Lufthansa Interim Q1 2010

1st Interim Report
January – March 2010
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Lufthansa Group overview
Key figures Lufthansa Group Financial calendar 2010 / 2011

Jan. – March Jan. – March Change
2010 2009 3) in %
2010 2011
Revenue and result
Total revenue €m 5,758 5,015 14.8 29 July Release of Interim Report 17 March Press Conference and Analysts’
of which traffic revenue €m 4,576 3,813 20.0 January – June 2010 Conference on 2010 results
Operating result €m – 330 – 44
EBIT €m – 306 – 220 – 39.1
28 Oct. Press Conference and Analysts’ 3 May Annual General Meeting, Berlin
EBITDA €m 99 240 – 58.8
Conference on interim result
Net profit/loss for the period €m – 298 – 267 – 11.6
January – September 2010 5 May Release of Interim Report
Key balance sheet and cash flow statement figures January – March 2011
Total assets €m 27,982 24,468 12.4
Equity ratio % 24.2 26.1 – 3.1 pts 28 July Release of Interim Report
Net indebtedness €m 2,277 – 46 January – June 2011
Cash flow from operating activities €m 564 708 – 20.3
Capital expenditure (gross) €m 534 664 – 19.6 27 Oct. Press Conference and Analysts’
Key profitability and value creation figures
January – September 2011
Adjusted operating margin1) % – 5.4 – 0.6 – 4.8 pts
EBITDA margin % 1.7 4.8 – 3.1 pts
Lufthansa share
Share price at the quarter-end € 12.28 8.17 50.3
Earnings per share € – 0.65 – 0.58 – 12.1
Traffic figures 2)
Passengers thousands 19,031 15,043 26.5
Passenger load factor % 74.9 74.1 + 0.8 pts
thousand
Freight and mail tonnes 445 377 18.1
Cargo load factor % 68.8 55.0 + 13.7 pts
Available tonne-kilometres millions 8,774 7,874 + 11.4
Revenue tonne-kilometres millions 6,310 5,159 + 22.3
Overall load factor % 71.9 65.5 + 6.4 pts
Flights number 240,037 187,768 + 27.8
Employees
Employees as of 31.3. number 117,732 106,840 10.2
1)
Performance indicator to enable comparison with other airlines: (operating result + write-backs of provisions) / revenue.
2)
Lufthansa Group without Germanwings.
3)
Last year’s figures have been restated in line with measurement changes under IAS 39.
Date of publication: 5 May 2010.
Disclaimer in respect of forward-looking statements

Information published in the 1st Interim Report 2010, with regard to the future development of the Lufthansa Group and its subsidiaries con-
sists purely of forecasts and assessments and not of definitive historical facts. Its purpose is exclusively informational identified by the use of
Contents such cautionary terms as “believe”, “expect”, “forecast”, “intend”, “project”, “plan”, “estimate” or “intend”. These forward-looking statements
are based on all discernible information, facts and expectations available at the time. They can, therefore, only claim validity up to the date of
their publication.
1 To our shareholders 28 Interim financial statements
3 Interim management report 40 Credits/Contact Since forward-looking statements are by their nature subject to uncertainties and imponderable risk factors – such as changes in underlying
economic conditions – and rest on assumptions that may not or divergently occur, it is possible that the Group’s actual results and development
Financial calendar 2010/2011
may differ materially from those implied by the forecasts. Lufthansa makes a point of checking and updating the information it publishes. It
cannot, however, assume any obligation to adapt forward-looking statements to accommodate events or developments that may occur at some
later date. Accordingly, it neither expressly nor conclusively accepts liability, nor gives any guarantee, for the actuality, accuracy and complete-
ness of this data and information.
To our shareholders | Interim management report | Interim financial statements
Letter from the Executive Board
Ladies and gentlemen,

Following an unprecedented 2009, the year 2010 also began Lufthansa Cargo provided a positive surprise, however. Against
with several unexpected hurdles. Every month had some new a backdrop of rising volumes and revenue, and thanks to contin-
peculiarity. First air traffic was repeatedly interrupted due to ued strict cost management, it reported an operating profit for the
extreme winter weather conditions, then the pilots’ strike and its first quarter of 2010. Lufthansa Technik was also able to improve
renewed announcement hampered business. Even after the its result compared with last year. In the IT Services segment the
end of the quarter business continued to be disturbed, with the measures taken to safeguard earnings had the desired effect in
ban being placed on flights for several days following the erup- that Lufthansa Systems improved its operating profit despite a
tion of the Eyjafjallajökull volcano in Iceland. In this environment decline in revenue. The Catering segment narrowly missed break-
strewn with extraordinary obstacles during the first quarter 2010, even and reported a slight negative result.
Lufthansa reported a rise in revenue – even after adjusting for
consolidation effects – but generated an operating loss of Conditions at the start of the year have still been difficult, so we
EUR 330 million. continued to apply the cost-cutting measures with vigour. At the
same time, the latest sales improvements confirm the correlation
Nevertheless, developments also give us reasons to be cheerful. between the economic cycle and the demand for air transport.
We observed an increasingly positive trend towards a distinct Airlines feed on economic growth, accelerating it by a significant
improvement in demand, as a result of which sales picked up multiple, and in its new, strengthened constellation Lufthansa will
sharply, primarily in the cargo business, and, albeit with some benefit to a disproportionately high extent. It is therefore impor-
delay, in passenger traffic as well. We have reason to believe that tant today that we look to the future and play an active role in
this upward trend in demand will continue. shaping it.
The incipient economic recovery had varying effects on the finan- We are opening up new markets with the introduction of new
cial performance of the business segments. In the Passenger products and optimised route networks, and with the new mem-
Airline Group the cost-cutting and capacity measures taken in the bers of the Group we will realise substantial synergies. We learn
traditionally weak first quarter were not able to make up for the and benefit from one another, pooling our strengths where it
still very low average yields and the shift in consumer behaviour. makes sense to do so.
Furthermore, the losses at our new partners Austrian Airlines
and bmi depressed the result. The Climb 2011 programme It seems that we have entered the post-crisis period. We are
launched in mid 2009 at Lufthansa Passenger Airlines is being convinced that our sustainable course of profitable growth and
pursued unchanged and the focus topics are being intensified, value creation, together with our commitment to performance
as are the restructuring programmes in place at the new airlines. and quality, will enable us to make the best use of the good
prospects for our industry – for the benefit of our customers,
shareholders and staff.
We thank you for your trust.
Wolfgang Mayrhuber Christoph Franz Stephan Gemkow Stefan Lauer

Chairman of the Deputy Chairman of the Member of the Executive Board Member of the Executive Board
Executive Board Executive Board and Chief Financial Officer Chief Officer Group Airlines
and CEO CEO Lufthansa and Corporate
German Airlines Human Resources
Lufthansa 1st Interim Report January – March 2010 1

Lufthansa share Shareholder structure by nationality in % (as of 31.3.2010)
Developments on the stock markets in the first three months of the

Other 4.4 UK 3.5
2010 financial year were shaped by the global economic recovery.
However, although the stock markets recovered on the whole, USA 4.6
share prices remained unsettled. Investors continued to react very Luxembourg 12.2
sensitively to news which could impair the economic revival.
Nevertheless, all the leading indices developed positively overall.
Germany 75.3
For instance, the German share index DAX rose by 3.3 per cent
in the period under review and finished the first quarter 2010 at
6,154 points – its highest level for 18 months.
In this climate, the Lufthansa share price gained 4.5 per cent, taking
it to EUR 12.28 as of 31 March 2010. It therefore outperformed As of 31 March 2010, 75.3 per cent of Lufthansa shares were held
the DAX. However, our competitors’ share prices also experienced by German investors. 65.8 per cent of the shares were owned by
this positive trend. The British Airways share price in particular institutional investors and 34.2 per cent were held by private indivi-
has increased by 30 per cent since the beginning of the year as duals. The American investor BlackRock Inc. was the largest single
a merger with Iberia has continued to look increasingly likely. shareholder with a stake of 5.45 per cent. The free float came to
100 per cent.
Due to its sound fundamentals and the conviction that Lufthansa
will emerge as one of the winners from the crisis and benefit from Information on analyst recommendations and the shareholder
an upswing, the majority of analysts recommend Lufthansa as a structure are updated regularly and published on our website at
buy. At the end of the quarter, the average target price from all i www.lufthansa.com/investor-relations.
analysts was EUR 13.76.
Performance of the Lufthansa share, indexed as of 31.12.2009, compared with the DAX and competitors
140
130
120
110
100
90
80
31.12. 29.1. 28.2. 31.3.
2009 2010 2010 2010
DAX Lufthansa British Airways Air France
2 Lufthansa 1st Interim Report January – March 2010

To our shareholders Interim management report | Interim financial statements
Lufthansa share Economic environment and sector performance
Interim management report countries – curbed developments. Following the 2009 recession,
the German economy also slowly began to emerge from the crisis.
However, there are indications that it remained weak at the begin-
Economic environment and sector ning of 2010 due to factors such as the effects of the unfavourable
performance weather. The economy was primarily buoyed up by foreign trade.
Macroeconomic situation Leading indicators suggest that In the course of the first quarter, the value of the euro fell com-
the global economic recovery that has now begun will continue. pared with that of the US dollar, largely due to the budgetary situa-
This recovery is based on an increasing return to normality on tion in Greece and other countries and the resulting Euro-scepti-
the financial markets, strong stimuli from governments’ extensive cism on the global capital markets. The euro opened at USD 1.44
monetary and fiscal stabilisation measures, an extended stock and finished the first quarter at USD 1.35, corresponding to a de-
cycle and growing confidence among consumers and business preciation of around 6.3 per cent. The average value of the euro
people. Global trade is also showing signs of a clearer recovery. in the first quarter was USD 1.38, which is 5.6 per cent above its
Growth is primarily being driven by the emerging markets in average value in the first quarter of last year (USD 1.31).
South and East Asia, where the recovery began sooner and has
proved considerably stronger than in the industrialised countries. Oil prices stabilised against a backdrop of positive fundamental
Overall, global growth of 3.1 per cent is projected for the first data. While oil production remained largely unchanged, demand
quarter of 2010. In the first quarter 2009, the economy shrank began to increase again, especially from emerging markets. On
by 3.2 per cent. 31 March 2010 a barrel of Brent Crude cost USD 82.70/barrel,
putting the price some 68 per cent higher than in the same period
last year. However, it has hardly risen since the beginning of the
GDP growth 2010 * compared with previous year
year (+3.2 per cent). In this time the price moved within a range
in % Q1 Q2 Q3 Q4 Full year of between USD 69.59/barrel and USD 82.70/barrel.
World 3.1 3.5 3.4 3.3 3.3
Europe 0.6 1.3 1.2 1.4 1.1
Price development of Brent and kerosene in USD / t
Germany 1.3 1.9 1.4 1.7 1.6
North America 2.3 3.5 3.6 2.9 3.1 1 500
South America 3.9 3.8 3.2 3.8 3.7
Asia / Pacific 6.6 5.8 5.7 5.2 5.8 1 200
China 10.9 10.7 10.3 9.8 10.4
Middle East 2.8 3.9 4.9 5.4 4.3 900
Africa 3.4 4.0 4.4 4.5 4.2
600
Source: Global Insight World Overview as of 15.4.2010.
* Forecast.
300
The economy in the USA has gained considerable momentum. 0

Growth has been stimulated by rising private consumption, 2.1. 2.1. 2.1. 31.3.
2008 2009 2010 2010
exports and both fiscal and monetary measures.
Source: Lufthansa, based on market data. Kerosene IPE Brent
Economic developments in Asia’s economies have also picked up

pace. Positive developments here have been shaped by govern- The jet crack (difference between crude oil and kerosene) aver-
ment stimulus packages, an upswing in foreign trade and growing aged out at USD 10.79/barrel in the first quarter of 2010 (previous
domestic demand. year: USD 8.95/barrel). Despite the cold winter, which brought
about a more acute need for middle distillates, and refineries clos-
The Middle East and Africa are profiting from higher commodity ing for maintenance at the end of the first quarter 2010, demand
prices and greater demand for exports. was met comfortably from high levels of stock. Sales of specula-
tive stock by large traders and banks in particular endorsed to
The euro area also experienced positive stimuli in the first quarter. reduce the jet crack.
However, a number of one-off factors – such as the unusually cold
weather at the beginning of the year and the debt crisis in several

The price for kerosene moved between USD 625.00/tonne and Furthermore, the latest attempt to privatise the state-owned Hunga-
USD 723.25/tonne. In the first quarter of 2010, the average price rian airline Malev failed. The loss-making Budapest-based airline
was USD 680.60/barrel (+52.6 per cent on last year). will therefore remain the responsibility of the Hungarian Ministry of
Finance. In April, the merger of British Airways and Iberia was
Fuel prices have a huge effect on how the Group’s cost base announced following a delay.
develops. As a company with operations worldwide, various items
in Lufthansa’s income statement are also affected by exchange In March, the USA and the European Union resolved to adopt the
rate movements. The Group takes a systematic approach to risk Open Skies air traffic agreement introduced in 2007 on a perma-
management in order to limit these risks. For further details of our nent basis. However, it has not yet been possible to reach an
rule-based hedging policy, please see p. 133 and p. 196 in our agreement on the future prospect of international controlling inter-
Annual Report 2009. ests in airlines.
Sector developments The aviation sector bottomed out in 2009

and all the signs pointed towards recovery in the first quarter of Course of business
2010. Demand for passenger and freight flights grew accordingly.
According to IATA figures, global demand for passenger flights In the first three months of the year, the emerging global economic
increased by 7.9 per cent in the first two months of 2010, while recovery also affected the course of business at the Lufthansa
freight volumes grew by no less than 28.0 per cent year on year. Group. Against a backdrop of drastic price cuts, average yields at
Nevertheless, this puts absolute passenger demand 1.4 per cent companies in the Passenger Airline Group were down on a lower
and freight demand 3.0 per cent below pre-crisis levels. level. However, sales trended upwards. This was particularly true
for freight traffic at Lufthansa Cargo, where higher average yields
Major regional differences can be observed in the industry’s and traffic revenue was generated again. However, a sharp rise
worldwide regeneration, with growth predominantly being driven in the oil price and a weak euro exchange rate curbed business
by the emerging markets in Asia, Latin America and the Middle developments at the airborne companies. The Passenger Airline
East. In the first two months of 2010, growth rates of over 10 per Group posted an operating loss as a consequence. By contrast,
cent were recorded for sales in these regions. By contrast, the Lufthansa Cargo entered a clear profit for the first quarter. Despite
European and North American airlines experienced relatively the delayed effects on demand in the MRO market, Lufthansa
moderate growth of 3.5 per cent, which was also affected by the Technik succeeded in posting a good quarterly result and a higher
consequences of the extreme winter and industrial action in operating profit than last year. While Lufthansa Systems also gen-
Germany, France, the UK and Greece. erated a positive operating result, LSG Sky Chefs commenced the
new year with a slight operating loss.
Following a slump lasting almost two years, airlines also experi-
enced increasing demand for premium class services. According All of the companies are continuing to pursue the measures initi-
to IATA, sales of First and Business Class tickets rose at the end ated to safeguard earnings. For example, Lufthansa Passenger
of 2009 for the first time since May 2008. This positive trend contin- Airlines is examining its focus topics within the Climb 2011 pro-
ued in the first quarter of 2010, with 5.1 per cent more passengers gramme – such as capacity planning in decentralised traffic, cutting
buying premium segment tickets than last year. administrative jobs and boosting productivity – in greater depth.
The newly consolidated companies are also continuing with their
A number of structural changes affected aviation in the first quar- savings programmes to overcome the crisis and permanently cut
ter. In February, two Greek airlines – Aegean Airlines and the costs. To this end, bmi implemented an aggressive restructuring
recently privatised Olympic Air – announced their plans to merge, programme while Austrian Airlines developed its new market
while the German airline Blue Wings filed for insolvency. Then in strategy within the Austrian Next Generation programme.
March, Air China announced it would be buying additional shares
in Shenzhen Airlines to acquire a majority stake in the airline.

Economic environment and sector performance
Course of business
Earnings position
Staff and management At the end of March, the Lufthansa The changes to the group of consolidated companies had signif-
Group employed a total of 117,732 staff including the newly con- icant effects on the balance sheet and income statement of the
solidated companies in the Passenger Airline Group and MRO Group and of the business segments. These are presented in the
segments. The headcount was approximately 10 per cent higher relevant comments.
than last year. Adjusted for consolidation effects, the number of
staff fell by 1.8 per cent. The Logistics and Catering business Changes in reporting standards On 1 January 2010 it became
segments recorded sharper falls in staff numbers than the other compulsory to use the amendments to IAS 39 Financial Instru-
segments. This is attributable to the ongoing programmes to safe- ments: Recognition and Measurement. This led to changes in the
guard earnings. reporting standards. To facilitate comparison, the figures pre-
sented in this report have been calculated as if the amended
Negotiations on a wage agreement have been going on between standards had already been applied last year. For further details,
the Vereinigung Cockpit (VC) pilots’ union and Lufthansa since see the Notes to the consolidated financial statements on p. 34 .
May 2009. When it proved impossible for the parties to reach an
agreement during these negotiations, the union called for indus-
trial action. As a result, the pilots from Lufthansa Passenger Air- Earnings position
lines, Lufthansa Cargo and Germanwings walked out on 22 Febru-
ary 2010. Lufthansa had been highly cooperative during the long Traffic figures for the Lufthansa Group soared in the first quarter of
and intense negotiations. However, the Company felt that strike 2010 compared with the same period last year due to both growth
action was unjustified and sought a court injunction at Frankfurt in the group of consolidated companies and increase in demand.
Labour Court in response. During oral proceedings on 22 Feb- The Group’s airlines transported some 19 million passengers
ruary 2010, the two parties reached a settlement which meant that (+26.5 per cent) and around 445 thousand tonnes of freight and
the strike, planned for four days, was abandoned after the first day. mail (+18.1 per cent). Adjusted for the initial consolidation of Austrian
A further call for strike action for mid-April by the union was with- Airlines and bmi, passenger numbers were up 2.9 per cent on last
drawn after an agreement was reached on the key aspects of an year. In passenger traffic, both capacity (+18.3 per cent, adjusted
arbitration. Despite making every effort, it has proved impossible for consolidation changes: +1.6 per cent) and sales (+19.7 per
to resolve the wage conflict to date. The strike in February resulted cent, adjusted: +3.8 per cent) were considerably higher than in the
in damages totalling approximately EUR 48m. previous year. The passenger load factor was up by 0.8 percent-
age points (adjusted: +1.6 percentage points). Sales in the Group’s
airfreight business (including Swiss WorldCargo and the freight
Employees by business segment in % (as of 31.3.2010)
business of the newly consolidated companies) as measured in
tonne-kilometres improved by 22.3 per cent; capacity increased
by 11.4 per cent. Accordingly, the cargo load factor improved by
Catering 24.2 13.7 percentage points to 68.8 per cent. The individual perform-
Passenger Airline
ance figures and indicators for the other business segments (e.g. new
MRO 17.4 Group 48.9 orders, order backlog) are presented in the respective chapters.
Logistics 3.8 The better performance figures prompted a 20.0 per cent rise in
Other 3.2 IT Services 2.5 traffic revenue to EUR 4.6bn in the first quarter (adjusted: +3.9 per
cent). This increase in revenue was attributable to developments
in volumes (6.2 per cent), currency effects (1.3 per cent) and
changes in the group of consolidated companies (16.1 per cent).
Changes in the group of consolidated companies There were By contrast, pricing trends prompted a 3.7 per cent fall in revenue.
significant changes to the group of consolidated companies com- The Passenger Airline Group accounted for EUR 3.9bn (+19.4 per
pared with the same period last year. British Midland Airways (bmi) cent, adjusted: +1.6) of traffic revenue in the reporting period and
and its holding company British Midland Ltd. (as of 1 July 2009) the Logistics segment for EUR 531m (+18.5 per cent).
and Austrian Airlines AG and its subsidiaries (as of 3 September
2009) were included in the consolidated financial statements for
Deutsche Lufthansa AG for the first time. This meant that their fig-
ures were not included in the data for the first quarter of 2009. The
table on p. 34 – 35 shows the other companies which have joined or
left the group of consolidated companies compared with year-end
2009 and 31 March 2009.

Other revenue was down slightly year on year at EUR 1.2bn vious year also played a part. For instance, income from compen-
(– 1.7 per cent). Of this, the MRO segment generated EUR 586m sation for damages nosedived by EUR 66m to EUR 5m. In the
(– 7.0 per cent), IT Services EUR 59m (– 3.3 per cent) and previous year, this included compensation payments for the inter-
Catering EUR 371m (– 4.1 per cent). The airborne companies in net system FlyNet and income from insurance payments in con-
the Passenger Airline Group and Logistics segments contributed nection with an LSG Sky Chefs claim in Scandinavia totalling
EUR 282m (+41.7 per cent, adjusted: +8.5 per cent) to other EUR 69m. At EUR 5m (previous year: EUR 30m), book gains were
revenue. also much lower due in particular to the sale of Condor shares in
the previous year. Included in the EUR 32m income from write-
The Group’s revenue rose by 14.8 per cent to EUR 5.8bn due to backs (previous year: EUR 13m) were reversals of EUR 15m on
increased traffic revenue. Excluding changes to the group of con- previously impaired loan receivables and EUR 8m of appreciation
solidated companies, revenue went up 2.4 per cent. The Passen- on loans in foreign currencies due to exchange rate factors. Other
ger Airline Group’s share of total revenue rose to 72.7 per cent items did not vary significantly compared with the previous year.
(+3.4 pts) as a result of the consolidation changes. The develop-
ment of revenue over the last five years is shown on p. 8 . Please Total operating income came to EUR 6.4bn (+10.2 per cent).
refer to the segment report on p. 39 for a breakdown of revenue However, adjusted for changes in the group of consolidated com-
by region. panies, the figure dropped slightly by 1.5 per cent.
Operating expenses rose to EUR 6.7bn (+14.8 per cent) in total.

External revenue share of the business segments in % (as of 31.3.2010)
Without consolidation changes, the increase would have amounted
to 1.4 per cent.
Catering 6.4 IT Services 1.0
Logistics 9.7 This increase is primarily due to 20.6 per cent growth in the cost
of materials and services, which came in at EUR 3.5bn. Even
MRO 10.2 Passenger Airline excluding the change in the group of consolidated companies, the
Group 72.7 figure went up 5.9 per cent. This stemmed from the EUR 330m
(+44.7 per cent) climb in fuel costs to EUR 1.1bn. The higher fuel
price (after hedging) and the larger group of consolidated compa-
nies prompted expenses to rise by 31.1 per cent and 18.1 per
cent respectively. By contrast, the lower US dollar exchange rate
(– 3.8 per cent) and lower volume (– 0.7 per cent) made for a
Other operating income plummeted by EUR 149m or 21.2 per reduction in costs. Fuel expenses include a negative result from
cent to EUR 555m (adjusted: – 28.1 per cent). This drop is due price hedging of EUR 26m. Other raw materials, consumables
in part to much lower exchange rate gains than last year (down and supplies fell by 7.0 per cent to EUR 633m, thus compensating
EUR 125m at EUR 229m), but non-recurring effects from the pre- to some extent for the increase.
Expenses
Jan. – March Jan. – March Change Adjusted for

2010 2009 changes in
the group
of consolidated
companies
in €m in €m in % in %
Cost of materials and services 3,462 2,871 20.6 5.9

of which fuel 1,069 739 44.7 26.6
of which fees and charges 1,031 801 28.7 4.5
of which operating lease 76 76 0 – 23.7
Staff costs 1,557 1,435 8.5 – 2.1
Depreciation 403 319 26.3 10.3
Other operating expenses 1,297 1,227 5.7 – 7.6
Total operating expenses 6,719 5,852 14.8 – 1.4

Earnings position
Fees and charges shot up by 28.7 per cent, mainly as a result of Depreciation and amortisation came to EUR 403m (+26.3 per
consolidation changes. Without the newly consolidated compa- cent, adjusted: +10.3 per cent). Depreciation of aircraft, mainly
nies, there would have been an increase of 4.5 per cent, largely new purchases from last year and this year, and consolidation
due to higher handling charges (+8.1 per cent). Other purchased changes accounted for EUR 62m (+24.5 per cent) of the increase.
services were up 12.2 per cent. Consolidation changes were Of the impairment losses (EUR 13m), EUR 11m was attributable
responsible for 10.5 per cent of these. to 15 Canadair Regional Jet 200s which were decommissioned
or earmarked for sale.
The Group’s steps to safeguard earnings had an impact on staff
costs. Including Austrian Airlines and bmi, the average number of Other operating expenses edged up 5.7 per cent to EUR 1.3bn.
employees increased by 10.2 per cent to 117,732. However, staff Excluding the additional expenses due to consolidation changes,
costs rose at a slower pace of +8.5 per cent. Adjusted for changes the other operating expenses fell by 7.6 per cent. This was due in
to the group of consolidated companies, staff costs were 2.1 per particular to fewer agency commissions (EUR – 25m), lower ex-
cent down on the previous year, while the workforce shrank by penses for advertising and sales promotions (EUR – 17m), reduced
2.7 per cent. expenses for computerised distribution systems (EUR – 12m) and
Reconciliation of results
Jan. – March 2010 Jan. – March 2009

Income Reconciliation with Income Reconciliation with
in €m statement operating result statement operating result
Total revenue 5,758 5,015

Changes in inventories 63 69
Other operating income 555 704
of which book gains and current financial investments – 17 – 32
of which income from reversal of provisions – 19 – 16
of which write-ups on capital assets – 32 – 13
of which period-end valuation of non-current financial liabilities – –
Total operating income 6,376 – 68 5,788 – 61
Cost of materials and services – 3,462 – 2,871

Staff costs – 1,557 – 1,435
of which past service cost –1 –
Depreciation, amortisation and impairment – 403 – 319
of which impairment losses 13 3
Other operating expenses – 1,297 – 1,227
of which impairment losses on assets held for sale – non-operating 2 39
of which expenses incurred from book losses and current financial investments 67 39
of which period-end valuation of non-current financial liabilities – –
Total operating expenses – 6,719 81 – 5,852 81
Profit / loss from operating activities – 343 – 64

Total from reconciliation with operating result 13 20
Operating result – 330 – 44
Result from equity investments –6 0*

Other financial items 43 – 156
EBIT – 306 – 220
Write-downs (included in profit from operating activities) 403 319

Write-downs on financial investments (incl. at equity) 2 141
EBITDA 99 240
* Rounded below EUR 1m.

The result from equity investments amounted to EUR – 6m in the
Revenue development in €m (Jan. – March)
first quarter following a break-even result in the previous year.
Net interest shrank – largely due to EUR 10m higher interest
4,446 4,696 5,588 5,015 5,758
expenses for new borrowing in 2009 – coming in at EUR – 78m.
Other financial items amounted to EUR 43m (previous year:
EUR – 156m) and were made up almost entirely of changes in the
valuation of hedging instruments which are considered trading
transactions under IAS 39. The fair value of options used for hedg-
ing, see p. 34 of the Notes to the consolidated financial statements,
also recognised in the financial result since 1 January 2010, con-
tributed EUR – 18m to this figure as well. In the previous year, other
2006 2007 2008 2009 2010 financial items included an impairment of EUR 140m recognised
on the Fraport shares.
Earnings before interest and taxes (EBIT) reflect developments in

Operating result and net profit/loss for the period in €m (Jan. – March)
the operating result, the result from equity investments and the other
financial items. The figure came to EUR – 306m (previous year:
554
EUR – 220m).
Earnings before taxes (EBT) fell by EUR 96m, coming in at

172 EUR – 384m in the first quarter. Due to the negative pre-tax result,
36 44 income taxes improved the result by EUR 88m. In the previous
– 44
year, income taxes relieved the result by EUR 25m.
– 75
– 98 After deducting minority interests (EUR 2m), the Group posted
– 267
a net loss for the period of EUR – 298m. This was only slightly down
– 330 – 298
on the previous year’s figure of EUR – 267m. Earnings per share
2006 2007 2008 2009 2010
were therefore EUR – 0.65 (diluted and basic, see also the Notes
on p. 36 ).
Operating result Net profit/loss for the period
the EUR 36m loss from current financial investments posted in Cash flow and capital expenditure
the previous year. By contrast, the foreign currency losses from
exchange rate differences rose by EUR 44m. The other items did In the first three months of 2010, the Group generated cash flow
not vary significantly compared with last year. from operating activities of EUR 564m (previous year: EUR 708m).
As well posting a lower result before income taxes, Lufthansa
Profit from operating activities came to EUR – 343m and was experienced additional negative effects prompted by the EUR 130m
therefore EUR 279m lower than in the same period last year. With- fall in non-cash depreciation/amortisation and income taxes
out the changes to the group of consolidated companies, the loss (EUR – 61m). However, the change in working capital supported the
from operating activities fell by EUR 164m. After the usual adjust- cash flow from operating activities by EUR 118m.
ments, the operating result came to EUR – 330m (previous year:
EUR – 44m). Please refer to the table on p. 7 for details. This figure Gross capital expenditure came to EUR 534m, of which EUR 477m
includes earnings contributions by Austrian Airlines and bmi total- was utilised for final payments on one Airbus A330, four Airbus
ling EUR – 111m. The comparable operating margin dropped to A320s, four Airbus A319s, three Canadair Regional Jet 900s, four
– 5.4 per cent (previous year: – 0.6 per cent). This is calculated as Embraer E190s and one ATR 700. An additional EUR 36m was
operating result plus write-backs of provisions divided by revenue. spent on other property, plant and equipment. The other capital
expenditure related to intangible assets and financial investments.

Earnings position
Cash flow and capital expenditure
Net assets and financial position
Repairable spare parts were purchased for EUR 26m. The funding Net assets and financial position
requirement was partly covered by interest and dividend income
(EUR 110m in total) and proceeds of EUR 162m from the disposal The consolidated balance sheet total amounted to EUR 28.0bn as
of assets including non-current securities. Cash proceeds of of 31 March 2010, or EUR 1.6bn more than at year-end 2009.
EUR 48m were generated by the disposal and acquisition of cur- Non-current assets rose by EUR 777m, while current assets grew
rent securities and funds. Net cash totalling EUR 238m was thereby EUR 813m.
fore used for the Group’s investing and cash management activi-
ties (previous year: EUR 2.5bn). Within non-current assets the item aircraft and reserve engines
rose due to new deliveries by EUR 177m (1.7 per cent) to
EUR 10.6bn. The stake in WAM Acquisition S.A. previously held
Primary, secondary and financial investments and net investments
in €m (Jan. – March) at cost (EUR 34m) was shown for the first time in the consolidated
balance sheet at its market value of EUR 503m as a result of the
664 494 286 534 flotation of Amadeus IT Holding S.A. that took place on 29 April
2010. The position equity investments rose as a result by
47
EUR 469m. Derivative financial instruments were up EUR 165m,
98 8
49 mostly from currency hedges. By contrast, non-current securities
fell by EUR 46m while loans and receivables dropped EUR 75m.
519 Under current assets, receivables soared by EUR 720m for sea-
477
sonal and billing reasons. In addition, Lufthansa recorded an
increase of EUR 111m in current financial derivatives (from fuel
and currency hedges) along with a EUR 67m rise in cash and
2009 2010 cash equivalents. The opposite trend was seen in current securi-
Financial investments Net investments ties, which contracted by EUR 92m due primarily to sales. The
Secondary investments
Primary investments
proportion of total assets made up by non-current assets sank
from 67.0 per cent at year-end 2009 to 66.0 per cent.
Free cash flow (cash flow from operating activities less net capital
Calculating net indebtedness
expenditure) was once again generated in the first quarter. The
figure came in at EUR 278m. Jan. – March 31 Dec. Change
2010 2009 Jan. – March
2009
All in all, financing activities produced a net cash outflow of in €m in €m in %
EUR 277m due to regular capital repayments and a small amount Liabilities to banks 1,958 1,909 69.8
of new borrowing. Bonds 2,226 2,264 51.1
Other non-current borrowing 2,655 2,629 8.9
Cash and cash equivalents climbed by a total of EUR 67m to 6,839 6,802 35.1
EUR 1.2bn (previous year: EUR 1.0bn). This included appreciation Other bank borrowing 80 58 90.5
of EUR 18m due to exchange rate movements. Group indebtedness 6,919 6,860 35.5
Cash and cash equivalents 1,203 1,136 22.9

The internal financing ratio was 105.6 per cent (previous year: Securities 3,211 3,303 – 15.6
106.6 per cent). Overall, cash including securities at the end of the Non-current securities
first quarter came to EUR 4.4bn (previous year: EUR 4.8bn). Turn (liquidity reserve) 228 226 – 37.7
to p. 33 for the detailed cash flow statement. Net indebtedness 2,277 2,195
Pension provisions 2,752 2,710 12.2

Net indebtedness and pensions 5,029 4,905 108.9
Gearing in % 74.2 79.1 – 6.2

On the liability side, shareholders’ equity (including minority inter- The increase in current liabilities is primarily attributable to higher
ests) rose by EUR 580m (+9.4 per cent), totalling EUR 6.8bn. trade payables due to seasonal and billing factors and other finan-
This increase was due to the first-time market valuation of the cial liabilities (EUR +441m) as well as to higher liabilities from
stake in WAM Acquisition S.A. (EUR +464m), changes in the mar- unused flight documents (EUR +698m).
ket value of hedging transactions without effect on profit and loss
and other financial assets (EUR +319m), as well as currency trans- As of 31 March 2010, net indebtedness came to EUR 2.3bn (year-
lation differences (+97 Mio. EUR), which were partially offset end 2009: EUR 2.2bn) including EUR 228m in non-current liqui-
by the post-tax loss of EUR 296m, however. The equity ratio rose dity reserves. Gearing including pension provisions decreased to
to 24.2 per cent (year-end 2009: 23.5 per cent). 74.2 per cent (year-end 2009: 79.1 per cent) but continues to remain
outside the target corridor of 40 to 60 per cent.
Non-current liabilities and provisions went down by EUR 227m to
EUR 11.2bn, while current borrowing was stepped up by EUR 1.2bn.
Under non-current obligations, borrowing fell EUR 118m and the
negative market values of derivative financial instruments (primarily
from currency hedges) dropped EUR 155m. Pension provisions
grew by EUR 42m (+1.5 per cent), taking them to EUR 2.8bn.
Group fleet – Number of commercial aircraft

Lufthansa (LH), SWISS (LX), Austrian Airlines (OS), British Midland (bmi), Germanwings (4U), Lufthansa CityLine (CLH), Air Dolomiti (EN),
Eurowings (EW) and Lufthansa Cargo (LCAG) as of 31.3.2010
Manufacturer / type LH LX OS bmi 4U CLH EN EW LCAG Group of which of which Change as of Change as of
fleet finance operating 31.12.09 31.3.10 4)
lease lease
Airbus A300 5 5 –1 –8
Airbus A310 33) 3 –1
Airbus A319 27 7 7 11 29 81 2 23 +4 + 23
Airbus A320 41 23 8 10 82 9 9 +3 + 24
Airbus A321 42 6 6 9 63 4 8 + 24
Airbus A330 15 13 13) 3 32 9 +2 +6
Airbus A340 52 13 22) 67 2 2 +1
Airbus A380 0
Boeing 737 63 11 15 89 15 –2 + 26
Boeing 747 30 30
Boeing 767 6 6 2 +6
Boeing 777 4 4 +4
Boeing MD– 11F 19 19
Bombardier CRJ 211) 10 49 10 90 10 + 16
Bombardier C-Series 0
Bombardier Q-Series 19 19 1 –1 + 19
ATR 51) 14 5 24 5 10 –1
Avro RJ 20 18 38 19
BAe 146 5 5 5 –3 – 15
Embraer 191) 43) 33) 16 42 3 6 +3 + 34
Fokker F70 9 9 1 +9
Fokker F100 15 15 + 15
Cessna Citation 42) 4
Total aircraft 327 86 101 64 29 67 14 20 19 727 27 118 5 182
1)
Let to Lufthansa regional airlines. 3)
Leased to company outside the Group.
2)
Let to SWISS. 4)
Includes the consolidation of Austrian Airlines and British Midland.

Net assets and financial position
Passenger Airline Group
Passenger Airline Group business segment
Key figures Passenger Airline Group of which Lufthansa

Passenger Airlines 3)
Jan. – March Jan. – March Change Jan. – March Change

2010 2009 in % 2010 in %
Revenue €m 4,323 3,614 19.6 2,871 1.3

of which with companies
of the Lufthansa Group €m 139 139 0
Operating result €m – 373 – 30 – – 236 –
Segment result €m – 381 – 24 –
EBITDA 1) €m – 137 163 – – 70 –
Segment capital expenditure €m 484 558 – 13.3
Employees as of 31.3. number 57,551 46,070 24.9 37,002 – 1.9
Passengers 2) thousands 19,031 15,043 26.5 12,237 1.2
Available seat-kilometres 2) millions 52,292 44,194 18.3 36,479 2.2
Revenue seat kilometres 2) millions 39,181 32,744 19.7 27,402 3.3
Passenger load factor 2) % 74.9 74.1 0.8 pts 75.1 0.8 pts
1)
Before profit/loss transfer from other companies.
2)
Lufthansa Passenger Airlines, SWISS, British Midland (from July 2009) and Austrian Airlines (from September 2009), not including Germanwings.
3)
Including regional partners.
Course of business In the first, traditionally weak quarter, In March, the fifth anniversary of SWISS’s integration into the
demand in Passenger Transportation was still shaped by the Lufthansa Group was celebrated. The successful collaboration
effects of the economic crisis. Although the business segment between Lufthansa and SWISS has generated important synergies
recorded an increase in sales, passengers continued to prefer for both companies, which have exceeded expectations at around
lower booking classes. As a result, average yields and traffic reve- EUR 200m per annum. The integration and group concept devel-
nue remained low. In terms of expenses, higher fuel prices im- oped is now used as a model for the Group’s new airlines.
pacted on the segment’s development. Traffic at all the companies
suffered from the harsh winter, but Lufthansa Passenger Airlines Product and route network Lufthansa Passenger Airlines
and Germanwings were also affected by the pilots’ strike in Feb- reduced its number of flights by 3.7 per cent compared with the
ruary. All of the airline group companies are continuing to pursue previous year. However, a number of steps were also taken, such
their cost management programmes in order to counteract the as replacing smaller aircraft with larger models as part of the fleet
structural changes on the market. Nevertheless, the business seg- renewal programme and specifically ramping up capacities in
ment finished the first quarter with a sizeable operating loss, as high-growth regions. As a consequence, seating capacity grew
anticipated. slightly, by 2.2 per cent. The above-mentioned factors will con-
tinue to take effect as the year progresses. For example, the sum-
Segment structure The segment consists of Lufthansa Passen- mer flight timetable will usher in a year-on-year increase of
ger Airlines (including regional airlines), SWISS (including Edel- 3.6 per cent in capacity. This figure already takes the Airbus A380
weiss since 1 January 2010), Germanwings and the equity into account, which is due to go into service in June 2010. The
investments in Brussels Airlines, SunExpress and JetBlue. Further- fleet renewal and the replacements listed above will enable the
more, it also includes Austrian Airlines and bmi, which have been company to offer greater seating capacities per flight and thereby
fully consolidated since 3 September 2009 and 1 July 2009, boost productivity.
respectively.

The 2010 summer flight timetable will see Lufthansa Passenger Segment capacity increased by 18.3 per cent (adjusted: +1.6 per
Airlines flying to 204 destinations in 81 countries (previous summer: cent). Sales rose by 19.7 per cent (+3.9 per cent), while the pas-
206 destinations in 78 countries). Selected high-growth markets senger load factor edged up by 0,8 percentage points (+1.6 per-
are being targeted along with a small number of carefully chosen centage points). Lufthansa Passenger Airlines grew its capacity by
additions to the route network. The new destinations are Bari, 2.2 per cent and was able to sell it entirely (+3.3 per cent). Since
Palermo, Zadar, Chisinau, Tashkent and Tallinn. After the USA, the beginning of the year, there has been a rise in demand again,
India is already the long-haul market with the largest number of coupled with a slight recovery in intercontinental premium traffic.
destinations for Lufthansa, and more connections will be added However, changes in booking patterns continue to impair devel-
here to further improve capacity. opments in the segment’s income. As a result, average yields
remained low at +0.2 per cent, despite modest boosts from
Lufthansa Passenger Airlines and the other companies within the exchange rate movements (+1.3 per cent) and fuel surcharges
segment will continue to manage capacity adjustments in line with (+0.4 per cent). Traffic revenue was up 19.8 per cent (adjusted:
demand so that they can react to market developments. You can +1.5 per cent).
find information about the other airline group companies’ products
and route networks from p. 15 onwards. In Europe, capacity went up by a total of 31.8 per cent (adjusted:
+3.2 per cent). The passenger load factor remained stable, with
Lufthansa’s service has once again attracted awards from busi- +0.2 percentage points (+0.3 percentage points). Average yields
ness travellers. The readers of Business Traveller Deutschland shrank by 5.8 per cent overall, while traffic revenue was up
magazine again awarded the airline top marks in the categories 24.7 per cent (adjusted: – 2.2 per cent).
Best Business Class on domestic German and European flights
and Best Airline Website for Business Travellers. In the Americas traffic region (North and South), capacity was
ramped up by 6.2 per cent (adjusted: 1.7 per cent). Thanks to
Operating performance The segment’s passenger numbers 8.2 per cent higher sales (3.9 per cent), the passenger load factor
rose considerably due to both consolidation changes and higher improved by 1.5 percentage points (1.8 percentage points) to
sales. In the first three months of the year, the number of passengers 80.7 per cent (81.0 per cent). A moderately positive trend was also
increased by 26.5 per cent to 19.0 million. Adjusted for the effects recorded for average yields (+1.2 per cent) in the first quarter. As a
of consolidating Austrian Airlines and bmi, passenger numbers consequence, traffic revenue rose by 9.4 per cent (6.1 per cent).
grew by 2.9 per cent to 15.5 million. Of these, a total of 12.2 million
passengers were welcomed on board Lufthansa Passenger Air-
lines aircraft (+1.2 per cent).
Trends in traffic regions Passenger Airline Group*
Number of passengers Available seat-kilometres Revenue seat-kilometres Passenger load factor

in thousands in millions in millions in %
Jan. – March Change Jan. – March Change Jan. – March Change Jan. – March Change
2010 in % 2010 in % 2010 in % 2010 in pts
Europe 14,769 28.6 17,300 31.8 11,114 32.4 64.2 0.2

America 1,671 7.6 15,510 6.2 12,521 8.2 80.7 1.5
Asia / Pacific 1,342 12.4 12,477 9.4 10,446 14.7 83.7 3.8
Middle East / Africa 1,180 45.8 6,814 35.1 4,961 35.7 72.8 0.3
Total scheduled services 18,962 26.1 52,101 17.9 39,042 19.3 74.9 0.8
Charter 69 – 191 – 139 – 72.7 5.0
Total 19,031 26.5 52,292 18.3 39,181 19.7 74.9 0.8
* Incl. Lufthansa Passenger Airlines, SWISS, British Midland (from July 2009) and Austrian Airlines (from September 2009), not including Germanwings.

In Asia/Pacific, capacity increased by 9.4 per cent due to the new Other operating income slumped by EUR 70m overall, falling to
companies (adjusted: – 2.7 per cent). Due to a 14.7 per cent rise EUR 294m (– 19.2 per cent). This was due largely to a substantial
in sales (adjusted: +2.1 per cent), the passenger load factor went drop in currency gains compared with last year and lower income
up 3.8 percentage points (or 3.9 percentage points following from compensation for damages. Last year, the figure included
adjustments), taking the figure to 83.7 per cent (83.8 per cent). compensation payments of EUR 29m for the FlyNet internet system
Average yields were down slightly on the year (– 0.4 per cent). withdrawn by Boeing.
Total traffic revenue grew by 14.1 per cent (+4.4 per cent).
Due to consolidation changes, total operating revenue went up
In the Middle East/Africa region, the whole business segment’s 16.1 per cent to EUR 4.6bn (adjusted: – 0.6 per cent).
capacity increased by 35.1 per cent, while sales were up 35.7 per
cent. The passenger load factor remained stable, rising by 72.8 Compared with the previous year, operating expenses rose by
percentage points (+0.3 percentage points). Adjusted for consoli- 24.5 per cent to EUR 5.0bn. Excluding changes to the group of con-
dation, the increase in capacity came to 6.2 per cent and the solidated companies, operating expenses increased by 5.3 per cent.
passenger load factor to 73.3 per cent (+0,8 percentage points).
Although traffic revenue climbed 26.3 per cent (adjusted: +1.1 per This was primarily caused by a sharp EUR 3.0bn rise in the cost of
cent), there was a 6.9 per cent fall in average yields. materials and services (+27.8 per cent, adjusted: +8.3 per cent).
Costs within this item were primarily driven by a 47.4 per cent
All of the companies are pursuing programmes to continuously increase in fuel expenses to EUR 995m (adjusted: +27.6 per cent).
cut costs. These include the Climb 2011 programme initiated Fees and charges soared – largely due to consolidation changes
by Lufthansa Passenger Airlines, which is progressing, too. Further and higher handling charges – by a total of 30.5 per cent to
milestones have been reached in the focus projects. For example, EUR 983m.
a site-specific focus has been established as part of the capacity
planning for decentralised traffic in close collaboration with the Staff costs were up 15.7 per cent at EUR 892bn and the average
airline group’s partners. At the same time, Lufthansa Passenger number of employees rose to 57,551 (+24.9 per cent). Excluding
Airlines is continuing to further homogenise the fleet. The first target consolidation changes, staff costs fell 1.4 per cent while the average
within the plan to reduce 400 administrative jobs had almost been number of employees was 2.7 per cent lower. Lufthansa Passenger
attained by March. Approximately 240 full-time jobs have been Airlines, Austrian Airlines and bmi all aim to reduce additional jobs as
cut so far. In addition to this, every effort is being made to implement part of their cost-cutting programmes.
the sub-projects for technical aircraft maintenance at the Frankfurt
and Munich divisions and the decentral stations. Depreciation and amortisation went up to EUR 300m in total (previ-
ous year: EUR 229m). This was largely due to new aircraft delivered
Revenue and earnings development The segment posted a in the previous year (+10.5 per cent) and changes in the group of
year-on-year increase in traffic revenue to EUR 3.9bn (+19.4 per consolidated companies (+20.1 per cent).
cent). This was attributable to the larger group of consolidated
companies and the overall positive development in traffic figures. Other operating expenses soared, mainly as a result of consolidation
Without changes to the group of consolidated companies, the changes, by 20.9 per cent to EUR 810m. Without the newly consoli-
increase would have been 1.6 per cent. Although the volume sold dated companies, other operating expenses would have edged up
rose by 3.8 per cent, this was offset by a 3.7 per cent fall in prices. by just 2.2 per cent, primarily due to higher exchange rate losses
The changes in the group of consolidated companies and positive (EUR +56m), lower agency commissions (EUR – 13m) and reduced
currency effects improved traffic revenue by 17.8 per cent and advertising and sales promotion expenses (EUR – 16m).
1.5 per cent, respectively.
In total, revenue grew to EUR 4.3bn (+19.6 per cent, adjusted:

+2.2 per cent).

The operating result plummeted by EUR 343m compared with last Outlook Following a very weak start to the year and the impact
year’s figure, coming in at EUR – 373m. Lufthansa Passenger Air- of both the harsh winter and the pilots’ strike, demand develop-
lines contributed an operating loss of EUR 236m (previous year: ments at the companies within the Passenger Airline Group
EUR – 53m). The earnings contributions made by Austrian Airlines improved noticeably in the first quarter. This more positive trend is
and bmi curtailed the operating result by a further EUR 111m. reflected in rising sales figures. Another pleasing development is
the recovery in the premium sector, which also prompted a year-
Other segment income totalling EUR 30m was attributable above on-year increase in average yields in intercontinental traffic.
all to book gains on the disposal of aircraft (EUR 14m) and income
from higher write-backs of provisions (EUR 15m). European traffic continues to suffer from structural changes in
demand patterns. The companies are taking respective steps to
Other segment expenses amounting to EUR 13m (previous year: counteract these changes. For instance, Lufthansa Passenger Air-
EUR 4m) were accounted for entirely by impairment losses. These lines is working at full stretch to implement its Climb 2011 pro-
related to 15 Canadair Regional Jet 200s earmarked for sale or gramme. The new companies Austrian Airlines and bmi are also
decommissioned as part of Climb 2011. The EUR – 25m result making considerable restructuring efforts, which are intended
of equity valuation was attributable largely to SunExpress to bring them back to profitability in the medium term. However,
(EUR – 15m) and SN Airholding (EUR – 10m). The segment result negative earnings contributions are expected from these com-
fell overall by EUR 357m to EUR – 381m. panies for the full year 2010. Rising oil prices will also affect
results, although the Lufthansa Group’s systematic hedging policy
The segment’s capital expenditure came to EUR 484m, 13.3 per will soften the impact of these additional costs.
cent below that of the previous year. In the first three months of the
year, the Passenger Airline Group invested in one Airbus A330, On the one hand, developments in the ongoing wage negotiations
four Airbus A320s, four Airbus A319s, three Canadair Regional Jet with cockpit, cabin and ground staff offer opportunities to reach a
900s, four Embraer E190s and one ATR 700. joint understanding and rationally address the structural chal-
lenges. However, on the other side, they also pose the risk of
further industrial action.
At present, it is also impossible to predict what further impact the

volcanic eruption in Iceland could potentially have on business
operations. The airspace closure by the authorities in April had
already grounded the fleet for several days and caused a huge
loss of revenue.
In the light of these factors, it is not possible at this stage to be

more precise about the expected operating result, much less put
a figure on it.

Other Group airlines
SWISS Austrian Airlines
Jan. – March Change Jan. – March Change

2010 in % 2010 in %
Revenue €m 746 6.6 Revenue €m 427 –

Operating result €m 1 – 97.6 Operating result €m – 66 –
EBITDA €m 56 – 33.7 EBITDA €m – 23 –
Employees as of 31.3. number 7,519 3.3 Employees as of 31.3. number 7,939 –
Further information on SWISS can be found at www.swiss.com. Further information on Austrian Airlines can be found at www.aua.com.
Following a difficult start to the year, business improved for SWISS Lufthansa’s takeover of Austrian Airlines was completed in the first
as the first quarter progressed. The company continued to pursue quarter. In February, all the shares held by minority shareholders
extensively the measures initiated in 2009 to optimise costs and were transferred to the main shareholder ÖLH Österreichische
earnings. However, a strong Swiss franc and substantially higher Luftverkehrs-Holding-GmbH in the context of a squeeze-out. The
fuel costs compromised the result, prompting SWISS (including shares were then delisted from the stock exchange.
Edelweiss) to post an operating result of just EUR 1m for the first
three months (previous year: EUR 42m). Revenue climbed 7 per A raft of restructuring measures was implemented with the
cent to EUR 746m. Austrian Next Generation concept and the new market strategy.
Work also continued to integrate Austrian Airlines into the
In the traditionally weak first quarter, SWISS once again saw a Lufthansa Group. Major agreements were reached with employee
record number of passengers. Modest economic improvements representatives to put the EUR 150m savings package into prac-
both on the home market and around the world prompted a slight tice and reduce labour costs. The process of making the neces-
rise in the premium share on board. Nevertheless, average yields sary job cuts is still under way. As of July 2010, Lufthansa Cargo
were well below pre-crisis levels. The freight business operated and Austrian Cargo’s global activities will be pooled. Harmonising
by Swiss WorldCargo developed pleasingly. the sales and ground handling areas will cut costs and improve
market presence. In addition, Austrian Airlines has extended its
In the first quarter, SWISS continued to adjust its capacities to cooperation with its sister company bmi by means of a code-share
market developments (– 1 per cent). Capacities were increased agreement on flights to the UK. When the summer flight time-
by 9 per cent on the year in European traffic and cut by 5 per cent table becomes effective, the airline will also start cooperating with
in the intercontinental sector. Brussels Airlines.
SWISS serves 73 destinations in 39 countries around the world. The beginning of the new financial year was dominated by a
The airline is continuously ramping up its capacity from Geneva positive trend in the passenger load factor. In the first quarter, pas-
and has been offering six new daily connections to London Heath- senger numbers were 7.3 per cent up on last year at approxi-
row since early January. This has doubled the number of available mately 2.1 million. A 3.1 per cent capacity reduction was offset by
seats in the important London market and further consolidated a 3.4 per cent increase in sales. The load factor climbed to
the company’s position in Geneva. Starting on 2 June, SWISS will 72.9 per cent (+4.6 percentage points). The income situation
also operate six flights a week from Zurich to San Francisco. remained tense due to persistently weak average yields. In the first
quarter revenue fell by 2 per cent to EUR 427m. The operating
SWISS is continuing to position itself as a premium airline and pro- result came in at EUR – 66m. The company expects the effects of
ceeding with its product offensive. The Airbus A330-300s which the restructuring programme to make themselves felt in the earn-
have been refitted in all three classes are proving particularly pop- ings figures as of the second quarter. It is hoped that the full year
ular. From the beginning of June 2010, the Airbus A340s will 2010 will see a sizeable revenue upswing. The company’s objective
gradually be fitted with a new Business Class. SWISS took the top is to generate a positive cash flow (free cash flow excluding one-
spot in three categories at this year’s Business Traveller Awards. time effects) and significantly reduce its operating loss.
SWISS intends to continue on its profitable path in 2010 and

improve its operating result.

British Midland Germanwings
Jan. – March Change Jan. – March Change

2010 in % 2010 in %
Revenue €m 196 – Revenue €m 102 4.1

Operating result €m – 45 – Operating result €m – 34 – 54.5
EBITDA €m – 41 – EBITDA €m – 28 – 74.0
Employees as of 31.3. number 3,924 – Employees as of 31.3. number 1,167 10.2
Further information on bmi can be found at www.flybmi.com. Further information on Germanwings can be found at www.germanwings.com.
The restructuring programme initiated at bmi in 2009 dominated Following a successful year 2009, Germanwings too had to face
the first quarter. The aim is to cut costs by some GBP 80m per the effects of the harsh winter, the pilots’ strike and the rising oil
annum and generate additional synergies of around EUR 20m. As price in early 2010. As a consequence, the operating result came
part of the programme, bmi’s route network is set to be cut by up in well below last year’s despite the measures initiated to safe-
to 25 per cent and 800 jobs are to be reduced. Returning leased guard earnings.
aircraft will be used as the main way of further reducing the air-
line’s fleet. Following a delivery of three more Airbus A319s in the first quarter,
Germanwings now operates a fleet of 29 aircraft from its five
Economic developments in the UK remain extremely uncertain, as bases in Germany. Flight capacities were expanded, especially in
illustrated clearly by domestic sales. Negative effects arose from Cologne and Stuttgart. In addition, Germanwings will station three
the weak exchange rate between the pound and the US dollar and aircraft at Hanover Langenhagen airport as of late April 2010. This
the sharp rise in fuel prices. As a result of this trend, a fuel sur- will make Hanover the airline’s sixth base in Germany. In total,
charge was reintroduced on medium-haul routes. In this climate, Germanwings offers flights to 75 destinations on the European
bmi posted revenue equivalent to EUR 196m and an operating continent from its bases.
result of EUR – 45m for the first quarter of 2010.
Traffic grew considerably in the first quarter compared with the first
As the second largest airline at London Heathrow, bmi holds three months of 2009. Between January and March, Germanwings
11 per cent of the airport’s slots. A number of these slots were carried some 1.4 million passengers (+4.0 per cent). Sales of seat-
leased to members of the Star Alliance and other airlines for ing capacities were severely impaired by the pilots’ strike in Febru-
periods of between one and two years. In addition to this, the air- ary. The passenger load factor was 2.8 percentage points lower
line’s collaboration with Lufthansa has already generated syner- than last year at 72.2 per cent. Nevertheless, Germanwings was
gies in the sales organisation. The route network has also been able to maintain average yields on a par with the previous year
further developed. For example, code-sharing agreements with by introducing measures to boost revenue. The operating result
Brussels Airlines and SWISS have been extended considerably. tumbled to EUR – 34m, however, down considerably on last year’s
Furthermore, new routes have been launched. The airline now figure (EUR – 22m). By contrast, revenue rose by 4.1 per cent to
flies to Vienna in cooperation with Austrian Airlines and Berlin- EUR 102m. Germanwings forecasts revenue growth for 2010 and
Tegel in collaboration with Lufthansa. A number of other connec- expects to post another positive operating result.
tions were suspended, in contrast.
In 2010, Germanwings will continue to push new product develop-
Alongside the UK and Ireland, the main focus of bmi’s future route ments. The “Private Seat” was launched in January, which ena-
network will be the CIS states, the Africa/Middle East traffic region bles customers to book an extra free seat next to their own. Since
and Europe. To achieve this, the airline will also serve Star Alliance January, passengers have also had the option of reserving an
partners’ hubs, enabling passengers to continue their journeys “XL Seat” with extra leg-room.
from there.
The Germanwings website has once again been awarded a
bmi’s objective remains to reinstate profitability in the medium number of major creative prizes in recent months, including Gold
term. The current restructuring programme should help to consid- at the New York Festivals.
erably reduce this year’s loss.

Logistics
Logistics business segment comprising the marketing of Austrian Airlines’ belly capacities by
Lufthansa Cargo. As of 1 July 2010, the companies will pool their
global sales and standardise their product ranges and production
Key figures Logistics
processes. Vienna Airport will then become Lufthansa Cargo’s
Jan. – March Jan. – March Change central European hub. This will mean that clients can be offered
2010 2009 in %
even more destinations. especially in Eastern Europe. The Aero-
Revenue €m 563 469 20.0 Logic joint venture grew its network substantially at the beginning
of which with companies of the year. adding services including daily flights between Leipzig
of the Lufthansa Group €m 5 7 – 28.6
and Hong Kong.
Operating result €m 35 – 72 –
Segment result €m 39 – 66 –
EBITDA €m 71 – 37 –
Lufthansa Cargo once again reinforced its position as an industry
Segment capital expenditure €m 1 4 – 75.0 leader in the field of security by inviting some 300 freight forward-
Employees as of 31.3. number 4,437 4,644 – 4.5 ers and shippers to two security conferences in New York and
thousand Frankfurt am Main. The aim of the conferences was to discuss the
Freight and mail tonnes 3,914 3,282 19.3 latest developments. Lufthansa Cargo is well prepared for up-and-
Available cargo coming challenges, such as the requirement to screen all airfreight
tonne-kilometres millions 2,731 2,786 –2.0
Revenue cargo
on board planes from the United States.
tonne-kilometres millions 1,960 1,604 22.2
Cargo load factor % 71.8 57.6 14.2 pts Three Lufthansa Cargo projects have proved successful in the
“Prime Cluster” competition organised by the German federal
Course of business Following a loss-making year in 2009, the government. Successful tests on lightweight containers also dem-
beginning of the new financial year was very positive for Lufthansa onstrate that the company is a leading innovator. With their lighter
Cargo. In the first quarter, it succeeded in recording substantial materials, the new containers reduce fuel consumption. The
year-on-year growth in revenue and even posted an operating paperless airfreight transport system e-freight has also been
profit thanks to better income in conjunction with strict cost extended.
management.
Operating performance The first three months of 2010 were
Segment structure In addition to Lufthansa Cargo AG, the dominated by a tangible recovery in demand, with tonne-kilome-
Logistics segment also includes Lufthansa Cargo Charter Agency tres of freight transported climbing by 19.3 per cent and tonne-
GmbH, Jettainer GmbH and the equity investments in the cargo kilometres sold soaring by 22.2 per cent year on year. As capacity
airlines AeroLogic GmbH and Jade Cargo International Ltd. The was cut by 2.0 per cent at the same time, the load factor increased
Boeing 777F freighter fleet operated by AeroLogic will be expan- by 14.2 percentage points.
ded from four to eight aircraft in the course of the year. Jade
Cargo has six Boeing 747F freighters. Lufthansa Cargo also holds The largest growth in volumes was seen in the Americas traffic
equity stakes in sales support and handling companies. region. No additional capacity was needed to cater for the greater
demand.
Product and route network Lufthansa Cargo is expanding its
route network. In doing so, it is working with Austrian Cargo to
utilise synergies arising from the new partnership. The two com-
panies have entered into an extensive cooperation agreement
Trends in traffic regions Lufthansa Cargo
Freight /mail Available cargo tonne- Revenue cargo tonne- Cargo load factor
in tonnes kilometres in millions kilometres in millions in %
Jan. – March Change Jan. – March Change Jan. – March Change Jan. – March Change
2010 in % 2010 in % 2010 in % 2010 in pts
Europe 133,876 15.3 171 – 1.5 81 7.1 46.9 3.8

America 113,772 27.8 1,078 0.9 806 28.7 74.8 16.2
Asia / Pacific 111,494 21.7 1,198 – 4.6 905 22.5 75.5 16.7
Middle East / Africa 32,240 2.8 284 – 1.1 168 2.7 59.3 2.2
Total 391,382 19.3 2,731 – 2.0 1,960 22.2 71.8 14.2

The Asia/Pacific traffic region also experienced strong volume Staff costs were curtailed to EUR 77m (– 1.3 per cent). The
growth compared with the previous year. This growth related to steps taken in 2009 as part of the programme to safeguard
flights both to and from Asia. As traffic from Asia is highly profi- earnings, such as staff cuts, running down overtime accounts
table, the number of connections was stepped up in March to and reducing working hours, took effect. In the first quarter,
boost capacity. the company employed 4,437 people on average – a decrease
of 207 (– 4.5 per cent).
By contrast, demand in the Middle East/Africa traffic region only
grew slightly year on year. However, this traffic region was also Depreciation and amortisation was stable year on year at
not affected by the previous year’s downswings in volume. EUR 30m.
A particularly sharp rise was seen in demand for international At EUR 60m, other operating expenses were slashed by 32.6 per
flights in Europe during the reporting period. European traffic con- cent. The main causes for this were the expiry of agency commis-
sists largely of feeder flights for the routes to Asia and America. sion agreements in the second half of 2009 and the reduction of
other travel, staff, rental and maintenance costs. Foreign exchange
Following a price adjustment last autumn, Lufthansa Cargo pro- losses were also lower than last year.
gressively continued to tweak its prices in spring 2010. This should
gradually help to compensate for plummeting prices in the previ- The pleasing development in total income in conjunction with
ous year. consistent cost management led to a very good operating result of
EUR 35m in the first quarter (previous year: EUR – 72m).
In terms of costs, Lufthansa Cargo kept pursuing measures to
safeguard earnings as part of the “Lean Lufthansa Cargo 2010ff” At EUR 4m, the result of investments accounted for under the
initiative. In February, the Executive Board and works council at equity method was much higher than in the first quarter of 2009.
Lufthansa Cargo extended the arrangements for reduced working The equity investments in Shanghai Pudong International Airport
hours for a further year, while at the same time cutting the reduc- Cargo Terminal Co. Ltd. and AeroLogic GmbH made major con-
tion in hours from 25 to 20 per cent. However, in the light of posi- tributions here.
tive demand developments, a decision was taken in March to
suspend the reduction in working hours for April and May. Positive business developments were therefore reflected in the
segment result of EUR 39m (previous year: EUR – 66m).
Revenue and earnings development The pleasing trend
seen in the performance figures is reflected in revenue develop- Segment capital expenditure (EUR 1m) fell EUR 3m year on year
ments: Lufthansa Cargo grew its traffic revenue to EUR 531m due to the restrictions placed on investing activity as part of the
(+18.5 per cent). This was due to both higher volumes and programme to stabilise earnings.
improved freight rates.
Outlook Lufthansa Cargo is cautiously optimistic about the cur-
At EUR 21m, other operating income fell compared with the first rent financial year. Although forecasts remain difficult in the current
quarter of 2009. This decrease stemmed mainly from losses due climate, there are no signs of an end to resurgent demand as yet.
to foreign currency translation. As a result, a clear year-on-year increase in revenue is anticipated.
However, Lufthansa Cargo does not expect to match the 2008
Total operating income rose to EUR 584m (+15.9 per cent) as a figures again just yet. For this reason, Lufthansa Cargo will con-
result. By contrast, operating expenses were down 4.7 per cent. tinue to pursue its strict cost-cutting measures, although it expects
to be able to suspend the reduction in working hours as the year
The cost of materials and services edged up slightly to EUR 382m progresses. Based on the positive developments in the first quar-
and consisted predominantly of expenses for fuel and charters. ter of 2010, Lufthansa Cargo has begun making technical prepa-
Due to pricing trends, fuel expenses rose by 14.1 per cent to rations for two of the four decommissioned aircraft to possibly be
EUR 73m. However, charter expenses fell to EUR 206m (– 1.4 per brought back into service. With these moves – and assuming
cent) as joint services with other airlines were cut back. MRO demand continues to develop positively – Lufthansa Cargo is
expenses of EUR 28m were lower than last year, partly as a result now aiming for a positive operating result for the full year 2010.
of fewer maintenance inspections. However, this will only be possible if there are no further airspace
closures due to renewed volcanic activity in Iceland.

Logistics
MRO
MRO business segment The new autoclave with an internal diameter of five metres can be
used to join and cure cowlings for the biggest jet engines, large
high-lift system components and aircraft radomes following
Key figures MRO
repairs.
2010 2009 in %
Lufthansa Technik Logistik has developed the first RFID (radio
Revenue €m 999 1,093 – 8.6 frequency identification) transponder to fulfil the exacting demands
of which with companies of aviation maintenance operators. Sponsored as part of the Ham-
burg aeronautic research programme, the Permanent Parts Mark-
Operating result €m 71 61 16.4
ing project has developed a way to permanently label components
Segment result €m 78 61 27.9
EBITDA €m 98 73 34.2
both inside and outside the aircraft cabin. It is the first time this
Segment capital expenditure €m 15 29 – 48.3 has been achieved.
In the VIP sector, the first Airbus A319 was officially presented
to the German army in late March for the Federal Ministry of
Course of business Following a two-year downswing, global Defence’s Special Air Mission Wing. The aircraft was fitted with
demand for maintenance, repair and overhaul (MRO) services is a VIP cabin on time and on budget within approximately nine
growing once more. However, as the earnings position for airlines months. Lufthansa Technik has also been commissioned with sup-
remains strained, there is even greater pressure on margins. plying the new medium- and long-haul fleet. Its range of services
New capacities on the MRO market are further intensifying the comprises maintenance management, servicing the aircraft,
competition. engines and components, procuring spare parts, and providing
plus auditing aeronautical and technical documentation.
As expected, revenue at the Lufthansa Technik group was modest
at the beginning of 2010. However, the group was able to improve Operating performance In the first quarter alone, Lufthansa
on its operating result in the first quarter. Technik succeeded in securing 196 new contracts with a total vol-
ume of EUR 227m for the full year 2010. This almost compensates
Segment structure The Lufthansa Technik group includes 30 for expiring contracts and revenue from one-off jobs in the previ-
MRO operators worldwide. The company also holds direct and ous year. The number of aircraft serviced by Lufthansa Technik
indirect equity investments in 54 companies. Twenty-two of these rose by 16 per cent to 2,075 worldwide.
companies are in Germany, sixteen in Europe, ten in America and
six in Asia. Many customers have extended their contracts, such as Spanair,
who have signed their Total Technical Support agreement for Air-
The aircraft overhaul companies Lufthansa Technik Malta and bus A320 series aircraft for another ten years. United Airlines has
Lufthansa Technik Budapest were added to the business segment’s also once again entrusted the aircraft overhaul of its Boeing 777
group of consolidated companies, while the Italian engine subsidi- fleet to Ameco Beijing, the joint venture set up in 1989 between
ary Alitalia Maintenance Systems was sold in January 2010. Air China and Lufthansa Technik. A new five-year contract for the
maintenance, repair and overhaul of engines was also signed with
Products Lufthansa Technik is the MRO world market leader in bmi. In addition to this, the Total Component Support agreement
the field of civil aircraft, with a portfolio ranging from the latest with Lufthansa CityLine was extended to Lufthansa Regional’s
repair procedures through to individual completion programmes whole Embraer fleet. This complements the existing contracts with
for VIP aircraft. Augsburg Airways and Air Dolomiti. Virgin Blue has awarded an
exclusive three-year contract to the Lufthansa Technik joint venture
In Hamburg, Lufthansa Technik has extended one of its workshop LTQ Engineering in Melbourne. This involves an innovative repair
buildings and acquired a large-scale autoclave oven to enable it to procedure for engines.
repair larger aircraft components made from composite materials.

Revenue and earnings development The business environment Depreciation and amortisation rose by EUR 2m (+9.5 per cent) to
remained tense, prompting a downswing in revenue at Lufthansa EUR 23m due to the additions to the group of consolidated com-
Technik. Revenue from Lufthansa Group companies fell by EUR 50m panies.
(– 10.8 per cent) to EUR 413m largely due to cyclical factors, i.e.
a lower number of aircraft rest periods. As anticipated, revenue Other operating expenses dropped, primarily as a result of cur-
with external clients also dropped, by EUR 44m to EUR 586m rency measurement on the reporting date, by EUR 9m (– 5.0 per
(– 7.0 per cent). This is partly because the revenue of EUR 19.2m cent) to EUR 172m.
with Austrian Airlines and bmi, which have now been consolidated,
counted as external revenue in the previous year. However, cap- In the first quarter of 2010, Lufthansa Technik was able to improve
acity utilisation in the engine segment has so far also remained its operating result by EUR 10m or 16.4 per cent to EUR 71m. This
down on the year. By contrast, the field of component supply con- was due in part to the effect of the cut-off date in the previous year,
tinued to grow in the first three months of the year. Overall, revenue as described above. In addition to this, the steps initiated in late
was down EUR 94m (– 8.6 per cent) compared with the previous 2008 to safeguard earnings bore fruit.
year, coming in at EUR 1.0bn. External revenue accounted for a
slightly larger share of total revenue, up 1.1 percentage points at For the first time, the segment result comprised N3, the aero-
58.7 per cent. engine joint venture with Rolls Royce, and Spairliners, the A380
component joint venture with Air France. Due to the incorporation
Other operating income rose, due in part to exchange rate gains of these two companies, improved earnings contributions by
and changes in inventories, by EUR 23m to EUR 54m. HEICO and Ameco, and the disposal of the loss-making Alitalia
Maintenance Systems, the result under the equity method increa-
All in all, the MRO segment generated total operating revenue of sed by EUR 6m to EUR 5m. This boosted the segment result by
EUR 1.1bn (– 6.3 per cent). a total of 27.9 per cent to EUR 78m.
In line with revenue developments, total operating expenses fell by Segment capital expenditure amounted to EUR 15m. The EUR 14m
EUR 81m (– 7.6 per cent) to EUR 1.0bn. reduction was attributable to the relatively high figure for the previ-
ous year, which included the purchase of a reserve engine.
The cost of materials and external services for aircraft rest periods
and engine maintenance also declined by EUR 81m (– 13.6 per Outlook In mid-April, the last test was conducted in Frankfurt for
cent) to EUR 513m. The previous year’s figures were reduced by the commissioning of Lufthansa’s first Airbus A380. The fit check
the date used for inventory valuation. was completed in the A380 hangar opened at Frankfurt Airport in
January 2008. It proved that Lufthansa Technik’s staff, operating
As of the end of the quarter, the workforce had grown by 986 due resources and processes are also prepared for the Lufthansa
to the newly consolidated companies. However, jobs were also Group’s new flagship.
reduced at several plants, especially in the USA. As a result, the
headcount increased by 758 (+3.8 per cent). Staff costs went up Lufthansa Technik is able to face all the challenges posed by the
by EUR 7m (+2.6 per cent) to EUR 274m as a consequence. competition and is in a strong position with its modern product
portfolio, cost-effective sites, and permanent projects to cut costs,
boost efficiency and heighten flexibility. The company continous to
expect to post a substantial operating profit for the full year 2010.
Nevertheless, matching the previous year’s revenue and results
remains an ambitious goal.

MRO
IT Services
IT Services business segment Operating performance In the fist quarter 2010, Lufthansa
Systems once again succeeded in concluding significant con-
tracts with new and existing customers. The Lido/RouteManual
Key figures IT Services
navigation maps proved particularly popular with airlines such as
Jan. – March Jan. – March Change Air Dolomiti and Bulgaria Air. In addition to this, the IOCC platform
2010 2009 in %
will be used for the integrated management of flight operations at
Revenue €m 143 148 – 3.4 Tunisair in future. Lufthansa Systems has also consolidated its
of which with companies position in the Middle East, where Etihad Airways will soon start
using the SchedConnect code-sharing and flight plan manage-
Operating result €m 3 2 50.0
ment system.
Segment result €m 3 2 50.0
EBITDA €m 11 13 – 15.4
Segment capital expenditure €m 8 17 – 52.9 Another international airline – Aeroflot – has opted for the Sirax Air-
Employees as of 31.3. number 3,002 3,059 – 1.9 Finance Platform. Brussels Airlines has also extended its contract
for the use of Sirax by three years. In the field of passenger solu-
tions, LOT will continue to use GroundSolutions/Web as the basis
Course of business The weak situation on the international for its internet check-in service and has added important compo-
aviation market continued to impair business at Lufthansa Systems nents to the system.
in the first quarter of 2010. Airlines reduced or postponed predom-
inantly their investments. This caused lower revenue at Lufthansa Lufthansa Passenger Airlines has also renewed its contract for
Systems. However, the steps initiated in 2009 to safeguard earn- the Revenue Integrity solution, which identifies double and blind
ings had a positive effect and improved the operating result. entries and thereby enables a considerable amount of additional
This meant that profitability grew again in the first three months of income.
the year.
Revenue and earnings development In the first three months of
Segment structure Lufthansa Systems offers the full spectrum the financial year, Lufthansa Systems generated revenue of
of IT services on a dependable 24-hour basis, from consultancy EUR 143m (– 3.4 per cent). Income from Lufthansa Group compa-
to developing and implementing applications and complete IT out- nies fell to EUR 84m (– 3.4 per cent) due to price reductions on
sourcing. The portfolio comprises IT services from the divisions of operator models and adjustments to volumes and pricing in the
Airline Management Solutions, Passenger Airline Solutions, passenger system segment. In the reporting period, the company
Airline Operations Solutions, Industry Solutions and Infrastructure generated revenue totalling EUR 59m (– 3.3 per cent) with clients
Services. The company has sites in Germany and in 14 other from outside the Group. Adjusted for consolidation effects, reve-
countries. This includes production sites in Europe and the USA, nue from non-Group clients remained on a par with the previous
as well as a sales team with account managers in each strategic year. Falls in prices and volumes were offset by new business in
market around the world. the Airline Management Solutions and Industry Solutions segments.
Products The products offered by Lufthansa Systems are Other operating income dropped by 30.8 per cent to EUR 9m.
geared towards optimising airlines’ complex business processes. This was primarily due to exchange rate effects and the decrease
They thereby make a significant contribution towards cutting costs in development services for clients caused by their reluctance to
and increasing revenue. Integrated platform solutions form a cru- invest.
cial part of the product portfolio. The particular benefit of these
platforms for customers lies in the fact that they improve the speed Total operating revenue fell by 5.6 per cent to EUR 152m (previous
and quality of decision making by providing all the necessary year: EUR 161m).
information in a central system. After introducing the IOCC plat-
form for flight operations in 2009, Lufthansa Systems presented its The cost of materials and services rose by 11.1 per cent to
Integrated Commercial Platform (ICP) in the reporting period. This EUR 20m as a result of large-scale migration projects.
covers all network and income management processes. The ICP
therefore creates a sound data footing for airlines’ commercial
management, which helps to substantially increase profitability.

Despite a reduction in the workforce to 3,002 (– 1.9 per cent), staff There were no business transactions in the period under review
costs rose to EUR 61m (+3.4 per cent) as overtime was necessary that led to a significant change in the segment result compared
for some internal personnel due to the cutting of external staff. with the operating result. The segment result was EUR 3m
(previous year: EUR 2m).
Other operating expenses were cut by 17.8 per cent to EUR 60m
thanks to the considerable reduction in outside staff and lower Segment capital expenditure fell by 52.9 per cent to EUR 8m
expenses for purchased IT infrastructure services. (previous year: EUR 17m) as a result of the agreed cutbacks. It
mainly served to secure existing business.
As capital expenditure was scaled back from the second half of
2009, depreciation and amortisation fell to EUR 8m (– 11.1 per Outlook Business conditions for airlines around the world are
cent) in the first quarter of 2010. gradually improving. However, there are still considerable regional
differences and a great deal of uncertainty. As a consequence,
This brought total operating expenses to EUR 149m (previous airlines’ willingness to invest is only growing tentatively. The com-
year: EUR 159m). pany will continue with the portfolio pruning that has been initiated
in the area of Infrastructure Services. Although this will prompt a
Despite the downswing in revenue, Lufthansa Systems posted an fall in revenue in the current financial year, the existing cost-cutting
improved operating result of EUR 3m (previous year: EUR 2m) measures will be consistently sustained. The business segment
thanks to the measures initiated to safeguard earnings. therefore continues to expect to see a year-on-year increase in its
operating result.

IT Services
Catering
Catering business segment Products As well as providing traditional airline catering, LSG
Sky Chefs is increasingly active in the development, procurement
and logistics of in-flight service products and managing the proc-
Key figures Catering
esses associated with in-flight service. The company works with
Jan. – March Jan. – March Change suitable partners in order to constantly enhance its portfolio. For
2010 2010 in %
example, a cooperation agreement was concluded with Formia in
Revenue €m 493 498 – 1.0 Hong Kong in the first quarter. Formia supplies cosmetic products
of which with companies and other items for in-flight service. The objective is to place the
of the Lufthansa Group €m 122 111 9.9
development and procurement of these product categories on a
Operating result €m –2 21 –
broader footing.
Segment result €m 0 21 – 100.0
EBITDA €m 55 57 – 3.5
Segment capital expenditure €m 9 14 – 35.7 Operating performance LSG Sky Chefs was able to maintain
Employees as of 31.3. number 28,471 29,608 – 3.8 its market position well in the midst of tough competition. The
existing long-standing catering contract with SunExpress was
extended for a further five years. Virgin Atlantic reinforced the
Course of business Airlines recorded growing passenger num- collaboration that began in 2005 by signing a memorandum of
bers in the first quarter of 2010, reviving demand for catering understanding regarding catering for its flights in the UK and other
services, especially in the Asian and South American markets. operational and logistical services in the fields of catering and
However, the positive effects were more muted in Europe and equipment.
North America, where airlines remain under cost pressure and
catering is limited as a result. Revenue in the Catering business LSG Sky Chefs also successfully stepped up its presence in East-
segment was down slightly on the same period of the previous ern Europe. An agreement for the provision of technical services
year and the operating result dipped into the red. was signed with the local catering provider Tollan Service in
Krasnodar, Russia, and a management contract was concluded
Segment structure The LSG Sky Chefs group consists of 130 with Sky Food Catering at Moscow’s Vnukovo Airport. The newly
companies, with more than 200 facilities in 52 countries. In the constructed production plant in Cairo – a joint venture with Egypt
reporting period, Brahim’s LSG Sky Chefs Holdings SDN BHD – Air Inflight Services – went operational in the first quarter.
an associated company in Malaysia – was added to the group of
consolidated companies. Compared with the first quarter of last In the previous year, the company-wide Upgradeplus initiative was
year, the number of fully consolidated companies has also launched to establish a permanently competitive corporate struc-
increased by two. One of these is LSG Lufthansa Service Hong ture. These efforts continued. By the end of March 2010, a large
Kong Ltd., which has been fully consolidated since 1 July 2009. number of projects had been recorded in the three main catego-
ries of Revenue growth, Cost cutting and New business models.
At the beginning of the year, the company’s organisational struc- These projects are being implemented and assessed in a struc-
ture underwent a partial geographical realignment to group to- tured manner. To generate profitable revenue growth, the com-
gether markets of similar maturities that present comparable pany is both extending its activities with airlines and investigating
challenges. The countries in Europe, Africa, the Middle East and prospects in neighbouring markets. In this connection, LSG Sky
Western Asia were allocated to three newly established regions – Chefs concluded a cooperation agreement with Ahr Service
Germany, Europe and Emerging Markets – which are headed up GmbH to jointly supply healthcare facilities in Germany. Cost-
by qualified management teams. While the Europe region is cutting potential is being utilised by further pursuing the Lean initi-
focussing primarily on optimising production structures, the priority ative and increasing the speed with which purchasing activities
for Emerging Markets is establishing networks and entering new are optimised.
markets. All of the regions are supported by centres of excellence
in areas such as product innovation, equipment management
and frozen products.

Revenue and earnings development Despite growing passen- Other operating expenses shrank by 17.0 per cent to EUR 88m.
ger numbers in the first quarter of 2010, revenue fell by 1.0 per This was mainly thanks to positive exchange rate movements and
cent to EUR 493m compared with the previous year. This develop- the successful implementation of the Upgradeplus initiative. The ini-
ment was primarily attributable to the loss of the SAS key account tiative comprises measures such as intensifying Lean training ses-
in Q2 2009. The full consolidation of a subsidiary in China and sions at facilities around the world and standardising purchasing
positive exchange rate movements had the opposite effect. processes.
External revenue shrank to EUR 371m (– 4.1 per cent), while inter- Ultimately, LSG Sky Chefs posted an operating loss of EUR 2m for
nal revenue rose by 9.9 per cent to EUR 122m. The companies the first three months of 2010. The result is EUR 23m down on the
consolidated within the LSG Sky Chefs group for the first time year. However, it corresponds to a EUR 17m increase once the
made a revenue contribution of EUR 12m. previous year’s figure is adjusted for the one-off effect of the D&O
settlement.
Other operating income came in at EUR 15m. The previous year’s
figure of EUR 69m was dominated by earnings of EUR 40m from At EUR 2m in total, other segment income and expenses along
the settlement before an arbitration tribunal on the D&O policy for with the result from investments valued using the equity method
the SAS contract in Scandinavia. Negative exchange rate fluctua- remained virtually on a par with the previous year’s figure. The
tions (EUR – 2.5m, previous year: EUR +3.6m) also contributed segment broke even after entering a result of EUR 21m in the pre-
towards the year-on-year change in other income. vious year due to the one-off effect described above.
Total operating income went down altogether by 10.4 per cent to Segment capital expenditure came to EUR 9m, 35.7 per cent
EUR 508m. below the previous year’s figure. Capital expenditure was limited
to the minimum necessary for operations as part of the pro-
Compared with the previous year, operating expenses were cut gramme to safeguard earnings.
by a total of 6.6 per cent and amounted to EUR 510m in the first
quarter. Outlook Although passenger numbers are back on the rise,
this will only stimulate greater demand for catering services to a
A key contribution stemmed from the cost of materials and serv- certain extent, and developments will vary from region to region.
ices, which went down to EUR 216m (– 4.0 per cent) thanks to This is because airlines are continuing to cut costs and premium
lower volumes and savings in purchasing, in spite of negative passengers are only making a hesitant return. Uncertainty also
exchange rate effects and a slight overall rise in food prices. remains among airlines following the volcanic eruption in Iceland
as it is unclear how the situation will develop and what conse-
The LSG Sky Chefs group had an average of 28,471 employees quences the flight ban will have. At a global level, LSG Sky Chefs
(– 3.8 per cent) in the first quarter. Job cuts in Scandinavia were only expects to see a moderate upswing in demand for airline
primarily responsible for the lower headcount. Staff costs catering in 2010.
decreased at a faster pace, falling by 5.0 per cent to EUR 191m.
The company will focus on implementing the Upgradeplus initiative
Depreciation and amortisation rose by 7.1 per cent to EUR 15m. and renewing wage agreements in its two major markets, Ger-
This was due solely to the above-mentioned full consolidation of many and the USA. At the same time, it will strengthen its cus-
LSG Lufthansa Service Hong Kong Ltd. tomer relationships and its presence in emerging markets. LSG
Sky Chefs is aware that the difficult market environment may lead
to a loss of revenue. Nevertheless, the segment continues to antic-
ipate a positive operating result for the full year.

Catering
Other
Risk report
Other Revenue and earnings development The companies repre-

sented in the segment Other reported total operating revenue of
EUR 277m (– 21.8 per cent). AirPlus generated EUR 88 million of
Other
the total (+39.3 per cent), thereby contributing 31.8 per cent of
Jan. – March Jan. – March Change total operating revenue. Lufthansa Flight Training accounted for
2010 2009 in %
EUR 37 million (+2.5 per cent), or 13.4 per cent.
Total operating income €m 277 354 – 21.8
Operating result €m – 59 – 29 – Operating expenses declined by 12.3 per cent to EUR 336 million.
Segment result €m – 43 – 64 32.8
EBITDA €m 29 – 11 – The operating result was negative at EUR – 59m (previous year:
Segment capital expenditure €m 5 32 – 84.4
EUR – 29m). This also applies to the segment result, which fell
from EUR – 64m in the previous year to EUR – 43m. The decline in
the operating result due to exchange rate effects was more than
Structure The segment Other includes the Service and Financial made up for by positive earnings from current financial invest-
Companies in which the Lufthansa Group’s financial and service ments, so that the segment result improved slightly.
activities are pooled. They include Lufthansa Flight Training, Air-
Plus and Lufthansa Commercial Holding among others. It also
includes the central Group functions of Deutsche Lufthansa AG. Risk report
Operating performance AirPlus had a good start to 2010. Lufthansa is an international aviation company and therefore
Billing revenue in the first quarter was above last year’s figures exposed to macroeconomic, finance, sector-specific and com-
in all segments – in some cases well above. The growth was pri- pany risks. These primarily include market and competitive
marily generated on international markets, but revenue in Ger- risks which potentially affect capacity and load factors. They are
many rose too. In March AirPlus won a prize in the competition for flanked by political risks, operational and collective bargaining
“Germany’s most customer-centric service provider 2010”, thanks risks, legal risks and contingencies, procurement risks, IT risks
to its efficient use of customer feedback and other virtues. Since and financial as well as treasury risks.
January 2010 AirPlus has been a project partner for Touch&Travel,
an innovative eticket system run by Deutsche Bahn. In the future it Our management systems are constantly updated and enable us
will enable railway customers to register with a contact point via to identify both risks and opportunities at an early stage and act
mobile phone before they begin their journey and then to deregis- accordingly. This proven risk strategy allows us to take advantage
ter again when they reach their destination. AirPlus customers can of business opportunities provided that a risk-adjusted return can
test the eticketing system from April 2010. be realised on market terms. The risks must also be appropriate
and acceptable in relation to the value we create. For detailed
In spite of the considerable fallout from the recession, Lufthansa information on the opportunity and risk management system and
Flight Training was able to benefit from long-term contracts with the Group’s risk situation, please see p. 126 of the Annual Report.
key customers. It responded to the dip in demand with an opti-
mised product portfolio and continuous cost management. Two There have been no significant changes in the first three months
A380 training facilities were opened in Frankfurt at the start of the of 2010 in the opportunities and risks for the Group compared with
year. Lufthansa Passenger Airlines’ switch to a new concept for the those described in detail in the annual report. Some of the risks
cabin area meant increased demand for retraining. Over the fur- described there have, however, become more concrete. In addi-
ther course of 2010, Lufthansa Flight Training expects positive tion to this, an individual risk arose in the form of the volcanic
effects from developments in market demand overall and in par- eruption in Iceland. Due to the ash being ejected, this led to the
ticular from greater utilisation of its simulators. authorities closing much of Europe’s airspace.

Developments in external parameters – the macroeconomy, fuel Supplementary report
prices and demand for premium products – continue to have a
major impact on our business. Past experience has shown that Airspace closed due to volcanic eruption The eruption of the
these are subject to great uncertainty. Icelandic volcano Eyjafjallajökull caused governments to shut
down airspace over wide stretches of Europe for several days in
To date, all regions continue to benefit from the global economic mid-April. Many thousands of flights had to be cancelled before
recovery which emerged in 2010. However, with the exception of German airspace was gradually reopened from 21 April 2010 sub-
Asia, only moderate growth rates are expected for the full year. ject to special conditions. Air traffic only recommenced slowly and
The absolute economic figures remain lower than those seen in experienced considerable disturbances. IATA estimates the indus-
the period prior to the crisis. In this climate, there is also a risk of try’s financial losses from cancelled flights during this period at
fuel expenses increasing further due to rising kerosene prices. USD 1.7bn. Lufthansa puts the damage to the Group so far at
Given the tough competition we are currently facing on the mar- about EUR 200m. At present it is not possible to say whether the
ket, we cannot expect to pass on all the additional costs on the volcanic activity will continue, and if so, whether further closures of
income side. European airspace with the corresponding disturbances to opera-
tions can be expected over the course of the year.
Should negotiations prove fruitless, the earnings position in 2010
could also be impaired by additional industrial action following EUR 464m equity injection from the Amadeus IPO The Span-
the one-day pilots’ walkout and the threat of subsequent strikes. ish Amadeus IT Holding S.A. announced its initial public offering
Negotiations are also due to be held with cabin and ground staff on 14 April. The shares were issued on 29 April 2010 at a price of
regarding their wage agreements. EUR 11.00. Lufthansa held an equity stake of 11.6 per cent in the
Spanish IT solutions provider for the air-transport and leisure travel
There is also a risk of ongoing or repeat volcanic activity in Iceland industry. As part of the public offering Lufthansa will sell up to
causing further airspace closures in Central Europe. This would 6.2 million shares, realising proceeds of up to around EUR 97m.
have considerable financial consequences for Lufthansa. As the stock market listing for the Amadeus share meant that fair
value could be determined reliably, the equity investment is shown
Altogether, however, and even considering the particular macro- at fair value in the consolidated balance sheet as of 31 March
economic situation and all other known issues and circumstances, 2010 for the first time. The Amadeus stake was revalued by
there are currently no identifiable developments which could EUR 469 million without effect on profit or loss. After deduction
endanger the Company’s continued existence. of deferred taxes this resulted in a capital increase of nearly the
same amount. After this transaction, the Lufthansa share in Ama-
deus is expected to decrease to 7.6 per cent.
Lufthansa Passenger Airlines increase fuel surcharge In

response to the sharp rise in crude oil prices, Lufthansa Passenger
Airlines are increasing fuel surcharges for long-haul flights by a
moderate five euros per flight segment from the end of April. The
fuel surcharge on short- and medium-haul flights are not affected.
Lufthansa monitors oil price movements continuously and will
adjust the fuel surcharge depending on their future direction.

Risk report
Supplementary report
Outlook
Outlook Not included in this forecast are the effects of airspace closures in
connection with the volcanic eruption in Iceland. If the disruption
General economy and sector The global economy will continue to global air traffic continues, macroeconomic damage is to be
to recover over the course of 2010, driven especially by faster expected in addition to the results for the industry. The airline
growth in emerging markets. Worldwide growth is expected to association is therefore calling for responsible risk and crisis man-
remain modest, however. Furthermore, previously expansive eco- agement from European governments and public authorities.
nomic policies are likely to be reined in over the course of the
year. Some stimulus programmes are coming to an end and pub- Lufthansa Group After a very weak start to the year, demand
lic finances have to be consolidated. This will primarily affect the in the business segments of the Lufthansa Group revived steadily
economy in industrialised countries. After contracting by 1.9 per over the subsequent period. Current prospects remain positive
cent in 2009, global gross domestic product is forecast to see and also give grounds for hoping that earnings quality (for in-
year-on-year growth of 3.3 per cent in 2010. stance premium bookings in the passenger business) will improve
sustainably. Moreover, as of the second quarter the Group will
In the USA the economy is still expanding. The rise is nevertheless benefit from last year’s low base and revenue from the recently
predicted to slow in the second half of the year, as the stimulating consolidated companies. We therefore continue to assume that
effects of inventory clearance and spending programmes will revenue will increase in the 2010 financial year.
probably wear off. Overall, growth of 3.0 per cent for the full year is
expected compared with 2009. In terms of costs, fuel prices have indeed risen in line with resur-
gent demand, as expected. So far, however, fears of anticipating
Economies in Asia will again power ahead in 2010. Asia’s gross price rises or drastic price scenarios have not materialised. This
domestic product is predicted to rise by 5.8 per cent year on year risk does still exist, however, but thanks to our systematic hedging
in 2010. Growth of 10.4 per cent is forecast for the Chinese econ- policy we enjoy the benefits of our fuel price hedges for the
omy and growth of 8.0 per cent for the Indian one. remainder of the year above an oil price of USD 78.84. The eco-
nomic effects of the hard winter and the strikes in the first quarter
Modest year-on-year growth of 1.1 per cent is expected for depleted our earnings base. Disturbances due to industrial action
Europe. Corporate capital expenditure and consumer spending can still not be ruled out, nor can the repeated closure of airspace
should respond to the joint stimulus of government programmes due to the volcanic eruption. Furthermore, the consolidation of
and the ECB’s expansive monetary policy, although the latter is Austrian Airlines and bmi will still depress the result for the full
currently hampered by the debt crises in some member states. year 2010.
For Germany too, year-on-year growth of 1.6 per cent is expected.
In this environment, we continue to abide by our aim of taking a
Market participants are still forecasting higher oil prices in the pole position in the industry in terms of profitability. For the current
medium term. In mid-April futures contracts for delivery in Decem- financial year, all in all developments so far have strengthened our
ber 2010 were trading at around USD 89.36/bbl and for Decem- expectations of achieving a positive operating result higher than
ber 2011 at around USD 91.50/bbl. last year’s. This is, however, subject to the condition that Eyjafjalla-
jökull’s volcanic activity does not lead to further airspace closures
Given the sharp rise at the start of the year, IATA is now predicting and interruptions to the operations of our business segments. At
growth of 5.6 per cent in customer demand for the full year 2010, present it is not possible to quantify the operating result in light of
with the freight sector even set to expand by 12.0 per cent. Under the above-mentioned uncertainties.
these circumstances IATA revised its financial forecast for global
air transport in March and is now expecting losses of USD 2.8bn
for the full year 2010. The previous forecast was a loss of
USD 5.6 bn. On current estimates, European airlines will contrib-
ute a loss of EUR 2.2bn to the total.

Consolidated income statement
Jan. – March Jan. – March

in €m 2010 2009
Traffic revenue 4,576 3,813

Other revenue 1,182 1,202
Total revenue 5,758 5,015
Changes in inventories and work performed by entity and capitalised 63 69

Other operating income 555 704
Cost of materials and services – 3,462 – 2,871
Staff costs – 1,557 – 1,435
Depreciation, amortisation and impairment – 403 – 319
Other operating expenses – 1,297 – 1,227
Profit / loss from operating activities – 343 – 64
Result of equity investments accounted for using the equity method – 14 – 11

Result of other equity investments 8 11
Interest income 50 40
Interest expenses – 128 – 108
Other financial items 43 – 156
Financial result – 41 – 224
Profit / loss before income taxes – 384 – 288
Income taxes 88 25
Profit / loss after income taxes – 296 – 263
Profit / loss attributable to minority interests –2 –4

Net profit / loss attributable to shareholders of Deutsche Lufthansa AG – 298 – 267
Basic earnings per share in € – 0.65 – 0.58

Diluted earnings per share in € – 0.65 – 0.58

To our shareholders | Interim management report Interim financial statements
Consolidated income statement
Statement of comprehensive income
Statement of comprehensive income

31.3. 31.3.
in €m 2010 2009
Profit / loss after income taxes – 296 – 263
Other comprehensive income

Differences from currency translation 97 – 29
Subsequent measurement of available-for-sale financial assets 515 – 47
Subsequent measurement of cash flow hedges 361 202
Other comprehensive income from investments accounted for using the equity method –8 –2
Other expenses and income recognised directly in equity 19 0
Income taxes on items in other comprehensive income – 95 – 78
Other comprehensive income after income taxes 889 46
Total comprehensive income 593 – 217

Comprehensive income attributable to minority interests –4 –5
Comprehensive income attributable to shareholders of Deutsche Lufthansa AG 590 – 222

Consolidated balance sheet
as of 31 March 2010
Assets
in €m 31.3.2010 31.12.2009 31.3.2009
Intangible assets with an indefinite useful life* 1,524 1,511 818

Other intangible assets 334 328 257
Aircraft and reserve engines 10,621 10,444 8,997
Repairable spare parts for aircraft 839 810 713
Property, plant and other equipment 2,168 2,157 1,982
Investment property 3 3 3
Investments accounted for using the equity method 336 320 324
Other equity investments 1,347 878 617
Non-current securities 303 349 389
Loans and receivables 432 506 390
Derivative financial instruments 420 255 480
Deferred charges and prepaid expenses 41 31 14
Effective income tax receivables 70 69 73
Deferred tax assets 35 35 14
Non-current assets 18,473 17,696 15,071
Inventories 651 646 606

Trade receivables and other receivables 3,753 3,033 3,456
Deferred charges and prepaid expenses 134 128 122
Effective income tax receivables 107 105 55
Securities 3,211 3,303 3,806
Cash and cash equivalents 1,203 1,136 979
Assets held for sale 87 93 31
Current assets 9,509 8,696 9,397
Total assets 27,982 26,392 24,468
*
Including goodwill.

Consolidated balance sheet
Shareholders’ equity and liabilities
in €m 31.3.2010 31.12.2009 31.3.2009
Issued capital 1,172 1,172 1,172

Capital reserve 1,366 1,366 1,366
Retained earnings 2,938 2,972 3,292
Other neutral reserves 1,506 618 757
Net profit / loss – 298 – 34 – 267
Equity attributable to shareholders of Deutsche Lufthansa AG 6,684 6,094 6,320
Minority interests 99 108 62
Shareholders’ equity 6,782 6,202 6,382
Pension provisions 2,752 2,710 2,453

Other provisions 617 620 337
Borrowings 5,991 6,109 4,725
Other financial liabilities 85 87 51
Advance payments received, deferred income
and other non-financial liabilities 1,021 1,000 999
Deferred tax liabilities 651 663 720
Non-current provisions and liabilities 11,187 11,414 9,333
Other provisions 1,055 1,122 807

Borrowings 848 693 338
Trade payables and other financial liabilities 4,237 3,796 4,039
Liabilities from unused flight documents 2,604 1,906 2,073
Advance payments received, deferred income
and other non-financial liabilities 1,046 1,008 891
Effective income tax obligations 159 145 110
Current provisions and liabilities 10,013 8,776 8,753
Total shareholders’ equity and liabilities 27,982 26,392 24,468

Consolidated statement of changes in shareholders’ equity
as of 31 March 2010
Issued Capital Fair value Currency Reva- Other Total Retained Net Equity Minority Total
capital reserve measure- differ- luation neutral other earnings profit / loss attrib- interests share-
ment of ences reserve reserves neutral utable to holders’
financial (due to reserves share- equity
instru- business holders of
ments combi- Deutsche
nations) Lufthansa
in €m AG
As of 31.12.2008 1,172 1,366 1 – 52 237 393 579 2,872 542 6,531 63 6,594
Changes in accounting policies – – 114 – – – 114 – 114 – – – –
Adjusted
as of 31.12.2008 1,172 1,366 115 – 52 237 393 693 2,758 542 6,531 63 6,594
Capital increases / reductions – – – – – – – – – – – –

Reclassifications – – – – – – – 542 – 542 – – –
Dividends to Lufthansa
shareholders / minority interests – – – – – – – – – – –6 –6
Consolidated net profit / loss
attributable to minority interests – – – – – – – – – 267 – 267 4 – 263
Other expenses and income
recognised directly in equity * – – 88 – 30 – –2 56 – – 56 1 57
Adjusted
as of 31.3.2009 1,172 1,366 203 – 82 237 391 749 3,300 – 267 6,320 62 6,382
As of 31.12.2009 1,172 1,366 118 – 70 193 333 574 3,094 – 112 6,094 108 6,202
Changes in accounting policies – – 44 – – – 44 – 122 78 – – –
Adjusted
as of 31.12.2009 1,172 1,366 162 – 70 193 333 618 2,972 – 34 6,094 108 6,202
Capital increases / reductions – – – – – – – – – – – –

Reclassifications – – – – – –3 –3 – 34 34 –3 3 –
Dividends to Lufthansa
shareholders / minority interests – – – – – – – – – – – 13 – 13
Consolidated net profit / loss
attribt. to minority interests – – – – – – – – – 298 – 298 2 – 296
Other expenses and income
recognised directly in equity * – – 783 97 – 11 891 – – 894 –2 889
As of 31.3.2010 1,172 1,366 945 27 193 341 1,506 2,938 – 298 6,684 98 6,782
* Please refer to page 29 for more information on other comprehensive income.

Consolidated statement of changes in shareholders’ equity
Consolidated cash flow statement
Consolidated cash flow statement

Jan. – March Jan. – March

in €m 2010 2009
Cash and cash equivalents 1.1. 1,136 1,444

Net profit / loss before income taxes – 384 – 288
Depreciation, amortisation and impairment losses on non-current assets (net of reversals) 374 454
Depreciation and impairment losses on repairable spareparts for engines 5 55
Net proceeds from disposal of non-current assets –4 – 28
Result of equity investments 6 0
Net interest 78 68
Income tax payments/reimbursements –9 52
Change in working capital * 498 395
Cash flow from operating activities 564 708
Capital expenditure for property, plant and equipment and intangible assets – 524 – 614
Capital expenditure for financial investments –6 –6
Additions to repairable spare parts for aircraft – 26 – 96
Proceeds from disposal of non-consolidated equity investments 2 90
Proceeds from disposal of consolidated equity investments – –
Cash outflows for acquisitions of non-consolidated equity investments –2 – 41
Cash outflows for acquisitions of consolidated equity investments –2 –3
Proceeds from disposal of intangible assets, property, plant and equipment and other financial investments 162 131
Interest income 103 33
Dividends received 7 12
Net cash from/used in investing activities – 286 – 494
Purchase of securities/fund investments – 146 – 1,986
Disposal of securities/fund investments 194 –
Net cash from/used in investing and cash management activities – 238 – 2,480
Capital increase – –
Non-current borrowing 16 1,580
Repayment of non-current borrowing – 191 – 170
Other financial debt 21 – 16
Dividends paid – 13 –8
Interest paid – 110 – 65
Net cash from/used in financing activities – 277 1,321
Net increase/decrease in cash and cash equivalents 49 – 451

Changes due to currency translation differences 18 – 14
Cash and cash equivalents 31.12. 1,203 979
Securities 3,211 3,806
Total liquidity 4,414 4,785
Net increase/decrease in total liquidity – 25 1,507
* Working capital consists of inventories, receivables, liabilities and provisions.

Notes to corresponding fluctuations in net profit/loss for the period. This
has no effect on realised hedging gains or losses on hedged
items. Changes in the time value of the options are always equal-
1) Standards applied and changes in the group ised in full at the time of realisation, because the time value of
of consolidated companies the hedging combinations most commonly used is always zero
This interim report as of 31 March 2010 has been prepared in when the hedging transaction is closed and when the financial
condensed form in accordance with IAS 34. In preparing the derivative is realised. This therefore has no effect on the Group’s
interim financial statements, the standards and interpretations assets and financial position. The Lufthansa Group is presenting
applicable as of 1 January 2010 have been applied. Following the the changes retrospectively as of the 2010 financial year, i.e. the
amendment to IAS 39 Financial Instruments: Recognition and previous year’s figures have been adjusted as if the amended IAS
Measurement, from the financial year 2010 onwards it is no longer 39 had already been applied at that point in time. If the amended
possible to recognise the change in total market value of an option IAS 39 had been applied to the interim report as of 31 March
used as a hedge (full fair value method) in equity as part of hedge 2009, the profit/loss before income taxes would have been
accounting, but only the “inner value” of the option. The change in EUR 15m lower and the net profit after income taxes would have
the “time value” is recognised in the financial result, which leads been EUR 11m lower.
Changes in the group of consolidated companies in the period 1.4.2009 to 31.3.2010
Name, registered office Consolidated as of Deconsolidated as of Reason
Passenger Airline Group segment

Lufthansa Italia S.p.A., Milan, Italy 5.6.09 Established
LHBD Holding Ltd., London, UK 19.6.09 Established
British Midland Airways Ltd., Donington Hall, UK 1.7.09 Increased shareholding
British Midland Ltd., Donington Hall, UK 1.7.09 Increased shareholding
Lufthansa Leasing Austria GmbH & Co. OG Nr. 1, Salzburg, Austria 6.7.09 Established
Austrian Airlines AG, Vienna, Austria 3.9.09 Purchase
Lauda Air Luftfahrt GmbH, Vienna, Austria 3.9.09 Purchase
Tyrolean Airways Tiroler Luftfahrt GmbH, Innsbruck, Austria 3.9.09 Purchase
AUA Beteiligungen Gesellschaft m.b.H., Vienna, Austria 3.9.09 Purchase
TRAVIAUSTRIA Datenservice für Reise und
Touristik GmbH & Co. Nfg. KG, Vienna, Austria 3.9.09 Purchase
Austrian Airlines Lease & Finance Company Ltd., Guernsey, Channel Island 3.9.09 Purchase
Suriba Beteiligungsverwaltungs GmbH, Vienna, Austria 3.9.09 Established
Österreichische Luftverkehrs-Beteiligungs GmbH, Vienna, Austria 3.9.09 Consolidated for the first time
Österreichische Luftverkehrs-Holding GmbH, Vienna, Austria 3.9.09 Consolidated for the first time
ÖLP Österreichische Luftverkehrs-Privatstiftung, Vienna, Austria 3.9.09 Consolidated for the first time
UIA Beteiligungsgesellschaft mbH, Vienna, Austria 3.9.09 Purchase
A319 LDA-LDB-LDC Ltd., George Town, Cayman Islands 3.9.09 Purchase
A319 LDD-LDE-LDF Ltd., George Town, Cayman Islands 3.9.09 Purchase
AUA 2006 MSN 263 Ltd., George Town, Cayman Islands 3.9.09 Purchase
AUA A320/A321 2001 Ltd., George Town, Cayman Islands 3.9.09 Purchase
AUA LNR/LNS/LNT/LNU Ltd., George Town, Cayman Islands 3.9.09 Purchase
LNN/LNO/LAE Ltd., George Town, Cayman Islands 3.9.09 Purchase
LPC/LNP/LNQ Finance Ltd., George Town, Cayman Islands 3.9.09 Purchase
Edelweiss Air AG, Kloten, Switzerland 1.1.10 Consolidated for the first time

Notes
Changes in the group of consolidated companies in the period 1.4.2009 to 31.3.2010
Name, registered office Consolidated as of Deconsolidated as of Reason
Segment MRO
Lufthansa Technik Budapest Repülögép Nagyjavító Kft., Budapest, Hungary 1.1.10 Consolidated for the first time
Lufthansa Technik Malta Limited, Malta 1.1.10 Consolidated for the first time
Lufthansa Technik Aircraft Services Ireland Limited, Shannon, Ireland 26.2.10 Liquidation
Segment Catering
LSG Lufthansa Service Hong Kong Ltd., Hong Kong, Hong Kong 1.7.09 Increased shareholding
Oakfield Farms Solutions, L.L.C., Wilmington, USA 1.10.09 Established
Other
AirPlus Air Travel Card Vertriebsgesellschaft mbH, Vienna, Austria 3.9.09 Increased shareholding
AirPlus Holding GmbH, Vienna, Austria 25.9.09 Established
British Midland Airways Ltd. and its holding company British

Midland plc were only included in the consolidated financial
statements for Deutsche Lufthansa AG for the first time as of
1 July 2009, and Austrian Airlines AG and its subsidiaries were
consolidated as of 3 September 2009. As a result, these com-
panies are not included in the figures for the first quarter of the
previous year. The table on p. 34 – 35 shows the other compa-
nies which have joined or left the group of consolidated com-
panies compared with year-end 2009 and 31 March 2009.
Assets held for sale
Group Financial Group

31.3.2010 Statements 31.3.2009
in €m 31.12.2009
Assets
Aircraft and spare engines 83 91 31
Financial assets 4 2 –
Other assets – – –
Equity/liabilities from assets held for sale

Shareholders’ equity – – –
Liabilities associated with assets held for sale – – –
2) Notes to the income statement, balance sheet, 3) Seasonality

cash flow statement and segment reporting The Group’s business is mainly exposed to seasonal effects
Detailed comments on the income statement, the balance sheet, via the Passenger Airline Group segment. As such, revenue in the
the cash flow statement and the segment reporting can be found first and fourth quarters is generally lower as people travel less,
in the management report on p. 5 – 27 . while higher revenue and operating profits are normally earned in
the second and third quarters.

4) Contingencies and events after the balance sheet date meant that fair value could be determined reliably, the equity
Several provisions could not be made because an outflow of investment is shown at fair value in the consolidated balance sheet
resources was not sufficiently probable. The potential financial as of 31 March 2010 for the first time. The Amadeus stake was
effect of these provisions on the result would have been revalued by EUR 469 million without effect on profit or loss. After
EUR 169m for subsequent years. As of the balance sheet date deduction of deferred taxes this resulted in a capital increase of
for 2009 the figure was EUR 163m. Signed contracts for the sale nearly the same amount. After this transaction, the Lufthansa share
of five Airbus A300– 600s are expected to generate profits of in Amadeus is expected to decrease to 7.6 per cent.
EUR 13m for the financial year 2010. These disposals as well as
signed contracts for the sale of 15 Canadair Regional Jet 200s Lufthansa Passenger Airlines increase fuel surcharge
will result in total cash inflow of EUR 53m in 2010 and EUR 6m In response to the sharp rise in crude oil prices, Lufthansa Passen-
in 2011. At the end of March 2010, there were order purchase ger Airlines are increasing fuel surcharges for long-haul flights by
of EUR 6.5bn for capital expenditure on property, plant and equip- a moderate five euros per flight segment from the end of April. The
ment and intangible assets. As of 31 December 2009, the order fuel surcharge on short- and medium-haul flights are not affected.
commitments came to EUR 6.4bn. Lufthansa monitors oil price movements continuously and will
adjust the fuel surcharge depending on their future direction.
Contingent liabilities
5) Earnings per share
in €m 31.3.2010 31.12.2009
From guarantees, bills of exchange and

cheque guarantees 910 855
From warranty contracts 939 897 31.3.2010 31.12.2009
From providing collateral
for third-party liabilities 6 13 Basic earnings per share € – 0.65 – 0.58
Consolidated net profit/loss €m – 298 – 267
Weighted average number of shares 457,937,572 457,937,281
Airspace closed due to volcanic eruption
Explosions at the Icelandic volcano Eyjafjallajökull caused gov- Diluted earnings per share € – 0.65 – 0.58
ernments to shut down airspace over wide stretches of Europe for Consolidated net profit/loss €m – 298 – 267
+ interest expenses on the
several days in mid-April. Many thousands of flights had to be convertible bonds €m – –
cancelled before German airspace was gradually reopened from – current and deferred taxes €m – –
21 April 2010 subject to special conditions. Air traffic only recom- Adjusted net profit/loss for the period €m – 298 – 267
menced slowly and experienced considerable disturbances. IATA Weighted average number of shares 460,462,194 460,462,194
estimates the industry’s financial losses from cancelled flights
during this period at USD 1.7bn. Lufthansa puts the damage to
the Group so far at about EUR 200m. At present it is not possible 6) Issued capital
to say whether the volcanic activity will continue, and if so, A resolution passed at the Annual General Meeting on 24 April
whether further closures of European airspace with the corre- 2009 authorised the Executive Board until 23 April 2014, subject
sponding disturbances to operations can be expected over the to approval by the Supervisory Board, to increase the Company’s
course of the year. issued capital by up to EUR 25m by issuing new registered shares
to employees for payment in cash. The new shares are to be
EUR 464m equity injection from the Amadeus flotation offered for sale solely to employees of Deutsche Lufthansa AG
The Spanish Amadeus IT Holding S.A. announced its initial public and its affiliated companies. Existing shareholders’ subscription
offering on 14 April. The shares were issued on 29 April 2010 at a rights are excluded. As the parent company of the Group, Deut-
price of EUR 11.00. Lufthansa held an equity stake of 11.6 per sche Lufthansa AG posted a net loss of EUR 148m for the 2009
cent in the Spanish IT solutions provider for the air-transport and financial year. Retained earnings of an appropriate sum were
leisure travel industry. As part of the public offering Lufthansa will transferred to achieve a net result of zero, so that no distributable
sell up to 6.2 million shares, realising proceeds of up to around profit from which to pay a dividend was reported.
EUR 97m. As the stock market listing for the Amadeus share

Notes
7) Segment reporting
Segment information by operating segment January – March 2010
Passenger Logistics 1) MRO 1) IT Services Catering 1) Total Other Reconciliation Group

Airline reportable
Group 1) operating
in €m segments
External revenue 4,184 558 586 59 371 5,758 – – 5,758

of which traffic revenue 3,929 531 – – – 4,460 – 116 4,576
Inter-segment revenue 139 5 413 84 122 763 – – 763
Total revenue 4,323 563 999 143 493 6,521 – – 763 5,758
Other operating income 294 21 54 9 15 393 277 – 136 534

Total operating income 4,617 584 1,053 152 508 6,914 277 – 899 6,292
Operating expenses 4,990 549 982 149 510 7,180 336 – 894 6,622
of which cost of materials
and services 2,988 382 513 20 216 4,119 23 – 680 3,462
of which staff costs 892 77 274 61 191 1,495 64 –1 1,558
of which depreciation
and amortisation 300 30 23 8 15 376 11 3 390
of which other
operating expenses 810 60 172 60 88 1,190 238 – 216 1,212
Operating result 2) – 373 35 71 3 –2 – 266 – 59 –5 – 330
Other segment income 30 1 2 0* 1 34 17 33 84

Other segment expenses 13 1 0* 0* 1 15 1 81 97
of which impairment losses 13 – – – – 13 – – 13
Result of investments accounted
for using the equity method – 25 4 5 – 2 – 14 0* – – 14
Segment result 3) – 381 39 78 3 0 – 261 – 43 – 53 – 357
Other financial result – 27

Profit before income taxes – 384
Segment assets 4) 14,239 795 2,940 267 1,218 19,459 1,620 6,434 27,513
of which from investments
accounted for using the
equity method 98 36 140 – 56 330 4 2 336
Segment liabilities 5) 9,855 389 1,341 202 473 12,260 1,488 7,446 21,194
Segment capital expenditure 6) 484 1 15 8 9 517 5 12 534
of which on investments
equity method – – – – – – – – –
Staff on balance sheet date 57,551 4,437 20,542 3,002 28,471 114,003 3,729 – 117,732

1)
Previous year’s figures only partially comparable due to changes in the group of consolidated companies.
2)
See page 7 of the interim management report for reconciliation between operating result and profit from operating activities.
3)
Profit from operating activities including result of investments shown at equity.
4)
Intangible assets, property, plant and equipment, investments accounted for using the equity method, inventories, trade receivables
and other assets constitute assets and are presented under the heading “Group”.
5)
All liabilities with the exception of financial debt, liabilities to Group companies, derivative financial instruments,
other deferred income and tax obligations are presented under the heading “Group”.
6)
Capital expenditure for intangible assets, property, plant and equipment, and investments accounted for using the equity method.

Segment information by operating segment January – March 2009
Passenger Logistics MRO IT Services Catering Total Other Reconciliation Group

Airline reportable
Group operating
in €m segments
External revenue 3,475 462 630 61 387 5,015 – – 5,015

of which traffic revenue 3,290 448 – – – 3,738 – 75 3,813
Inter-segment revenue 139 7 463 87 111 807 – – 807
Total revenue 3,614 469 1,093 148 498 5,822 – – 807 5,015
Other operating income 364 35 31 13 69 512 354 – 152 714

Total operating income 3,978 504 1,124 161 567 6,334 354 – 959 5,729
Operating expenses 4,008 576 1,063 159 546 6,352 383 – 962 5,773
of which cost of materials
and services 2,338 379 594 18 225 3,554 22 – 705 2,871
of which staff costs 771 78 267 59 201 1,376 61 –2 1,435
of which depreciation
and amortisation 229 30 21 9 14 303 10 3 316
of which other
operating expenses 670 89 181 73 106 1,119 290 – 258 1,151
Operating result 1) – 30 – 72 61 2 21 – 18 – 29 3 – 44
Other segment income 23 5 2 0* 1 31 2 26 59

Other segment expenses 4 0* 1 0* 2 7 37 35 79
of which impairment losses 3 – – – – 3 – – 3
Result of investments accounted
for using the equity method – 13 1 –1 – 1 – 12 – – – 12
Segment result 2) – 24 – 66 61 2 21 –6 – 64 –6 – 76
Other financial result – 212

Profit before income taxes – 288
Segment assets 3) 11,072 897 2,901 275 1,231 16,374 1,551 6,541 24,468
of which from investments
shown at equity 96 33 120 – 61 310 15 – 324
Segment liabilities 4) 8,100 501 1,277 218 489 10,585 1,460 6,041 18,086
Segment capital expenditure 5) 558 4 29 17 14 622 32 10 664
of which from investment
equity method 36 – – – – 36 – – 36
Staff on balance sheet date 46,070 4,644 19,784 3,059 29,608 103,165 3,675 – 106,840

1) See page 7 of the interim management report for reconciliation between operating result and profit from operating activities.
2)
Profit from operating activities including result of investments shown at equity.
3)
Intangible assets, property, plant and equipment, investments accounted for using the equity method, inventories, trade receivables
and other assets constitute assets and are presented under the heading “Group”.
4)
All liabilities with the exception of financial debt, liabilities to Group companies, derivative financial instruments,
other deferred income and tax obligations are presented under the heading “Group”.
5)
Capital expenditure for intangible assets, property, plant and equipment, and investments accounted for using the equity method.

Notes
Segment information by geographical area January – March 2010
Europe thereof North thereof Central Asia / Pacific Middle East Africa Total
Germany America U.S.A. and South
in €m America
Traffic revenue * 3,105 1,220 559 491 94 594 134 90 4,576

Other operating revenue 578 253 221 203 44 205 70 64 1,182
Total revenue 3,683 1,473 780 694 138 799 204 154 5,758
* Traffic revenue is allocated by original place of sale.
Segment information by geographical area January – March 2009
Europe thereof North thereof Central Asia / Pacific Middle East Africa Total
Germany America U.S.A. and South
in €m America
Traffic revenue * 2,618 1,245 471 418 80 457 107 80 3,813

Other operating revenue 591 212 240 204 40 210 70 51 1,202
Total revenue 3,209 1,457 711 622 120 667 177 131 5,015
* Traffic revenue is allocated by original place of sale.
8) Related party disclosures Declaration by the legal representatives

As stated in Note 48 to the consolidated financial statements for We declare that to the best of our knowledge and according to
2009 p. 204 , the operating segments in the Lufthansa Group the applicable accounting standards for interim reporting the con-
render numerous services to related parties within the scope of solidated interim financial statements give a true and fair view
their ordinary business activities and also receive services from of the net assets, financial and earnings position of the Group and
them. These extensive supply and service relationships take place that the Group interim management report gives a true and fair
unchanged on the basis of market prices. There have been no view of the course of business, including the business result, and
significant changes in comparison with the balance sheet date. the situation of the Group, and suitably presents the opportunities
The contractual relationships with the group of related parties and risks to its future development in the remainder of the finan-
described in Note 49 p. 206 – 209 to the 2009 consolidated financial cial year.
statements also still exist unchanged, but are not of material sig-
nificance for the Group.
Executive Board, May 4, 2010
Wolfgang Mayrhuber Christoph Franz Stephan Gemkow Stefan Lauer

Chairman of the Deputy Chairman of the Member of the Executive Board Member of the Executive Board
Executive Board Executive Board and Chief Financial Officer Chief Officer Group Airlines
and CEO CEO Lufthansa and Corporate
German Airlines Human Resources

Credits Contact
Published by Frank Hülsmann

Deutsche Lufthansa AG Head of Investor Relations
Von-Gablenz-Str. 2– 6 + 49 69 696 – 28001
50679 Cologne
Germany Johannes Hildenbrock
+ 49 69 696 – 28003
Entered in the Commercial Register of Cologne
District Court under HRB 2168 Jobst Honig
+ 49 69 696 – 28011
Editorial staff
Frank Hülsmann (Editor) Gregor Schleussner
Johannes Hildenbrock + 49 69 696 – 28012
Anna-Maria Wehenkel
Deutsche Lufthansa AG
Deutsche Lufthansa AG, Investor Relations Investor Relations
LAC, Airportring
Photo 60546 Frankfurt / M.
Jens Görlich, Oberursel, Germany Germany
Telephon: + 49 69 696 – 28008
Concept, design and realisation Telefax: + 49 69 696 – 90990
HGB Hamburger Geschäftsberichte GmbH & Co. KG, E-mail: [email protected]
Hamburg, Germany
Translation by The Lufthansa 1st Interim Report is a translation

EnglishBusiness GbR, of the original German Lufthansa Zwischenbericht
Hamburg, Germany 1/2010. Please note that only the German version
is legally binding.
Printed by
Broermann Offset-Druck, Troisdorf, Germany You can order the Annual and Interim
Printed on Circlesilk Premium White Reports in German or English via our website –
(100 per cent recycled paper bearing the www.lufthansa.com/investor-relations – or from
EU Ecolabel, licence number 03/05/5) the address above.
Printed in Germany The latest financial information on the internet:

ISSN 1616-0258 www.lufthansa.com/investor-relations
Lufthansa Group overview
Key figures Lufthansa Group Financial calendar 2010 / 2011

2010 2009 3) in %
2010 2011
Revenue and result
Total revenue €m 5,758 5,015 14.8 29 July Release of Interim Report 17 March Press Conference and Analysts’
of which traffic revenue €m 4,576 3,813 20.0 January – June 2010 Conference on 2010 results
Operating result €m – 330 – 44
EBIT €m – 306 – 220 – 39.1
28 Oct. Press Conference and Analysts’ 3 May Annual General Meeting, Berlin
EBITDA €m 99 240 – 58.8
Net profit/loss for the period €m – 298 – 267 – 11.6
January – September 2010 5 May Release of Interim Report
Key balance sheet and cash flow statement figures January – March 2011
Total assets €m 27,982 24,468 12.4
Equity ratio % 24.2 26.1 – 3.1 pts 28 July Release of Interim Report
Net indebtedness €m 2,277 – 46 January – June 2011
Cash flow from operating activities €m 564 708 – 20.3
Capital expenditure (gross) €m 534 664 – 19.6 27 Oct. Press Conference and Analysts’
Key profitability and value creation figures
January – September 2011
Adjusted operating margin1) % – 5.4 – 0.6 – 4.8 pts
EBITDA margin % 1.7 4.8 – 3.1 pts
Lufthansa share
Share price at the quarter-end € 12.28 8.17 50.3
Earnings per share € – 0.65 – 0.58 – 12.1
Traffic figures 2)
Passengers thousands 19,031 15,043 26.5
Passenger load factor % 74.9 74.1 + 0.8 pts
thousand
Freight and mail tonnes 445 377 18.1
Cargo load factor % 68.8 55.0 + 13.7 pts
Available tonne-kilometres millions 8,774 7,874 + 11.4
Revenue tonne-kilometres millions 6,310 5,159 + 22.3
Overall load factor % 71.9 65.5 + 6.4 pts
Flights number 240,037 187,768 + 27.8
Employees
1)
Performance indicator to enable comparison with other airlines: (operating result + write-backs of provisions) / revenue.
2)
Lufthansa Group without Germanwings.
3)
Last year’s figures have been restated in line with measurement changes under IAS 39.
Date of publication: 5 May 2010.
Disclaimer in respect of forward-looking statements

Information published in the 1st Interim Report 2010, with regard to the future development of the Lufthansa Group and its subsidiaries con-
sists purely of forecasts and assessments and not of definitive historical facts. Its purpose is exclusively informational identified by the use of
Contents such cautionary terms as “believe”, “expect”, “forecast”, “intend”, “project”, “plan”, “estimate” or “intend”. These forward-looking statements
are based on all discernible information, facts and expectations available at the time. They can, therefore, only claim validity up to the date of
their publication.
1 To our shareholders 28 Interim financial statements
3 Interim management report 40 Credits/Contact Since forward-looking statements are by their nature subject to uncertainties and imponderable risk factors – such as changes in underlying
economic conditions – and rest on assumptions that may not or divergently occur, it is possible that the Group’s actual results and development
Financial calendar 2010/2011
may differ materially from those implied by the forecasts. Lufthansa makes a point of checking and updating the information it publishes. It
cannot, however, assume any obligation to adapt forward-looking statements to accommodate events or developments that may occur at some
later date. Accordingly, it neither expressly nor conclusively accepts liability, nor gives any guarantee, for the actuality, accuracy and complete-
ness of this data and information.
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1st Interim Report

January – March 2010

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Key figures Lufthansa Group Financial calendar 2010 / 2011

Disclaimer in respect of forward-looking statements

Ladies and gentlemen,

We thank you for your trust.

Wolfgang Mayrhuber Christoph Franz Stephan Gemkow Stefan Lauer

Lufthansa 1st Interim Report January – March 2010 1

Developments on the stock markets in the first three months of the

2 Lufthansa 1st Interim Report January – March 2010

The economy in the USA has gained considerable momentum. 0

Economic developments in Asia’s economies have also picked up

Lufthansa 1st Interim Report January – March 2010 3

Sector developments The aviation sector bottomed out in 2009

4 Lufthansa 1st Interim Report January – March 2010

Lufthansa 1st Interim Report January – March 2010 5

Operating expenses rose to EUR 6.7bn (+14.8 per cent) in total.

Jan. – March Jan. – March Change Adjusted for

Cost of materials and services 3,462 2,871 20.6 5.9

6 Lufthansa 1st Interim Report January – March 2010

Jan. – March 2010 Jan. – March 2009

Total revenue 5,758 5,015

Cost of materials and services – 3,462 – 2,871

Profit / loss from operating activities – 343 – 64

Result from equity investments –6 0*

Write-downs (included in profit from operating activities) 403 319

* Rounded below EUR 1m.

Lufthansa 1st Interim Report January – March 2010 7

Earnings before interest and taxes (EBIT) reflect developments in

Earnings before taxes (EBT) fell by EUR 96m, coming in at

8 Lufthansa 1st Interim Report January – March 2010

Cash and cash equivalents 1,203 1,136 22.9

Pension provisions 2,752 2,710 12.2

Gearing in % 74.2 79.1 – 6.2

Lufthansa 1st Interim Report January – March 2010 9

Group fleet – Number of commercial aircraft

10 Lufthansa 1st Interim Report January – March 2010

Passenger Airline Group business segment

Key figures Passenger Airline Group of which Lufthansa

Jan. – March Jan. – March Change Jan. – March Change

Revenue €m 4,323 3,614 19.6 2,871 1.3

Lufthansa 1st Interim Report January – March 2010 11

Trends in traffic regions Passenger Airline Group*

Number of passengers Available seat-kilometres Revenue seat-kilometres Passenger load factor

Europe 14,769 28.6 17,300 31.8 11,114 32.4 64.2 0.2

12 Lufthansa 1st Interim Report January – March 2010

In total, revenue grew to EUR 4.3bn (+19.6 per cent, adjusted:

Lufthansa 1st Interim Report January – March 2010 13

At present, it is also impossible to predict what further impact the

In the light of these factors, it is not possible at this stage to be

14 Lufthansa 1st Interim Report January – March 2010

Other Group airlines

SWISS Austrian Airlines

Jan. – March Change Jan. – March Change

Revenue €m 746 6.6 Revenue €m 427 –

SWISS intends to continue on its profitable path in 2010 and

Lufthansa 1st Interim Report January – March 2010 15