The effects of the worldwide crisis in the financial markets have not spared our industry, air transport, either. The volumes and revenues in passenger traffic and freight transportation have suffered severe setbacks worldwide, and also at Lufthansa. The other business segments within the Group have also felt the effects of the crisis, albeit at different levels of intensity and with a certain time lag. Concerted measures such as cost-reduction projects, capacity adaptations, intelligent use of synergy potentials within the Lufthansa Group, the successfully concluded initiative Upgrade to Industry Leadership and our solid financial provisions have all helped to maintain our company’s much needed breathing space even in the crisis year 2009. Against the industry trend, Lufthansa was again able to achieve a positive operating result. This is vital, as only healthy companies have the strength to make sustained investments.

We were also able to pursue our fleet modernization program – and thus our sustainability goals – in a consistent fashion. In 2009 alone, 50 new highly efficient and environmentally compatible aircraft were integrated into our fleet and older models replaced. About 1.9 billion euros were invested in new aircraft within the business segment Passenger Airline Group. We are delighted that this year the Lufthansa A380, our 3-liter intercontinental flagship, will be ready for takeoff. With the new corporate project Fuel Efficiency Leadership, we are systematically assessing all options to reduce kerosene consumption. With the project Aviation Biofuel, we are investigating new potentials to cut emissions further in the future. These efforts ease the burden both on our costs and on the environment. The specific consumption of the Lufthansa Group fleet was successfully lowered slightly last year, to 4.30 liters of kerosene per passenger and 100 kilometers.

In the social areas, our room to maneuver is determined not only by current laws but also by many self-imposed obligations that exceed the legal requirements. This fact is documented by our membership in the UN Global Compact and our adherence to the norms of the International Labor Organization (ILO). The sense of responsibility of all those working in the Group as well as the qualification and appreciation of our employees are of central importance in achieving the ambitious goals we have set for ourselves. This is why our far-reaching training and continuing education offers were maintained even in the crisis year 2009.

Air transport is and remains a growth industry. We will have to handle crises again and again in the future. The decisive factor here is to maintain a balance so that improvements to achieve effects in the long term are not thwarted by measures to limit a crisis in the short term. This is why we pay so much attention to being strategically and financially well aligned and to having not only the right know-how but also a highly motivated, highly qualified team. Doing so allows us to tackle the challenges that present themselves, whatever they may be. Naturally, this implies a high level of awareness in the area of social responsibility – concerning our customers, shareholders, employees and the environment.

You will find more on these and other topics in this  current report. Thank you for your interest – and stay with us in 2010 as well!

Wolfgang Mayrhuber
Chairman of the Executive Board and CEO
Deutsche Lufthansa AG