Capital expenditure

Investment safeguards the Group’s future development

While maintaining its cost management, the Lufthansa Group made further important investments in the financial year 2011 in order to open up additional prospects for the future. The extensive fleet renewal programme continued throughout 2011 in order to further improve the cost basis by means of fuel-efficient aircraft. At EUR 2.6bn, capital expenditure for the Group was 12.9 per cent up on the previous year. This includes primary investment, i.e. down payments and final payments for aircraft and aircraft overhauls, equipment and reserve engines, which increased slightly by 2.5 per cent to EUR 2.0bn.

Capital expenditure for other items of property, plant and equipment and for intangible assets, known collectively as secondary investment, went up by 76.2 per cent to EUR 400m. Property, plant and equipment, such as technical equipment and machinery, operating and office equipment, accounted for EUR 265m in total (previous year: EUR 173m). At the same time, EUR 135m (previous year: EUR 54m) was invested in intangible assets such as licences and goodwill.

In 2011 a total of EUR 115m (previous year: EUR 49m) was spent on financial investments such as capital contributions to non-consolidated equity investments, other lending and smaller share purchases.

The Passenger Airline Group segment accounted for the largest share of capital expenditure in 2011 at EUR 2.1bn (previous year: EUR 2.0bn).

Primary, secondary and financial investments (bar chart)

Expenses were primarily on new aircraft and down payments for aircraft. Investments in the 2011 financial year included 40 aircraft: four Airbus A380s, two A330s, twelve A321s, two A320s, two A319s, two Boeing 737s, two B767s, seven Bombardier CRJ900s, six Embraer 195s and one ATR 700.

In the Logistics business segment, capital expenditure of EUR 76m in total (previous year: EUR 21m) consisted largely of down payments in connection with orders for Boeing 777F freighter aircraft.

Investment in the MRO segment went up to EUR 139m (previous year: EUR 67m), in particular due to purchases of reserve engines and capital contributions to equity investments.

In the IT Services segment capital expenditure came to EUR 55m (previous year: EUR 36m). The increase stemmed from the reworking of a subsidiary’s business model and the related transfer of assets.

In the Catering segment capital expenditure rose to EUR 74m in 2011 (previous year: EUR 38m). Here the funds were used particularly to secure existing production facilities.