The Court of Justice of the European Union (CJEU) on April 23, 2026, dismissed Lufthansa’s appeal, upholding the annulment of the European Commission’s approval of Germany’s €6 billion COVID-19 state aid package to the carrier.
This definitive ruling confirms the bailout as illegal state aid, marking a turning point that forces Lufthansa to repay approximately €200 million in benefits plus interest from its latest German government support.
Rivals Ryanair and Condor challenged the 2020 aid, which began with Germany’s recapitalization measures on June 12. The EU General Court overturned the Commission’s decision on May 10, 2023, citing procedural flaws in share pricing for Silent Participation II conversion into equity.
The CJEU agreed, finding the Commission infringed the Temporary Framework by accepting improper valuation methods.
Ryanair hailed the outcome as validation that the aid distorted competition, rewarding inefficiency while low-cost carriers like itself survived on private resources. This decision reshapes EU state aid enforcement in aviation, potentially impacting future pandemic recoveries and leveling the playing field for European airlines.