30	31
Oth er f inan cial liab ilitie s	21	72	72
Adv ceiv ed, def d in d o the n-fi cial liab ilitie ent anc e p aym s re erre com e an r no nan s	48	44	30
Der ivat ive fina ncia l ins trum ent s	367	394	305
Def d ta x lia bilit ies erre	519	517	538
Non d li abi litie t pr ovis ion -cu rren s an s	16,9 79	17,1 53	21,9 77
Oth isio er p rov ns	834	872	1,02 4
Bor ings row	1,90 6	1,88 1	1,69 1
Tra de able d ot her fina ncia l lia bilit ies pay s an	5,2 92	5,6 60	4,71 1
Con t lia bilit ies from d fl ight do trac ent un use cum s	7,21 3	4,8 98	5,3 60
Oth liab ilitie ont ract er c s	2,5 31	2,6 82	2,4 89
Adv ed, def d in d o the n-fi cial liab ilitie ent ceiv anc e p aym s re erre com e an r no nan s	844	681	681
Der fina l ins ivat ive ncia trum ent s	594	489	279
Effe x ob liga ctiv e in e ta tion com s	549	545	723
Liab ilitie ith held for sal s in ctio ets co nne n w ass e	612	–	25
Cur ovis ions d li abi litie t pr ren an s	20, 375	08 17,7	16,9 83

Total shareholders' equity and liabilities 44,904 43,335 44,386

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

in € m	Issu ed ital cap	Cap ital rese rve	Fair val ue mea sure f nt o me fina ncia l inst ru nts me	Cur ren cy diff er enc es	Rev a luat ion rese rve (du e to bus ines s bina com s) tion	Oth er tral neu rese rves	Tot al oth er tral neu res erv es	Ret aine d ning ear s	Net fit/ pro loss	Equ ity ib attr ble uta har to s e hold of ers Deu he tsc Luf tha nsa AG	Non trol ling con inte rest s	Tot al sha reh ol der s' ity equ
As of 0 1/0 1/2 022	3,0 60	956	946	589	236	363	2,13 4	491	-2,1 91	4,4 50	40	4,4 90
Rec lass ifica tion s	–	–	-	–	–	–	–	-2,1 91	2,19 1	–	–	–
Con soli dat ed fit/ loss ribu tab le to Lu ftha sha reh old net att pro nsa ers/ min orit ies	–	–	–	–	–	–	–	–	-58 4	-58 4	2	-58 2
Oth d in nise d d irec tly in e quit er e xpe nse s an com e re cog y	–	–	712	45	–	-	757	936	–	1,69 3	16	1,70 9
Hed ging ults lass ified fro fina ncia l as uisi tion set s to sts res rec m n on- acq co	–	–	-191	–	–	–	-191	–	–	-191	–	-191
of 3 1/0 3/2 022 As	3,0 60	956	1,46 7	634	236	363	2,7 00	-76 4	-58 4	5,3 68	58	5,4 26
As of 0 1/0 1/2 023	3,0 60	252	913	739	236	346	2,2 34	2,0 68	791	8,4 05	69	8,4 74
Rec lass ifica tion s	–	–	-	–	–	–	–	791	-79 1	–	–	–
Div ide nds Luft han hare hold ers/ min orit y in to tere sts sa s	–	–	–	–	–	–	–	–	–	–	-9	-9
Con soli dat ed fit/ loss ribu tab le to Lu ftha sha reh old net att pro nsa ers/ min orit ies	–	–	–	–	–	–	–	–	-46 7	-46 7	2	-46 5
Oth d in nise d d irec tly in e quit er e xpe nse s an com e re cog y	–	–	-34 4	-37	–	-	-38 1	-9	–	-39 0	–	-39 0
Hed ging ults lass ified fro fina ncia l as uisi tion set s to sts res rec m n on- acq co	–	–	-60	–	–	–	-60	–	–	-60	–	-60
As of 3 1/0 3/2 023	3,0 60	252	509	702	236	346	1,79 3	2,8 50	-46 7	7,4 88	62	7,5 50

CONSOLIDATED CASH FLOW STATEMENT

in € m	Jan - M ar 202 3	Jan - M ar 202 2
Cas h a nd h e vale of iod qui nts at s tart cas per	1,78 4	2,3 05
Net fit/ loss be fore inc fro inue d a nd d isco ntin ued ions e ta ont erat pro om xes m c op	-57 5	-69 0
Dep iatio rtis atio d im pair nt l ts ( of rsal s) nt a net rec n, a mo n an me oss es o n no n-c urre sse reve	602	575
Dep d im nt l s (n f re sals ) iatio rtis atio pair t as set et o rec n, a mo n an me oss es o n cu rren ver	-10	41
Net ds o n d ispo sal of n rent ets pro cee on- cur ass	8	-10
Res ult of e quit y in tme nts ves	16	60
Net int st ere	92	83
Inco nts/ bur tax reim ent me pay me sem s	-11	11
Sig nific ash es/ inco ant no n-c exp ens me	37	-124
Cha rad ork ital in t ing nge e w cap	1,54 7	1,29 2
Cha the s/s hare hold ers' d lia bilit in o uity ies set nge r as eq an	-125	258
Cas h fl from ting tivi ties ow op era ac	1,58 1	1,49 6
Cap ital end itur e fo pla nd e qui d in gib le a rty, nt a ent tan ts exp r pr ope pm an sse	-99 6	-63 7
Cap ital end itur e fo r fin ial i stm ent exp anc nve s	-4	-3
Add ns/ loss ble of raft itio to aira arts airc rep spa re p	-85	-43
Pro ds f dis al o f no olid d sh ate cee rom pos n-c ons are s	-	-
Pro ds f dis al o f co lida ted sha cee rom pos nso res	-	1
Cas h ou tflo for s of olid d sh uisi tion ate ws acq no n-c ons ares	-8	-8
Cas h ou tflo for s of lida ted sha uisi tion ws acq co nso res	-	-
Pro ds f dis al o f in gib le a plan d e d o the r fin ial tan ts, ty, t an qui ent cee rom pos sse pro per pm an anc inve stm ent s	21	48
Inte rest inc om e	23	2
Div ide nds d eive rec	9	3
Net sh f /us ed in i stin ctiv itie ca rom nve g a s	-1,0 40	-63 7
Pur cha f se ities /fu nd inve stm ent se o cur s	-3,4 69	-80 7
Dis al o f se ities /fu nd inve stm ent pos cur s	2,8 98	700
sh f Net /us ed in i stin nd h m tivi ties ent ca rom nve g a cas ana gem ac	-1,6 11	-74 4

CONSOLIDATED CASH FLOW STATEMENT (continued)

in € m	Jan - M ar 202 3	Jan - M ar 202 2
Cap ital incr eas e	-	-
Non t bo ing -cu rren rrow	74	162
Rep of t bo ing ent aym non -cu rren rrow	-25 0	-63 2
Div ide nds id pa	-9	-
Inte id rest pa	-151	-116
Net sh f /us ed in f inan cin ctiv itie ca rom g a s	-33 6	-58 6
Net inc se/ dec in c ash d c ash uiva lent rea rea se an eq s	-36 6	166
Cha s du latio n d iffe e to cy t nge cu rren rans ren ces	-4	10
3¹⁾ Cas h a nd h e qui vale 31/ 03/ 202 nts cas	1,41 4	2,4 81
Les sh a nd c ash uiva lent s of anie s he ld f ale f 31 Ma s ca eq co mp or s as o r	132	-
Cas h a nd h e qui vale of c ies cla ssif ied as h eld for le a s of 31 Ma nts not cas om pan sa r	1,28 2	2,4 81
Sec urit ies	6,9 29	5,4 67
Liq uid ity	8,2 11	7,9 48
Net e/d liq uidi inc e in ty reas ecr eas	-84	284

^¹⁾ The difference between the bank balance and cash-in-hand shown in the statement of financial position comes from fixedterm deposits of EUR 150m with terms of four to twelve months (previous year: EUR 4m).

Notes

1 Applied standards, changes in the group of consolidated companies and accounting principles

The consolidated financial 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), as applicable in the European Union (EU), taking account of interpretations by the IFRS Interpretations Committee (IFRIC). This interim report as of 31 March 2023 has been prepared in condensed form in accordance with IAS 34.

In preparing the interim financial statements the standards and interpretations applicable as of 1 January 2023 have been applied. The interim financial statements as of 31 March 2023 have been prepared using the same accounting policies as those on which the preceding consolidated financial statements as of 31 December 2022 were based. The standards and interpretations mandatory from 1 January 2023 onwards had no effect on the Group's net assets, financial and earnings position, and no restatements resulting from new standards were necessary.

No significant changes to the group of consolidated companies occurred in the reporting period.

2 Going concern and presentation of funding measures to stabilize the economic situation

In the first three months of 2023, the business activities of the companies of the Lufthansa Group continued to be shaped by a significant rise in the level of demand for flights. In the prior-year period, business activities were still impacted by the effects of the coronavirus pandemic and the related restrictions and quarantine regulations. Against the background of these developments, revenue increased considerably compared with the prior-year period due to volumes and prices. At the same time, costs increased significantly. This was attributable in particular to the strong rise in fuel prices due to the war in Ukraine. Pricing developments over the past few months also resulted in higher expenses for the other volume-related expense items. Moreover, staff costs increased significantly due to the agreed adjustments to wage agreements and the end of the short-time work scheme.

The strong increase in the volume of business is having a positive impact on liquidity, and a clearly positive cash flow from operating activities was achieved in the reporting period, particularly due to increased cash flows from ticket sales.

As of 31 March 2023, Deutsche Lufthansa AG had centrally available liquidity of EUR 7.6bn. Decentralised bank and cash balances came to a further EUR 0.8bn. Moreover, a revolving free credit line of EUR 2.1bn is available as of the reporting date. Altogether, the Lufthansa Group's available liquidity therefore comes to EUR 10.5bn.

Since there is still uncertainty surrounding the overall economic trend and customer behaviour, the Lufthansa Group regularly updates its rolling liquidity planning to reflect the changing parameters for its forecast course of business. The direct and indirect effects surrounding the war in Ukraine, and the related additional uncertainties, represent a risk for the further course of business. The earnings performance in the 2023 financial year and beyond will continue to depend significantly on the extent of the economic impact of the war in Ukraine and the development of demand. The Lufthansa Group is directly affected by the significantly higher prices for energy, in particular crude oil and kerosene, as well as the strong rise in interest rates. The potential impact of general price increases and supply chain problems on the future economic development and management of operational problems due to staff shortages in the airline industry are further material risk factors.

Taking into account the corporate planning – which assumes an average available capacity of between 85% and 95% or almost 100% of the 2019 level in 2023 and 2024 respectively – and the resulting liquidity planning, the further potential funding measures and the uncertainties about the future course of business, the Company's Executive Board considers the Group's liquidity to be secure for the next 18 months. In the management's opinion, the uncertainties in connection with the public and political debate on climate protection are not a threat to this forecast. The consolidated financial statements have therefore been prepared on a going concern basis.

3 Notes to the income statement, statement of financial position and cash flow statement

The coronavirus pandemic and the necessary steps taken by governments worldwide to contain the virus had a massive impact on the Group's business operations in the 2020 to 2022 financial years. The removal of almost all travel restrictions and quarantine rules has led to a significant increase in air travel at the Lufthansa Group companies in the course of the year to date. Accordingly, the comparability of income and expenses in 2023 compared with the figures for the previous year is limited. The war in Ukraine affected expenses in particular, for instance, due to higher kerosene prices.

In March 2023, the Executive Board of Deutsche Lufthansa AG resolved to sell its Catering segment to the private equity firm AURELIUS Equity Opportunities SE & Co. KGaA via a carve-out. This carve-out transaction covers the full range of traditional catering activities as well as the onboard retail and food commerce business. It also includes all the LSG Group brands, including the 131 LSG Sky Chefs catering facilities in the Americas (USA and Latin America), EMMA (Emerging Markets) and Asia-Pacific regions. Likewise, it includes the onboard retail specialist Retail InMotion (RiM), which is headquartered in Europe, as well as SCIS Air Security Services in the United States. On the other hand, the business in Russia does not form part of this transaction. The relevant purchase agreement was signed on 4 April 2023. The European activities of LSG Sky Chefs had already been sold off to gategroup in 2019. The sale of its Catering division forms part of the Lufthansa Group's strategy of focusing more on its core airline business. The transaction is expected to be completed in the third quarter of 2023, subject to external approvals and internal carve-out activities. Under the rules of IFRS 5, within the scope of this decision as of 31 March 2023, all assets and liabilities from the respective individual items of the statement of financial position will be reclassified to the items "Assets held for sale" and "Liabilities in connection with assets held for sale". In the income statement, the individual items will likewise be reclassified to the item "Profit/loss from discontinued operations". The comparative figures for the previous year will be adjusted accordingly. The resulting effects will have a significant impact on the interim financial statements.

TOTAL REVENUE

TRAFFIC REVENUE BY AREA OF OPERATIONS

in € m	202 3	¹⁾ Eur ope	Nor th ¹⁾ rica ame	Cen tral and Sou th a¹⁾ Am eric	Asi a/ ific¹ ⁾ Pac	Mid dle t¹⁾ Eas	ica¹ ⁾ Afr
Pas -Air line sen ger s	4,9 33	3,5 50	793	91	325	86	88
Luf tha Ge n A irlin nsa rma es	2,78 5
²⁾ SW ISS	1,17 8
Aus n A irlin tria es	381
Bru ls sse	263
²⁾ Eur owi ngs	326
Log istic s	775	421	90	27	207	12	18
Tot al	5,7 08

^¹⁾ Traffic revenue is allocated to the original location of sale.

^²⁾ Disclosure of traffic revenue, including belly revenue; this is reported in the segment reporting in the reconciliation column.

TRAFFIC REVENUE BY AREA OF OPERATIONS

in € m	202 2	¹⁾ Eur ope	Nor th ¹⁾ rica ame	Cen tral and Sou th a¹⁾ Am eric	Asi a/ ⁾ ific¹ Pac	Mid dle t¹⁾ Eas	ica¹ ⁾ Afr
s³⁾ Pas -Air line sen ger	2,70 5	1,98 8	396	58	136	66	61
es³⁾ Luf tha Ge n A irlin nsa rma	1,47 6
²⁾ SW ISS	721
Aus tria n A irlin es	181
Bru ls A irlin sse es	141
²⁾ Eur owi ngs	186
Log istic s	1,13 1	588	121	40	348	14	20
al³⁾ Tot	3,8 36

^¹⁾ Traffic revenue is allocated to the original location of sale.

^²⁾ Disclosure of traffic revenue, including belly revenue; this is reported in the segment reporting in the reconciliation column. ^³⁾ Restated due to reclassification of Segment Catering to discontinued operations.

OTHER OPERATING REVENUE BY AREA OF OPERATIONS

in € m	202 3	¹⁾ Eur ope	Nor th a¹⁾ Am eric	Cen tral and Sou th a¹⁾ Am eric	Asi a/ ⁾ ific¹ Pac	Mid dle t¹⁾ Eas	ica¹ ⁾ Afr
MR O	1,02 9	402	325	43	183	53	23
MR O s ices erv	857
Oth atin er o per g re ven ue	172
Pas -Air line sen ger s	126	114	5	1	4	1	1
Log istic s	36	20	12	–	2	2	–
Add itio nal Bus ines d G ses an rou p Fun ctio ns	118	81	10	5	16	4	2
IT s ices erv	42
Tra vel nt man age me	61
Oth er	15
Tot al	1,30 9

^¹⁾ Other operating revenue is allocated according to the original location of sale.

OTHER OPERATING REVENUE BY AREA OF OPERATIONS2)

in € m	202 2	¹⁾ Eur ope	Nor th a¹⁾ Am eric	Cen tral and Sou th a¹⁾ Am eric	Asi a/ ⁾ ific¹ Pac	Mid dle t¹⁾ Eas	⁾ ica¹ Afr
MR O	953	381	320	26	169	39	18
MR O s ices erv	822
Oth atin er o per g re ven ue	131
Pas -Air line sen ger s	99	84	6	1	5	2	1
Log istic s	27	19	8	–	–	–	–
d G Add itio nal Bus ines ses an rou p Fun ctio ns	87	60	9	4	11	2	1
IT s ices erv	38
Tra vel nt man age me	33
Oth er	16
Tot al	1,16 6

^¹⁾ Other operating revenue is allocated according to the original location of sale.

^²⁾ Values of the Catering business activities are presented under assets held for sale and discontinued operations.

IMPAIRMENT

Due to accident damage not covered by insurance policies, the valuations of five decommissioned Airbus A380s which are held for sale were reduced by EUR 13m. This impairment is reported under other operating expenses.

AIRCRAFT AND RESERVE ENGINES

Seven newly purchased aircraft were capitalised in the reporting period. The Lufthansa Group provided one aircraft as collateral for new loans of EUR 53m taken out in the current financial year by way of aircraft financing models.

DEFERRED TAXES

The deferred tax assets recognised on tax loss carry-forwards from prior years were again deemed to have a realisable value because the losses were caused by a temporary exogenous shock and the Company assumes that sufficient positive taxable profits will be available in the foreseeable future to set off against them. Tax loss carry-forwards are not subject to any restrictions regarding the period of time in which they can be used in Germany.

ASSETS CLASSIFIED AS HELD FOR SALE

The above-mentioned reclassification of the assets and liabilities allocable to the Catering business segment in the statement of financial position as of 31 March 2023 will result in significant changes in these items.

The breakdown of revenue for the discontinued Catering business is as follows for the Group's regions:

DIS CO NTI NU ED OP ERA TIO NS CA TER ING - O TH ER OP ERA TIN G R EVE NU E B Y A REA OF OP ERA TIO NS
in € m	202 3	¹⁾ Eur ope	the reof Ger ma ny	Nor th Am eri ca¹⁾	the reof USA	Cen tral and Sou th Am eri ca¹⁾	a/ Pac Asi ⁾ ific¹	Mid dle Eas t¹⁾	⁾ ica¹ Afr
Cat erin g	507	57	15	344	288	31	57	9	9
Cat erin rvic g se es	430
Rev e fr in enu om flig ht s ales	50
Oth ices er s erv	27
in € m	202 2
Cat erin g	364	39	9	265	239	24	21	7	8
Cat erin rvic g se es	303
Rev e fr in enu om flig ht s ales	34
Oth ices er s erv	27

^¹⁾ Other operating revenue is allocated according to the original location of sale.

The following table shows the loss from discontinued operations in accordance with IFRS 5.33b. The figures show the discontinued Catering operation's business activities with third parties less the revenue and expenses of companies of the Lufthansa Group from intra-Group transactions with companies in the Catering segment.

DIS CO NTI NU ED OP ERA TIO NS CA TER ING - P RO FIT AN D L OS S
in € m	31/ 03/ 202 3	31/1 2/2 022
Rev enu e	508	375
Cos t	-514	-40 8
Los s fr ord inar itie s b efo ctv re t om y a axe s	-6	-33
Tax es	2	3
Los s fr ord inar itie s af ctv ter tax om y a es	-4	-30
Imp airm for val ion at f air v alue les ll ent uat st t s co o se	-40	–
Tax es	–	–
Los s fr dis ed tinu rati om con ope ons	-44	-30

The adjustment of the net assets of the discontinued operation in line with the expected cash inflows from the purchase agreement necessitated the recognition of an impairment of EUR 40m which is reported in the profit/loss from discontinued operations.

In shareholders' equity, in the other neutral reserves item, accumulated expenses of EUR 180m are attributable to the discontinued Catering business segment. This mainly comprised differences from currency translation.

Expenses and income attributable to non-controlling interests do not include any amounts relating to discontinued operations (previous year: expenses of EUR 1m).

The following amounts in the cash flow statement are attributable to the discontinued Catering business segment:

DIS CO NTI NU ED OP ERA TIO NS CA TER ING - C AS HFL OW

in € m	31/ 03/ 202 3	31/1 2/2 022
Net h fr /us ed in o atin tivit ies cas om per g ac	-36	-1
h fr Net /us ed in in ting iviti act cas om ves es	-5	-5
Net h fr /us ed in c ash iviti ent act cas om ma nag em es	-3	-1
Net h fr /us ed in in ting d ca sh m iviti ent act cas om ves an ana gem es	-8	-6
Net h fr /us ed in f inan cing iviti act cas om es	-8	-157

Assets with a carrying amount of EUR 1,270m were held for sale as of 31 March 2023. This item included six Airbus A380 aircraft sold for future delivery, with a book value of EUR 302m, which are all attributable to the Passenger Airlines segment. All the other assets and liabilities relate to the activities of the LSG Group which have been sold.

ASSETS HELD FOR SALE AND CORRESPONDING LIABILITIES

in € m	31/ 03/ 202 3	31/1 2/2 022	31/ 03/ 202 2
Ass ets
Airc raft d re gine an serv e en s	302	315	208
Lan d a nd buil ding s	246	2	11
Fina ncia l as set s	48	–	11
Oth ts er a sse	674	2	21
	1,27 0	319	251
Liab iliti es
Pen sion visi pro ons	28	–	2
Oth isio er p rov ns	51	–	5
Bor ings row	117	–	–
Oth er L iabi litie s	416	–	18
	612	–	25

PENSION PROVISIONS

The discount rate used to calculate obligations in Germany was 4.1% (31 December 2022: 4.2%). A discount rate of 2.3% was used for the pension obligations in Switzerland (31 December 2022: 2.4%).

4Seasonality

The Group's business is mainly exposed to seasonal effects via the Passenger Airlines business segment. As such, revenue in the first and fourth quarters is generally lower, since people travel less, while higher revenue and operating profits are normally earned in the second and third quarters.

5Contingencies and events after the reporting period

CO NTI NG ENT LIA BIL ITIE S
in € m	31/ 03/ 202 3	31/1 2/2 022
Fro bills of han and ch nte nte m g uara es, exc ge equ e g uara es	1,42 4	1,44 6
Fro nty trac ts m w arra con	265	249
Fro idin llate ral f hird s lia bilit rtie ies or t m p rov g co -pa	19	19
	1,70 8	1,71 4

Provisions for other contingent liabilities were not created because an outflow of resources was not sufficiently probable. The potential financial effect of these provisions on the result would have been EUR 64m (as of 31 December 2022: EUR 72m).

As of 31 March 2023, the tax risks for which no provisions were recognised amounted to some EUR 450m (as of 31 December 2022: EUR 450m).

At the end of March 2023, there were order commitments of EUR 18.5bn for capital expenditure on property, plant and equipment, including repairable spare parts, and for intangible assets. As of 31 December 2022, the order commitments came to EUR 16.2bn. The change mainly resulted from the order of 15 Airbus A350s and seven Boeing 787-9s. Down payments and final payments as well as currency effects for current orders offset one another.

EVENTS AFTER THE REPORTING PERIOD

Deutsche Lufthansa AG has signed an agreement with the private equity firm, AURELIUS, on the sale of its remaining interest in the LSG Group.

This carve-out transaction covers the full range of traditional catering activities as well as the onboard retail and food commerce business. It also includes all the LSG Group brands, including the 131 LSG Sky Chefs catering facilities in the Americas (USA and Latin America), EMMA (Emerging Markets) and Asia-Pacific regions. Likewise, it includes the onboard retail specialist Retail InMotion (RiM), which is headquartered in Europe, as well as SCIS Air Security Services in the United States. The LSG Group has around 19,000 employees and is involved in 36 joint ventures worldwide.

The transaction is expected to be completed in the third quarter of 2023, subject to external approvals and internal carve-out activities.

6Financial instruments and financial liabilities

FINANCIAL INSTRUMENTS

The following tables show financial assets and liabilities held at fair value by level in the fair value hierarchy. The levels are defined as follows:

Level 1: Financial instruments traded on active markets, the quoted prices for which are taken for measurement unchanged.

Level 2: Measurement is made by means of valuation methods with parameters derived directly or indirectly from observable market data.

Level 3: Measurement is made by means of valuation methods with parameters not based exclusively on observable market data.

As of 31 March 2023, the breakdown of financial assets and liabilities recognised at fair value by measurement category was as follows:

FAIR VALUE HIERARCHY OF ASSETS AS OF 31/03/2023

in € m	Lev el 1	el 2 Lev	el 3 Lev	Tot al
Fin ial a t fa ir v alue thr h p rofi d lo ts a t an anc sse oug ss	5,7 88	78	28	5,8 94
Fina l de s cl ified held for ding ncia riva tive tra ass as	–	78	–	78
Sec urit ies	5,78 8	–	–	5,78 8
Inve stm ent s	–	–	28	28
Der ivat ive fina ncia l ins hich eff ive t of trum ent ect s w are an par a hed gin lati hip g re ons	–	1,50 0	–	1,50 0
Fina l as fai lue thro ugh oth hen ncia sive inc set s at r va er c om pre om e	19	1,09 8	–	1,11 7
Equ ity inst ent rum s	19	7	–	26
Deb t in stru nts me	–	1,09 1	–	1,09 1
Tot al a ts sse	5,8 07	2,6 76	28	8,5 11

FAIR VALUE HIERARCHY OF LIABILITIES AS OF 31/03/2023

in € m	Lev el 1	Lev el 2	Lev el 2	Tot al
at f rofi Fina ncia l lia bilit ies air v alue thr h p los t or oug s	–	-73 3	–	-73 3
Der fina l ins fai lue thro ugh fit o r los ivat ive ncia trum ent s at r va pro s	–	-9	–	-9
Der fina l ins hich effe of a he dgi ivat ive ncia ctiv trum ent art s w are an e p ng rela ship tion	–	-95 2	–	-95 2
Tot al li abi litie s	–	-1,6 94	–	-1,6 94

In the case of the Level 3 equity investments, the acquisition costs are considered the best estimate of fair value for reasons of materiality.

As of 31 December 2022, the breakdown of financial assets and liabilities recognised at fair value by measurement category was as follows:

FAIR VALUE HIERARCHY OF ASSETS AS OF 31/12/2022

in € m	Lev el 1	Lev el 2	Lev el 3	Tot al
t fa rofi Fin ial a ir v alue thr h p d lo ts a t an anc sse oug ss	5,4 15	101	28	5,5 44
Fina l de s cl ified held for ding ncia riva tive tra ass as	–	101	–	101
Sec urit ies	5,4 15	–	–	5,4 15
Inve stm ent s	–	–	28	28
Der ivat ive fina ncia l ins hich eff ive t of trum ent ect s w are an par a hed gin lati hip g re ons	–	1,88 0	–	1,88 0
Fina l as fai lue thro ugh oth hen ncia set s at sive inc r va er c om pre om e	18	1,10 3	–	1,12 1
Equ ity inst ent rum s	18	7	–	25
Deb t in stru nts me	–	1,09 6	–	1,09 6
Tot al a ts sse	5,4 33	3,0 84	28	8,5 45

FAIR VALUE HIERARCHY OF LIABILITIES AS OF 31/12/2022

in € m	Lev el 1	Lev el 2	Lev el 2	Tot al
Fina l lia bilit at f alue thr h p rofi los ncia ies air v t or oug s	–	-62 1	–	-62 1
Der fina l ins fai lue thro ugh fit o r los ivat ive ncia trum ent s at r va pro s	–	-1	–	-1
Der fina l ins hich effe of a he dgi ivat ive ncia trum ent ctiv art s w are an e p ng rela ship tion	–	-88 2	–	-88 2
Tot al li abi litie s	–	04 -1,5	–	04 -1,5

The fair values of interest rate derivatives correspond to their respective market values, which are measured using appropriate mathematical methods, such as discounting expected future cash flows. Discounting takes market standard interest rates and the residual term of the respective instruments into account. Forward currency transactions and swaps are individually discounted to the reporting date based on their respective futures rates and the appropriate interest rate curve. The market prices of currency options and the options used to hedge fuel prices are determined using acknowledged option pricing models.

The fair values of debt instruments also correspond to their respective market values, which are measured using appropriate mathematical methods, such as discounting expected future cash flows. Discounting takes market standard interest rates and the residual term of the respective instruments into account.

The carrying amount for cash, trade receivables, other receivables, trade payables and other liabilities is assumed to be a realistic estimate of fair value.

FINANCIAL LIABILITIES

The following table shows the carrying amounts and fair values of the individual classes of financial liabilities. For bonds, the fair values correspond to the stock market quotations. The fair values for the other financial liabilities were determined on the basis of the interest rates applicable at the balance sheet date for the corresponding residual terms/redemption structures using accessible market information (Bloomberg).

FIN AN CIA L L IAB ILIT IES
	31/ 03/	202 3	31/1 2/2	022
in € m	Car ryin g unt amo	Ma rket valu e	Car ryin g unt amo	Ma rket valu e
Bon ds	6,8 64	6,4 26	6,6 59	6,16 8
Bor er's te l row no oan s	1,24 5	1,17 5	1,24 2	1,16 2
Cre dit line s	20	20	–	–
Airc raft fin ing anc	4,3 51	4,4 35	4,4 07	4,5 39
1) Oth er b win orro gs	320	392	400	391
Tot al	12,8 00	12,4 48	12,7 08	12,2 60
Lea liab ilitie sing s	2,2 60	n.a.	2,4 43	n.a.
Tot al	15,0 60		15,1 51

1) Allocation as of 31/12/2022 restated.

7Earnings per share

EAR NIN GS PER SH AR E
		31/ 03/ 202 3	31/ 03/ 202 2
Bas ic/d ilut ed nin sh ear gs per are	€	– 0 .39	– 0 .49
Con soli dat ed fit/ loss net pro	€m	– 4 67	– 5 84
We ight ed ber of sha ave rag e n um res		1,19 5,4 85, 644	1,19 5,4 85, 644

With a net profit/loss for the period from continuing operations of EUR -421m (previous year: EUR -552m) and from discontinued operations of EUR -44m (previous year: EUR - 30m), basic earnings per share from continuing operations amounted to EUR -0.35 (previous year: EUR -0.46) and basic earnings per share from discontinued operations amounted to EUR -0.04 (previous year: EUR -0.03). Diluted earnings matched basic earnings.

8 Issued capital

SHARE CAPITAL

Deutsche Lufthansa AG's issued capital totals EUR 3,060,443,248.64. It is divided into 1,195,485,644 registered shares with transfer restrictions, with each share representing EUR 2.56 of issued capital.

AUTHORISED CAPITAL

A resolution passed at the Annual General Meeting on 10 May 2022 authorised the Executive Board until 9 May 2025, subject to approval by the Supervisory Board, to increase the Company's issued capital by up to EUR 1,000,000,000 by issuing new registered shares on one or more occasions for payment in cash or in kind (Authorised Capital A) In certain cases, shareholders' subscription rights can be excluded with the approval of the Supervisory Board.

A resolution passed at the Annual General Meeting on 7 May 2019 authorised the Executive Board until 6 May 2024, subject to approval by the Supervisory Board, to increase the issued capital by EUR 30,000,000 by issuing new registered shares to employees (Authorised Capital B) for payment in cash. Existing shareholders' subscription rights are excluded. In the period up to 31 March 2023, the issued capital was increased under this authorisation by a total of EUR 7,637,831.68, with the result that Authorised Capital B still amounted to EUR 22,362,168.32 as of the reporting date.

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

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

CONTINGENT CAPITAL

A resolution of the Annual General Meeting on 5 May 2020 increased the Company's contingent capital by up to EUR 122,417,728. The contingent capital increase serves to provide shares to the holders or creditors of conversion and/or option rights from convertible bonds that may be issued by the Company or its Group companies until 4 May 2025. In certain cases, shareholders' subscription rights can be excluded with the approval of the Supervisory Board.

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

AUTHORISATION TO PURCHASE TREASURY SHARES

A resolution passed at the Annual General Meeting held on 7 May 2019 authorised the Executive Board pursuant to Section 71 Paragraph 1 No. 8 of the German Stock Corporation Act (AktG) to purchase treasury shares until 6 May 2024. The authorisation is limited to 10% of

current issued capital, which can be purchased on the stock exchange or by a public purchase offer to all shareholders. The authorisation states that the Executive Board can use the shares, in particular, for the purposes defined in the resolution passed at the Annual General Meeting. According to the resolution of the Annual General Meeting held on 7 May 2019, the Executive Board is also authorised to purchase treasury shares by means of derivatives and to conclude corresponding derivative transactions.

9Segment reporting

Aircraft Maintenance and Engineering Corporation (AMECO), which was previously presented in the MRO segment, has formed part of the Additional Businesses and Group Functions in the Company's internal reporting since the start of the current financial year. The figures for the previous year have been adjusted accordingly.

The Catering segment will continue to presented as an operating business activity. In the segment reporting, the earnings for the discontinued operation in the Catering segment will be reclassified in the reconciliation with net profit/loss for the period.

SEGMENT INFORMATION FOR THE REPORTING SEGMENTS Jan - Mar 2023

in € m	Pas Air line sen ger s	Log istic s	O MR	Cat erin g	Tot al re tab le por rati ent ope ng s egm s	Add itio nal Bus ines ses and Gr Fu ions nct oup	Rec iliat ion onc	Gro up
Ext al re ern ven ue	5,0 53	811	1,02 9	507	7,4 00	118	-50 1	7,0 17
of w hich ffic tra rev enu e	4,8 06	775	–	–	81 5,5	–	127	5,70 8
Inte ent r-se gm rev enu e	158	12	508	16	694	95	-78 9	–
Tot al r eve nue	5,2 11	823	1,53 7	523	8,0 94	213	-1,2 90	7,0 17
Oth atin g in er o per com e	303	25	98	6	432	549	-30 7	674
Op ting inc era om e	5,5 14	848	1,63 5	529	8,5 26	762	97 -1,5	91 7,6
Op ting era ex pen ses	5,9 97	703	1,49 6	537	8,7 33	801	-1,5 88	7,9 46
of w hich f m rials st o ate co	3,4 47	491	903	204	5,0 45	92	-76 5	4,3 72
of w hich ff c sta ost	1,24 1	99	377	229	1,94 6	202	-22 9	1,91 9
of w hich de and ciat ion orti sat ion pre am	421	44	39	19	523	28	-6	545
of w hich oth atin er o per g ex pen ses	888	69	177	85	1,21 9	479	-58 8	1,110
Op ting ult of e qui ty i stm ent era res nve s	-29	6	-4	2	-25	9	-2	-18
of w hich ult of i d fo the tho d stm ent nte ing uity res nve s ac cou r us eq me	-24	1	-4	2	-25	1	-3	-27
T1) Adj ed EBI ust	2 -51	151	135	-6	-23 2	-30	-11	-27 3
Rec iliat ion item onc s	-19	-2	–	-40	-61	-9	39	-31
Imp airm los /ga ins ent ses	-13	-1	1	-40	-53	1	41	-11
Effe from ns & cts nsio isio truc turi pe n p rov res ng	–	–	1	–	1	-2	-2	-3
Res ult of d sal of a ispo ts sse	-6	–	-2	–	-8	–	-1	-9
Oth ncil iatio n it er r eco em s	–	-1	–	–	-1	-8	1	-8
EBI T	-53 1	149	135	-46	-29 3	-39	28	-30 4
Oth er f inan cial ult res								-22 6
Pro fit/ loss be fore inc e ta om xes								-53 0
ed2 ) Cap ital ploy em	6,2 33	2,24 3	3,8 59	436	12,7 71	1,51 8	-25 9	14,0 30
of w hich fro m in ted for usi he e quit eth od tme nts ng t ves acc oun y m	101	44	154	41	340	22	-40	322
Seg apit al e ndit nt c me xpe ure	774	146	21	9	950	5	53	1,00 8
of w hich fro ted for he e eth od m in tme nts usi ng t quit ves acc oun y m	–	–	5	–	5	–	–	5
Num ber of e loye t th d o f pe riod mp es a e en	57,8 60	4,0 90	21,0 23	21,3 32	104 ,30 5	8,0 87	–	112, 392

1) For detailed reconciliation from EBIT to Adjusted EBIT ↗ table "reconciliation of results", p. 7, in the interim management report.

2) The capital employed results from total assets adjusted for non-operating items, (deferred taxes, positive market values, derivatives) less cash and cash equivalents and less non-interest bearing liabilities (including trade payables and liabilities from unused flight documents).

SEGMENT INFORMATION FOR THE REPORTING SEGMENTS Jan - Mar 2022

in € m	Pas sen ger Airl ines	Log istic s	MR O	Cat erin g	Tot al re tab le por rati ent ope ng s egm s #	Add itio nal Bus ines ses and Gr Fu ions nct oup	ion4 ) Rec iliat onc	4) Gro up
Ext al re ern ven ue	2,8 01	1,15 8	953	364	5,2 76	87	-36 1	5,0 02
of w hich ffic tra rev enu e	2,5 13	1,13 1	–	–	3,6 44	–	192	3,8 36
Inte ent r-se gm rev enu e	219	11	373	9	612	49	-66 1	–
Tot al r eve nue	3,0 20	1,16 9	1,32 6	373	5,8 88	136	-1,0 22	5,0 02
Oth atin g in er o per com e	138	21	68	13	240	382	-180	442
Op ting inc era om e	3,15 8	1,19 0	1,39 4	386	6,12 8	518	-1,2 02	5,4 44
Op ting era ex pen ses	4,2 38	701	1,26 1	396	6,5 96	583	-1,1 97	5,9 82
of w hich f m rials st o ate co	2,19 8	506	731	147	3,5 82	57	-62 3	3,0 16
of w hich ff c sta ost	997	96	342	175	1,61 0	179	-175	1,61 4
of w hich de ciat ion and orti ion sat pre am	438	40	45	19	542	29	-26	545
of w hich oth atin er o per g ex pen ses	605	59	143	55	862	318	-37 3	807
Op ult of e ting qui ty i stm ent era res nve s	-34	6	-43)	-4	-36	-73)	4	-39
of w hich ult of i d fo ing the uity tho d stm ent nte res nve s ac cou r us eq me	-31	3	-43)	-4	-36	-93)	4	-41
T1) Adj ed EBI ust	-1,1 14	495	3) 129	-14	-50 4	3) -72	-1	-57 7
Rec iliat ion item onc s	67	-14	-79	-19	-45	-2	16	-31
Imp los /ga airm ent ins ses	–	–	-13	-17	-30	–	17	-13
Effe from nsio isio cts pe n p rov ns	-2	-14	-1	–	-17	-1	–	-18
Res ult of d ispo sal of a ts sse	–	–	10	–	10	–	-2	8
Oth ncil iatio n it er r eco em s	69	–	-75	-2	-8	-1	1	-8
EBI T	-1,0 47	481	503 )	-33	9 -54	3) -74	15	-60 8
Oth er f inan cial ult res								-48
Pro fit/ loss be fore inc e ta om xes								-65 6
ed2 ) Cap ital ploy em	7,39 7	2,17 7	383 ) 3,5	642	13,7 54	43) 1,28	-20 7	14,8 31
of w hich fro ted for he e eth od m in tme nts usi ng t quit ves acc oun y m	78	72	3) 135	45	330	563 )	-1	385
Seg al e ndit apit nt c me xpe ure	610	7	14	6	637	13	-2	648
of w hich fro m in ted for usi he e quit eth od tme nts ng t ves acc oun y m	–	–	4	–	4	–	–	4
Num ber of e loye t th d o f pe riod mp es a e en	55, 482	4,10 8	20, 008	16,5 20	96, 118	7,91 6	–	104 ,03 4

1) For detailed reconciliation from EBIT to Adjusted EBIT ↗ table "reconciliation of results", p. 7, in the interim management report.

2) The capital employed results from total assets adjusted for non-operating items (deferred taxes, positive market values, derivatives), less cash and cash equivalents and less non-interest bearing liabilities (including trade payables and liabilities from unused flight documents).

3) Restated due to segment reassignment of AMECO.

4) Restated due to reclassification of Segment Catering to discontinued operations.

EXTERNAL REVENUE BY REGION Jan - Mar

		202 3		202 2
in € m	Tra ffic 1) reve nue	Oth er rati ope ng reve nue	Tot al rev enu e	Tra ffic 1)2) reve nue	Oth er rati ope ng 2) reve nue	Tot al e2) rev enu
Eur ope	3,9 71	617	88 4,5	2,5 76	544	3,12 0
Ge the reof rma ny	1,69 2	266	1,95 8	1,14 2	216	1,35 8
Nor th A rica me	883	352	1,23 5	517	343	860
the reof US A	782	289	1,07 1	464	289	753
Cen tral d S h A rica out an me	118	49	167	98	31	129
Asi a/P acif ic	532	205	737	484	185	669
Mid dle Eas t	98	60	158	80	43	123
Afr ica	106	26	132	81	20	101
Tot al	08 5,7	1,30 9	7,0 17	3,8 36	1,16 6	5,0 02

^¹⁾ Allocated according to the original location of sale.

2) Restated due to reclassification of Segment Catering to discontinued operations.

10Related party disclosures

As stated in ↗ Note 50 to the 2022 consolidated financial statements (Annual Report 2022, p. 256ff.), the 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 were no significant changes as of the reporting date. The contractual relationships with the group of related parties described in the ↗ Remuneration Report 2022 (Annual Report 2022, p. 280ff.) and in the notes to the consolidated financial statements 2022 in ↗ Note 51 (Annual Report 2022, p. 259) also still exist unchanged, but are not of material significance for the Group.

11Published standards that have not yet been applied

Amendments of accounting standards which have been approved by the IASB as of the date of publication of this report and are applicable for financial years beginning after 1 January 2023 have no effect on the presentation of the net assets, financial and earnings position. Further information on the amendments resolved as of the preparation of the interim financial statements is provided in ↗ Note 3 of the notes to the consolidated financial statements 2022 (Annual Report 2022, p. 170ff.).

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 financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with ^a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.

Frankfurt, 27 April 2023

The Executive Board

Carsten Spohr Chairman of the Executive Board

Harry Hohmeister Member of the Executive Board Global Markets & Network

Michael Niggemann Member of the Executive Board Human Resources & Infrastructure, Labor Director

Christina Foerster Member of the Executive Board Brand & Sustainability

Detlef Kayser Member of the Executive Board Fleet & Technology

Remco Steenbergen Member of the Executive Board Finance

Credits

Published by Deutsche Lufthansa AG Venloer Str. 151 – 153 50672 Cologne Germany

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

Editorial staff Dennis Weber (Editor) Patrick Winter Malte Happel

Contact

Dennis Weber

Svenja Lang

Germany

49 69 696 – 28008

49 69 696 – 28025

Deutsche Lufthansa AG Investor Relations LAC, Airportring 60546 Frankfurt/Main

Phone: + 49 69 696 – 28008 E-Mail: investor.relations@dlh.de

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Financial calendar 2023

2 0 2 3
9 Ma y	An l Ge l Me 2 0 2 3 ing et nu a ne ra
3 Au t g us	Re lea f 2n d Int im Re ort se o er p Ja Ju 2 0 2 3 nu ary ne –
2 No be ve m r	Re lea f 3r d Int Re im ort se o er p Se 2 0 2 3 Ja be tem nu ary p r –

The Lufthansa 1st Interim Report is a translation of the original German Lufthansa Zwischenbericht 1/2023. Please note that only the German version is legally binding.

The latest financial information on the internet: ↗www.lufthansagroup.com/investor-relations

Disclaimer in respect of forward-looking statements

Information published in the 1st Interim Report 2023, with regard to the future development of the Lufthansa Group and its subsidiaries consists purely of forecasts and assessments and not of definitive facts. Its purpose is exclusively informational, and can be identified by the use of such cautionary terms as "believe", "expect", "forecast", "intend", "project", "plan", "estimate", "anticipate", "can", "could", "should" or "endeavour". These forward-looking statements are based on discernible information, facts and expectations available at the time that the statements were made. They are therefore subject to a number of risks, uncertainties and factors, including, but not limited to, those described in disclosures, in particular in the Opportunities and risk report in the Annual Report. Should one or more of these risks occur, or should the underlying expectations or assumptions fail to materialise, this could have a significant effect (either positive or negative) on the actual results.

It is possible that the Group's actual results and development may differ materially from the results forecast in the forward-looking statements. Lufthansa does not assume any obligation, nor does it intend, 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.

Note

Unless stated otherwise, all change figures refer to the corresponding period from the previous year. Due to rounding, some of the figures may not add up precisely to the stated totals, and percentages may not precisely reflect the absolute figures.