Finance
Lufthansa Loses Appeal in State Aid Dispute With Ryanair
Published by Global Banking & Finance Review®
Posted on April 24, 2026
2 min readLast updated: April 24, 2026
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Lufthansa’s appeal was dismissed by the EU’s Court of Justice, upholding the General Court’s 2023 annulment of its €6 billion COVID-era state bailout; Ryanair hailed a legal victory and urged immediate recovery of €200 million in undue benefits.
Lufthansa Loses Appeal in State Aid Dispute Against Ryanair After EU Ruling
Lufthansa's Legal Battle Over State Aid
EU Court Decision and Background
BRUSSELS, April 24 (Reuters) - Germany's Lufthansa lost its appeal on Thursday 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.
Official Court Statement
"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.
Reactions from Ryanair and Lufthansa
Ryanair's Response
Ryanair welcomed the ruling and called for Lufthansa to return 200 million euros in benefits immediately, with a spokesperson saying: "Today’s CJEU judgment again confirms what was obvious from the start: Germany’s 6 billion euro Covid bailout of Lufthansa was illegal State Aid that distorted competition."
Background of the Legal Challenge
The original ruling dates back to 2023 and followed a legal challenge brought by Ryanair.
Lufthansa's Statement
“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.
Current Challenges Facing Lufthansa
Industrial Action and Financial Impact
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 on Tuesday it would cut 20,000 short-haul flights from its schedule through 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.
European Commission's Position
The European Commission did not immediately reply to a request for comment.
(Reporting by Inti Landauro and Yun Chee Foo in Brussels, Charlotte Van Campenhout in Amsterdam, Ilona Wissenbach in Frankfurt, Additional reporting by Miranda Murray in Berlin, Editing by Mark Potter)
Key Takeaways
- •The EU’s Court of Justice upheld the annulment of Lufthansa’s €6 billion state recapitalisation, affirming the General Court’s 2023 ruling that the EU Commission erred in approving the aid (bloomberg.com).
- •Ryanair welcomed the judgment and reiterated that Germany must promptly reclaim approximately €200 million in benefits gained by Lufthansa from the illegal aid (corporate.ryanair.com).
- •Lufthansa noted that the ECJ ruling will inform the EU Commission’s ongoing 2024 investigation and pledged to engage constructively, while continuing to navigate operational challenges including strike-related disruptions and scheduled flight cuts (logistics.maritimeprofessional.com).
References
Frequently Asked Questions about Lufthansa loses appeal in state aid dispute with Ryanair
1Why did Lufthansa lose its appeal in the state aid dispute?
The EU Court of Justice dismissed Lufthansa's appeal and upheld a previous ruling that the German government's €6 billion COVID bailout constituted illegal state aid.
2What was Ryanair's role in the case against Lufthansa?
Ryanair challenged the European Commission's approval of state aid to Lufthansa, ultimately resulting in a court ruling in favor of Ryanair.
3How much in benefits does Ryanair claim Lufthansa should return?
Ryanair has called for Lufthansa to return €200 million in state aid benefits immediately following the court's decision.
4What are the broader implications of the court ruling for Lufthansa?
The decision adds legal and financial pressures to Lufthansa, which is also facing union disputes, flight cuts, and cost increases linked to strikes and fuel prices.
5Is the European Commission still investigating Lufthansa's state aid?
Yes, the European Commission is continuing its investigation, which may be influenced by the recent European Court of Justice ruling.
