Lufthansa loses appeal in state aid dispute with Ryanair (updated)

Ryanair Holdings

23/04/2026 09:57

Updates April 23 story with Ryanair reaction in paragraph 4

BRUSSELS, April 24 (Reuters) - Germany's Lufthansa LHAG.DE 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 RYA.I.

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.

"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.

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."

The original ruling dates back to 2023 and followed a legal challenge brought by Ryanair.

“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.

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.

      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)

 ((Inti.Landauro@thomsonreuters.com;))