BALANCE Sustainability report 2019 E N I L N O T R O P E R Y T I L I I B A N A T S U S y t i l i i b s n o p s e r / . m o c p u o r g a s n a h t f u l 25th issue Maintaining balance. Out of responsibility.

ABOUT THIS REPORT Balance, the Lufthansa Group’s Sustainability Report, informs stake­ Additional information on the Internet holders and the interested public about the Group’s goals, activities and In addition to this report, the Lufthansa Group informs readers via advances in the areas of business, social responsibility, environment, the Internet about its activities in the area of sustainability: product and corporate citizenship. It thus complements and expands ↗ www.lufthansagroup.com/responsibility the information in the Annual Report. Disclaimer in respect of forward-looking statements Across the Lufthansa Group, Corporate Responsibility is The data included in this report has been collected and processed with understood to comprise the following dimensions: the utmost care. Nevertheless, errors in transmission cannot be ruled out • Economic sustainability development of the Lufthansa Group and its subsidiaries consists purely • Corporate governance and compliance of forecasts and assessments and not of definitive historical facts. Its • Climate and environmental responsibility purpose is exclusively informational, identified by the use of such entirely. Information published in this report with regard to the future • Social responsibility • Product responsibility • Corporate citizenship forward­looking terms as believe, expect, forecast, intend, project, plan, estimate, count on, can, could, should or endeavor. These forward­ look ing statements are based on all the discernible information, facts and expectations currently available. This report has been prepared in accordance with the GRI Standards: Core option. This publication also serves as a progress report concern­ Numerous factors affect the facts and forecasts published in this report, ing the implementation of the ten principles of the UN Global Compact, which are in large part outside the Lufthansa Group’s sphere of influ­ which the Lufthansa Group joined in 2002 and to which it has been ence. This includes, among others, changes in national and international committed as “Participant” since 2018. The Group determined the most laws and regulations or fundamental changes in the economic or significant topics related to sustainability in 2018 in the context of political environment. an aggregated materiality analysis, which is based on the results of a stakeholder survey (see page 29). It is possible that the Group’s actual results and development may differ materially from the forward­looking statements implied by the forecasts. Scope of consolidation and comparability The Lufthansa Group assumes no obligation for and does not intend to Unless noted otherwise, the data in this report refers to the financial adapt forward­looking statements to accommodate events or develop­ year 2018. You will find explanations concerning the scope of consoli­ ments that may occur at some later date. Accordingly, it neither dation and calculation methods used to determine the absolute and expressly nor conclusively accepts liability, nor does it give any guarantee specific resource consumption at the Lufthansa Group on page 111. This for the actuality, accuracy and completeness of this data and report covers the activities of the Lufthansa Group. Under the aspect information. of materiality, reporting focuses on the product of “flying” without upstream and downstream processes. Reporting restricted to individual Group companies is indicated in the text. Due to changes in the portfolio over recent years, the figures for personnel and environmental performance cited in this report are only to a limited extent comparable with those reported for previous years. For example, Brussels Airlines, which is part of the Lufthansa Group, was first included in this report’s coverage during the reporting year 2017. In the reporting year 2018, Luftverkehrsgesellschaft Walter was included in the coverage. There are also certain differences in approach compared to the Annual Report when calculating passenger numbers and their derivative performance indicators (see explanations relating to the overview on page 2, At a glance). Publication dates of this report Balance, the Lufthansa Group’s Sustainability Report, is published once a year in German and in English. The preceding edition was published on June 6, 2018. The Group has regularly reported about its environmental performance since 1994 and has continuously expanded its reporting to the other dimensions of entrepreneurial responsibility. page 1 1 Taken from the Annual Report 2018 of the Lufthansa Group. The figures for 2017 and 2018 shown here include effects from the first­time application of new accounting standards and other accounting changes. 2 Previous year’s figures have been adjusted. 3 For the reporting year 2018, the following companies have been included in Balance: Lufthansa (including Lufthansa CityLine and Air Dolomiti), Lufthansa Cargo, SWISS (including Edelweiss Air), Austrian Airlines, Eurowings (including Germanwings and Luftfahrtgesellschaft Walter) and Brussels Airlines. Excluding the services of third parties, i.e. airlines outside the scope of consolidation of Balance, but that take over services from Lufthansa, for example in the event of capacity bottlenecks (see page 112, table “Share of third parties”) 4 Types of flights taken into account: all scheduled and charter flights. 5 See page 112, table “Fuel consumption”. 6 Balance: segments (operational perspective); Annual Report: distance (customer perspective). One distance can include several segments, e. g. in the event of stops en route. 7 Balance: on the basis of all passengers aboard; Annual Report: on the basis of all revenue passengers. 8 Companies referred to as in 3, but including the services of third parties, as these contribute to the Group’s results. Types of flights as in 4, but including ferry flights, as these represent costs.

Dear Readers, It is with great pleasure that I introduce the 25th issue of our sustainability report Balance to you. There is also a little bit of pride in doing so because we were among the first in our industry when we started reporting about this topic in 1994. The environmental report of yesteryear has evolved into a comprehensive sustainability report covering all dimensions of corporate responsibility. Being an aviation group, we are aware of the fact that the past years’ growth in passenger numbers also implies growing respon­ sibility for us to ensure that future mobility will be shaped in environmentally compatible ways. It is no coincidence that the title of this report is “Maintaining balance. Out of responsibility.” To reach this goal, we continuously invest in new and especially efficient aircraft – we took delivery of 46 aircraft during the past year; in 2019 we will receive more than 30. During the past year, our aircraft needed a mere 3.65 liters of kerosene on average to fly one passenger over a distance of 100 kilometers. This is a new record! While enormous changes have been realized in this area over the past 25 years, we will not rest on our laurels. We intend to take a leadership role within the aviation industry on the topic of responsibility. Our report is also intended as a comprehensive basis for dialogue with our interest groups. For this reason, we talk openly not only about success stories, but also about challenges: despite the financial success we achieved in 2018, it was not an optimal year for our customers. The disproportionate growth in air transport revealed the infrastructure bottlenecks affecting the entire industry, especially during the summer months of 2018 – both on the ground and in the air. We have taken action immediately and are maintaining close dialogue with our system partners, industry representatives and politicians because this is a challenge we can only surmount together. All our activities are guided by the ten principles of the UN Global Compact, which have helped us since 2002 in positioning our actions; the same is true of the Sustainable Development Goals. I would like to recommend our cover story particularly warmly to you. It illustrates by means of examples what we have been able to achieve over the last quarter of a century with regard to sustainability. Our path will not come to an end for a long time yet. And we will pursue it with responsibility and from a perspective of conviction – for the benefit of those generations that will follow us. I thank you for your interest and wish you a captivating read. Carsten Spohr Chairman of the Executive Board and CEO Deutsche Lufthansa AG LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 3

THE SET-UP OF THE LUFTHANSA GROUP NETWORK AIRLINES EUROWINGS The business segment Network Airlines comprises the The business segment Eurowings comprises the flight opera- companies Lufthansa, SWISS and Austrian Airlines. They offer tions of Eurowings, Germanwings as well as Brussels Airlines. their customers a premium product via their respective hubs Furthermore, the equity investment in SunExpress is part of and, thanks to the multi-hub strategy, a comprehensive route this business segment. Together, these airlines are character- network combined with the highest degree of travel flexibility. ized by an innovative and competitive product for price- ↗ www.lufthansa.com | www.swiss.com | www.austrian.com sensitive and service-oriented customers in the growing direct-traffic segment. ↗ www.eurowings.com AVIATION SERVICES The Aviation Services strengthen the Lufthansa Group’s portfolio and are leaders in their respective worldwide markets. This includes the business segments Logistics, MRO (Maintenance, Repair and Overhaul), Catering and Aviation Training as well as other companies and Group functions. Lufthansa Cargo AG, with headquarters in Frankfurt, is the Lufthansa Technik AG, with headquarters in Hamburg, is Lufthansa Group’s specialist for logistics and Europe’s leading the world’s leading manufacturer-independent provider of cargo airline. The company serves a worldwide network and maintenance, repair and overhaul services for civil commercial is known for short transport times and the highest quality aircraft operated by more than 850 customers. standards. In addition to its own and chartered freight capac i- ↗ www.lufthansa-technik.com ties, Lufthansa Cargo also markets those in the freight compartments of the passenger aircraft operated by Lufthansa, Austrian Airlines, Brussels Airlines, SunExpress and Eurowings on long-haul routes. ↗ www.lufthansa-cargo.com 1 The LSG Group is the industry leader for high-quality in-flight Lufthansa Aviation Training GmbH (LAT) is one of the leading catering. With its established LSG Sky Chefs brand, it offers a companies in the field of flight training with its competence in comprehensive portfolio of products and services in all areas of the training and further education of cockpit and cabin person- in-flight service. The group’s parent company, LSG Lufthansa nel at twelve training locations. In addition, LAT bundles all Service Holding AG, is headquartered in Neu-Isenburg. Lufthansa Group flight schools in Germany, Switzerland and ↗ www.lsgskychefs.com the USA under the European Flight Academy (EFA) brand. ↗ www.lufthansa-aviation-training.com 1 Company profile updated on 19 June 2019. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 5

Cover story MAINTAINING BALANCE. OUT OF RESPONSIBILITY. Air transport connects people, countries and cultures around the world. Its economic importance is enormous, it drives employment and it ensures the fast and reliable flow of goods. At the same time, it has undesirable effects on climate and the environ­ ment, similar to other modes of transport. Therefore, sustainable and environmentally compatible forms of mobility are among the key challenges of the 21st century. The Lufthansa Group is aware of its responsibility to protect and maintain the basis of life. For 25 years the Group has published key data of its environmental performance in its sustainability report Balance, which covers progress as well as challenges in all dimensions of the company’s corporate respon­ sibility. What are the Group’s achievements in the area of corporate responsibility over the past quarter of a century? What are the success stories and milestones, and where are the opportunities for the Lufthansa Group to improve even further in order to maintain a balance in the future as well? The follow ing pages provide insights into this story. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 7

DEVELOPMENT OF SPECIFIC FUEL CONSUMPTION IN LITERS PER PASSENGER AND 100 KILOMETERS (L/100 PKM) 5.2 liters 3.65 liters 1994 2018 REDUCTION SINCE 1994: - 30 % Pioneer work for alternative fuels Over the past years, the Lufthansa Group has been intensively involved in researching, testing and using sustainable alternative fuels. It has thus done important pioneer work: • 2011 Lufthansa became the first airline worldwide to test the use of biosynthetic fuel for about six months under regular operating conditions. Under scientific oversight the airline completed 1,187 flights between Hamburg and Frankfurt using a biokerosene mixture. With this test run Lufthansa demon­ strated that alternative fuel can be used in everyday operations without problems, lowering CO2 emissions at the same time. • 2013 The Lufthansa Group and the German Armed Forces Research Institute for Materials, Fuels and Lubricants started the EU research project “Blending Study”. In this project, important insights were gained concerning the blending properties of conventional fossil fuels and different new biokerosenes. • 2016 The Lufthansa Group refueled its aircraft at Oslo Airport with a fuel mix containing 5 percent alternative fuel. A total of about 5,000 flights were operated with this blend. • 2019 Lufthansa and the Refinery Heide signed a joint declara­ tion of intent concerning the future production and acceptance of synthetic kerosene that is to be produced with electricity generated by wind power. Participation in the interdisciplinary research project “Quiet Traffic” Lufthansa CityLine becomes the first airline worldwide to be validated in accordance with the strict EMAS standards Launch of “AIRail”, a cooperation between Lufthansa and Deutsche Bahn Participation in the UN Global Compact, the largest initiative for sustainable corporate governance worldwide 1999 2000 2001 2002 2003 Foundation of the employees’ aid initiative help alliance e.V. Participation as a founding member in the initiative “Pro Recycling Paper” Lufthansa Technik inaugurates the world’s largest and most modern noise-protection hangar in Hamburg Lufthansa Technik becomes founding member of Environmental Partnership Hamburg LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 9

25 YEARS OF CLIMATE RESEARCH ON SCHEDULED FLIGHTS 500 ABOUT 500 SCIENTISTS AROUND THE WORLD USE THE IAGOS DATABASE Since 1994, the Lufthansa Group has been a reliable partner for climate research and has continuously expanded this commitment. Currently, three Lufthansa aircraft are equipped with special measuring instruments in the context of the projects CARIBIC and IAGOS (see page 51, Balance 2017), tasked with measuring atmospheric trace substances and cloud particles. Data collected at cruising altitude is of particular importance for the understanding of the earth’s climate. Scientists use data generated by research projects supported by Lufthansa to make existing climate models more accurate and improve weather forecasting models. Starting with the project MOZAIC, the predecessor of IAGOS, all projects taken together have been successful in creating a unique database on the highly important greenhouse gases, water vapor and ozone. 01 MOZAIC FROM 1994 TO 2014 02 IAGOS SINCE 2011 Lufthansa Technik introduces the highly efficient Cyclean Engine Wash for aircraft engines Introduction of paperless boarding passes at Lufthansa What the Lufthansa Group contributes to climate research: • modifications of aircraft, which simultaneously operate scheduled flights and serve the goals of climate research. • measurements of climate-relevant trace gases – daily and on a global scale. • aircraft are ideal platforms for carrying out measurements in the upper troposphere and lower stratosphere. • the Group’s worldwide route net- work offers extensive coverage of the earth’s most important regions. Green Building Certificate for the Lufthansa Aviation Center 2009 2010 2008 Adoption of the Strategic Environmental Program The Lufthansa Group sets up its Compliance Office Lufthansa Cargo’s environ- mental management system is certified in accordance with ISO 14001 for the first time First Package of Measures for “Active Noise Abatement” implemented by Forum Airport and Region, with Lufthansa’s participation LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 11

FLYING RESPONSIBLY Helping with miles Since 2006, the participants of Europe’s leading frequent flyer and awards program, Miles & More, have been able to donate award miles to charitable causes through the initiative “Miles to Help”. The help alliance, the Lufthansa Group’s charitable aid organization, uses donated miles to support disadvantaged children in Africa, Asia and South America with food, health care and education. For example, 5,000 miles ensure the salary for an additional teacher in Africa for one month. And 10,000 miles make sure that ten children in Asia get meals for one month. Miles & More partic i pants decide themselves which specific project is to benefit from the value of their award miles or if they want to support the help alliance with an un assigned donation. Compensating CO2 emissions on a voluntary basis The Lufthansa Group offers its customers the option to compensate on a voluntary basis a large part of the CO2 emissions that are unavoidably caused by their flights and thus to make a personal contribution to climate protection. Since 2007, Lufthansa and SWISS have cooperated with the climate protection foundation myclimate for this purpose. An emissions calculator on dedicated Internet pages indicates an appropriate amount for the customer’s climate donation. In the end, passengers decide themselves how much they wish to give. Donations are channeled to certified projects that support climate-friendly energy sources. This offer is to be integrated into the booking masks. Latest measure: Since January 1, 2019 all official air travel for Lufthansa Group staff is now CO2-neutral. The Group compensates these CO2 emissions through myclimate as well. Furthermore, the Lufthansa Group is developing similar offers for its distribu- tion customers and has already launched a successful test run. Implementation of project “2nd Life” for recycling decommissioned aircraft LZ-Catering introduces climate-friendly main courses for employees in company restaurants First A320 with flow- optimized wing tips (sharklets) in service at Lufthansa 2013 The Lufthansa Group sets up a Cabin Air Quality Review Board Cabin Air Quality Identification of savings potentials by weighing all loose items on board a Lufthansa A340-300 Start of the initiative “Flygreener” for improved waste avoidance and recycling on board LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 13

DIVERSITY AS A BASIC PRINCIPLE The Lufthansa Group underscored the importance of diversity and equal opportunities over 20 years ago by creat­ ing the management function “Change Management and Diversity”. Further evidence is the responsibility for promoting equal career opportunities for men and women, already defined in the 1990s. In 1997, for example, Lufthansa was honored by the association “Total E­Quality”. Today, the Lufthansa Group is more diverse than ever. Expanded continuously over the past years, the Group’s commitment to numerous initiatives related to the topic of diversity is an established element in the orientation of its corporate culture. Juliane Grauer Equal opportunity officer, Lufthansa Group WHAT IMPORTANCE DOES THE TOPIC OF DIVERSITY HAVE FOR THE LUFTHANSA GROUP? For a cosmopolitan company like the Lufthansa Group, diversity is important and natural – both as an employer and as a service provider. Our employees quite literally come from all over the world; currently, people from 176 nations work in our Group. We are proud of this diversity within the workforce. It is our lever for creativity, innovation and agility. Esteem for people – independent of their gender, age, origin, religion, sexual identity and orientation – shapes our conduct, be it vis-a-vis employees, customers or suppliers. 1994 91 NATIONALITIES REPRESENTED IN THE LUFTHANSA GROUP 2018 176 k c e h c t c a f ↓ First parent-and-child office for employees with childcare bottlenecks All Lufthansa Group aircraft fly for one year from Oslo with a five-percent share of biokerosene Lufthansa Cargo signs cooperation contract with German Red Cross Signing of the Charter of Diversity 2015 2016 Flyover measurements on Lufthansa Cargo MD-11 freight aircraft to test noise-reducing modifications on engines and landing gear Introduction of eJournals World premieres: Lufthansa puts the first A320neo aircraft into service; SWISS the first CS100 LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 15

BALANCE OVER TIME Lufthansa selected the title “Balance” for its reporting on the topic of the environment and later on sustainability. It signifies responsibility for a world of reconciliation between the Group’s interests and those of its stakeholder groups. Shortly after the publication of the first environmental report, the “Initiative Balance” was launched too, which Lufthansa used to explain its position on socio-political topics, both within the Company and in public. The guiding motto “maintaining balance” remains valid today. Starting with the 1998 / 99 edition, the report was presented in a new format: in addition to the facts-and-figures part containing all the important data on environmental protection, for the first time there was also a magazine part with articles and features focusing on the topic of aviation and the environ- ment. From 2006, Balance was again published as a one-part report and has since evolved into a comprehensive Group sustainability report. Coverage at first followed the internationally acknowledged guidelines of the Global Reporting Initiative (GRI) and has been in accordance with the GRI Standards since the reporting year 2017. k c e h c t c a f ↑ Andreas Bartels Senior Vice President & Head of Corporate Communications, Lufthansa Group HOW MUCH EMPHASIS IS PLACED ON THE TOPIC OF CORPORATE RESPONSIBIL ITY IN COMMUNICATIONS? Sustainability topics are on an equal footing with financial, corporate and product topics in our communications work. Our approach is and remains to inform comprehensively, openly and transparently about our activities – including challenges. Because of its regular publication rhythm, our sustain- ability report has allowed us to accompany longer-term processes, document progress and cast a light on significant topics. Simultaneously, the report also reflects the changes in the requirements of our internal and external stakeholders. And incidentally, with this edition it is published for the first time only as a digital version on our website. Lufthansa Technik launches efficient method of cleaning engines with CO2 dry ice 2018 Lufthansa's Munich hub validated for the first time according to EMAS and certified according to ISO 14001 Launch of the LGBTI network “Diversifly” at the Lufthansa Group Declaration of intent by Raffinerie Heide and Lufthansa concerning production and delivery of environmentally-friendly synthetic kerosene Lufthansa Group employees fly CO2 neutral when traveling on business 2019 Implementation of the central eHealth platform for health-care provision Test run of CO2 compensation for corporate customers in Germany, Austria and Switzerland LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 17

LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 19

Thorsten Dirks Member of the Executive Board, Eurowings „ Eurowings is Europe’s fastest-growing airline. In 2018, following the insol- vency of Air Berlin, we hired more than 3,000 employees in record time and integrated 77 aircraft into our fleet. Together we have thus achieved an extraordinary result and made an investment in a future that will be success- ful for many stakeholder groups over the long term. Now we want to intensi- fy our commitment to society, climate and the environment. Airlines that are active in the price-sensitive market segment also have an obligation to make their flight operations as sustainable and environmentally efficient as possible. This is the kind of responsibility that is applied to assess us and our competitors. The essential prerequisite for greater sustainability is a strong economic foundation. Therefore, it is our goal to build up and expand the Eurowings Group into an innovative travel platform and a leading Europe-wide provider of direct flights. Our particular focus will remain on operational stability, as our customers rightly expect flights that are safe and comfortable as well as punctual and reliable. Harry Hohmeister Member of the Executive Board, Chief Commercial Officer Network Airlines „ Lufthansa is the first and only airline in Europe with a five-star rating and ranks among the ten best premium airlines worldwide. This award under- scores the Lufthansa Group’s commitment to offer its customers an excel- lent product. Today our three Network Airlines Lufthansa, SWISS and Austrian Airlines are already at the top of European hub traffic. To ensure that this position can be maintained we continuously invest, particularly in efficient and quiet aircraft, product innovations and service optimizations. It is also part of our quality standard to strengthen our position as the leading airline group in the area of sustainability. Our aim is not to have as many aircraft as possible taking off at all costs; this does not correspond to our understanding of sustainable and responsible mobility. We will resolutely continue our numerous fuel-efficiency programs and assess very meticu- lously how we can further improve our on-board product in the light of sustainability considerations. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 21

Ulrik Svensson Member of the Executive Board, Chief Financial Officer „ In its entrepreneurial activities the Lufthansa Group places great emphasis on applying responsible and sustainable principles. Therefore, our financial strategy is based on the clear concept of value-based management: by investing our capital specifically in areas with the highest expected yield, we are able to actively shape our industry and remain competitive, so that the Group remains in a favorable position in the future as well. In doing so we want to increase our profitability, secure the Group’s financial stability and as a rule have our shareholders participate in the Company’s success on a continuous basis. At the same time, we constantly invest in our Company, our products and the quality of our offer. It is in particular the modernization of the fleet that allows us to increase efficiency levels, reduce our CO2 emissions and use scarce resources in more responsible ways. Our overriding goal is to be number one for customers, employees, shareholders and the environment. Dr. Bettina Volkens Member of the Executive Board, Corporate Human Resources and Legal Affairs „ We are proud that the Lufthansa Group has been one of Germany’s most popular employers for many years. It is of great importance to me that this will remain so. We want to continue to find the right talented people who will successfully steer our fascinating company into the future. This also implies that we will have to become even more international with regard to our employees. We are working on this task as resolutely as we are developing leaner and more flexible structures, which give the necessary dynamism and speed to the Lufthansa Group’s transformation process. The ongoing evolution of market conditions also demands that our em ploy- ees have to further develop their know-how and abilities on a continuous basis. We support this need with diverse digital and non-digital training options. At the same time, managers are expected to act responsibly. Serving as examples and compasses for their teams, they are indispensable for the success of our cultural development process. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 23

Developments in society have a profound influence on the business activities and sustainability agenda of the Lufthansa Group. Among the worldwide megatrends and challenges are population growth, increasing mobility, technological progress and the advancing digitalization of numerous processes. Concurrently, climate and environmental protection are becoming increasingly important. For the Lufthansa Group, facing up to these developments means acting sustainably and responsibly. In this context, the Group places the focus on those aspects that allow it to achieve significant effects. In particular, this includes limiting environmentally relevant effects from flight operations by making comprehensive invest- ments in new aircraft, technologies and products. The Lufthansa Group is a service company whose economic success depends to a significant extent on the commitment and motivation of its employees. Applying a responsible and sustain - able approach to dealing with resources, the environment and em ployees secures not only long-term financial stability, but also acceptance for its business model inside and outside of the Company as well as attractiveness for customers, employees, shareholders and partners. This also includes the attentive management of opportunities and risks, consistent supply chain management and a constructive dialogue with diverse stakeholder groups. In this way, the Group underscores the goal of further strengthening its role as a leader in the aviation industry with regard to its corporate responsibility. (→ PAGE 26 FF.) LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 25

Since the reporting year 2017, sustainability aspects have been even more strongly interlinked with Group strategy by prioritiz ing strategically relevant topics, which are then concretized and implemented by a working group managed by the department. The latter’s members are experts from the same departments and staff units that form the CRC. The team meets twice a month and discusses current issues and challenges in the context of entrepreneurial responsibility. During the reporting year, one area of emphasis for the working group was again reporting in accordance with the CSR guide- line relating to environmental topics, considering the topic of supply chains and the significance of human rights in an entrepreneurial context. The separately set up human rights project group was maintained in the reporting year 2018 (see page 38, Respect for human rights). Stakeholder dialogue ↗ GRI 102-40, GRI 102-42, GRI 102-43, GRI 102-44 neighbors, NGOs and scientists, among others. The Group places great emphasis on an open, continuous and trusting dialogue with its internal and external interest groups, and actively seeks exchanges with them by using diverse formats (see page 28, Stakeholder dialogue: The most important activities in 2018 at a glance). This dialogue allows the Group to gain a better understanding of needs, expectations and wishes held by different interest groups and enables it to incorporate these in its entrepreneurial activities. The Lufthansa Group also receives important input on key issues from stakeholder surveys on significant non- financial topics (see page 29 ff.) and from the Group-wide em ployee survey “involve me!” (see page 83). The Group develops action areas and measures from the results and open-ended commentaries. The short version of the employee survey, conducted during the reporting year 2018, yielded more than 25,000 open-ended commentaries for the Group, including on the topic areas The continuous exchange with stakeholders makes an working conditions, employee motivation, health, information important contribution to the further development of the technology and digitalization. One of the goals of this “quick Lufthansa Group, its sustainability strategy and the annual check” is to evaluate if the action areas and measures derived reporting on significant topics related to corporate responsibil- from the comprehensive biannual employee survey – last ity. The spectrum of stakeholders ranges from customers and conducted in 2017 – have had an effect. Key topics of that employees, investors and suppliers to politicians, municipalities, survey included the expansion of dialogue formats, staff The stakeholders of the Lufthansa Group Customers Consumers Investors Shareholders Analysts Rating agencies Governments Legislators Politicians Authorities Neighbors Publicity Social networks Nongovernmental organizations (NGOs) Organizations Consortia Science Employees Suppliers Research & Education Employee representatives Contractual partners LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 27

leadership and employee appreciation, continuing education, focus on agile and digital work formats, promotion of talents and improvement of the IT infrastructure. defined in Section 289c Paragraph 3 HGB, i. e. to determine which aspects are material for understanding the course of business, the financial results and the position of the Lufthansa Group, as well as their effects on the aspects of sustainability. The materiality analysis was also conducted in Materiality analysis ↗ GRI 102-42, GRI 102-43, GRI 102-44, GRI 102-46, GRI 102-49 view of sustainability reporting in accordance with the GRI Standards, core option, in this report. Accordingly, In October 2018, the Lufthansa Group again conducted a ecological and social effects caused by the reporting company broad-based stakeholder survey that included customers, or those that significantly influence the stakeholders’ significant topics are those that indicate important economic, employees, neighbors, investors, business partners, politicians evaluations or decisions. and NGO representatives, among others. For this purpose, the Group contacted about 10,000 external addressees The Lufthansa Group’s Corporate Responsibility Council (CRC) in a personal format. The survey was also available to a broad evaluated the results of the stakeholder survey and, using public on the Company’s Internet page and social-media these as a basis, prioritized the most important action areas channels. Employees were able to participate in the survey on from the Group’s perspective. A materiality matrix visualizes the intranet. Separately from other stakeholders, all managers this prioritization of action areas from stakeholder and at the Lufthansa Group were contacted with an online survey. Company perspectives (see illustration, page 31). The result of Overall, the participants in the stakeholder survey 2018 fully this materiality analysis is the basis for the strategic further completed more than 2,500 questionnaires. development of corporate responsibility management and for the selection of topics to be covered in this sustainability report The findings of the stakeholder survey were analyzed by and in the non-financial report (see insert below). management particularly in terms of the materiality criteria COMBINED NON-FINANCIAL REPORT In accordance with the CSR Directive Implemen ta tion Act (CSR-Richtlinie-Umsetzungsgesetz – CSR-RUG) passed on April 19, 2017, Deutsche Lufthansa AG has again published a combined non-financial report for the financial year 2018 in accordance with Sections 315b and 315c German Commercial Code (HGB) in conjunction with Sections 289b to 289e HGB. Deutsche Lufthansa AG published a separate non-financial report at Company level and a separate non-financial Group report together as a combined non-financial report. It combines significant aspects and reporting on the following key issues: environmental concerns, customer concerns, employee concerns, anti-corruption and bribery, human rights, social concerns and sustainability in the supply chain as an inter disciplinary topic. Measures and initiatives taken by the Lufthansa Group that demonstrate the Company’s wide-ranging commitment to corporate responsibility are described in the combined management report. References to these passages are made in this report in the appropriate passages. The combined non-financial report was the subject of a voluntary limited assurance engagement in accordance with ISAE 3000 (revised). It is based on the GRI Standards 2016. Additional, comprehensive reporting on non-financial topics is presented in this sustainability report. ↗ www.lufthansagroup.com/investor-relations LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 29

2018 materiality analysis conducted by the Lufthansa Group ↗ GRI 102-44, GRI 102-47 Climate protection Service and customer orientation Occupational safety and health protection Respect for human rights Responsible production Sustainability in supply chain Attractiveness as an employer Digitalization and innovation Data protection and data security Corporate citizenship Active noise abatement Compliance S R E D L O H E K A T S R O F E C N A V E L E R LEVEL OF RELEVANCE FOR BUSINESS EFFECTS LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 31

In addition to its entrepreneurial activities, the Lufthansa Group’s commitment includes its registered charity help alliance, which was given a new base effective January 1, 2017, whose empha- sis is in education and enabling (SDG 4) as well as work and Communications and sensibilizing employees income (SDG 8). For a long time, high-quality training and In 2018, the Group again incorporated sustainability topics into continuing education programs have been of particularly high its communications to inform and sensibilize employees on importance across the entire Company. Beyond this, the Group a continuous basis. Additionally, employees are also made supports the SDGs through cooperation with science and aware of relevant topics related to sustainability by means of research as well as its active participation in numerous national voluntary – and sometimes obligatory – training opportunities; and international committees and workgroups (SDG 17). Some examples are compliance and data protection. examples are its participation in econsense, German industry’s forum for sustainable development, and its support for climate research (see page 11). An overview of the most important sustainability related memberships is available at: ↗ www.lufthansagroup.com/responsibility Since 2015, the Lufthansa Group has supported the Sustainable Development Goals (SDGs), which the member states of the United Nations adopted in the Agenda 2030. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 33

COMPLIANCE AND HUMAN RIGHTS Compliance and respecting human rights are significant ele- ments in the entrepreneurial activities of the Lufthansa Group. For the Company it is self-evident to comply with applicable law as well as voluntary self-commitments, and to actively consider ethical principles, too. The Lufthansa Group endeavors to manage the Company ef fec tively, as required by the principles of good corporate gov er nance. In particular, they imply integrity on the part of the employees as a prerequisite for the Company’s sustainable success. The Lufthansa Group Code of Conduct, which was adopted in 2017 and internally and externally communicated in 2018, contains the principles and guidelines that are binding for all bodies, executives and employees in daily business life. The code also serves as an aid to orientation for business partners. The Lufthansa Group expects that they will also adhere to the principles defined in it. The Code of Conduct has been published in nine languages and can be accessed on the Group’s intranet and Internet. Further self-commitments for the Lufthansa Group result from its participation in the UN Global Compact (see page 32), its membership in the anti-corruption organization Transparency International, the Universal Declaration of Human Rights and the four core work standards of the International Labor Organization (ILO). The Lufthansa Group reflects these principles by applying corporate leadership and control focused on responsibility and sustainable value generation. This approach is in accordance with high international standards and is of vital importance in maintaining transparency vis-a-vis the Company’s shareholders and continuously increasing trust in the Company’s top management. An essential legal base for these principles are the German Stock Corporation Act and the German Corporate Governance Code. The Declaration of Compliance with the German Corporate Governance Code was updated in December 2018 and has been published on the Internet at: ↗ www.lufthansagroup.com/investor-relations Code of Conduct The principles anchored in the Lufthansa Group’s Code of Conduct are the basis for fair competition and help to avoid legal risks and to identify and avoid reputational risks. In addition to the Code of Conduct, a number of Company-internal guidelines complement the Code’s binding principles and standards of conduct. In particular, this includes the Lufthansa Group Compliance Program, which consists of the following components: COMPETITION INTEGRITY CAPITAL MARKET EMBARGO To allow for confidential information concerning potential crimes or violations of laws or regulations, the Lufthansa Group set up an ombudsman system. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 35

Anti-corruption training All managers, team leaders and employees from relevant areas participate in obligatory two-year cycles of an IT-based anti- corruption training to make them aware of potential risks. Review for corruption risks All companies in the Lufthansa Group were reviewed for corruption and antitrust risks by means of a compliance risk assessment (see page 26, Balance 2017). 1,200 COMPLIANCE WORKSHOP PARTICIPANTS Automated IT processes ensure that all employees and members of bodies of the Lufthansa Group regularly take part in the web- based compliance trainings that are relevant for them. The Group companies’ employees have access to these e-learning courses and are in part already linked to automated mailings or participate in corresponding company-specific processes. As a complement, the Corporate Compliance Office conducts worldwide classroom training and offers workshops. During the reporting year, more than 1,200 participants took part in such trainings and workshops. The training offers are directed at managers as decision-makers and multipliers as well as at employees who need in-depth compliance knowledge to handle their tasks. Risk-based business partner due diligence The Lufthansa Group also expects the conduct of its business partners to be fully in line with compliance requirements. Therefore, the integrity of suppliers and service providers is ensured by means of a risk-based business partner compliance due diligence process. In the course of the review, the compli- ance managers or the employees in the Corporate Compliance Office carry out compliance screenings. To begin, this entails determining the identity of the business partner in order to then carry out a check against databases in the compliance, embargo, sanctions, PEP (politically exposed person) and watch lists categories, verifying that there are no relevant entries. Depending on the result, various measures proposed jointly by the Corporate Compliance Office and Corporate Security may be necessary to deal with a potential business partner, up to a decision against establishing a business relationship. A report detailing the results for each Group company reviewed and describing recommended mitigation measures was issued during the reporting year 2018. These measures are to be implemented by the respective companies according to a structured plan. In addition to the risk areas identified in this manner, further potential compliance-critical areas with regard to integrity and competition are identified in all Group companies in the context of regular Group-wide risk assess- ments. Appropriate preventative measures are subsequently taken with the goal of eliminating potential weak points. These risk assessments include both interviews with managers as well as written self-assessments. Ombudsman system The Lufthansa Group set up an ombudsman system in 2008 to enable information to be provided confidentially about suspected criminal offences, particularly potential breaches of anti-corruption legislation and regulations. An external, independent lawyer, Dr. Rainer Buchert in Frankfurt, acts as the ombudsman. Informants can give information by telephone, in writing or personally to the ombudsman. He communicates any information he receives to Lufthansa while respecting absolute confidentiality concerning the name and identity of the informant. In this way, the disclosure of an informant’s identity to the Company or to third parties without his or her consent is ruled out. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 37

Three questions for KARLHEINZ SCHNEIDER Senior Vice President Corporate HR Steering & Labor Relations smuggling people – additional topics, more from an operations context, are also being considered. The strategic steering and further development of this topic is handled centrally and Lufthansa Group-wide, and its content is built up from the relevant interfaces. Taking the responsibility and ensuring respect for human rights concerning employees is organized in line with these policies via a decentralized key account system within the parent companies. WHAT IS THE LUFTHANSA GROUP’S POSITION ON IN THE COMING YEARS? HUMAN RIGHTS? WHAT CAN COMPANIES EXPECT IN TERMS OF LEGISLATION It is often assumed that human rights are respected as a matter of course. However, this is not the case everywhere. As an aviation group with worldwide activities, we consider it our responsibility to make a contribution in this area. Companies do not control the political development in those countries in which they are active. But they do bear responsi- bility in the areas in which they operate, especially for the treatment of their own employees and those employees along the value chain – in a global context. For the Lufthansa Group as a member of the UN Global Compact, it is important to align our practices with internationally recognized principles and to anchor respect for human rights actively in the Company’s everyday life. IN CONCRETE TERMS, WHAT DOES THIS MEAN? Dealing with the contents related to the topic of human rights within the Lufthansa Group is divided into different topic areas and currently includes the Company’s own employees as well as the supply chain. To prevent “human trafficking” – meaning We observe that in this area as well, there is an increasing tendency towards legal regulation. Today, numerous national and international reporting obligations already exist for the Lufthansa Group in the topic area of human rights. On the occasion of the 70th anniversary of the UN Universal Declaration of Human Rights, Germany’s federal government pointed out to the German business community – with refer- ence to the framework of the National Action Plan for Business and Human Rights – that they have a duty to care for human rights. In 2020 at least half of all companies with more than 500 employees in Germany will need to be able to prove conclusively that they have incorporated the core elements of care concerning human rights into their corporate processes. Whether legal regulation will be deemed necessary will depend on the results of monitoring. Germany’s Federal Ministry for Economic Development and Cooperation is already working on draft legislation for a sustainable value-added chain. The German Minister of Labor announced that an emphasis is also to be placed on sustainable value-added chains at the European level in the context of Germany’s presidency of the European Council in 2020. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 39

SUSTAINABILITY ALONG THE SUPPLY CHAIN The Lufthansa Group has more than 40,000 suppliers. The annual procurement volume is about 20 billion euros. To meet the standards it sets for the sustainability of its own products, the Lufthansa Group relies on close cooperation with suppliers who share and implement these standards. This ap proach is also part of the Lufthansa Group’s Code of Conduct. The Group expects its suppliers to fully comply with current law, guidelines and regulations concerning fair compe- tition, integrity and responsible practices (see page 35 ff., Compliance and human rights). A transparent supply chain allows the Lufthansa Group to manage procurement processes in a targeted manner. Bottle- necks and weak points can thus be identified quickly and countermeasures taken. For these reasons, setting up and expanding a sustainable supply chain is of strategic importance for the Lufthansa Group. Since October 2017, the purchasing units in the Lufthansa Group have been organized within a single reporting line under the Chief Financial Officer. They inform the Executive Board about current developments on a regular basis. In some cases – especially airline-specific processes such as purchasing aircraft or kerosene – the purchasing units are centralized. In other cases they are decentralized throughout the Group companies (for more specialized products). Reporting lines are based on responsibilities for different product groups and Group compa- nies. Defining product groups optimizes the purchasing function in the procurement markets. Reporting on the basis of Group companies ensures security of supply. The introduction of a process-based matrix organization makes it easier to establish sustainability standards because it means that standardized processes and IT systems are increasingly used. In addition, defining responsibility within the Group ensures efficient ways of working together. The goal is also to improve the enforcement of sustainability standards. Further- more, confidential information concerning potential criminal conduct or violations of laws or regulations are made possible by the Group’s ombudsman system. The Group procurement policy includes the obligation to assume social and ecological responsibility It is to be understood as an overriding specification for all procurement guidelines at the Group companies and includes the obligation to assume social and ecological responsibility. In addition, it serves as a handbook for buyers and all em- ployees with contacts in the procurement markets. Among other considerations, it requires that these obligations be included in contracts with suppliers: • to comply with the ten principles of the UN Global Compact (see overview on page 32); • to comply with the four basic principles of the International Labor Organization (ILO); • to consent to announced and unannounced audits by companies of the Lufthansa Group; • to accept the termination of the contract in the event that these contractual obligations are breached. During the reporting year, the application of standardized contract clauses was further advanced. By setting up these requirements the Lufthansa Group aims at ensuring responsible practices at its immediate suppliers and thus meeting its own entrepreneurial responsibility. The purchasing units responsible for specific product groups carried out a suppliers’ risk assessment with the goal of identi- fying the types and levels of risks related to suppliers. These assessments are reflected in the result of the Group’s risk management. At the same time, Group-wide, standardized and structured supplier screening continues to be implemented. The Lufthansa Group’s commitment to sustainability is confirmed by EcoVadis With the aim of being able to describe its sustainable and responsible practices vis-a-vis customers, the Lufthansa Group participates in EcoVadis, a sustainability evaluation platform for global supply chains. During the reporting year 2018, the Lufthansa Group’s commitment was again confirmed by EcoVadis with the “Silver Status”. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 41

SWISS CS300 featuring the “Fête des Vignerons” livery A Lufthansa A320neo Fleet standardization advances For long-haul operations Lufthansa integrated six A350-900s in its fleet during the reporting year. At the end of the year, the With the goal of becoming more flexible and taking advantage of synergies, the Lufthansa Group is continuing the standard- ization of its Airbus A320 fleet (see illustration, Balance 2018, page 33). In the future, the aircraft of the Group Airlines will be airline operated 12 of these environmentally friendly long-haul aircraft from its Munich hub. They consume about 25 percent less fuel, emit correspondingly less CO2 and are significantly quieter during takeoff and landing than comparable types of configured and standardized from the start so as to allow aircraft (see page 70). conversions within a short time and with little effort when they are transferred between Group airlines. As a result, duration Lufthansa CityLine, which has provided an important portion and costs associated with such modifications can be reduced of feeder flights at the Munich and Frankfurt hubs for many significantly. This allows the Group to react more swiftly and years, has operated its first Airbus A319 at the Munich hub flexibly to current developments, and to move aircraft and since the beginning of the summer timetable 2019. More capacities more simply and efficiently between its airlines and aircraft of this type are to follow by the end of 2020. Inde pen- hubs. The airline brands with their respective corporate identi- dently of this development, the airline has counted on ties remain unchanged in this context. Bombardier CRJ series aircraft for more than 25 years. The CRJ900s epitomize fuel efficiency, low emissions values and The fleet development of the Group airlines from an a low noise burden. Currently, 35 CRJs are the mainstay of operative perspective: Lufthansa CityLine’s fleet, complemented by Embraer 190s Lufthansa and 195s. SWISS In 2018, Lufthansa consistently continued its fleet moderniza- tion. Six Airbus A320neo aircraft were put into service during SWISS also successfully continued its fleet modernization the reporting year. At the end of 2018, a total of 16 A320neos during the reporting year. The airline put another two were in operation. The A320neo is significantly more fuel-effi- Boeing 777-300ERs into service in 2018 and thus currently cient than comparable predecessor models and is characterized by correspondingly lower CO2 emissions. In addition, the 85-decibel noise contour of an A320neo taking off is only half operates ten aircraft of this type. An order for a further two Boeing 777-300ERs was placed in May 2018. These two long-haul aircraft are to be commissioned in 2020. The SWISS that of an A320 in the existing fleet. long-haul fleet will then comprise 12 Boeing 777-300s, five A340-300s and 14 A330-300s. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 43

One of the initial customers for the highly-efficient Boeing 777-9 The Lufthansa Group is a pioneer of introducing environmen- tally friendly technologies. The Group airline Lufthansa will be one of the first airlines worldwide to receive the new Boeing 777-9 in summer 2020. The Group has ordered a total of 20 of these highly-efficient long-haul aircraft. Their fuel efficiency is improved by about 15 percent compared to the Boeing 777-300ER. Lower kerosene consumption is achieved above all by the two newly-developed General Electric GE9X engines as well as the extremely long and narrow, curved wings, which consist for the most part of carbon fiber. Furthermore, the Boeing 777-9 features a significantly wider cabin compared to its predecessor models. For the first time, it will feature the new Lufthansa Business Class that gives every passenger direct aisle access at any time. In addition, new seats provide greater privacy and optimum sleeping comfort (see page 101). In configuring the cabin of the new Boeing 777-9, the Lufthansa Group for the first time opts for standardization of long-haul aircraft too. THE LUFTHANSA GROUP FLEET AS OF DECEMBER 31, 2018 (changes compared to 2017) In possession ¹ In operation 2 Number Age Number Age Lufthansa (including regional partners) 351 (– 6) 11.5 (+ 0.6) 351 (+ 14) 11.5 (+ 0.6) Eurowings 3 153 (+ 17) 11.1 (+ 0.7) 133 (+ 46) 10.9 (+ 0.7) SWISS (including Edelweiss Air) 105 (+ 14) 10.2 (– 0.8) 105 (+ 14) 10.2 (– 0.8) Austrian Airlines Brussels Airlines Lufthansa Cargo 83 52 19 (± 0) (+ 8) (+ 2) 14.6 (+ 0.9) 15.3 (± 0) 14.4 (+ 0.3) 83 55 17 (± 0) 14.6 (+ 0.9) (+ 11) 15.4 (+ 0.1) (± 0) 15.1 (+ 1.0) Lufthansa Group fleet 763 (+ 35) 11.9 (+ 0.5) 744 (+ 85) 11.9 (+ 0.4) 1 Aircraft in the possession of Lufthansa Group 2 Operated by companies of the Lufthansa Group 3 Including Germanwings (GWI) and Luftfahrtgesellschaft Walter (LGW) LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 45

Beyond that, Lufthansa Technik is the most important provider of ideas within the Lufthansa Group. The world’s leading sup- plier of technical aviation services saves about 40 million euros per year by implementing creative improvement suggestions made by employees working in hangars, workshops and offices. customer-relevant digital activities under one roof. The focus is on developing the digital customer interface eurowings.com into a comprehensive travel platform on which the airline’s customers can not only book flights but also take advantage of personalized offers of digital services and products. Lufthansa Innovation Hub With the aim of identifying and managing opportunities result- ing from industry changes and digitalization trends in an even more structured manner, in 2014 the Lufthansa Group set up the Innovation Hub in Berlin. Its goal is to further develop the Group’s distinct innovation culture and power, and to take advantage of opportunities in a focused way. Meanwhile, the Lufthansa Innovation Hub has established itself as one of the most important drivers of the Group’s digital activities and in 2018 was honored by business magazine Capital for the second time in a row for its work as “Germany’s best innovation lab- oratory”. During the reporting year, 23 projects were deve loped, four partnerships successfully implemented and three invest- ments in tech start-ups in Germany, the USA and Canada realized. Furthermore, the Innovation Hub was expanded by new digitalization units in Asia. With the aim of being better able to create network links with local players and increase the footprint of the Lufthansa Group in the Asian economic system, the Lufthansa Innovation Hub opened its first location abroad at the beginning of 2019 in Singapore, while the second one is to follow this summer in Shanghai. Chair for innovation endowed In May 2018 Dr. Bettina Volkens, Member of the Executive Board, Corporate Human Resources and Legal Affairs of Deutsche Lufthansa AG, endowed the new Lufthansa Group Chair in Innovation Studies at the private European School of Management and Technology in Berlin. The chairholder’s future tasks will include analyses of how new ideas and innovations are developed in networks and communities, and how compa- nies can more effectively take advantage of external sources of innovation and integrate them. Numerous internal platforms With the goal of increasing its ability to innovate, the Lufthansa Group offers a number of events and platforms, including the annual Innovation Forum as well as the Innovator Awards. The latter have honored exceptional innovation projects once a year since 2014. Beyond that, the Group runs the Innovation Accelerator, a program that imparts methods and tools for agile working techniques and fast prototyping. In addition, since 2014 employees have had the opportunity to apply to the LH Group Innovation Growth Fund (IGF) for development funds of up to 10 million euros per year to develop ideas from their early stages. Th Lufthansa Innovation Hub and the SAP.iO Foundry Berlin also have jointly chosen to pursue a creative approach. In July 2018, the partners launched an ideas competition for block- chain-based solutions, aimed at making the customer experi- ence as well as processes, supply chains and maintenance processes at airlines even more smooth and interconnected. With the aim of securing its worldwide pioneering role in the area of digitalization and innovation within the aviation industry, since 2018 the Lufthansa Group has made available an addition al 20 million euros per year through its new Lufthansa Digital Fund (LDF). These funds are aimed at the development of digital business models as well as technology and risk With the format FlyingLab the Lufthansa Group created an open innovation platform. On selected Lufthansa flights, passengers have since been able to experience innovative Furthermore, the Lufthansa Group cooperates with aircraft manufacturers, airports, fuel producers and science to advance products and services live on board, test these themselves innovations on the basis of substantiated data and continuously and give feedback. improve the Company’s own involvement in environmental capital projects (see page 37, Balance 2018). In addition, in 2018 Eurowings founded Eurowings Digital GmbH. This new company is to bundle all of the airline’s protection. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 47

Global aviation is a growth industry and, for the foreseeable future, it will continue to require the use of fossil fuels or alternative liquid fuels with a corresponding energy density. Therefore, the material environmental effects of flight operations are primarily climate effects due to the CO2 emissions produced by burning kerosene and the noise caused by aircraft while taking off and landing. In addition, upstream and downstream activities consume resources, such as energy and water, and generate waste materials. Against this background, climate and environmental responsibility are key concerns for the Lufthansa Group. The Company has been committed to limiting the environmental effects of its business activities for many years. This approach also has an economic motivation, as fuel consumption, CO2 certificate acquisition and noise-related airport fees all generate costs. In line with the consideration of materiality, the Lufthansa Group focuses its commitment above all on its core business, the product of “flying”. Central action areas are emissions reduction, active noise abatement, energy and resource management as well as the commitment to scientific research and the establishment of environmental management systems. The Lufthansa Group aims to conduct its business in a sustain able and responsible manner in all business segments. The Company’s goal is to meet increasing mobility needs with environmentally compatible products and to increase the eco- efficiency of flight operations on a continuous basis (→ PAGE 50 FF.) LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 49

In their exhibit “Green Gate”, Lufthansa and Munich Airport inform passengers about the numerous programs and initiatives for sustainable mobility. With regard to climate and environmental responsibility, the companies of the Lufthansa Group take their bearings from voluntary external guidelines and participate in various sustain- ability initiatives. The resulting obligations in large part exceed legal requirements. The department Environmental Issues reports to the Chairman of the Executive Board and CEO, and is responsible for the Lufthansa Group’s definition, coordination and implementation of Group-wide goals and measures with regard to environmental management. In addition, all larger subsidiaries have their own environmental departments as well as an environmental commissioner or coordinator. The environmental commissioners and coordinators meet at least once a year at the Group-wide Environmental Forum to coordinate strategies, measures and processes, to exchange experiences and to identify possible synergies. In addition, new or planned legal requirements and their effect on the Lufthansa Group are discussed at the forum. Environmental management systems To support the systematic control and continuous optimization of environmentally relevant processes, the Lufthansa Group steadily advances the implementation of environmental management systems according to ISO 14001 or EMAS at the Group companies. This is an overview of the current situation: The Group’s pioneer is Lufthansa CityLine with its long-stand- ing experience in environmental protection: in 1999, it became the first airline worldwide to launch a professional environmental management system and to pass EMAS (Eco-Management and Audit Scheme), the most rigorous European certification system in 2000. Since then, the program has been validated annually. Lufthansa CityLine is also certified according to the interna tional environmental standard ISO 14001. During the reporting year, the environmental management system of Deutsche Lufthansa AG at the Munich location was validated for the first time according to EMAS and certified in accordance with ISO 14001. The airline is considering the extension of the validated and certified environmental manage- ment system to other locations. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 51

The LSG Group has operated an in-house environmental management system, which comprises significant portions of core elements from ISO 14001, since 2008. All locations worldwide that are fully owned by the airline caterer are covered by this system. The system’s components are continuously supported by short-term and long-term goals, activities and programs. Furthermore, each region of the LSG Group has a Regional Environmental Manager (REM), who works together with the regional management team on implementing and monitoring the local environmental programs. LZ-Catering is preparing the introduction of an environmental management system. The company is an “environmental partner” of the City of Hamburg and has been a member of Ökoprofit since 2010. In 2017, LZ-Catering introduced reusable cups at its Bartesse coffee shops to help reduce the quantity of waste. At a majority of its company restaurants LZ-Catering has offered at least one daily “CO2-friendly” main course since July 2014. Individual special dishes and regionally-sourced ingredients complement the meal offers at the different restaurant locations. On the basis of its strategic environmental program, the Lufthansa Group pursues the goal of establishing certified environmental management systems step-by-step at the large Group companies. The airlines SWISS (including Edelweiss Air), Air Dolomiti, Austrian Airlines, Eurowings and Brussels Airlines have currently not implemented certified environmental management systems. Lufthansa Cargo has been certified according to the environ- mental management standard ISO 14001 at its Frankfurt location since 2008 and worldwide since the end of 2015. The worldwide recertification took place in 2017, for the first time in accordance with the more stringent requirements of the revised standard. The latter include the detailed compilation of environmentally relevant risks and opportunities as well as a materiality analysis and a life-cycle evaluation including supplier management. After the certificate’s validity had been extended to Jettainer GmbH, it was successfully widened to include another subsidiary, time:matters GmbH in Germany. In 2018, conformity with the ISO norm was again confirmed in a monitoring audit and for the first time the subsidiary time:matters Netherlands was also integrated into the environ- mental management system. In the process of certification the auditors evaluate among other points whether the environmental effects of daily operations are known in all areas, whether employees receive training on environmental issues, whether reduction goals have been defined and which optimization measures have been launched and implemented. These continuous improvements are of central importance for the environmental management system. They can be measured by evaluating to which degree Lufthansa Cargo has reached its goal in areas such as emissions, digitalization and number of lightweight containers. Lufthansa Technik received its validation according to EMAS as long ago as 1996, as the first Group company to do so, and has been certified in accordance with ISO 14001 since 1999. The MRO specialist has also operated a job safety management program validated in accordance with the international specifi- cation OHSAS 18001 since 2008. In 2017, the certification of Lufthansa Technik Philippines in Manila was concluded successfully. Thus, beyond all of the Lufthansa Technik Group’s European locations, all of its locations in the Asia-Pacific region have been certified as well. In 2018, the Lufthansa Technik locations in Tulsa (Oklahoma), Frankfurt (Osthafen) and London (Hayes) had their environmental management systems certified in accordance with ISO 14001 for the first time. The engine overhaul locations in Wroclaw (XEOS) and Jasionka (EME Aero), which are being set up, are preparing for certification in 2019 and 2020, respectively. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 53

CO2 emissions according to GHG Protocol The Lufthansa Group determines its CO2 emissions on the basis of the Greenhouse Gas Protocol (GHG Protocol), which divides emissions into three main categories (scopes). All direct emissions from flight operations, which are shown in the illustration as “Direct and indirect CO2 emissions of the Lufthansa Group”, were determined and verified on behalf of the aviation group in accordance with the requirements of the European emissions trading scheme. Beyond that, for some years the aviation group has also recorded indirect emissions caused by its business activities. All recorded and calculated direct and indirect CO2 emissions were verified externally (see page 115, Verification statement). The so-called CO2 foot- print helps the Lufthansa Group to identify and evaluate its significant environmental effects with greater precision, pursuing the goal of developing more effective options for reduction as the next step. Direct and indirect CO2 emissions of the Lufthansa Group 2018 2 SCOPE 1 3 74.4 % 32,790,778 tonnes Direct CO2 emissions from the Lufthansa Group’s flight operations and ground traffic of own vehicles as well as own energy-generating facilities. SCOPE 2 4 0.4 % 194,059 tonnes Indirect CO2 emissions of electricity and energy purchases for ground operations, including catering and maintenance. SCOPE 3 4 25.2 % 11,089,327 tonnes Further indirect CO2 emissions along the supply chain and from purchased services, here essentially the emissions from the kero- sene supply chain and those related to the manufacturing of aircraft and engines. 1 Source: International Energy Agency (IEA) 2018, data for 2016 2 In the version of the report published on 6 June 2019, the Scope 1 value was not displayed correctly. The value was therefore corrected in the present report on 19 June 2019; the chart on this page has been modified accordingly. 3 Audited with the result High Assurance. 4 Audited with the result Limited Assurance. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 55

EUROWINGS Share of fuel consumption by traffic areas 1 Total Long- Medium- Short-haul Long-haul Medium-haul Short-haul 4.00 10.09 –– –– 3.72 4.70 9.37 11.84 BRUSSELS AIRLINES 3.43 8.63 3.27 3.59 8.24 9.04 –– –– 66 % 34 % 48 % 52 % DECOUPLING OF TRANSPORT PERFORMANCE AND FUEL CONSUMPTION 2 SINCE 1991 Changes compared to 1991 in percent, values for the fleet of the Lufthansa Group 450 400 350 300 250 200 150 100 50 0 +442 % Transport performance +227 % Fuel consumption Efficiency gain 1991 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 For further environmental ratios refer to the chapter Service & Information, page 112 ff. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 57

Four-pillar strategy for climate protection The aviation industry intends to reach its goals concerning fuel efficiency and reduction of CO2 emissions by pooling different measures implemented by different players (manufacturers, airports, air traffic control, airlines, politics). These were classed at the IATA assembly in 2007 in the industry’s four-pillar climate protection strategy (see overview below). This strategy also forms the basis for the Lufthansa Group’s fuel-efficiency activities. Furthermore, the Group draws orientation in the area of climate and environmental responsibility from the environ- mental principles of the UN Global Compact and the Sustain- able Development Goals of the United Nations (see page 32 f.). 1. Technological progress The most important lever for reducing CO2 emissions from flight operations is to invest continuously in modern and especially fuel-efficient aircraft and engine technologies (see page 42 ff., Fleet management). The airlines within the Lufthansa Group took delivery of 29 new aircraft in the course of the reporting year. Moreover, the Lufthansa Group has participated for a number of years in researching and testing alternative fuels in flight operations (see page 9, Pioneer work with alternative fuels). Before the aircraft of the Group airlines can use alternative fuel, a number of basic conditions must be met. They include above all irrefutable quality specifications, sustainability in Four pillars for climate protection production and supply chains, as well as cost effectiveness, of course. In 2018, the Lufthansa Group took part in another cross-sector initiative. It aims to launch and build an interna- tion al alliance to develop the future strategic importance of synthetic renewable energy sources (PtL – power to liquid), to jointly advance a global market for these energy sources and to accelerate their market development. Furthermore, Lufthansa and Raffinerie Heide signed a joint declaration of intent at the beginning of 2019 concerning the future production and delivery of synthetic kerosene, which is to be produced with green electricity. 1. Technological progress 2. Improved infrastructure 3. Operational measures 4. Economic measures Innovation in aircraft and engine technologies Alternative fuels Better use of airspace Efficient aircraft sizes Needs-based airport infrastructures Optimal flight routes and speeds Optimized processes on the ground A global, sensibly designed, market-based system for reducing emissions to complement the other three pillars LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 59

is airport infrastructure adapted to actual needs that allows efficient flight operations. A further contribution to reducing environmental burden comes from intelligent links between different transport modes. The Lufthansa Group is active in this area too and develops intermodal transport concepts that systematically interlink air, rail and road traffic. Offers include feeder services to and from airports by ICE high-speed trains, modern long-distance buses and car-sharing. 3. Operational measures In 2018, 21 fuel-saving projects were underway across the Lufthansa Group, comprising activities relating to weight reduction, flight route optimization and technical developments. These include “Expanded connex info”, the “Development of Company-own approaches based on most modern area navigation” and the “Optimized filling of fresh water tanks” (see project profiles, page 61, 62 and 64). With these operational measures, the Group sustainably avoided more than 24,000 tonnes of CO₂ emissions in addition to the reductions achieved in 2017. In comparison, the quantity of kerosene saved – and thus CO2 avoided – is equivalent to approximately 90 return flights between Munich and New York with a Lufthansa Airbus A350-900. Or in different terms, the quantity of kerosene conserved would allow SWISS to operate its schedule between Geneva and London City with its C Series aircraft for about 20 months. Lufthansa Cargo has also developed a broad-ranging catalogue of measures aimed at reducing the CO2 emissions of its freighter fleet. The logistics specialist continuously works on alternatives for its loading devices and has already replaced 75 percent of all standard containers with more lightweight models. Furthermore, Lufthansa Cargo is testing the use of more light- weight palettes for freight stowage. While standard palettes currently in use weigh around 100 kilos, lightweight versions weigh about 20 to 30 kilos less. With a stock of about 18,000 palettes, a conversion would result in significant efficiency gains. Tests with an aluminum-foam palette were successful. All possible alternatives also undergo economic feasibility studies in the framework of evaluation. In the area of loading accessories, the cargo airline is currently evaluating the use of lightweight structural elements made from recycled cardboard-fiber composite material in loading air freight palettes and has carried out some positive tests. In these palettes, heavy-duty floors and beams made of heavy- PROJECT PROFILE PROJECT NAME: EXPANDED CONNEX INFO Pilots already receive information about connecting flights and the number of connecting passengers (connex info). This also includes the latest possible arrival time at the parking position to ensure that passengers reach their connecting flights. With the inclusion of a new component, “expanded connex info” allows pilots to evaluate unequivocally under economic and operational aspects if they need to accelerate to catch up with a delay. So-called high-speed cruises are thus reduced to the necessary minimum. TOPIC AREA Systemic operations management, cross-functional control logic in the areas flight control, group control and operations control, and deployment control to reduce delays and fuel costs. FOUR-PILLAR STRATEGY The project “expanded connex info” makes a contribution to the pillar “operational measures”. PARTICIPATING EXPERTS Flight operations experts from the areas fuel efficiency, cockpit information service and air/ ground communication participate in this project. In addition, the hub control center is involved with information about the current operative situation and monitoring of transfer connections. GOAL With this project, the Lufthansa Group aims at avoiding up to 6,000 tonnes of CO2 emissions over the long term. DURATION OF MEASURE “Expanded connex info” is to be available at the Group airlines step-by-step from July 2019. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 61

Measures taken by the Network Airlines and Eurowings to reduce fuel consumption and thus also CO2 emissions (selection) Airline Measure Lufthansa SWISS Austrian Airlines • On short-haul flights, the Flightprofile Optimizer OPTI calculates the optimum flight profile on the pilots’ Electronic FlightBag. • Installation planning for optimum engine­aircraft combination in relation to fuel efficiency and the remaining lifetime. • A weight saving is realized on the entire Boeing long­haul fleet with the introduction of Premium Economy Class seats. • In cooperation with the LSG Group, Eurowings is replacing older catering trolleys with modern lightweight models. Eurowings 1 In tonnes p. a., total project Expected fuel savings 1 Fuel savings 2018 Expected CO2 savings 1 CO2 savings 2018 Project completed 4,038 t 4,038 t 12,720 t 12,720 t 2018 628 t 105 t 1,979 t 330 t 2021 667 t 500 t 2,100 t 1,575 t 2018 975 t 975 t 3,073 t 3,073 t 2018 without chemical substances. This saves not only time, costs and resources, but it is also kind on the environment. In addition, Lufthansa Technik has tested low­drag surfaces on aircraft fuselages for many years (see page 51, Balance 2018). What works there might also pay off if used in engines. Coating the low­pressure turbine vanes of CFM56 engines with these advanced surface structures (riblets) would significantly improve the aerodynamic characteristics of the low­pressure turbine – which, in turn, would reduce kerosene consumption. increases in CO2 emissions of included international flights within the aviation industry, should it not be possible to limit these CO2 emissions appropriately. In the EU emissions trading system for civil aviation, CO2 emissions have been steered and limited by trading certificates since 2012. The Lufthansa Group is covered by this system for all flights within Europe. In 2018, these flights emitted about 8.5 million tonnes of CO2, of which about 62 percent were compensated and neutralized by purchasing emissions certificates. Thus, the goal of CO2­neutral growth has effectively been more than fulfilled within Europe. 4. Economic measures With the agreement on climate protection (CORSIA – Carbon Offsetting and Reduction Scheme for International Aviation), Today, the Lufthansa Group already offers the majority of its customers the option of voluntary CO2 compensation. The latter is provided through renowned agencies that apply the highest which was adopted in October 2016 in the context of the standards in selection and implementation (see page 67, International Civil Aviation Organization (ICAO), growth­related CO2 emissions in international civil aviation are to be compen­ sated from 2021 by CO2 savings achieved by climate protec­ tion projects. As a result, the Lufthansa Group will have to pay the corresponding CO2 compensation costs from 2021 for Balance 2016). In cooperation with the renowned Swiss climate protection foundation myclimate, customers can have the emissions related to their flights with Lufthansa and SWISS calculated online, and can offset them by making a donation in favor of selected climate protection projects. Austrian Airlines LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 63

ENERGY AND RESOURCE MANAGEMENT It is part of the entrepreneurial DNA of the Lufthansa Group to keep air transport’s effects on the environment as environmen- tally friendly as possible – not only in flight operations, but also in its activities on the ground. The Group’s corresponding guidelines and goals result from the strategic environmental program 2020, which was implemented in 2008 (see page 36, Balance 2015). Its 15 guidelines outline how the Lufthansa Group is to continuously optimize its energy and resource manage- ment, among other considerations, by 2020. This approach also takes into consideration energy-saving and resource- conserving aspects related to planning, modernizing and con- structing buildings. Input for optimizing buildings with regard to energy consump- tion is above all provided by the results of energy audits in accordance with the EU Energy Efficiency Directive (EED). Accordingly, companies above a certain size are obliged to conduct energy audits at least once every four years (see page 45, Balance 2017). To meet these requirements, energy audits will again take place at the end of 2019 at the Lufthansa Group; the Company has already started these audits. Furthermore, the Group again evaluated measures to increase energy efficiency during the reporting year. A Group-wide stan- dardized tracking tool is the basis for continuously monitoring cost savings realized by planned or implemented measures, such as further changes of lighting systems to LED. To generate sustainable potentials for the sparing use of electricity and water, and to develop suitable solutions, are as important for the Lufthansa Group as its efforts to optimize waste management in catering. Within the new matrix organi- zation, the aviation group therefore continuously intensifies the cooperation of its subsidiaries in the area of energy manage- ment with the goal of generating synergies and deepening exchanges on best-practice cases. At its Frankfurt location, the Lufthansa Group and 14 other companies in the Rhine-Main region have participated since March 2017 in the Business Energy Efficiency Network of energy provider Mainova and the Frankfurt Chamber of Com- merce. The goal of the initiative is to conserve 17,500 mega- watt hours of electricity per year and 5,000 tonnes of CO2 (without transport) on the ground during its three-year duration. For energy-intensive service companies Lufthansa Technik and LSG Group, the topic of energy management has a particularly high significance. Therefore, these companies use their own concepts and systems that are geared to their particularities and business activities. For example, Lufthansa Technik operates a certified environ- mental management system (see page 53). A proprietary building standard with company-wide application helps the leading provider of MRO services (Maintenance, Repair & Overhaul) to increase the energy efficiency of its locations worldwide. Moreover, the Lufthansa Technik Group has launched a carbon-save program that was concluded successfully in 2018. Its goal was to lower the company’s CO2 emissions by 30 percent by 2018 when compared with those of 2012. To realize further savings, at the end of the carbon-save pro- gram the company defined new goals to be reached by 2025. They include the objective to increase resource efficiency by 25 percent and the recycling ratio by 75 percent. In recent years, the LSG Group has launched numerous pro- grams aimed at conserving energy and water, and continued these during the reporting year. They included the replacement of dishwashers at locations in Brazil and Mexico. The company also introduced monitoring technology to measure the energy, water and detergent consumption of existing dishwashers. Since 2018, the LSG Group has recycled PET items at its German locations. The catering specialist checks the key performance indicators (KPI) concerning energy consumption and waste quantities every year, and defined new KPIs per region for the period 2017 to 2020 (see page 46, Balance 2017). It also works with its own environmental management system that closely follows the ISO 14001 standard. During the reporting year, Lufthansa Cargo purchased 49 modern, energy-efficient chargers for forklift batteries in Frankfurt; the use of its 80 forklifts is indispensable for loading freight pallets. At 1.5 charging cycles per day and charger, this LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 65

Austrian Airlines flight attendants Astrid Harrer (left) and Angelika Hönigmann of the Flygreener team collect plastic cups for the OMV ReOil® pilot project. 100 kilos of plastic will be turned into 100 liters of synthetic crude oil. and shredded by a waste management company. The plastic waste is subsequently used in a pilot plant operated by oil and gas company OMV to produce synthetic crude oil, which is then processed into fuel and primary products for the plastics industry. Up to 100 tonnes of disposable waste annually can be avoided in this way. Since May 2019, Eurowings has offered its passengers on short- and medium-haul flights the option of reducing plastic waste and supporting the construction of wells when buying still water. The background is the introduction of the first fully-recycled PET water bottle marketed by the “Share” brand, which will help the airline conserve an estimated three tonnes of newly-produced plastic per year. For each bottle of water sold, the Berlin-based social start-up provides one person in distress with an equivalent product. Additionally, the water sold on Eurowings flights is expected to allow Share and its social partners to construct or repair at least three wells. Between February and April 2018, Eurowings passengers also had the option of bringing their own cups aboard, receiving a 20-percent discount on hot beverages in exchange. Electromobility: Project Airport eMove successfully concluded Fuel-efficient and quiet aircraft are the central, but not the only regulating options that can be applied to make air transport more environmentally compatible. On the ground, there are also numerous opportunities, in particular in ground handling processes as well as taxiing and towing processes of aircraft. At Frankfurt Airport, the Lufthansa Group places an emphasis on advancing projects aimed at reducing the consumption of gasoline or diesel by ground vehicles. This includes the initia- tive E-PORT AN. Its goal is to switch individual vehicle types step-by-step to electric propulsion technologies (see page 55 ff., Balance 2018). LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 67

ACTIVE NOISE ABATEMENT Operating aircraft causes noise, especially during takeoffs and landings. As a result, it is chiefly people living in areas surrounding airports who are affected by aircraft noise. At higher altitudes, such as during cruising flight, aircraft noise is without consequence. The noise-related effects of the Lufthansa Group’s aircraft operations primarily affect hub locations and airports with high flight frequencies. The Lufthansa Group supports numerous long-term activities and measures designed to decrease aircraft noise perceptibly. The main goals are to lower noise sustainably at the source and to develop optimized flying procedures in cooperation with system partners. In addition, noise protection efforts also have an economic element. Noise-related airport fees are lower for quieter aircraft, while they are higher for louder aircraft. For this reason, modern fleets and noise-abatement measures pay off directly. Therefore, the Lufthansa Group has been working with deter- mination on operating the quietest aircraft possible and on making its existing fleet even quieter. These efforts have been successful: in 2018, 99.6 percent – and thus almost the entire operative Group fleet – fulfilled or exceeded the strict minus-10-decibel criterium of the ICAO Chapter 4 standard (see overview page 130). The aircraft noise experts from the Group’s different departments are closely connected within a network. In addition, they are active in aircraft noise com- missions, dialogue forums and research projects, which in some cases they initiated and have coordinated. For example, this includes participation in test projects under the umbrella of SESAR (Single European Sky ATM Research, see page 60 f.). The Lufthansa Group’s commitment to active noise abatement comprises five dimensions (see graphic below). In addition to this issue of Balance, the Lufthansa Group also published this approach in its Annual Report 2018 as part of the combined non-financial report (see info box page 29). Active noise abatement 1. Investments in quieter aircraft 2. Noise-reducing technolo- gies for the existing fleet 3. Participation in noise research 4. Optimization of approach and departure procedures Introduction of the latest aircraft such as the Airbus A320neo and Airbus A350-900 Retirement of older models Retrofitting of noise- reduc ing vortex generators to the existing fleet Continuous collaboration and exchange with partners from research and industry Development and analysis of new noise-reduction measures Cooperation with system partners Development and testing of new methods Use of new navigation technology 5. Dialogue with residents near airports and other stakeholders Continuous exchanges with residents as in the Airport and Region Forum Active participation in aircraft noise commissions LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 69

3. Participation in noise research For many years, the Lufthansa Group has been committed to noise research via projects such as MODAL (Models and Data for the Development of Active Noise Abatement Measures in Aviation, 2012 –2015), thus helping to create the foundations for successful active noise protection. In 2017, the project “EffFlug” (Efficiency increases in flight op er- ations) was added. Its goal is to analyze efficiency measures more precisely with regard to their noise reduction potential compared with previous solutions. To this end, the existing evaluation methods are to be expanded and deepened. Digital- ization makes it possible to analyze flight operations data even more intensively and to link them with intelligent analytic tools. The prerequisite for the participation in “EffFlug” is a high de gree of expert knowledge and cockpit experience. In this project, the Lufthansa Group closely cooperates with the German Aerospace Center (DLR), Fraport AG and Flughafen München GmbH. Beyond that, the DLR – with support from Lufthansa Technik and other partners – is conducting research into options for optimizing existing fleets. The DLR expects audible improve- ments from fairings on landing gears and innovative exhaust nozzles on engines in particular. The development, certification and testing of such noise-abatement measures require several years of preparations. Continuous research and development work, especially by manufacturers, produce new generations of quieter aircraft and engines as well as desired optimizations on the aircraft in existing fleets. Therefore, it is of great importance for the Lufthansa Group to help shape this steady cycle of intensive research as well as new technologies and products in order to achieve further efficiency improvements in aircraft and engines. 4. Optimization of approach and departure procedures Optimizing flight procedures and flight routings also contributes to noise reductions. The Lufthansa Group is active in this area in numerous ways by cooperating with international partners such as EUROCONTROL. In the framework of the project EMAS 1 (Early Morning Arrival Stream) Frankfurt, the time during which approaching aircraft are in the airport’s close range could be reduced by up to 20 percent. This project is supported and co-funded by the Environment and Neighborhood House (UNH) in Kelsterbach as a part of the Airport and Region Forum (FFR). In July 2017, Deutsche Flugsicherung (DFS, air traffic control), Lufthansa and Fraport successfully tested and implemented new navigation technology on the so-called southern circum- navigation in Frankfurt in the context of SESAR. The newly used Radius-to-Fix (RF) functionality allows flying highly-precise circular-path segments with fixed radius and fixed origin at a quality level that so far is unique in Germany. For people living in the region, this is likely to produce correspondingly positive effects on noise burdens. Operations will be accompanied by comprehensive monitoring in cooperation between DFS and the Environment and Neighborhood House. 5. Dialogue with residents near airports and other stakeholders Since 2001, the Lufthansa Group has actively and continuously participated in measurement packages aimed at noise abatement in the framework of dialogue forums, in Frankfurt and Vienna among other locations. One example is the “Alliance for Noise Abatement” in Frankfurt, in which the state government of Hesse, Fraport AG, Deutsche Lufthansa AG, the Airport and Region Forum (FFR), Deutsche Flugsicherung (DFS) and the aviation association BARIG participate. Moreover, the Lufthansa Group also works actively in some of the German aircraft noise commissions stipulated by Germany’s Civil Aviation Act. In January 2018, the FFR presented 17 additional measures to reduce the noise burden in the areas surrounding Frankfurt Airport or to enable an improved political and legal framework for the expedited implementation of measures. Those involved took the first steps in this context in 2017. The new package of measures “Active Noise Abatement” builds on the 12 noise protection measures that were implemented in the past in standard operations, and also opens up new perspectives, such as the precision navigation system. Simultaneously, Hesse’s Ministry for Economic Affairs and Transport, the Frankfurt Aircraft Noise Commission, Lufthansa, Condor, BARIG, Fraport and the FFR agreed on a voluntary upper noise limit at Frankfurt Airport. This agreement gives the airlines an additional incentive for flying even more quietly: doing so is the only way to increase the number of their aircraft movements. The Lufthansa Group welcomes such a reliable, clear and long-term regulatory framework that creates investment and planning security for future growth and fleet decisions. In May 2016, the state of Hesse and the aviation industry had already sealed the voluntary introduction of noise breaks in an “Alliance for Noise Breaks” (see page 60, Balance 2016, and page 55, Balance 2015). LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 71

Working at the Lufthansa Group has many facets. But the individual is always at the center of attention. The employees’ know-how and diverse talents are a central variable that directly influences the Company’s entrepreneurial success. Therefore, the Group’s goal is to establish itself as an attractive employer over the long term while meeting its social responsibility. The Lufthansa Group places the greatest emphasis on offering its employees an attractive working environment with transparent structures and processes in order to meet the requirements of megatrends such as digital evolution and to strengthen the innovative and transformative forces within the Company over the long term. Custom-fit offers for continuing education that also promote the willingness to learn life-long, a realistic framework of condi tions to promote balance between working and private life, a comprehensive approach to equal opportunity and diversity in all its dimensions, and intensive support for talent – all of these are significant action areas for the aviation group to meet its self-defined benchmark for treating employees fairly and as partners. By using modern information technology the Group takes into account the fact that the working world is global, digital and networked. In addition, the Group meets its responsibilities for its employees by means of its tried-and-tested health and safety policies. With regard to society as a whole, the Lufthansa Group also acts responsibly. As a corporate citizen it engages in a dynamic process supporting social issues and has firmly anchored specific employee involvement in its HR strategy. (→ PAGE 74 FF.) LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 73

Four questions for DR. ANJA DREẞLER Senior Director Future Digital Workplace, Lufthansa Group WHAT WILL THE FUTURE DIGITAL WORKPLACE BE LIKE? In the future, employees will remain irreplaceable because of their creativity and competence in finding solutions. For the benefit of the Lufthansa Group we continuously assess what digital change means for our tasks and working methods as well as for the individual abilities and skills of each employee. Working in networks is gaining more and more importance in the future working environment. Employees and their knowl- edge are at the center of collaboration. They will be continu- ously supported with appropriate tools, working methods and ways of using these effectively in order to experience the digital workplace actively for themselves. WHICH INITIATIVES HAVE ALREADY BEEN LAUNCHED TO ACCOMPANY EMPLOYEES DURING THIS DIGITAL TRANSFORMATION? At the moment we are in the process of introducing new technologies that will shape the future of digital collaboration within the Group. An example is the new software Office 365. This is a large project and we accompany and coach our em- ployees throughout all transition phases. In addition, we offer new formats, such as “cloud-based collaboration”. Or we provide methodical support, for example for design thinking; a method that helps develop customer-oriented innovations, products and services. In addition, our monthly virtual conferences focusing on the “digital journey” create an active community, which delves into the digital world by exchanging tips and tricks, and makes it evolve in accordance with the users’ needs. This is also a form of cultural change and one that is fun as well. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 75 YOU HEAD THE LUFTHANSA GROUP’S DEPARTMENT “FUTURE DIGITAL WORKPLACE”. WHAT DOES THIS ENTAIL? We benefit from numerous digital offers today that simplify everyday life. Social platforms such as Facebook and WhatsApp connect people like never before. This global trend also in- cludes companies. At the same time, our employees’ expecta- tions concerning their work situation are rising. The depart- ment “Future Digital Workplace” is the link between the private forms of experiencing digitalization and their translation into meaningful support at the workplace – today and in the future. WHAT IS THE IMPORTANCE OF DIGITAL CHANGE FOR TOMORROW’S WORK ENVIRONMENT? Digital change has a very high level of importance for our work environment because digitalization, automatization and artificial intelligence provide entirely new technological options. Our task is to recognize digital trends early on and to transform them into user-friendly work environments for our employees. Doing so means we support efficient ways of working in a “Leading Digital Aviation Group”.

Goals and central action areas The Lufthansa Group pursues several goals with its diversity- oriented personnel policy. The Company wants to even better take advantage of the enormous potential of the diversity that already exists among its roughly 135,000 employees, while simultaneously even further increasing diversity in profiles, competencies and experience up to the management level. In addition to its explicit goal of strengthening and expanding its attractiveness as an employer, the aviation group aims at using diversity management to secure its competitiveness and future viability, increase its ability to innovate, facilitate access to potential employee groups on the global labor market and further boost its distinctive customer orientation. The Lufthansa Group approaches the task of realizing diversity and equal opportunities in accordance with defined goals from several directions. For example, the Company wants to increase the share of women in management and improve the compati- bility of work and family – two central goals in the area of gender diversity to ensure equality between men and women. Further items on the agenda are an even stronger international- ization of staff and the inclusion of people with disabilities. Gender diversity Company-wide, the Lufthansa Group employs nearly as many men as women. In management positions too, women have long been well-established. Nevertheless, it is especially at the management level that their numbers should be increased. At the end of the reporting year, 15.9 percent (2017: 15.1 percent) of managers worldwide were women. Ambitious goals were set against the background of imple- menting the German Act on equal participation of men and women in executive positions in the public and private sectors. Beyond the legally required definition of target values for the share of women on the management board and the first two management levels, the Lufthansa Group companies adopted shared target values. Each company contributes to reaching these target values, while consideration is given to the respec- tive external conditions. In 2016, the Lufthansa Group defined targets that are to be fulfilled by December 31, 2021. For Deutsche Lufthansa AG, the target value for the Executive Board was set at 30 percent, for the management levels below the Executive Board at 20 percent for management level 1 and EMPLOYEES IN THE LUFTHANSA GROUP KEY DATA 2018 1 135,534 EMPLOYEES Group total 45.9 % FEMALE EMPLOYEES Group total 32.5 % SHARE OF WOMEN with staff responsibility 15.9 % SHARE OF WOMEN in management positions 6.2 % SHARE OF WOMEN in the cockpit 1,087 APPRENTICES 150,000 JOB APPLICATIONS 1 as of December 31, 2018 LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 77

devel oped in cooperation with the initiative “Chefsache” LGBTI network “Diversifly – we colour the air” launched (“A Matter for the Boss”). The Lufthansa Group’s goal is to promote a work environment in which all employees are able to develop their talents inde- At the international level too, the Lufthansa Group supports pendently of their sexual orientation or identity and without the economic strength ening of women from all countries and fear. During the reporting year, the long-established informal strata of society. To this end, personnel manager Martina LGBTI network was given a formal framework (LGBTI = lesbian, Niemann participated as Germany’s representative in the gay, bisexual, transgender and intersexual). Since then it has international Business Women Leaders’ Taskforce (BWLTF) operated under the name “Diversifly – we colour the air”. To in December 2018 at the G20 Summit in Buenos Aires. underscore the importance that is placed on a liberal-minded The BWLTF, which was founded in 2017, unites managers and and esteem-based corporate culture, the LGBTI network’s first supervisors who support promoting women in business. official event was supported in 2018. Another central Human Resource goal at the Lufthansa Group “Diversifly” acts not only as contact and mediator in cases of is to inspire more women to pursue careers in the cockpit. discrimination and conflicts, it also drives the development Today, 15 percent of future pilots in training are female. and implementation of measures and guidelines that prevent Lufthansa Aviation Training actively recruits additional female discrimination. Furthermore, the network has taken up the applicants. During the reporting year, the employment of cause of the internal and external exchange of experiences, female pilots at the Lufthansa Group passed its 30th anniver- and it is also available as a sparring partner in the development sary. In 2018, their share among cockpit crews reached of new business ideas and projects focused on the LGBTI 6.2 percent (2017: 6.1 percent). target group. Additionally, the Lufthansa Group has advertised all vacancies by including the third gender since 2019. As an expression of its responsibility for enforcing the human rights of LGBTI employees, the Lufthansa Group also supports the UN Global LGBTI Standards of Conduct for Business. ↗ www.unfe.org/standards International Business Women Leaders’ Taskforce (BWLTF). Lufthansa HR manager Martina Niemann is Germany’s BWLTF representative. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 79

At the end of 2018, the employment rate for people with severe disabilities at the Lufthansa Group in Germany stood at 4.3 percent (2017: 4.3 percent). While some Group companies, such as LSG Sky Chefs, reach employment rates of up to 20 percent and thus overfulfill the legally defined minimum quota of 5 percent, the employment share of disabled people at the passenger airlines is significantly lower, in part due to legal requirements. Therefore, the Lufthansa Group also takes advantage of other ways of supporting people with disabilities, such as placing orders with Werkstätten für Behinderte Rhein-Main (see page 95). Further social projects within the Group companies include cooperation with the National Paralympic Committee Germany (DBS). step-by-step, such as the development of a Group-wide transfer guideline or even more internationality in the context of trainee and internship programs. Outside of Germany, the Lufthansa Group specifically hires local employees and supports them adequately in order to enable the sharing of know-how between regions and business segments by means of selective transfers on the one hand, and to promote employees’ individual development and the creation of intercultural competencies on the other. Inclusion For the Lufthansa Group, employment and inclusion of people with disabilities is not only a legal obligation, it also fulfills a social responsibility and is thus an important goal of personnel policy. The Group is committed to promoting people with disabilities professionally and treating them fairly and caringly. Measures designed to include people with disabilities are discussed and advanced in regular dialogue events involving top management, HR management and representatives of the severely disabled. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 81

lawfully organize themselves and become involved in defining In contrast to the comprehensive survey, the quick check their working conditions. For the reporting year 2018, it is concentrates on updating the central index values relating to assumed that no business activity within the Lufthansa Group commitment, leadership and health as well as on questions jeopardized the free exercise of employees’ rights concerning concerning the Group Executive Board. The quick check their freedom of association and right to collective bargaining. specifically poses questions concerning positive changes, as the focus is also to be shifted to the effectiveness of measures implemented in the individual companies. The results of the employee survey are also reported to the Supervisory Board and the Executive Board. At management level and broken down for individual teams, the results are communicated and discussed in order to derive and implement strategic measures for the entire Lufthansa Group and indivi­ dual organizational units. Employee survey “involve me!” Regular employee surveys are an important instrument for Employer attractiveness: Engagement Index provides transparency The results of “involve me!” also serve as basis for the the Lufthansa Group to measure employee commitment, calculation of the Health Index (HI) (see page 88), Leadership identify action fields and initiate change where needed Index (LI) and Engagement Index (EI). The EI indicates to which (see Balance 2018, page 67, interview Claudia Rautenberg). degree employees feel committed to the Group, to which In 2015, the Lufthansa Group conducted “involve me!”, its first and how much they are inclined to recommend the Company to standardized, voluntary employee survey. Since then, the others. It also gives insights into the Group’s attractiveness number of participating companies has increased step­by­step as an employer and allows comparisons with other employers and was extended in 2018 to the significant Group companies across industry lines. The result is indicated on a scale from (with the exception of the LSG Group locations abroad). 1 (best value) to 5 (lowest value). degree they are willing to lend their support to their employer, On the basis of the results of this survey, management is able During the reporting year 2018, the Lufthansa Group achieved to directly compare data from the individual Group companies an Engagement Index of 2.2. Compared with the preceding and engage in a transparent, Group­wide dialogue. In 2018, year, the EI again improved by 0.1 points and reached the employees had the opportunity to respond to questions from target value projected for 2020 two years earlier than expect­ four thematic areas. At 53 percent, the response rate was ed. The index has now reached the average level of comparable slightly higher than that of the previous year (51 percent). companies in Germany. The Lufthansa Group is aware of Every third employee gave additional feedback in more than the fact that merely measuring employee commitment is not 25,600 constructive comments in this context. While a enough. The greatest challenge comes after the survey is reduced set of questions (so­called quick check) was given completed. Progress can only be achieved if concrete measures to the employees in the survey carried out during the reporting are derived from the survey results and employees can thus year 2018, a comprehensive employee survey will again be see that the Group takes their responses seriously (see conducted in 2019. This alternating cycle corresponds to the page 27 f., Stakeholder dialogue). In parallel to determining the established practice. Engagement Index, the Lufthansa Group again calculated the Leadership Index (LI), which is oriented by the Group’s five Leadership Principles (see page 73, Balance 2015). During the reporting year, the LI reached 2.1 and was thus at the favorable level of the preceding year. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 83

TALENT MANAGEMENT The fascination for jobs within the Lufthansa Group is unabat ed: “Profile”. It is based on the Group’s five Leadership Principles during the reporting year, about 150,000 applications were and allows the Company to evaluate how effective the submitted and the Group has received top positions in re­ measures concerning talent management are and to which nowned employer rankings for many years. This also applies to degree goals were reached. In the reporting year 2018, about the German ranking of employers, which is based on a repre­ 16,500 employees within the Lufthansa Group completed sentative evaluation by the renowned market research institute or started the standardized performance and talent process. YouGov and comprises more than 200 companies. After it took Profile, and the related platform “eProfile”, were rolled out third place the preceding year, the Lufthansa Group ranked step­by­step for additional employee groups and companies second on average during the reporting year. The aviation during the reporting year. group’s goal is to continuously rank among the five most popular employers in Germany. Making talents visible To gain qualified and motivated personnel for all management and employee levels, talent management has a key role in The Lufthansa Group’s talent management is addressed at all the Group’s HR strategy. In the organizational structure it is employees and is not limited to vertical promotions. It makes a anchored via responsibilities, which were clearly defined significant contribution to supporting defined competencies, in the context of the Group’s process­oriented reorganization. to identifying talents for specific job families and to broadening The topic is regularly on the agendas of the Executive Board, different career paths. The formats range from trainee and HR Board and Supervisory Board; these committees can thus mentoring programs to initiatives at the top management level. initiate adaptations and complementary actions when needed. In this context, strategic personnel planning always takes the Beyond that, regular exchanges within networks ensure the employees’ different life phases into account. It is an essential validation of such measures. goal for the Lufthansa Group to fill all positions on the lower management level potentially with its own talents. In 2014, the Lufthansa Group implemented its talent manage­ ment philosophy under the motto “Every employee has talent!” During the reporting year, the Lufthansa Group introduced (see page 83 f., Balance 2015). It gives all employees the the platform­based Company­wide program “Makers of opportunity to shape their own careers in the Group according Tomorrow”. Its goal is to set up a visibility and development to their individual talents and interests. A standardized Group­ program for those talents below the top management level wide potential identification process and subsequent training who shape the future – without limiting formal criteria such programs help them to do so. This both increases transparency as working for a particular Group company or completed and brings talents to the fore. Employees are thus encouraged university studies. The selection was made on the basis of in their own responsibility and managers are able to identify future­relevant abilities and competencies as well as sugges­ potentials and support these in concrete ways. In this process, tions and evaluations from colleagues. Fifty of the more than the Lufthansa Group places great emphasis on diversity and 1,200 applicants worldwide were included in the program. equal opportunities. It is one of the Group’s particular concerns The participants receive an individual career plan and access to promote the career development of female talents and to an internal Lufthansa Group network. “Makers of Tomorrow” to ensure a balanced proportion between men and women in has been continued in 2019. management positions (see page 76 ff., Diversity and equal opportunities). Another important format is the visibility platform “Spotlight on Talent”, introduced in 2016 (see page 70, Balance 2018). Meaningful data on the development of the Lufthansa Group’s The annual process aims not only at giving talents in specific employees has been provided annually since 2014 by the job families more visibility across all boundaries of companies internal performance and talent assessment instrument within the Group. It also gives the Lufthansa Group an overview LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 85

This new space promotes agile forms of cooperation and forms the basis for the swift development of focus themes and projects in cross­functional HR teams. About 3,500 employees used the Q­Lab during the reporting year. Optimized recruiting for cockpit and cabin To accelerate and modernize the recruiting process in order to gain more and better applicants within the shortest time possible – this is the goal of a large­scale digitalization project that the airlines of the Lufthansa Group, HR Recruiting and Lufthansa Aviation Training (LAT) launched in July 2018. It aims at winning more than 5,000 applicants annually and training 500 future pilots at the flying schools of the European Flight Academy. Simultaneously, the standardized platform is to The Q­Lab at the Lufthansa Aviation Center facilitates agile and cross­ departmental work styles. make a contribution to actively guiding applications between REALIGNMENT OF EMPLOYER BRANDING the Group airlines and thus to realize synergies, for example in the selection of suitable applicants. The platform successfully During the reporting year, the Lufthansa Group fundamentally revised went live for the first time in January 2019. This digital trans­ its long­existing career portal and all channels and websites. Thus, formation project is part of the newly set up Lufthansa Group be­lufthansa.com has featured a fresh design and new functions Lean Program, which is expected to conclude during the since the end of 2018. Another innovation: be­Lufthansa is to become first half of 2019. ↗ lufthansagroup.careers in the future. Furthermore, Lufthansa Aviation Training comprehensively Unlike in the past, the Lufthansa Group predefines only the framework revised basic training for flight attendants, both from a content on its career platform, while company­specific content, images and and a technical perspective. As a result, training has more colors permit the Group companies to present their own characteristic strongly incorporated megatrends such as digitalization, employer environments. The goal is to become significantly more connectivity and individualization since 2018, a development visible on the application market. Beyond that, the aviation group not from which future Lufthansa cabin crews will benefit as well. only wants to shift the focus to the diversity and strengths that are Modern tablets are now the central focus, as well as teaching characteristic of specific business segments and their individual tools at the training locations Frankfurt and Munich. Another companies, but it also wants to further strengthen the positioning of innovation is the option for future flight attendants to regionally oriented Group brands. That the reorganization of employer choose the time, place and location for individual learning branding has been successful is shown by the fact that the activities phases themselves. In addition, personal tutors are at their of the Lufthansa Group have an increasing resonance in social media sides, online and offline, to answer their questions. and career networks, among other indications. In the interest of up­to­date personnel acquisition and to avoid staffing bottlenecks, the Group also operates “Active Sourcing” via external recruiting platforms. In connection with other social media channels, it takes advantage of the opportunities yielded by (inter)active communications with potential qualified employees and managerial staff. Under the formats “Talent Hub” and “Alumni Network” (see page 71, Balance 2017) the Lufthansa Group maintains contact with former employees. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 87

Medical Service Group occupational safety The Medical Service has a key role in the Lufthansa Group’s Group occupational safety ensures all employees’ health concept of occupational safety and health protection. and safety on the job. The goal of this function is to prevent Its permanent core task is to secure and improve the Group accidents, health risks and occupational illnesses at the employees’ ability to perform and thus ensure reliable business Lufthansa Group. The Company’s occupational safety experts activities and flight operations. check all professional activities as well as technical or infra­ structural set­ups by means of risk assessments and safety Medical Services at Lufthansa, SWISS and Austrian Airlines inspections at the individual Group companies in accordance are holistic centers of excellence, permanently offering a full with the regulations. range of services. This includes aviation and occupational medicine, vaccinations and travel medicine, outpatient care, Based on results thus obtained as well as legal requirements, a comprehensive social and medical advisory service, and Group occupational safety consistently implements and other preventive and healthcare treatments. Beyond these continuously develops preventive measures, such as the use individual treatments, Medical Services provide advice to of personal protective gear and various types of operating decision­makers, committees and employee representatives equipment, or conducting measurements of pollutants. In the concerning all issues of occupational health and safety. same way, standardized and binding minimum standards are established that are applicable for all employees worldwide. In fall 2018, the requirements associated with the amendment of the German Civil Aviation Act were met with the introduction Obligatory and regular training sessions for employees as well of a central interface with Germany’s federal aviation admin ­ as specialized and target­group oriented campaigns contribute is tration for the transfer of pilots’ medical data. As a result, to raising awareness among employees and managers; this Deutsche Lufthansa AG fulfills the legal requirements for all approach also contributes to a sustainable safety culture. three medical centers. Low numbers of work­related accidents and occupational illnesses at the Lufthansa Group are a measure of success for Following comprehensive preparation and training for em­ medical and technical aspects of occupational safety and ployees to become quality management officers, the successful occupational hygiene. recertification of all locations and functions was completed in August 2018 in accordance with the quality management In addition to other legally required committees, a central system DIN ISO 9001:2015 (previously 2008). Many processes committee meets at regular intervals. The Occupational Safety were adapted, standardized and optimized in this context; this Committee (OSC) steers, bundles and monitors all issues process of evolution is pursued continuously. related to job safety within the Lufthansa Group. In Germany, occupational safety committees with employer Psychological and psychosocial factors also have a highly and employee representation are active at all relevant locations significant influence on health, safety and performance levels of the Lufthansa Group. In close cooperation they optimize in work settings. For this reason, the Lufthansa Group has processes and agree on measures to improve job safety. offered its employees, teams and organizational units individual counseling and mediation services under the obligation to In 2019, Group occupational safety is focusing especially maintain confidentiality, as well as different services of psycho­ on digital change and its influence on possible work­related social organizational counseling for more than 30 years. health risks. In this context, factors such as psychological stress on the job are evaluated from a technical and economic Beyond the obligatory features in the area of health protection, perspective; the possible use of modern technologies and the Lufthansa Group offers its employees a wide range of new products for health­oriented and ergonomic design of preventive measures on a voluntary basis, both for administra­ work environments are also assessed. tive and flying personnel. These measures and campaigns are widely communicated within the Company. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 89

The help alliance supports about 23,000 people worldwide every year, including at iThemba in South Africa, its largest project. respects the wish of its stakeholders to continue its support for such extreme cases. Lufthansa Cargo supported humanitarian the protection of the crane – the Lufthansa Group’s heraldic campaigns on numer ous occasions in the past by transporting bird (see Balance 2018, page 81). Selected partnerships are relief supplies (see illustration page 98 f., Balance 2016). To maintained in the socially relevant areas of culture and sports. ensure that first aid in the event of crises or catastrophes can be launched quickly, the Lufthansa Group’s logistics specialist A significant component of the Lufthansa Group’s approach cooperates closely with renowned aid organizations. to corporate citizenship is the selected social commitment of its employees. For this reason, the corporate volunteering This includes Germany’s Red Cross (DRK), with which activities and other participation formats are closely connected Lufthansa Cargo signed a cooperation agreement at the end of to the HR strategy. The Lufthansa Group continuously devel­ 2016. The goal of this cooperation is to accelerate and simplify ops the concepts of these offers. In the future, Lufthansa Group the preparation of aid flights. This cooperation sustainably employees are to have the opportunity to spend a defined improves the effective support and provision for people in amount of their time getting involved in new help alliance need in crisis and catastrophe situations. Additionally, at the projects in Germany during working hours. end of 2016 the freight airline signed an agreement in principle with Airlink. This non­commercial humanitarian aid organization Within the topic area Life / Health, for many years the Group was founded in 2010 by employees of the International has provided emergency aid to humanitarian crises and Society of Transport Aircraft Trading Foundation (ISTAT). At the catastrophes by means of dedicated flights. Swift action and beginning of 2013, Lufthansa Cargo entered into a long­term logistical know­how are decisive factors to be able to help partnership agreement with the emergency aid association victims of natural catastrophes and humanitarian crises imme­ “Aktion Deutschland Hilft”. Under the motto “Helping faster, diately and effectively. Given its expertise as an aviation group together” the preconditions were set up to be prepared for with international activities, the Lufthansa Group is able at any humanitarian emergency situations at any time and to allow time to provide transport capacities aboard its freight aircraft in swift implementation of a worldwide logistics chain. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 91

The Lufthansa Group’s humanitarian emergency aid also benefits from the long­term experience of freight airline Lufthansa Cargo in the area of charters. Thanks to “network­ on­demand”, aid consignments can be transported swiftly, professionally and flexibly to any destination within or outside the network of the Lufthansa Group Airlines. help alliance: Closer to the world. Closer to its people. The help alliance is the Lufthansa Group’s central corporate citizenship pillar. The charitable aid organization acts as a catalyst for greater social engagement, combining proven projects initiated by employees with the power and network of the Lufthansa Group. Defined criteria ensure that the supported projects are sustainable. The importance of the help alliance is emphasized by the fact that the company reports to the Chairman of the Executive Board and CEO. The focus on social and humanitarian projects in the field of Education / Enabling makes it possible to deploy the avail able funding in an efficient and targeted way. The main ON-BOARD COLLECTION PROGRAM “SMALL CHANGE – IT’S A BIG HELP” With the goal of creating a bridge towards a better life for people in need, in 2001 the help alliance launched the onboard collection program “Small change – it’s a big help”. It offers passengers aboard Lufthansa Group long­haul flights the option to donate coins and banknotes in any currency. Small, sealable donation envelopes are available in the seat pockets for this purpose; they are collected by flight attendants and forwarded to the help alliance. Remaining currency can also be deposited in donation pillars placed in employee areas, Lufthansa lounges at German and selected international airports as well as the public areas objective is to help disadvantaged people lead a successful, at the Frankfurt and Munich hubs. healthy and self­sufficient life. This help primarily takes the form of educational opportunities. In 2018, the Lufthansa Group covered all of the costs of admin­ istration, project assistance, fundraising and communication at help alliance gGmbH. This ensures that 100 percent of all other donations can be used to fund aid projects. This also applies to voluntary donations made via salary deduction by employees of the Lufthansa Group. The option of the so­called payroll giving, introduced in April 2017, is initially open to about 80,000 employees and retirees who are covered by the Lufthansa Group’s joint payroll system. DEVELOPMENT OF DONATION VOLUMES IN EUROS 267,223 2018 2017 2016 2015 2014 283,127 283,605 362,662 497,823 October 2002: Start of Condor’s participation July 2012: Start of Austrian Airlines’ participation November 2017: Start of Edelweiss Air’s participation May 2019: Start of Eurowings’ participation LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 93

Further social projects within the Group companies SWISS BRUSSELS AIRLINES • Similar to the Lufthansa Group’s approach, philanthropic commitments • Brussels Airlines set up the initiative b.foundation for Africa in focus on supporting children and young people; both in Switzerland, 2010 and has since then supported humanitarian projects on the its home market, and internationally. African continent. • The airline has supported SOS Children’s Villages Switzerland since • In addition to supporting the social commitment of its employees, its foundation – among other measures with flight tickets and on­board the airline also backs a number of non­profit organizations. collections of funds in coins. • Funds donated benefit projects located at SWISS destinations. LUFTHANSA CARGO • In cooperation with the Foundation ProJuventute, SWISS made it • Cargo Human Care e. V. (see page 94) possible for children and adolescents from the Zurich region to • For more than 35 years there has been a close cooperation with experience the airline and airport first­hand during the summer vacation. “Werkstätten für Behinderte Rhein­Main e. V.” (Workshops for the The Foundation’s goal is to energetically support adolescents in their Disabled, WfB Rhein­Main) in producing lashing straps used for development towards becoming self­confident and responsible adults. loading cargo aboard aircraft. WfB Rhein­Main’s goal is to give people • In its procurement process, SWISS takes special suppliers into with disabilities an opportunity to participate in working life and to consideration: every year, SWISS orders about 2,000 Business Class integrate them into the job market. and 300 First Class clothes hangers from the Foundation “Orte zum • With a current order volume of almost 1.2 million euros, Lufthansa Cargo Leben” (“Places to Live”). The foundation offers people with disabilities is the largest manufacturing customer at WfB Rhein­Main, thus a place to live and work, and operates a carpenter’s workshop, among securing more than 120 jobs at the workshop. others. The Foundation Pigna, a workshop for people with disabilities • The association was certified in 2016 by the European Aviation Safety in Kloten, looks after cleaning and readying for use about one million Agency (EASA) as development company and by Germany’s Federal onboard headphones a year for SWISS. Aviation Office (LBA) as manufacturing company. WfB Rhein­Main is AUSTRIAN AIRLINES thus one of only six manufacturers worldwide that produce lashing straps certified according to the highest standards. • Concentration on social projects in central and eastern Europe. • The cooperation is to be intensified in 2019. • The focus is on renowned organizations such as “Global 2000”, “Help for Children from Belarus”, and “Alliance for Children”. LSG GROUP • In the framework of the initiative “Flygreener”, discarded airplane • Its regionally varying commitment includes educational projects, blankets, crew suitcases, and mattresses from crew restrooms are health promotion and sports events, among others. donated to charitable organizations. EUROWINGS • May 2019: start of participation in help alliance’s on­board collection program on Eurowings long­haul routes. • The donations collected at the Christmas party raffle 2017 and from tickets for the carnival party 2018 were increased by management to 36,000 euros and donated to Kinder­ und Jugendhospiz Balthasar (Children and Youth’s Hospice Balthasar). LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 95

Customers are always the center of attention at the Lufthansa Group. Their satisfaction is a primary concern at all times. The aviation company aims at providing its pas sengers with perfect service and making flying in all its facets a sustain- ably positive experience. Against this background, the goal is to assess the Company’s offers and products along the entire travel chain on a continuous basis with the aim of optimizing them. This includes punctuality and reliability in particular. For this reason, the Lufthansa Group has intensified its cooperation with system partners in order to increase and secure operational stability over the long term. Flight safety and health protection always have top priority in this context. To implement this fundamental standard without qualifica- tion, all airlines within the Lufthansa Group operate comprehensive safety management systems. Equally important are data protection and data security as a basis for trusting business relationships. Customer orientation and a focus on quality are the Lufthansa Group’s strategic cornerstones. Regular surveys and a continuous dialogue with passengers help to learn as much as possible about customer needs and to include them in the develop - ment of innovative offers. Significant investments in a modern and efficient Group fleet, more comfort on board, numerous product innovations, and digital offers ensure that flying is becoming more and more attractive and sustainable for the Lufthansa Group’s customers. And the high level of commitment to product responsi- bility is being honored: in 2018 the airlines and service companies again received numerous prizes and awards. (→ PAGE 98 FF.) LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 97

Continuous, worldwide customer surveys Customer satisfaction at high level ↗ GRI 102-44 Since 2018, Lufthansa Airlines, SWISS and Austrian Airlines To obtain insights that are as differentiated as possible have harmonized their methods and processes for measuring about their passengers’ travel experiences, the airlines of the customer satisfaction in terms of both content and method- Lufthansa Group count on regularly tracking satisfaction and ology. Customer satisfaction data is tracked separately for conducting additional detailed surveys. Thanks to these world- different service aspects along the entire travel chain (in-flight wide surveys, possible starting points for improving customer and ground products). satisfaction can be identified. By means of online surveys, the three Network Airlines at the Network Airlines is overall satisfaction with products and determine on a daily basis how satisfied passengers are with services. This is the percentage of customers surveyed who the different services along the travel chain. Data collection said that they were satisfied or very satisfied with the quality and reporting are centrally steered at Group level. The team of the in-flight and ground products and services offered by The main performance indicator for measuring satisfaction responsible comprises experts from all Network Airlines and is the Network Airlines. supported in this task by a market research institute. To obtain representative results, the Lufthansa Group ensures that the This performance indicator is derived from the Passenger surveys include all service classes, traffic areas and passenger Satisfaction Tracking (PST) study and is shown for all three segments. In addition, complex statistical random sample logic Network Airlines. In the reporting year, the Network Airlines had based on monthly updated timetable data ensures that the a customer satisfaction value of 74, which is at a high level, values generated have both a high level of meaning and statis- even if the level declined over the course of the year due to the tical stability. The airlines compile the evaluations of individual challenges experienced during the reporting year (see page 103, products and services to formulate satisfaction indices Operational stability). concern ing the onboard and ground products, and concurrently generate a higher overall satisfaction index. The departments Under a new concept, Lufthansa Cargo, the Group’s specialist responsible as well as management receive monthly reports. for logistics services, conducts its global customer survey “My Customer’s Voice” once a year. During the reporting year The satisfaction ratings allow differentiated insights into how 2018, overall customer satisfaction improved in comparison elements such as adaptations in catering, lounge moderniza- with the preceding year and reached a high level at a value of tions, new seat concepts, the introduction of new in-flight 5.3 (on a scale from 1 = very dissatisfied to 6 = very satisfied). entertainment systems or changed service sequences influence Satisfaction with the aspects “social commitment” and “envi- passenger satisfaction. They can also be used as indicators for ronmental protection”, which were also evaluated, at values of implementing improvements of services and products. 5.3 and 5.1 respectively, were situated above the level of other customer touchpoints in 2018. In a parallel move and dependent on the relevant target variable (for example satisfaction or recommendation), the Network Airlines collect data for additional central performance indica- tors such as the loyalty index. Furthermore, the Net Promoter Score (NPS®)1 which has been generated since 2014 places the focus on the travel experience as the airlines’ central product or service category. To establish the NPS®, the airlines continu- ously survey their customers, asking if they would recommend the company concerned, based on their travel experience. 1 NPS ® – Net Promoter Score, a registered service mark of Bain & Co., Inc., Fred Reichheld and Satmetrix Systems, Inc. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 99

New products and services classic Business Class product components such as a fully flat seat that opens to 180 degrees, lounge access, fast-tracked In 2018, the Lufthansa Group again phased in new aircraft, security checks and other amenities. These services are supple- programs and services, aimed at further improving the travel mented by new, up-to-date in-flight catering trends, partly in experience and thus also customer satisfaction. For example, cooperation with innovative start-ups. Eurowings also offers the new Lufthansa Airbus A350-900 offers more comfort fast broadband Internet access on more and more short- and for passengers with its wider cabin and innovative lighting medium-haul flights. concept (see pages 29 f. and 54, Balance 2017). Furthermore, from 2020 Lufthansa is planning to introduce a completely The same applies to the Network Airlines: in 2018 alone, new Business Class with the new Boeing 777-9, which will 69 short- and medium-haul aircraft were equipped with broad- offer optimum sleeping comfort and plenty of privacy as well band Internet access; by the end of the reporting year, a total as more individual seating options. of 238 short- and medium-haul aircraft featured broadband SWISS expanded its flagship fleet by two further mobile devices which allow faster reporting about passenger Internet. Beyond that, all flight attendants are equipped with Boeing 777-300ERs to a total of ten during the reporting satisfaction. year and is also planning to equip five Airbus A340-300s with a new cabin product in all three service classes. Digitalization and innovation initiatives support the Austrian Airlines completed the integration of the new Lufthansa Group in continuously developing new products Premium Economy Class for the beginning of the summer and services that are focused on customers. By means of the timetable 2018 on its entire long-haul fleet and expanded Lufthansa Innovation Hub, the Company advances the the latter by one Boeing 777-200. systematic use of innovative online business models for the Lufthansa Group airlines and develops digital solutions along In 2018, Eurowings became the first low-cost airline to intro- the travel chain for passengers and travel providers (see duce a “BIZclass” on selected long-haul routes, which includes page 46, Sustainable innovation, research and development). Business Class seats aboard the first SWISS A340 with new cabin furnishings. The new Lufthansa Business Class will enter service for the first time in 2020 aboard the Boeing 777-9. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 101

OPERATIONAL STABILITY The top priority of all Lufthansa Group airlines is to ensure safe, for delays and flight cancellations. Based on this input, punctual and dependable flight operations. However, in 2018 both airline-specific and Group-wide measures were initiated the Group airlines’ passengers were also affected to a high and implemented. degree by schedule changes, flight cancellations or delays. Among the reasons were infrastructure-related bottlenecks at This includes the purchase of six additional Airbus A320ceos many airports, lack of personnel, strikes at air traffic control in September 2018 to compensate for the currently lower and violent thunderstorms that caused delayed departures or productivity of Lufthansa’s A320neos due to above-average cancellations for many flights. maintenance work as well as delayed deliveries. After having put these aircraft into service step-by-step and increased At the beginning of 2019, Deutsche Lufthansa AG expanded the number of reserve short-haul aircraft to 37, the its management with the new Executive Board function Airline Lufthansa Group expects improved punctuality and depend- Resources & Operations Standards. It bundles vital functions ability for 2019. With the goal of ensuring operational quality, such as fleet management, flight operations standards, ground the Group is also hiring 600 new employees and training about operations standards, infrastructure, system partners as well as 500 pilots, who are to increase the number of reserve crews Group safety. The Group-wide program Operational Excellence (see illustration on page 104). 2019 is aimed at implementing especially those measures that improve the dependability of flight operations in summer 2019. In addition, Lufthansa brought forward maintenance events Unlike the existing initiatives at the Network Airlines and during the winter and invested 100 million euros in spare-part Eurowings, this program’s focus is a functional, and thus com - supplies and engines in order to avoid cancellations due to prehensive, perspective. Dependability and punctuality are a technical reasons. Eurowings carried out additional checks on concern not only for the Lufthansa Group’s airlines but also for more than 120 aircraft. Beyond that, more than 200 aircraft industry representatives and system partners such as air traffic mechanics are being recruited and trained so as to be able to control and airports. For this reason, all parties concerned react to unplanned technical problems even more flexibly. jointly search for solutions that can increase operational stabili- ty over the long term. Numerous measures to increase operational stability Investments in optimized customer information and communication It is of particular importance for the Lufthansa Group airlines to inform customers affected by flight irregularities or cancel- All airlines have adopted comprehensive measures for summer lations as quickly as possible. Therefore, the Company has 2019 to increase dependability and punctuality. This includes made significant investments in related services. For example, increased numbers of reserve aircraft and crews as well as passengers can check a flight’s status at any time on the longer time buffers in aircraft rotations by means of extended homepage or app. In case of a cancellation, customers who turn-around times on the ground. In addition, Eurowings would like to change their reservation from flight to train can do has separated the scheduling of intra-German flights from so simply and transparently on the app, online, by chatbot or European rotations to be able to operate these independently on the hotline. Rebookings on other flights are always made of overcrowded air spaces in southern Europe. automatically. In the event of delays, passengers find informa- The Lufthansa Group has identified more than 400 individual on the Lufthansa app or homepage and by SMS. To handle measures to improve operative stability. These were developed these tasks, Lufthansa specifically hired 250 additional on the basis of an analysis of several hundred millions of data em ployees in customer service. Additionally, Eurowings has sets from previous years, which indicates unequivocal causes tion about their rights directly on their mobile boarding pass, LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 103

FLIGHT SAFETY AND HEALTH PROTECTION The Lufthansa Group’s success depends primarily on safe and the European Aviation Safety Agency (EASA) and the U.S. reliable flight operations. The health and safety of passengers, Federal Aviation Administration (FAA). In addition, they fulfill all crews and employees have the highest priority for the aviation standards and recommendations of the International Civil group. Therefore, all Lufthansa Group airlines operate a com- Aviation Organization (ICAO). Every two years, independent prehensive Safety Management System (SMS). experts audit the safety standards applied Group-wide in an IATA Operational Safety Audit (IOSA). All Group airlines fully This includes continuous monitoring of flight operations: apply the internationally accepted IATA standards for air safety. The Group airlines’ experts track performance ratios, carry out These external benchmarks are supplemented by the audits and inspections, evaluate risks, analyze flight data and Lufthansa Group with internal guidelines, in particular the investigate incidents. All these measures serve the purpose Executive Board’s Safety Commitment. These guidelines are of identifying and steering safety-relevant trends at an early compiled in the aviation group’s Safety Management Manual stage, and guarding against possible undesirable develop- (SMM) and are additionally included in handbooks concerning ments. Beyond the legally required reporting systems, the flight operations, training, maintenance and ground handling Lufthansa Group operates a low-threshold confidential services. The Executive Board and all managers and employees reporting system that is open to all employees. affected by operator regulations fulfill their tasks in accordance With regard to their safety management systems, the Lufthansa Group’s airlines take their bearings from legal require- ments such as EU guidelines, as well as regulations issued by with the SMM. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 105

Cabin air quality Special HEPA / carbon filters being tested Additionally, the Lufthansa Group runs its own process tests The Lufthansa Group has actively participated in investigating with technical adaptations. For example, since May 2016 the so-called smell events aboard aircraft for many years. In aviation company has been testing the use of special cooperation with national and international authorities, HEPA / carbon filters. These cabin air recirculation filters associa tions, research institutes and manufactur- ers, the aviation group supports research on the composition of cabin air, the development of new innovative technologies and medical studies. So far, the Group has invested about 2 million euros in investigations and information in this area. In addition, the Lufthansa Group set up a Cabin Air Quality Review Board as early as 2012, whose members represent flight opera- tions, the Medical Services, Lufthansa Technik, Cabin Air Quality are equipped with an additional layer of activated carbon and are intended to further increase cabin air quality by removing volatile sub- stances and compounds from recirculated air more quickly. Lufthansa has already equipped numerous aircraft of the Airbus A320 family with these filters for test purposes, and analyzes cabin air quality before and after installation. If the filters’ performance turns out convincingly, the Lufthansa Group will install them on addi- tion al aircraft. Furthermore, the Lufthansa Group is technical operations management, Group occupational in discussion with a number of manufactur ers concerning safety and personnel representatives. This interdisciplinary a total air filter technology and sensor systems. committee decides which steps and measures are to be taken in this area within the aviation company. Detailed communications and information The Lufthansa Group covers the topic of cabin air quality Current studies prove that the air aboard aircraft is innocuous comprehensively in its internal and external media. Experts and sometimes even of better quality than in offices. For from the relevant Group departments regularly inform example, on March 23, 2017 the European Aviation Safety em ployees in operational areas at different company locations Agency (EASA) presented its final report on a study of cabin about measurement and research results as well as technical air quality aboard commercial wide-body aircraft, in which it analyses and innovations. The Group has presented the continues to draw the conclusion that there is currently no HEPA / carbon filters several times at product stands in provable correlation between cabin air and health problems. Frankfurt and Munich. Rather, the air quality on measuring flights was comparable to the air quality found in ordinary indoor spaces, such as class- Furthermore, cockpit and cabin crew representatives from all rooms or offices (see page 57, Balance 2017). Earlier measuring flying companies within the Lufthansa Group as well as the sequences yielded the same result (see page 71, Balance 2016). airlines’ personnel and union representatives met on November 21, 2017 for the first Group-wide Cabin Air Quality (CAQ) Forum in Frankfurt. The goal of this internal event was to provide and exchange information about measures implemented and insights gained so far, as well as on current developments concerning cabin air issues. More CAQ Forums are to take place in the future. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 107

data. However, providing such data would often be contrary to European data protection rules (see page 67, Balance 2015). IT security Since June 2016, the “EU-US Privacy Shield” has regulated The increasing digitalization of business processes within the data transfers between the EU and the USA (see page 73, Lufthansa Group also increases the necessity of prevention Balance 2016, and page 59, Balance 2017). against cyber risks (see page 71 f., Annual Report 2018). At the Group level, the department IT Strategy & Security is responsi- The Lufthansa Group has adapted its existing data protection ble for implementing requirements concerning data protection management system to the EU-GDPR and has almost complet- and IT security. This includes the development of appropriate ed related projects necessary for its introduction within those concepts and measures such as e-mail encryption, a cyber Group companies affected. Nevertheless, individual national crime awareness campaign, and protection from criminal activ - deviations from this norm will continue to be in application for ity over the Internet (see page 59, Balance 2017). The risk and the aviation group, such as those concerning the obligations to security management systems as well as selected measures appoint data protection commissioners and with regard to are regularly checked by internal auditors. em ployee data protection. In the context of her legal super - vi sion function, the Group Data Protection Commissioner The steadily increasing threat scenario from cyber attacks regularly monitors the situation in relation to the EU-GDPR and induced the Lufthansa Group in 2018 to assess the latest reports to the Executive Board. In 2018, the Group Data security status of its IT systems and to implement a compre- Protection Commissioner carried out the first verifications of hensive protection program. The goal is to increase the Group’s Lufthansa companies domiciled in Germany. Insofar as gaps cyber resilience. The three-year cyber-security program adopt ed existed with regard to individual data protection requirements, by the Executive Board outlines the Group-wide implementa- the data protection experts defined measures to remove them. tion of measures in different core areas as well as numerous The implementation will be evaluated in the context of the next projects. In addition, the Group decided in October 2018 to regular verifications of these companies. introduce the cyber-security trainings offered to supervisors since 2017 as an obligatory measure for all employees in managerial positions. The training sessions took place between Employee sensibilization and February and May 2019. targeted training The Group Data Protection Commissioner supports employees and managers by means of training courses, web-based training programs and comprehensive communication in under- standing data protection, its necessity and its principles within the Lufthansa Group. This includes important concepts, the organization of data protection and specific aspects concerning certain areas. The Group Data Protection Commissioner plans the necessary training measures as a recommendation, informs those responsible about their training obligations and super- vises – as much as this is technically possible – by means of an automated monitoring system and concrete controls, that these training obligations are met. Outlook For 2019, the Lufthansa Group has planned to further expand its data protection organization and the corresponding knowl- edge within individual departments. Furthermore, the data protection experts will evaluate compliance issues in the Group’s subsidiaries abroad. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 109

Notes on the scope of consolidation and methodology for calculating absolute and specific consumption and emissions ↗ GRI 102-45 ↗ GRI 102-48 Scope of consolidation kerosene actually consumed. The distances used in the calculations Reporting on transport performance, kerosene consumption, and are great-circle distances. In combination flights (freight and emissions from flight operations in 2018 is – unless noted otherwise passenger transport in one aircraft), fuel consumption is attributed – based on the following scope of consolidation: on the basis of its share of the total payload to calculate the passenger- and freight-specific figures. • Lufthansa (including Lufthansa CityLine and Air Dolomiti), SWISS (including Edelweiss Air), Austrian Airlines, Eurowings Since 2013, the DIN EN 16258 standard has provided a guide for (including Germanwings and Luftfahrtgesellschaft Walter), standardized calculation of greenhouse gas emissions for transport Brussels Airlines and Lufthansa Cargo. Not included are processes. This guide uses the same estimates for calculating services performed by third parties, as their performance payload as the Lufthansa Group. When traveled distances are calcu - is beyond our control. lated, 95 kilometers must be added to the great-circle distance • Types of flight service: all scheduled and charter flights. according to the guidelines of the EU emission allowance trading Methodology of calculations Kerosene in absolute terms scheme. The International Air Transport Association (IATA) has separately developed its own calculation proposals, which deal with the division of fuel consumption between freight and passen- Kerosene consumption is calculated on the basis of actual flight gers and attribute a larger share of fuel consumption to passengers operations (i. e. using actual load factors and flight routings) because of the passenger-specific infrastructure. Although this according to the gate-to-gate principle. This covers all phases of method has no effect on the overall efficiency of a flight, it changes a flight, from taxiing on the ground to flying detours and holding the apportionment between passengers and freight. There are still patterns in the air. Emissions in absolute terms divergences between the two methods (including from the method used up to now by the Lufthansa Group). We would welcome a standardized, internationally harmonized and accepted method. The absolute emissions from flight operations are calculated on the basis of actual transport performance and hence on actual load Environmental database factors and the actual absolute quantity of kerosene consumed in The environmental data for this report were compiled by the the reporting year. Transport performance is measured in tonne Lufthansa Group by means of its central environmental database. kilometers; i. e., payload transported over a distance. For passengers All Lufthansa Group companies are encouraged to feed their and their luggage, an average of 100 kilograms is the standard environmentally relevant performance and consumption data (such estimate; for freight, it is its scale weight. Each aircraft / engine as fuel consumption) into the Group’s environmental database. combination present in the fleet is considered separately, and the Data used for the calculation of the Lufthansa Group’s carbon associated values are calculated with the aid of computer programs footprint (Scope 1 – 3 emissions) were additionally checked by an provided by the aircraft and engine manufacturers. The annual external auditor for completeness and correctness according to average flight profile for each subset of the fleet is then fed into accepted verification standards and verified with High Assurance these programs. This allows us to determine emissions in relation (Scope 1) and Limited Assurance (Scope 2 and 3) respectively. to flight altitude, distance flown, thrust, and load. This approach is necessary for nitrogen oxides (NOX ), carbon monoxide (CO), and unburned hydrocarbons (UHC) in particular. Carbon dioxide (CO2) emissions do not require special calculation methods, as they are Accuracy For presentation purposes the figures in the charts and tables are rounded. Changes from the previous year’s figures and share generated in a fixed ratio to the quantity of kerosene burned. The combustion of 1 tonne of kerosene generates 3.15 tonnes of CO2. percentages refer in each case to precise figures, however. For this reason it is possible that a reported value may remain the same from one year to the next even though a relative change is reported. Specific consumption and emission values Because of the rounding of share percentages, it is also possible Calculating specific consumption and emissions entails expressing that the sum of their addition may differ from the sum of the absolute values in relation to transport performance. For example, unrounded percentages. For example, as a result of rounding, share the ratio liters per 100 passenger kilometers (l / 100pkm) is calcu- percentages may not add up to 100 percent even though it would lated on the basis of actual load factors along with the quantity of be logical to expect them to. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 111

SPECIFIC FUEL CONSUMPTION PASSENGER TRANSPORTATION LUFTHANSA GROUP in liters / 100 passenger kilometers (l / 100 pkm) SPECIFIC FUEL CONSUMPTION PASSENGER TRANSPORTATION LUFTHANSA in liters / 100 passenger kilometers (l / 100 pkm) 3.65 3.76 3.84 3.84 3.85 3.68 3.88 3.86 3.88 3.76 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 SPECIFIC FUEL CONSUMPTION PASSENGER TRANSPORTATION SWISS in liters / 100 passenger kilometers (l / 100 pkm) SPECIFIC FUEL CONSUMPTION PASSENGER TRANSPORTATION AUSTRIAN AIRLINES 3.15 in liters / 100 passenger kilometers (l / 100 pkm) 3.79 3.48 3.53 3.44 3.19 3.87 3.92 4.04 3.83 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 SPECIFIC FUEL CONSUMPTION PASSENGER TRANSPORTATION EUROWINGS in liters / 100 passenger kilometers (l / 100 pkm) SPECIFIC FUEL CONSUMPTION FREIGHT TRANSPORTATION 2, 8 in liters / tonne kilometers (l / tkm) 4.00 0.266 4.50 4.45 4.46 4.18 0.276 0.282 0.280 0.268 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 113

VERIFICATION STATEMENT SCOPE 1– 3 1 1 In the verification statement published on 6 June 2019, the Scope 1 value was not displayed correctly. The corrected value, with a new verification statement, was replaced in the present report on 19 June 2019. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 115

AVERAGE AGE 5 AGE STRUCTURE 5 Lufthansa Group, in years as of December 31, respectively Lufthansa Group, in percent as of December 31, 2018 Male employees Total Female employees 60 and older 45 40 43.1 42.3 41.3 43.3 42.3 41.3 43.4 42.2 40.9 43.5 42.2 40.9 42.1 41.5 40.8 2014 2015 2016 2017 2018 55 – 59 50 – 54 45 – 49 40 – 44 35 – 39 30 – 34 25 – 29 20 – 24 18 – 19 15 – 17 4.7 10.1 15.2 13.2 13.0 12.5 12.1 11.0 7.3 0.8 0.1 SHARE OF WOMEN IN MANAGEMENT POSITIONS (WORLDWIDE) SHARE OF WOMEN WITH STAFF RESPONSIBILITY (WORLDWIDE) Lufthansa Group, in percent as of December 31, respectively Lufthansa Group, in percent as of December 31, respectively 20 15 10 5 50 40 30 20 14.2 14.9 15.6 15.1 15.9 35.1 33.9 34.1 35.0 32.5 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 1 Scope of application: Group scope of consolidation 2 Without apprentices 3 Consists of cockpit and cabin 4 Scope of application: Group scope of consolidation; shares in percent; part-time including partial retirement (including blocks of free time); from 2014 including Aerologic (partial consol- i dation at 25%) 5 Scope of application: Group scope of consolidation, without Sky Chefs, Inc., Wilmington, USA; Western Aire Chef, Inc., Wilmington, USA; SCIS Air Security Corporation, Wilmington, USA; Sky Chefs De Mexico, S. A. de C. V., Mexico City, Mexico; Lufthansa Malta Corporate Finance Limited, St. Julians STJ, Malta; Lufthansa Malta Working Capital Solutions Limited, St. Julians STJ, Malta; LSG Sky Chefs Solutions Asia Limited, Hong Kong, China; LSG Sky Chefs Sverige AB, Stockholm, Sweden; Lufthansa Technik Component Services LLC, Tulsa, USA; Lufthansa Technik North America Holding Corp., Tulsa, USA; BizJet International Sales & Support, Inc., Tulsa, USA; Lufthansa Technik Shannon Limited, Claire, Ireland; LSG Sky Chefs Supply Chain Solutions, Inc., Wilmington, USA; Lufthansa Malta Aircraft Leasing Ltd., St. Julians, Malta; LHAMI LEASING LIMITED, Dublin, Ireland; LSG Sky Chefs Danmark A / S, Dragør, Denmark; Inflight Catering Services Limited, Dar es Salaam, Tanzania; Constance Food Group, Inc., New York, USA; LSG Sky Chefs Spain, S. A., Madrid, Spain; MIM IFE Limited, Dublin, Ireland LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 117

D F Decibel (dB) Measuring unit for the intensity and pressure of sound. The Freight performance (FTKO / FTKT) Airlines distinguish between freight performance offered difference in intensity between the softest sound the human (FTKO, freight tonne kilometers offered) and its sold freight ear can perceive and the pain threshold is 1 : 10 trillion. To performance (FTKT, freight tonne kilometers transported). depict this enormous range objectively, acoustics uses the See also “Tonne kilometers”. logarithmic decibel scale. On this scale, the value “0” is as- signed to the perception threshold (for a sound of 1,000 Hz) and the pain threshold at the value “130”. An increase of 10 dB Fuel dump Dumping of fuel in flight due to emergency situations to corresponds to a tenfold increase in sound intensity. For the reduce a long-haul aircraft’s weight to the maximum permissi- perceived volume, a difference of 10 dB corresponds to half or ble landing weight before unscheduled landings (e.g. in the double the volume. However, the human ear is not equally event of technical problems or serious passenger illness). sensitive across the entire range of frequencies. Low and high Special air space is assigned to the aircraft, if possible above sounds are not perceived as being equally loud even at the uninhabited or thinly populated areas. Fuel is usually dumped same intensity. For measurements, this difference is equalized at altitudes of 4 to 8 kilometers. A minimum altitude of 1,800 and noted accordingly. The best known such notation is the meters and a minimum speed of 500 km / h are required. The A value, marked by the index dB(A). To measure aircraft noise, aircraft may not fly a fully closed circle. The dumped kerosene the EPNdB (Effective Perceived Noise Decibel) unit is used is released from outlet vales and forms a fine mist behind the internationally. aircraft. So far, no contamination has been detected in plant E or soil samples after fuel dumps. G EBIT Financial indicator; it denotes earnings before interest and taxes. From financial year 2015 it has been used as the central Great-circle distance The shortest distance between two points on the Earth’s earnings indicator. It is calculated from total operating income surface, measured in kilometers (great circle kilometers) or minus operating expenses plus the result from equity nautical miles. The center of a great circle is the center of investments. the Earth. EMAS – Environmental Management and Audit Scheme European regulations concerning environmental management Greenhouse gases Gaseous substances that contribute to the greenhouse effect and certification; colloquially referred to as EU eco-audit and have both natural and human (anthropogenic) causes. regulations. Equivalent continuous noise level (Leq) The Leq is a measure for the energetic average of all sound pressure levels over a defined period of time. All sound events that differ in intensity and duration are summarized according to mathematical rules. The resulting average value is an accepted and proven measurement of the noise quantity occurring over an observed time interval. The most important natural greenhouse gases are water vapor (H2O), carbon dioxide (CO2), and methane (CH4); the most important anthropogenic greenhouse gases are carbon dioxide from the combustion of fossil fuels and methane, primarily from agriculture and industrial livestock farming. Other artificial greenhouse gases are nitrous oxide (N2O), fluorocarbons (FCs and HFCs), sulfur hexafluoride (SF6), and chlorofluorocarbons (CFCs). LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 119

altitudes cause – analogous to summer smog – an increase in atmospheric ozone estimated by scientists at 3 to 4 percent W on the heavily-flown North Atlantic routes. P Passenger kilometer (PKO / PKT) Measure for transport performance in passenger carriage Water vapor The most important greenhouse gas, even ahead of carbon dioxide. Without the natural greenhouse effect, the tempera- ture on the Earth’s surface would be minus 18 degrees Celsius. Water vapor and other greenhouse gases increase the mean temperature on Earth to plus 15 degrees Celsius. Natural water vapor is responsible for almost two-thirds of the natural (number of passengers multiplied by distance flown). A greenhouse effect (33 degrees Celsius). For each kilogram of distinction is made between available transport performance kerosene burned, 1.24 kilograms of water vapor are released. (PKO, passenger kilometers offered, or, synonymously, SKO, Concerns that current air traffic volumes might increase the seat kilometers offered) and actual transport performance concentration of water vapor in the stratosphere and thus (PKT, passenger kilometers transported). change the climate have been refuted by scientific research. The German Aerospace Center (DLR) concluded that with today’s flight routing/flight altitudes even a one hundred-fold increase in the quantity of water vapor emitted by air traffic would not result in a detectable climatic signal. Wet Lease Leasing of aircraft from another airline, including cockpit and cabin crews as well as maintenance and insurance. S Seat kilometer Measure of the transport capacity available (SKO, seat kilometers offered). T Tonne kilometer (TKT / TKO) Measure of transport performance (payload multiplied by distance). A distinction is made between available transport performance (TKO, tonne kilometers offered) and the actual transport performance (TKT, tonne kilometers transported). In calculating payloads, passengers are taken into account by means of a statistical average weight. U UHC – Unburned hydrocarbons Organic mixture of carbon and hydrogen that results from the incomplete combustion of fuels containing hydrocarbons or from the evaporation of fuel. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 121

GRI STANDARD DISCLOSURE TITLE PAGE NUMBER AND / OR URL / EXPLANATION Strategy GRI 102-14 GRI 102-15 Ethics and integrity Statement from senior decision-maker page 3 Key impacts, risks, and opportunities Annual Report 2018, page 61 ff. GRI 102-16 Values, principles, standards, and norms of behavior Governance GRI 102-18 Governance structure Stakeholder engagement page 32, 35 f. The Executive Board of Deutsche Lufthansa AG adopted a Code of Conduct in 2017 that serves as a basis for the Lufthansa Group’s value system. It is binding for all bodies, executives and employees of the Lufthansa Group. Beyond that, a number of Company-internal guidelines complement the principles and standards of conduct anchored in the Code of Conduct. This includes in particular the Lufthansa Group Compliance Program, see page 35 As of January 1, 2019, the Executive Board was expanded from five to six members with the creation of a new area of responsibility, “Airline Resources & Operations Standards”, see Annual Report 2018, page 13. GRI 102-40 GRI 102-41 GRI 102-42 GRI 102-43 GRI 102-44 Reporting practice GRI 102-45 List of stakeholder groups Collective bargaining agreements Identifying and selecting stakeholders page 27 page 82 page 27 Approach to stakeholder engagement page 27 – 29 Key topics and concerns raised page 27 – 31 For customer satisfaction value, see page 99 Entities included in the consolidated financial statements page 111 Composition of the Group, see Annual Report 2018, page 179. A list of major subsidiaries, joint arrangements and associated companies can be found in the Annual Report, page 194 – 201. The consolidated financial statements can be accessed at: www.lufthansagroup.com/investor-relations GRI 102-46 Defining report content and topic Boundaries page 29 GRI 102-47 List of material topics page 30 – 31 GRI 102-48 Restatements of information GRI 102-49 Changes in reporting page 111 During the reporting year 2018, Luftfahrtgesellschaft Walter was included. In the current report, the sub-chapters “Ability to transform” and “Operational stability” were added for the first time, given the high level of relevance of both non-financial topics. GRI 102-50 GRI 102-51 GRI 102-52 GRI 102-53 GRI 102-54 GRI 102-55 GRI 102-56 Reporting period / Reporting cycle Date of most recent report Reporting cycle page 1 page 1 page 1 (yearly) Contact point for questions regarding the report page 134 Claims of reporting in accordance with the GRI Standards GRI Content Index External assurance page 1, page 122 page 122 ff. page 115 In this report, the Scope 1–3 emissions data were subjected to an external audit. In addition, the Lufthansa Group published a combined non-financial report for the financial year 2018 in its Annual Report. This combined non-financial report was the subject of a voluntary limited assurance engagement in accordance with ISAE 3000 (revised). The management approaches and concepts published in it were adopted for this report and complemented with supplementary information. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 123

GRI STANDARD DISCLOSURE TITLE PAGE NUMBER AND / OR URL / EXPLANATION GRI 305-4 GHG emissions intensity page 56 f. Values for specific CO2 emissions in kilograms per 100 passenger kilometers (kg / 100 pkm) GRI 305-5 Reduction of GHG emissions page 61 ff. Supplier Environmental Assessment GRI 103: Management approach GRI 103-1, GRI 103-2, GRI 103-3 Explanation of the material topic and its Boundary / The management approach and its components / Evaluation of the management approach page 41 GRI 308: Supplier Environmental Assessment GRI 308-1 New suppliers that were screened using environmental criteria Active noise abatement GRI 103: Management approach page 41 The project for Group-wide, standardized and structured supplier screening continues to be implemented. GRI 103-1, GRI 103-2, GRI 103-3 Explanation of the material topic and its Boundary / The management approach and its components / Evaluation of the management approach page 69 ff. Performance indicator Number of aircraft that meet the 10-dB criterium of page 129 the ICAO Chapter 4 standard. Employment GRI 103: Management approach GRI 103-1, GRI 103-2, GRI 103-3 Explanation of the material topic and its Boundary / The management approach and its components / Evaluation of the management approach page 73 ff. GRI 401: Employment GRI 401-3 Parental leave The compatibility of work and private life is an important element for the Lufthansa Group to provide long-term support to employees to maintain their ability to work and perform. During the reporting year, 28.6 percent of the Lufthansa Group’s employees worked part-time, 72.9 percent of whom were women. Furthermore, numerous employees took family leave. A nuanced analysis of return rates is currently not yet possible, but is targeted for the future. Labor / management relations GRI 103: Management approach GRI 103-1, GRI 103-2, GRI 103-3 Explanation of the material topic and its Boundary / The management approach and its components / Evaluation of the management approach page 82 f. GRI 402: Labor / management relations GRI 402-1 Minimum notice periods regarding operational changes Performance indicator Engagement Index (EI) Performance indicator Leadership Index (LI) Ability to transform GRI 103: Management approach In accordance with the stipulations of Industrial Relations Law and in the sense of an active social partnership, the responsible bodies of code - termination and the Company’s publics are informed at an early stage. page 83 page 83 GRI 103-1, GRI 103-2, GRI 103-3 Explanation of the material topic and its Boundary / The management approach and its components / Evaluation of the management approach page 74 ff. Occupational health and safety GRI 103: Management approach GRI 103-1, GRI 103-2, GRI 103-3 Explanation of the material topic and its Boundary / The management approach and its components / Evaluation of the management approach page 88 f. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 125

GRI STANDARD DISCLOSURE TITLE PAGE NUMBER AND / OR URL / EXPLANATION Human Rights Assessment GRI 103: Management approach GRI 103-1, GRI 103-2, GRI 103-3 Explanation of the material topic and its Boundary / The management approach and its components / Evaluation of the management approach page 32, page 38 ff. GRI 412: Human Rights Assessment GRI 412-1 Operations that have been subject to human rights reviews or impact assessments page 40 Supplier Social Assessment GRI 103: Management approach GRI 103-1, GRI 103-2, GRI 103-3 Explanation of the material topic and its Boundary / The management approach and its components / Evaluation of the management approach page 41 GRI 414: Supplier Social Assessment GRI 414-1 New suppliers that were screened using social criteria Customer health and safety GRI 103: Management approach page 41 The project for Group-wide, standardized and structured supplier screening continues to be implemented. GRI 103-1, GRI 103-2, GRI 103-3 Explanation of the material topic and its Boundary / The management approach and its components / Evaluation of the management approach page 105 ff. GRI 416: Customer health and safety GRI 416-1 Assessment of the health and safety impacts of product and service categories page 105 ff. Customer Privacy GRI 103: Management approach GRI 103-1, GRI 103-2, GRI 103-3 Explanation of the material topic and its Boundary / The management approach and its components / Evaluation of the management approach page 108 f. GRI 418: Customer Privacy GRI 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data page 108 Service and customer centricity GRI 103: Management approach GRI 103-1, GRI 103-2, GRI 103-3 Explanation of the material topic and its Boundary / The management approach and its components / Evaluation of the management approach Performance indicator Customer satisfaction value Operational stability GRI 103-1, GRI 103-2, GRI 103-3 Explanation of the material topic and its Boundary / The management approach and its components / Evaluation of the management approach page 98 ff. page 99 page 103 f. Performance indicator Departure punctuality page 104 Corporate citizenship GRI 103: Management approach GRI 103-1, GRI 103-2, GRI 103-3 Explanation of the material topic and its Boundary / The management approach and its components / Evaluation of the management approach page 90 ff. Performance indicator Number of people supported worldwide page 94 LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 127

MOST STRINGENT NOISE STANDARDS FOR THE LUFTHANSA GROUP’S FLEET MARGIN BELOW THE NOISE LIMIT OF ICAO CHAPTER 3 AND CHAPTER 4 The Lufthansa Group determines the effect of modernization Active fleet of the Lufthansa Group on October 27, 2018, in EPNdB concerning noise abatement of the operative fleet by means of A330-200 SN A330-200 EW A330-300 LH A330-300 LX A330-300 WK A330-300 SN A340-300 LH / CL A340-300 SN A340-300 LX / WK A340-600 LH A350-900 LH A380-800 LH B747-400 LH B747-8 LH B767-300 OS B777-200 OS B777-300 LX B777F LH MD-11F LH A319-100 LH A319-100 LX A319-100 EW A319-100 OS A319-100 4U A319-100 SN A320-200 LH A320-200 LX A320-200 WK A320-200 OS A320-200 4U A320-200 EW A320-200 SN A321-100 LH A321-100 LX A321-100 OS A321-200 LH A321-200 LX A321-200 OS 0 – 10.0 * – 13.9 / – 14.0 – 12.8 – 18.4 – 18.4 – 18.3 / – 18.4 – 14.0 / – 18.4 – 22.7 – 22.7 – 22.1 – 23.0 – 32.3 – 25.8 / – 26.7 – 13.6 – 25.6 – 16.5 / – 16.9 – 20.9 / – 21.1 – 16.0 – 17.0 – 13.4 / – 13.6 – 15.3 / – 19.3 – 17.4/ – 19.8 – 18.2/ – 19.4 – 19.3 – 17.5 / – 19.4 – 18.7 / – 21.2 – 14.1 / – 16.0 – 14.3 / – 14.4 – 15.0 / – 16.0 – 13.5 – 15.0 / – 17.3 – 14.9 / – 15.4 – 15.5 – 10.0 / – 11.5 – 11.5 – 14.1 / – 15.1 – 14.4 – 9.3 the performance indicator “number of aircraft that meet or exceed the so-called ‘minus-10dB criterium’ set by the ICAO Chapter 4 standard”. This standard defines noise limits and stipulates that all aircraft newly licensed from 2006 to the end of 2017 must cumulatively fulfill the older Chapter 3 noise limits by a margin of 10 decibels or more. This “minus-10EPNdB criterium” (Effective Perceived Noise dB) is signified by the vertical broken line in the overview to the left. In 2018, 99.6 percent of the aircraft – thus virtually the entire operational Group fleet – met this criterium. The limits depend on the aircraft’s maximum takeoff weight and number of engines. The bar chart indicates the sum of the differences between the measured value and the threshold value at the three measuring points by type of aircraft (cumulated margin). Where necessary, the values are based on the reduced maximum takeoff weight prevailing in flight operations. The individual noise certificate data of all Group aircraft is included in the evaluation methodology. Different versions of an aircraft and its engines by year of construction are thus better taken into account. Accordingly, the value ranges from the lowest to the highest cumulated margin are indicated for many fleets. The analysis also takes into account any modifications to aircraft or engines that have been made in the meantime, thereby leading to modified noise data and The data to calculate the indicator is gathered on the qualifying date “end of summer timetable”. Due to seasonal requirements, the fleet is largest at this point, which makes the measurement of the largest noise-related “footprint” possible. Accordingly, all aircraft in the possession of the individual flight-operating companies at the qualifying date are taken into account for the calculation of the performance index. Grouping of aircraft types according to MTOW (maximum takeoff weight): ● under 50 t ● 50 to 150 t ● more than 150 t This division generally corresponds to a grouping of regional, continental, and intercontinental aircraft. * ICAO Chapter 4 limit, which has been effective for a new aircraft since 2006: – 10 EPNdB when compared to chapter 3. – 13.5 / – 29.8 cumulated margins in certain cases. Furthermore, additions and withdrawals in individual fleets lead to changes in the value ranges reported. Bombardier CS100 LX Bombardier CS300 LX Bombardier CRJ900 CL Bombardier DHC8-400 OS Bombardier DHC8-400 EW Embraer 190 CL Embraer 195 CL Embraer 195 EN Embraer 195 OS – 28.3 – 26.6 – 23.9 / – 25.9 – 23.6 / – 25.6 – 16.6 – 15.2 – 14.8 – 14.8 – 14.8 / – 15.3 LH = Lufthansa, Lufthansa Cargo SN = Brussels Airlines CL = Lufthansa CityLine 4U = Germanwings EN = Air Dolomiti EW = Eurowings LX = SWISS OS = Austrian Airlines WK = Edelweiss Air LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 129

HB JCA Bombardier CS300 Kanton Zürich HB JBA Bombardier CS100 LX: 20 aircraft, 145 seats, 4,250 km range LX: 8 aircraft, 125 seats, 2,850 km range Airbus A340-300 WK: 4 aircraft, 314 seats, 11,850 km range Eurowings Airbus A320-200 EW / 4U / LGW: 62 aircraft, 180 seats, 4,000 km range Airbus A319-100 EW / 4U / LGW: 51 aircraft, 150 seats, 2,900 km range Bombardier Q400 LGW: 20 aircraft, 76 seats, 1,350 km range Airbus A330-300 WK: 2 aircraft, 315 seats, 10,000 km range Airbus A320-200 WK: 9 aircraft, 174 seats, 4,050 km range Brussels Airlines 2 Austrian Airlines Flotte 2019 Airbus A330-300 SN: 11 aircraft, 288 seats, 7,700 km range Boeing 777-200ER OS: 6 aircraft, 308 seats, 12,100 km range Boeing 777-200ER Airbus A330-200 SN: 4 aircraft, 264 seats, 10,400 km range Boeing 767-300ER OS: 6 aircraft, 214 seats, 10,250 km range Boeing 767-300ER Airbus A320-200 SN: 16 aircraft, 180 seats, 3,700 km range Steirisches Weinland Airbus A321-100 / 200 Airbus A321-100/200 OS: 6 aircraft, 200 seats, 2,600 km / 4,150 km range Airbus A319-100 SN: 22 aircraft, 141 seats, 3,200 km range Airbus A320-200 Airbus A320-200 OS: 23 aircraft, 168 seats, 4,100 km range Lufthansa Cargo Airbus A319-100 Airbus A319-100 OS: 7 aircraft, 138 seats, 3,350 km range Embraer 195 Embraer E195 OS: 17 aircraft, 120 seats, 2,300 km range Boeing MD-11F LH: 12 aircraft, 89.4 t, 6,700 km range Bombardier Q400 OS: 18 aircraft, 76 seats, 1,350 km range Boeing 777F LH: 5 aircraft, 103 t, 8,900 km range LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 131

• Lufthansa Systems secured the World Travel Award for BoardConnect as “World’s Leading Inflight Entertainment”. • Lufthansa won the “Best Airlines Award” given by Business Traveller China as best European airline in China. • Lufthansa won first place in the category “Best Airline Europe” at the Travel Weekly Asia 2018 Readers Choice Awards. • For its cooperation “Lufthansa Express Rail”, Deutsche Bahn and Lufthansa were honored with the Global AirRail Award in the category “AccesRail Integrated Partnership of the Year 2018”. Honored for corporate citizenship: Carsten Spohr accepts the Statesmanship Award 2019. • In Tanzania, LSG Sky Chefs received “The Recycler” Award DAR in the category “Environment” and thus recognition as most innovative recycler. 2019 • Lufthansa Cargo again achieved admission to the list • Lufthansa was elected ATW Airline of 2019; the first time in of 75 “Green Supply Chain Partners” of trade magazine 14 years that the award goes to a European airline. This Inbound Logistics. With this initiative the magazine coveted air transport prize is given by the industry’s leading emphasizes companies that consistently promote sustain- publishing company, Airport Transport World (ATW). able supply chains and fulfill their responsibility in social and environmental issues. • The United States Association of Former Members of Congress (FMC) honored the Lufthansa Group with • As a founding member of the initiative “Competitive Sport- the Statesmanship Award for its corporate citizenship – Friendly Employer”, SWISS received the eponymous label. a world first for an aviation group. • Austrian Airlines was honored with the Prevention Award • In the Germany-wide consumer survey “Sustainable of European Regions for the project “Cabin Ready for Commitment”, conducted by Focus Money, Deutschland Health” in the category “Austrian Companies”. “Cabin Ready Test and Service Value, Lufthansa was again elected the for Health” also received the quality seal for corporate health most sustainable airline in the category “Airlines”. promotion. It honors exemplary measures supporting health-promoting corporate culture and requires high-level • The Chambers of Commerce (IHK) in the state of Hesse and commitment, adherence to particularly strict quality criteria the German Hotel and Restaurant Association (DEHOGA as well as sustainability. Hesse) recognized LSG Sky Chefs in Frankfurt as “Premium • Brussels Airlines was named “Best Transatlantic Airline” by U. S. magazine Global Traveler based on reader feedback. • At Air Cargo Africa in Johannesburg, Lufthansa Cargo was Training Company” for its apprentice program. honored as best global cargo airline of the year. • SWISS was again honored with the Randstad Award as Switzerland’s most attractive employer. LUFTHANSA GROUP / Sustainability Report Balance / Issue 2019 / page 133