Particle.news
Download on the App Store

EU Top Court Upholds Annulment of Lufthansa’s €6 Billion COVID Aid Approval

The decision pushes the European Commission to revisit Germany’s 2020 rescue under its still-open state-aid review.

Lufthansa received a massive government bailout during the pandemic

Overview

  • The Court of Justice of the EU, which ruled on Thursday, dismissed Lufthansa’s appeal and confirmed the annulment of the Commission’s approval for the 2020 bailout.
  • Judges found a fault in how part of the state’s “silent participation” could convert into shares, breaking COVID aid rules that set a reference price for such conversions.
  • The court said Lufthansa prevailed on most other issues, yet one error was enough to void the approval under an all-or-none approach.
  • The European Commission has run a probe since 2024 and will now decide on next steps, with Lufthansa saying it will cooperate in the process.
  • Rivals Ryanair and Condor led the challenge, and Ryanair called for recovery of about €200 million in benefits from aid that totaled €6 billion in equity and hybrid capital.