Lufthansa has suffered a major legal setback after losing its appeal in a dispute with Ryanair over state aid received during the COVID-19 pandemic. The ruling marks a significant victory for Ryanair in the long-running case.
The Court of Justice of the European Union dismissed Lufthansa’s challenge, upholding an earlier General Court decision that had annulled the European Commission’s approval of the airline’s recapitalisation package.
Ryanair welcomed the verdict, urging Lufthansa to return around €200 million in benefits immediately. The airline also reiterated claims that Germany’s multi-billion euro bailout distorted fair competition within the European aviation market.
The decision reinforces stricter scrutiny on state aid across the EU, potentially impacting how airlines receive government support during crises in the future.