European justice confirms the cancellation of the 6 billion euros in aid paid to Lufthansa during Covid (but the company has already reimbursed this sum)

The Commission approved the recapitalization of the company in 2020 but the courts deemed it non-compliant in 2023. Lufthansa then appealed.

The Court of Justice of the European Union on Thursday rejected the airline group Lufthansa’s attempt to obtain the legality of public aid of 6 billion euros granted during the Covid-19 pandemic. “By today’s judgment, the Court rejects Lufthansa’s appeal and thus confirms the annulment, pronounced by the Court, of the decision by which the Commission approved the recapitalization of Lufthansa” during the year 2020, specifies the press release from the highest court of the European Union.

This is a new legal defeat for the group which had appealed a first decision of the EU General Court in 2023. The Brussels Commission had approved the recapitalization granted by Berlin to Lufthansa to support the group, whose planes were grounded due to the health crisis. The support plan for Lufthansa included an increase in capital of 300 million euros and the subscription of bonds, partly convertible into shares, for 5.7 billion euros.

“Rules poorly applied”

In its 2023 decision, the Court of First Instance canceled Germany’s state aid following appeals brought by the European companies Ryanair and Condor in the name of respecting fair competition. The Court ruled that the Court of First Instance was right to consider that the European Commission misapplied the temporary rules on state aid, in force during the pandemic.

The German airline group has since repaid its subsidies, which limits the practical impact of these legal setbacks.

In a reaction sent to AFP, Lufthansa indicated that it “takes note” of this judgment and “refers to the investigation carried out since 2024 by the European Commission, which must lead to a new decision and can now take into account the judgment of the CJEU”.

A spokesperson for the European Commission also told AFP to “take note” of the decision, and confirmed that it was continuing its “thorough investigation” without being able to “prejudge” its outcome for the moment.