The European Union’s Court of Justice on Thursday rejected an appeal from Lufthansa seeking to overturn an earlier judgment that invalidated EU approval of state aid the airline received during the COVID-19 pandemic. The ruling sustains a 2023 decision by the General Court, which had annulled the European Commission’s clearance of the carrier’s recapitalisation following a challenge by rival Ryanair.
Lufthansa said it had taken note of the court’s decision and stressed that the European Commission’s investigation, which has been ongoing since 2024 and is intended to produce a new decision, can now incorporate the court’s findings. The airline added that it intends to participate constructively in the process and remains in close contact with the institutions involved.
The court outcome arrives while the group is confronting significant operational and labor pressures. Lufthansa has been engaged in a dispute with its pilots’ union over pension arrangements and has been affected by strike action. The group announced on Tuesday that it will cut 20,000 short-haul flights from its schedule through October. Earlier this month the airline also confirmed the permanent withdrawal of 27 CityLine aircraft, citing higher jet fuel costs and expenses related to industrial action.
The court’s dismissal of Lufthansa’s appeal affirms the prior annulment of the Commission’s approval for the recapitalisation measure. That prior ruling traces back to 2023 and followed legal proceedings initiated by Ryanair. The Commission’s ongoing review, which began in 2024, is now positioned to consider the court’s ruling as it moves toward issuing a new decision.
Company commentary following the judgment focused on cooperation with regulators and continued engagement with relevant institutions. Beyond that, the ruling leaves in place the legal framework established by the General Court’s annulment and transfers emphasis to the Commission’s pending investigatory work.
Summary
The EU Court of Justice has dismissed Lufthansa’s appeal against a 2023 ruling that annulled the European Commission’s approval of the airline’s pandemic-era recapitalisation. The decision, the result of litigation brought by Ryanair, allows the Commission’s 2024 investigation to factor in the court finding as it prepares a new decision. Lufthansa said it will engage constructively with the process while dealing with strike disruptions, a pilots’ pension dispute, large short-haul schedule reductions and the permanent withdrawal of 27 CityLine aircraft due to higher jet fuel costs and industrial-action related expenses.