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  "documentTitle": "2025 Annual Report",
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  "notes": "Page 271 of Lufthansa Group Annual Report 2025.",
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      "text": "In accordance with its internal guidelines, the Lufthansa Group uses derivative financial instruments to hedge interest rate and exchange rate risks, and to hedge fuel price risks. This is based on the hedging policy defined by the Executive Board and monitored by a committee. Note 45.",
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      "text": "To the extent that the financial instruments used qualify as effective cash flow hedging instruments within the scope of a hedging relationship in accordance with the provisions of IFRS 9, fluctuations in market value will not affect the result for the period during the term of the derivative. They are recognised without effect on profit and loss in the corresponding reserves. If the hedged cash flow is an investment, the result of the hedging transaction that has previously been recognised in equity is set off against the cost of the capital expenditure at the time the underlying transaction matures. In all other cases, the cumulative gain or loss previously stated in equity is included in net profit or loss for the period on maturity of the hedged cash flow.",
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      "text": "Hedging transactions are used to secure either fair values (fair value hedge) or future cash flows (cash flow hedge).",
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      "text": "Initial recognition of financial guarantees to third parties is at fair value. Thereafter, financial guarantees are either measured in the category “at fair value through profit or loss” or at the higher of the originally recognised amount, less any cumulative amortisation through profit or loss in line with IFRS 15 or the value of the contractual obligation measured in line with IAS 37.",
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      "text": "Emissions certificates\nCO2 emissions certificates are recognised as intangible assets and stated under other receivables. Rights, both those purchased and those allocated free of charge, are measured at cost and not amortised.",
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      "text": "Embedded derivatives – to the extent that they should, but cannot, be separated from the financial host contract – are also considered together with these as trading transactions for measurement purposes. Changes in market value are also recognised directly as profit or loss in the income statement. Both types must be classified as financial assets stated at fair value through profit or loss.",
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      "text": "Derivatives that do not meet the criteria for hedge accounting are presented in the category “at fair value through profit or loss”. Changes in fair value are then recognised directly in the income statement. For the Lufthansa Group, this generally occurs when the exposure or item being hedged cannot be measured reliably or the exposure ceases to exist prematurely over the course of the hedge.",
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      "text": "It is the Lufthansa Group’s hedging policy (Note 45) only to acquire effective derivatives for the purpose of hedging interest rate, exchange rate and fuel price risks.",
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      "text": "If there are doubts as to the recoverability of receivables, then impairment losses are recognised and these receivables are recognised at the lower recoverable amount. Subsequent reversals (write-backs) are recognised in profit or loss. IFRS 9 requires that when a receivable is recognised for the first time, an expected loss is provided for, reflecting the credit risk of the receivable before a default event occurs. An external credit risk exists for the Lufthansa Group, especially in its portfolio of trade receivables, for which an expected credit loss is recognised.",
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      "text": "Contract assets and receivables\nContract assets represent contractual claims to receive payments from customers where the contractual performance obligations have already been fulfilled but no unconditional payment claim has yet been incurred. Receivables are recognised where the right to receive consideration is no longer subject to conditions. This is generally the case when the Group is contractually entitled to send the customer an invoice. Contract assets mainly relate to production or service contracts for MRO and IT services. Impairments are made on the respective gross amounts of expected payment defaults.",
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      "text": "Forward transactions are entered into to hedge the foreign currency fluctuation risk. Interest rate swaps and interest rate/currency swaps are used to manage interest rate risks. Interest rate/currency swaps also hedge exchange rate risks linked to borrowing in foreign currencies.",
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      "text": "Derivative financial instruments are measured at fair value on the basis of published market prices. If there is no quoted price on an active market, other appropriate valuation methods take account of all factors that independent, knowledgeable market participants would consider in arriving at a price and that constitute recognised, established economic models for calculating the price of financial instruments.",
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      "text": "In the case of effective hedging of fair values that are designated as a fair value hedge, the changes in the market value of the hedged asset or hedged debt and those of the financial instrument will balance out almost completely in the income statement.",
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      "text": "Fuel price hedging takes the form of option combinations for crude oil and gas oil. To a limited extent, hedging is also undertaken for other products, such as jet fuel futures contracts.",
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