Germany’s Lufthansa has today lost its appeal against a court ruling that struck down EU approval of state aid it received during the Covid pandemic, confirming a victory for rival Ryanair.
The European Union’s Court of Justice dismissed Lufthansa’s appeal, upholding a General Court ruling that annulled the European Commission’s decision to clear the airline’s recapitalisation.
“By its judgment today, the Court of Justice dismisses Lufthansa’s appeal and thus upholds the General Court’s ruling,” the court said in a statement.
The original ruling dates back to 2023 and followed a legal challenge brought by Ryanair.
“We take note of the European Court of Justice’s ruling. At the same time, we would like to point out that the European Commission’s investigation, which has been ongoing since 2024 and is intended to lead to a new decision, can now take the ECJ’s ruling into account. We will engage constructively in the ongoing process and are in close contact with all relevant institutions,” Lufthansa said.
The decision comes as Lufthansa is embroiled in a dispute with its pilots’ union over pensions and has been hit by strike action.
The group said earlier this week it would cut 20,000 short-haul flights from its schedule up to October and earlier this month announced the permanent withdrawal of 27 CityLine aircraft, citing higher jet fuel prices and costs linked to the industrial action.
Ryanair said today it welcomed today’s ruling.
“Today’s judgment again confirms what was obvious from the start – Germany’s €6 billion Covid bailout of Lufthansa was illegal State Aid that distorted competition,”a Ryanair spokesman said.
“While efficient airlines were forced to survive through Covid on their own resources, Lufthansa was handed a €6 billion benefit by the German Govt which once again rewarded German inefficiency, damaged competition and hurt consumers,” he said.
“The German air transport market continues to fail to recover its pre-Covid traffic due to a combination of high access costs, penal Government taxes and an uneven playing field in which non-subsidised airlines are asked to compete with the heavily state subsidised Lufthansa,” he added.
