Focus capital allocation

Dividend policy aims for continuous distributions

Shareholders should participate directly in the Company’s success. The dividend policy provides for a regular dividend payout ratio of 10% to 25% of consolidated EBIT. In addition to the regular dividend payment, the dividend policy also allows for shareholders to participate in particularly positive performance by the Company by means of a special dividend or share buy-back.

The Executive Board and Supervisory Board will table a proposal at the Annual General Meeting on 7 May 2019 to distribute a dividend of EUR 0.80 per share to shareholders for the financial year 2018. This represents a total dividend of EUR 380m or 12.8% of EBIT for 2018.

Primary, secondary and financial investments in mio. EUR 1)

1) Excluding acquisition of shares.

Cashflow and capital expenditure in mio. EUR

1) Capital expenditure shown without pro rata profit / loss from the equity valuation.

Balanced investment to modernise the fleet

Going forward, the Lufthansa Group will continue to invest steadily in the renewal of its fleet, in-flight and ground products and infrastructure. The aircraft ordered for the period until 2025 serve mainly to replace older models. Market opportunities arising in the short and medium term can nonetheless be exploited by activating reserve aircraft or procuring used aircraft. This makes the investment profile more balanced and increases focus on the deployment of capital. It also increasingly creates greater room for manoeuvre regarding any further consolidation activity. Regular capital expenditure is financed from the Company’s own cash flow. The aim is also to generate significantly positive free cash flow.

Gross capital expenditure (without expenditure on equity investments) rose by 8% to EUR 3,757m in 2018. This was largely due to higher primary investment in down payments and final payments for aircraft, aircraft components and overhauls of aircraft and engines.

Further Information