Lufthansa exits German state ownership after profitable privatization
Germany’s economic stabilization efforts culminated in a clear turn for Lufthansa. After a period of state involvement tied to the pandemic era, the airline group stood fully on its own once again, backed by a substantial profit from the sale of the state stake. The overall transaction yielded a gain of 760 million euros for the German state, following the complete disengagement from Lufthansa’s shareholding two years after the company recovered from the COVID-19 crisis.
The arrangement was overseen by the Federal Finance Agency, a body similar in role to a Treasury department, which announced that Deutsche Lufthansa’s stabilization plan had reached a successful close. The total proceeds from the sale reached 1,070 million euros, significantly topping the original cost basis of 306 million euros for the shares. In effect, the state recovered the initial investment and returned a net profit of 760 million euros to public coffers.
With this solid closing balance, the participation by the Economic Stabilization Fund came to an end, allowing Lufthansa to transition back to private ownership. This sentiment was echoed by Jutta Dönges, who led the agency during the privatization phase, highlighting the favorable outcome for both the state and the airline.
The German government had stepped in during June 2020 in response to the aviation downturn caused by travel restrictions tied to the pandemic. The public stake was initially acquired at a 20 percent level, totaling 300 million euros. The move was part of a broader rescue effort that also included support measures meant to safeguard the airline’s operations and its thousands of employees during an extremely turbulent market period.
In addition to the core stake, there were other elements of the state’s financial involvement tied to loans and guarantees that helped Lufthansa weather the crisis. Some of these arrangements carried costs or implied commitments that were resolved as part of the exit strategy. By managing these components alongside the sale, the government aimed to restore normal market dynamics while preserving the airline’s long-term viability.
Carsten Spohr, the CEO of the Lufthansa Group, publicly thanked the German government and the taxpayers for their support throughout what was described as the most severe financial crisis in the company’s history. The leadership made it clear that the stabilization period had served its purpose of ensuring continuity and safeguarding jobs, while the privatization completed the transition back to a fully market-driven ownership structure.
Among the shareholders who held stakes in Lufthansa, Klaus-Michael Kühne remained a prominent figure. He held a significant 17.5 percent interest in the company and stood as the largest individual shareholder outside the state. The completion of the sale reflected a broader shift toward private ownership and investor-driven governance, signaling renewed confidence in Lufthansa’s business model and growth prospects.
Ultimately, the exit marks a return to normalcy for Lufthansa and its investors, paired with a clear message about the effectiveness of targeted government intervention during extraordinary market stress. The move provides a framework for how future crisis responses might balance immediate stability with a timely return to private capital, while maintaining a robust national aviation sector that can compete on the world stage. The lessons drawn from this sequence emphasize resilience, disciplined fiscal management, and the importance of a well-timed privatization that aligns public interests with the airline’s strategic ambitions.