The financial strategy is binding and clearly defined

The financial strategy is implemented in several dimensions. Its main aspects are incorporated into all the Company’s important planning processes and decisions. We have defined the following strategic dimensions of our financial profile:

  • We attach great importance to having good creditworthiness in the eyes of lending institutions and rating agencies. Our aim is to safeguard the investment grade rating.
  • The Group requires appropriate liquidity reserves to reduce the risks of refinancing and interruptions to operations. This is vital, particularly in view of volatile customer and financial markets. As a strategic reserve Lufthansa holds minimum liquidity of EUR 2.3bn that is available at any time.
  • A strong target capital structure provides stability in a turbulent environment. We therefore strive for a sustainable equity ratio of 30 per cent. Gearing including pension liabilities should also move within a target range of 40 to 60 per cent.
  • We aim for a figure of 60 per cent for the debt repayment ratio, i.e. the adjusted cash flow from operating activities in relation to net indebtedness including pensions. This is based on the rating agencies’ demands for an investment grade rating.
  • We secure our financial and our operational flexibility by having a high proportion of unencumbered aircraft.
  • We control financial risks by integrated risk management with the aim of smoothing price fluctuations.
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