Luxair Annual Report 2022

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FACES OF A MEMORABLE JOURNEY

Annual Report 2022

“It’s an incredible feeling to command such a powerful airplane and to control it through any situation. Making hundreds of passengers happy every day by flying them to their destination is the most rewarding part of my job.“,

Anne, Boeing 737 Captain, Luxair history maker since 2000
3 TABLE OF CONTENTS
Board of Directors Shareholding & Participations 60 years of Luxair flights Discover our Executive Committee on board Letter from Gilles Feith, Chief Executive Officer Luxair at a glance Luxair network map Investing in the future Luxair’s fleet The history makers of Luxair Luxair’s journey towards carbon neutrality Taking care and being inclusive Giving back to community Adapting and improving Financial performance Thank you note 4 22 6 25 7 28 8 30 14 42 16 48 62 54 20 13 36
Letter from Giovanni Giallombardo, Chairman of the Board of Directors

Faces guaranteeing the sustainability of the company.

Luxair ended 2022 on a positive note, a surprising achievement given the energy crisis and the final consequences of the pandemic in the first months of 2022. The company, as did the aviation industry in general, had to face these challenges throughout the year. Despite the difficult context in 2022, Luxair has once again demonstrated its ability to remain a key and quality player in the national and regional air transport sector and will continue to do so in the future. Luxair’s strategy for the coming years combines growth and sustainable improvement of operational and quality performance. As an excellent and niche airline, Luxair aspires to develop a more ecological policy, respectful of our environment and always focused on the needs of our valued passengers, customers and partners.

United by a common objective, Luxair’s Board of Directors and Management are working on solutions to preserve the essence of our success while adapting to ensure a sustainable future for Luxair and its employees. Luxair has always demonstrated a strong capacity to face challenges, especially thanks to the experience of its staff, who provide a solid basis to guarantee the company’s sustainability.

Personally, I discover every day a dynamic company, striving for excellence, with competent employees who are passionate about their work. They are the ones who have contributed to the improvements and successes recorded since the beginning of the journey of this beautiful company that is Luxair, which has existed for over 60 years.

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LETTER FROM
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“Just like the previous years, I would like to express my pride in being their President and assure them that I trust them and that I am confident of the future of this beautiful company “, Giovanni Giallombardo, Chairman of the Board of Directors

BOARD OF DIRECTORS

Françoise THOMA Vice-Chairman

Chief Executive Officer, Banque et Caisse d’Epargne de l’Etat

Jean-Louis THILL Member

Ambassador, Director of European affairs & International economic relations Ministry of Foreign & European Affairs

Marc REITER Member

Attaché, Chargé de Direction, Government Commissioner for Luxair S.A. Ministry of Mobility and Public Works

Marcel LEYERS Member

Chief Executive Officer Banque Internationale Luxembourg S.A.

Laurent BAUMGARTEN Member

Luxair personnel representative

Tom WEISGERBER Member

First Government Advisor, Ministry of Mobility and Public Works Public works department

Romolo BARDIN Member

Member of the Board of Directors, Chief Executive Officer & Chief Financial Officer DELFIN S.à.r.l

Doris ENGEL Member

Chief Financial Officer, Directeur Banque et Caisse d’Epargne de l’Etat

Stéphanie OLINGER Member

Luxair personnel representative

Patrick STREFF Member

Luxair personnel representative

Giovanni GIALLOMBARDO

Chairman of the Board of Directors

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Luxfuel Cargolux Airlines International Master Lease CO S.A. Objectif lune Euro Moselle Loisirs SHAREHOLDING Banque et Caisse d’Epargne de l’Etat 21,81% Others 0,14% Luxair 10% Luxair Finance 2,86% BIL 13,14% State of the G.-D. of Luxembourg 39,05% PARTICIPATIONS 40% 35.1% 35.1% 35.01% 35% Delfin 13% 7

60 years of Luxair flights

A diamond anniversary which was the moment for Luxair to remember its history and roots, cherish the present and look forward towards ambitious future projects.

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#FlyingIsAnArt Anniversary edition by Marco Weiten

To mark its 60th anniversary, on 29 June 2022, Luxair unveiled its special livery, designed by Marco Weiten. Renaissance, future, tradition... so many illustrations tell the story of the airline. Drawn by the Luxembourgish artist Marco Weiten, this mix of colors represents the indisputable Luxembourgish symbol Roude Léiw which rises from its ashes like a phoenix, to celebrate the 60 years of Luxair.

The Boeing 737-800, registered LX-LGV, dressed in Marco Weiten’s designs symbolizing the rebirth and promising future of Luxair, took off for the first time on Wednesday, 29 June 2022, transporting its passengers to Tenerife.

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Flying over a beautiful story.

31 March 1962, is a date that will remain engraved in the history of the Grand Duchy of Luxembourg, but also in the minds and hearts of Luxembourgers, as it was the effective date of the first take off of Luxair. The national airline, carried its very first passengers on board to Paris Le Bourget airport.

Luxembourg Airlines was founded in 1948 when Luxembourg-Findel airport opened to connect the Grand Duchy with a number of European capitals. Even if Luxair as we know it today was born in 1961, following a restructuring of “Luxembourg Airlines Company”, it was not until 31 March of the following year that Luxair’s 44 seats Fokker F27 operated its first flight, coinciding with the inauguration of the Luxembourg – Paris line. This is the start of a beautiful story. That of an airline born in the heart of the Greater Region, and nestled in the cradle of Europe.

On that same year, in addition to Paris, Luxair added two more destinations to its network, Amsterdam and Frankfurt, and enabled around 9,000 passengers to fly from Luxembourg. 60 years later, in 2022, the year of its 60th birthday, the number of annual passengers carried by the airline has exceeded the 2,000,000.

But Luxair is much more than just an airline. It is also a diversity of activities, trades and services that have largely contributed to the excellent reputation of the company. With LuxairTours, LuxairServices (the airport services and catering provider), LuxairCARGO (the air freight handling activity), the company has chosen to move with the times by diversifying into all areas of transport, business, leisure, travel and freight.

Today, thanks to its extensive European network, Luxair offers excellent means of travel, both for business and leisure, and plays an important role in the economic development and connectivity of the Greater Region, this multicultural region which is, more than ever, its catchment area and of which it is emerging as the natural and legitimate “regional carrier”.

Luxair is a proud member of important industry associations such as IATA (International Air Transport Association) and ERA (European Regions Airline Association). As a regional Airliner, Luxair is a committed board member of ERA and contributes actively to the development of the industry and sustainability of regional aviation.

60 YEARS OF LUXAIR FLIGHTS

“I love the thrill of the unexpected and the fact that every day brings something new. There’s nothing quite like the feeling of knowing that you’ve helped make someone’s journey a little bit easier or more enjoyable. Our passengers’ safety, well-being and comfort are always our priorities.“, Nihad, Cabin Crew, Luxair history maker since 2016

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2020

Luxair launched its FlyingIsAnArt concept and marking the beginning of its special liveries on the fuselage of its aircraft, to celebrate travelling in style

2012

1996

The current Cargocenter was inaugurated

1976

The second Cargocenter opened its doors

1977

Luxair continued to expand its fleet and operated its first flights using a Boeing 737-800

2007

After a gradual renewal of its fleet, Luxair acquired three De Havilland Q400

Luxair gained prestige on the European stage with the purchase of its first Boeing – a Boeing 737-200 registered LX-LGH

1964

Luxair added two new holiday destinations to its flight schedule – Nice and Palma de Mallorca

1968

LuxairTours was founded

1961

Luxair Airlines was restructured to become Luxair SA

1962

Luxair started operating flights with the opening of the LuxembourgParis route using a Fokker F27

12 60 YEARS OF LUXAIR FLIGHTS

DISCOVER OUR EXECUTIVE COMMITTEE ON BOARD

Sara Macedo Chief Financial Officer* *From 15 October 2022 Emmanuelle Bourdeau Head of Legal and General Secretary Daniel Colling Accountable Manager Gilles Feith Chief Executive Officer
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Thomas Fischer Chief Commercial Officer

Facing together.

As 2022 began, we found ourselves continuing to grapple with the Covid-19 pandemic. However, within a few months, we overcame the restrictions, allowing us to remove our masks and move forward. Regrettably, as air traffic resumed and passenger numbers returned to normal, new challenges emerged, including rising fuel and energy prices, operational disturbances all over our network and the war in Ukraine. These issues impacted our operations, but financially, 2022 was a substantially better year than 2021 and we succeeded in generating a consolidated operational profit. The recovery of air traffic allowed us to welcome passengers back on board and expand our service to even more destinations. Additionally, 2022 saw the continued enhancement of our services and offerings, all aimed at better serving our customers, partners and employees.

It is important to note that 2022 marked the 60 th anniversary of Luxair’s inaugural flight in 1962, which connected our country to Paris. With over six decades of experience, our unwavering commitment to perfection, optimization, safety, service, and quality remains at the core of our operations. Since its inception in 1961, Luxair has consistently evolved, bolstered by the invaluable contributions of our partners and employees who have shaped our history.

Our journey would not have been the same without the individuals who have made Luxair what it is today. Together, with their dedication and efforts, we have navigated through various challenges and we will continue to face them with confidence. From colleagues who have served Luxair for over 35 years to those who have just embarked on this journey, we have all grown together, both personally and professionally, within this remarkable company.

LETTER FROM GILLES FEITH, CHIEF EXECUTIVE OFFICER
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“Personally I would like to thank all of our customers for their trust in 2022 and all our staff who helped us to get through a challenging year.”,

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Gilles Feith, Chief Executive Officer

Luxair at a glance

After 2020 and 2021 which were marked by severe turbulences, Luxair and the whole aviation industry had to deal in 2022 with emerging challenges, such as the last restrictions due to the Covid-19 situation, the war in Ukraine and the increase of fuel and energy prices.

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Facing new challenges to build the future

Within a few months, Luxair removed the masks and moved forward, allowing air traffic and passenger numbers to return to normality. Compared to 2021, the number of its passengers has even increased but remains slightly below to the 2019 level.

LuxairTours has also increased its passenger numbers, allowing the tour operator to be above the 2019 level.

With the recovery of air traffic, LuxairCARGO is recording a decrease in activity compared to 2021, a year which was marked by a record tonnage of one million tons of cargo handled.

As in 2021, LuxairServices has seen a promising increase in its activities in 2022 with a strong frequentation of Luxembourg airport.

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+/- 995.000 tons slight decrease vs. 2021

Cargo aircraft

6.808 aircraft turnarounds handled by LuxairCARGO teams

Portfolio

90 destinations in total in 30 countries and 3 continents

Network evolution

+25

destinations vs. 2019

Top 5 destinations

Balearic Islands

Canary Islands

France

Portugal Continental Spain Italy

LUXAIR AT A GLANCE LUXAIR AT A GLANCE
Tunisia, 5. Portugal
United Kingdom, 5. Germany
4.
4.
Top 5 destinations 18

Meals served

Passengers transported

+/- 2.280.000

Catering meals served on board our flights

aircraft turnarounds

+/- 2.000.000 of which 42% represent leisure travellers

24.125*

assisted at Luxembourg airport.

*Including all Luxair and LuxairTours flights, other airlines and charter flights

20.683

CO2 emissions

CO2 emissions

275.8k tons

7. 456 number of flights including charter flights number of flights
LUXAIR AT A GLANCE 19

Luxair network map

+8 destinations vs. 2021

London Dublin Bordeaux Paris Lisbon Porto Valencia Madrid Biarritz Montpellier Barcelona Almería Ibiza Funchal Faro Málaga Jerez de la Frontera Agadir Tenerife Las Palmas Lanzarote Fuerteventura Boa Vista Sal São Vicente Dakar

Investing in the future

From the construction of a new building, to more effectively accommodate the fleet and provide a better working environment to staff, to the implementation of trainings and health and safety actions… throughout 2022, many investments were made to pave the way for a brighter future.

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Contributing to the future of the company and its people

In July 2022, Luxair embarked on a significant new project: the construction of a state-of-the-art aircraft Maintenance Hangar, which the company aims to complete by the end of 2023. This development is set to create a better working environment for Luxair’s employees and enhance the company’s ability to welcome new aircraft to its fleet, thereby improving its customer service.

Luxair understands the importance of investing in its employees, and in 2022, the company continued to invest in their professional and personal development, as well as their well-being. This approach acknowledges that investing in the company’s future is also investing in its people.

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First step towards the future.

On 14 July 2022, Luxair and lux-Airport laid together the foundation stone of the new Luxair Maintenance Hangar allowing the airline to operate soon in a new maintenance facility, after 70 years of using the Hangar Nennig. Built in 1952, the current Luxair Maintenance Hangar, which is today also a protected historical monument, has ever since been Luxair’s center for safe aviation.

In the presence of Deputy Prime Minister and Minister for Mobility and Public Works, Mr. François Bausch, Mayor of Sandweiler, Mrs. Simone Massard-Stitz, CEO of Luxair Gilles Feith and CEO of lux-Airport Alexander Flassak, this memorable act of laying the foundation stone marked the effective launch of a major project, the new and modern aircraft maintenance hangar, the completion of which is planned for end of 2023. This event also symbolized a first step towards the future of Luxair who will consolidate its logistics and resources. Indeed, this milestone in the history of the company will allow to create a good working environment for its staff and better serve its customers by being able to welcome new aircraft to its fleet.

Upon completion in 2023 and thanks to sufficient storage space, the new building will be able to accommodate up to 3 Boeing 737 at the same time, as well as Luxair’s potential future aircraft types.

To mark this special day, the laying of the foundation stone was followed by the integration of a time capsule into the building wall. The capsule was filled with: a letter to the future, a plan of the old Maintenance Hangar Nennig, some Euro coins with Luxembourg minting, a newspaper dated 14.07.2022, a piece of the old runway that served for more than half a century, a Luxair Boeing 737-800 aircraft model, a small hydraulic filter of a De Havilland Q400 and a few concrete parts from the current Hangar Nennig.

3 facts new Maintenance Hangar Luxair:

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Architect:

Pit Hoffmann from cubus architectes S.à.r.l

Measures of the building:

110m x 100m, max. Height 22m

Aircraft type hosting:

Boeing 737, De Havilland Q400

Three aircraft at the same time maximum

INVESTING IN THE FUTURE
© Luxair - Computer-generated image.
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De Havilland Q400

76 seats speed 667 km/h range 1,500 km

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141 seats speed 853 km/h range 4,600 km

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186 seats speed 853 km/h range 4,050 km

LUXAIR’S FLEET
Let yourself be transported on board our fleet
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Boeing 737-700 Boeing 737-800

Luxair invests in the future of its faces Luxair understands that to invest in its future is to invest in its people. The company recognizes that its employees are the cornerstone of its success and therefore, investing in their growth, development and well-being is a fundamental component of its philosophy.

This commitment to its workforce was on full display in 2022 when Luxair’s dedication to training hit new heights, surpassing even the pre-Covid-19 era of 2019. The group’s training hours increased by a remarkable 28% compared to 2021, with cabin crews and pilots benefiting from a 34% increase in training hours.

Luxair’s training programs are designed to meet the needs of both newcomers and seasoned professionals, providing comprehensive training to enhance skills and facilitate career progression. Additionally, Luxair offers linguistic lessons to its staff, including the opportunity to learn Luxembourgish. This dedication to personal and professional growth is a testament to Luxair’s commitment to excellence.

In 2022, Luxair welcomed 80 new cabin crew and 20 pilots into the Luxair family, bolstering its flight operations. Meanwhile, experienced

cabin crew members were promoted to Senior Cabin Crew positions, reinforcing the company’s commitment to nurturing internal talent. Seasonal hires were also made to support operations during peak season, ensuring that ground handling, technical personnel, and passenger assistance teams had sufficient support.

But investing in people also means investing in their health and well-being by taking care of their working environment. To this end, the company launched multiple internal health and safety campaigns throughout the year, aimed at reducing work-related accidents. These campaigns included open and honest communication on the number of accidents at work and sharing best practices to avoid them.

As of November, Luxair changed its regulations on circulation in the internal parking area of the Cargocenter, based on a comprehensive risk assessment. These regulations mandate the wearing of high-visibility clothing for all pedestrians at all times, prohibit the use of electronic devices while walking or driving, and restrict smoking to designated areas. These measures contribute significantly to preventing accidents, ensuring that Luxair’s employees have a safe working environment

INVESTING IN THE FUTURE
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“I take pride in being responsible for the safety and reliability of our aircraft and satisfaction in knowing that my work directly contributes to their safe and efficient operation all while keeping our passengers and crew safe in the air. This is what I always dreamed of doing.“,

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Maggy, Junior Aircraft Technician, Luxair history maker since 2018
THE HISTORY MAKERS OF LUXAIR 25%
members 75% People who make up Luxair. Management Flight Crew Ground Staff Apprentices 18%* 51% 20% 20% 82% 49% 80% 80% Distribution
amount of women in the Top Management has increasesed from 9 to 24% between 2021 and 2022. Permanent contracts 2.907 Fixed-term contracts 197 Apprenticeships 10 Interships 4 28
3.118 Active staff
*The

Average age

of residence

Seniority

LU
52,4% Country
Nationalities (around 60 nationalities in total)
FR 32% 0-4 years <20 4-9 years 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 10-14 years 15-19 years 20-24 years 25-29 years 30-34 years 35-39 years 33% 0,4% 19% 5,6% 8% 12% 13% 11,3% 17% 13,5% 7% 15,8% 3% 17,4% 1% 17,1% 6,4% 0,5% LU 25,7% BE 4,4% PT 19% OTHER 9,5% FR 33,1% DE 8,3% DE 11,5% BE 3,7% OTHER 0,4% 29 THE HISTORY MAKERS OF LUXAIR

Luxair’s journey towards carbon neutrality

A new journey towards carbon neutrality by 2050 has begun for Luxair. Aware of its responsibility towards the environment, Luxair aspires to develop a more sustainable policy, with respect to the world in which we live.

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Decarbonising aviation by 2050

Increasingly, decarbonisation by 2050 is becoming a major challenge for the main players in the aviation industry. That is why Luxair’s teams are working hand in hand to ensure that the airline’s operations are more sustainable while continuing to offer its customers more flights to destinations in Europe and beyond.

Indeed, in 2022, Luxair continued towards this regard, both externally and internally. From its promise to gradually reducing its footprint, to the implementation of measures internally to reduce energy consumption… Luxair continued to prove its sustainable investment for the future.

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Let’s build a greener future.

In 2022, Luxair continued its journey towards carbon neutrality to operate and promote greener and environmentally friendly air connectivity. In this respect, the airline reaffirmed its commitment to decarbonise aviation by 2050 with the signature, as a member of ERA (European Regions Airline Association) of the “Toulouse Declaration” on the future sustainability and decarbonisation of aviation. Held in Toulouse in February 2022, the Aviation Summit brought together major aviation players such as ERA, which defends the interests of intra-European airlines.

Conscious of the impact of its activities on the environment, Luxair joined the signatories in reaffirming its support for the promise “Net-Zero carbon emissions by 2050”, submitted by IATA (International Air Transport Association) in October 2021, in particular by gradually reducing its CO2 emissions. A main objective that the airline has not overlooked, since a few months later a new scheme to start achieving this goal was introduced.

Indeed, Luxair, for which social and environmental responsibility is a major principle, introduced on 31 May 2022 a new “carbon offset” programme for business class flights and flights in Excellence packages booked with LuxairTours, for which, the airline has already purchased the carbon credits necessary to offset the CO2 emissions, since 27 March 2022. This new programme is part of a global approach to reduce the airline’s environmental footprint through numerous actions such as the progressive renewal of its fleet, the continuous optimisation of its flight operations or the reduction of single-use plastic on board its flights.

This compensation takes the form of a contribution by Luxair to projects certified by Verra - VCS and the United Nations Framework Convention on Climate Change (UNFCCC), aiming at developing sustainable forest management, renewable energy and improving the living conditions of local communities.

All chosen projects support UN sustainable development goals. Find out the Luxair certified projects on the dedicated page: www.luxair.lu/CO2

LUXAIR’S JOURNEY
TOWARDS CARBON NEUTRALITY
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“Having been part of the development of LuxairCARGO from a 100.000 tons to over 1.000.000 tons operation per year with a service quality highly recognized by our customers, makes me so proud of the achievements of our committed teams here at the Cargocenter.“,

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Antoine, VP LuxairCARGO, Luxair history maker since 1987

Going beyond environmental standards.

Following the measures announced by the Luxembourg government during 2022 to reduce gas consumption by at least 15% between August 2022 and March 2023, Luxair, as a socially responsible company, also committed to continue its efforts in this direction, in all of its buildings.

As of the end of September 2022, Luxair put in place a series of actions based on energy reduction in terms of heating and electricity with the implementation of new measures and instructions.

3 measures in favour of reduction of energy consumption in Luxair buildings:

Lowering of temperature

In the offices, the ambient temperature has been reduced to a maximum of 20°C when technically possible. During weekends, the temperature has been lowered to 18°C in the offices that are not occupied.

In the Cargocenter warehouse, the Maintenance Hangar and the Garage a drop of 1 to 2°C has been applied.

To achieve these measures, Luxair can count on its Environment Coordinators in charge of all the issues related to climate change but, reducing energy consumption is a collective effort, and as such the company also aims in making its employees aware of the challenges of the future.

Considerable efforts will be made in this area over the coming years to enable the company to operate and fly more responsibly and with respect to the world in which we live.

Introduction of the Meat free Monday

As animal agriculture creates large amounts of harmful greenhouse gases and depletes valuable resources, land, water and energy, Luxair has also implemented the “Meat free Monday” concept in the company’s two canteens, at the Cargocenter and in Munsbach.

Reduction of lighting

The interior and exterior lighting of Luxair buildings are limited to the minimum necessary and depending on the use of the buildings, the illuminated signs are turned off at night.

1 3
2 34 LUXAIR’S JOURNEY
NEUTRALITY
TOWARDS CARBON

LuxairCARGO earns its 2nd Lean & Green star Luxair’s journey towards carbon neutrality goes even further and involves the whole company. In November 2022, LuxairCARGO, which specializes in air cargo handling services at the Cargocenter, was awarded its second Lean & Green star, thanks to the additional 30% reduction in its CO2 consumption, achieved in 3 years.

Indeed, LuxairCARGO joined the Lean & Green movement in 2012, and received its very first star in 2017, when a reduction of 33.3% was achieved in five years. With the objective of operating in a sustainable way, LuxairCARGO’s teams aim for a third star within a maximum of two additional years by trying to even further reduce their consumption by an 35%.

Purchase of two new highloaders

In order to achieve the promise of “Net-Zero carbon emissions by 2050” supported by Luxair, LuxairCARGO also purchased two new highloaders allowing the business unit to operate a more enviromental friendly air cargo handling with a CO2 saving of 53,655kgs per year and per engine. Thanks to this purchase, LuxairCARGO is working on the implementation of a more sustainable solution for lifting cargo pallets on aircraft main deck level than the previously used diesel equipment.

Indeed, cargo pallets are brought to the aircraft by pallet transporters and then need to be lifted on the level of the main deck in order to be loaded in the aircraft. This lifting is done by highloaders consisting of 2 plateforms.

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LUXAIR’S JOURNEY TOWARDS CARBON NEUTRALITY

Taking care and being inclusive

Luxair values diversity, by creating and continuing a culture of awareness, respect and inclusiveness, among its employees, customers, passengers and partners.

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Pink October: Luxair turns blue into pink

On 28 September 2022 and on the occasion of Breast Cancer Awareness Month, Luxair dressed up in pink to show its support to this cause by joining forces with Luxembourg artist Lisa Junius and the Think Pink charity organisation, which supports women with breast cancer in Luxembourg.

Its De Havilland Q400 aircraft, registered LX-LQJ, covered in shades of pink and symbolizing, on its fuselage and inside the cabin, a calm and strong female figurehead addressed the strong message of support and awareness that the airline wishes to spread throughout Europe and wherever this aircraft flies.

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Awareness, inclusiveness and well-being.

Inclusiveness is essential for Luxair.

Inclusiveness can be found at all levels of the company, through a series of diversity, awareness and well-being actions, which prove it to be a fact, internally and externally.

Raising awareness, turning blue into pink

Throughout its over 60 years of history, Luxair has been working alongside organisations in favour of social causes, particularly dear to its heart (Femmes en détresse, Rosa Lëtzebuerg, etc.). This is why the airline wished in 2022, through its new livery and other internal and external actions, to promote premature breast cancer early detection and screening. On this occasion, Luxair chose to partner up with Think Pink, a Luxembourg charity organisation founded in 2009 and to offer its employees free awareness-raising webinars about self-screening.

Lisa Junius, a multidisciplinary artist who works in all kinds of media and highlights women’s art, also partnered up with Luxair

and Think Pink to promote the cause. Just as Luxair, the artist herself also has the particularity of dressing all her creations in blue.

For the occasion and in order to raise public awareness on this cause, Luxair and Lisa Junius have temporarily changed their identities from blue to pink. As a reminder, this is the third time since the creation of the airline that Luxair has lent its most precious asset: its brand and its colors.

Reiterating support

In July 2022, more than 20 Luxair employees gathered on the Luxair float, specially built internally by talented employees from Luxair’s Building & Facilities department, for the Luxembourg Pride 2022. Luxair joined for one more year its voice to the Rosa Lëtzebuerg association and reiterated its support to the LGBTIQ+ community all while promoting two of the fundamental for Luxair values to be protected, inclusiveness and freedom of expression of one’s true personality and identity.

TAKING CARE AND BEING INCLUSIVE

“My job is all about providing a warm and welcoming experience for passengers as they begin their journey. I feel a great sense of responsibility to ensure that every passenger has a positive and stress-free experience from the moment they step up to the check-in counter.“, Mickel, Senior Check-In Agent, Luxair history maker since 2018

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Choosing the career desired

With over 250 different jobs represented at the Cargocenter, in Munsbach, at the Maintenance, at the Catering and at the airport, Luxair offers every woman the possibility to choose the job she aspires.

On the occasion of the International Women’s Day in 2022, decided to showcase through an internal and external campaign, portraits of women working within the company who have chosen to evolve in the field they wish and make a career out of it.

These women “protect us”, by advising and negotiating; “lend us a hand”, by welcoming, informing and ensuring; “delight us”, by developing culinary delicacies; “connect us”, by preparing and moving goods; “make us fly”, by transporting in safety and comfort; and “give us wings”, by checking, repairing and preparing.

Ensuring welfare

Luxair strives to ensure the welfare of its over 3000 employees, from over 58 different nationalities, who work together on a daily basis, while promoting health habits, balanced diets and health and safety at work issues.

To this end, the company has implemented numerous programs and actions throughout the year to foster employee well-being. Fitness classes are offered by employees to employees several times per week and for those who are unable to attend these or prefer to work out individually, discounts at sports complexes are also proposed.

Well-being is also translated by healthy dietary patterns through nutritious choices. This is why, in 2022, the company even further developed its internal catering offer by making sure to propose healthy homemade meals to its staff. By the end of summer 2022, Luxair put in place lockers in its buildings in which staff members did not have access to internal canteens. Following an online order, the Catering division of the company, guarantees daily delivery of a wide range of hot and cold meals, allowing everyone to have access to homemade delicacies.

TAKING CARE AND BEING INCLUSIVE 40

“Cooking is all about the love of the product, the pleasure of providing a culinary experience to bring a little more comfort and happiness to our passengers with delicious products and recipes.“, Steven, Chef, Luxair history maker since 2022

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Giving back to community

Despite the turbulence encountered by the aviation and tourism industry in recent years, Luxair, for whom social responsibility is a fundamental value, does not forget those in need.

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Lending a helping hand to those in need

Luxair has always been and will continue to be a responsible member of society by engaging in various initiatives to give back to the community. The company’s vision has always prioritized providing support to those in need.

In 2022, Luxair implemented multiple actions ranging from helping to combat cancer, to supporting the local community

and helping children who are victims of unforeseen circumstances, while recognizing the significance of supporting its employees’ initiatives to bring joy to those who require it.

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Since its creation, Luxair has not ceased to mobilize for people in need.

Supporting those in need has always been part of Luxair’s journey. Since its birth in 1961, the national airline of Luxembourg has not ceased to mobilize to help people in need. In 2022, even if the turbulence caused by the pandemic in its industry was not yet behind it, Luxair did not forget its values. From Télévie to UNICEF, to LUkraine (Ukrainian Community in Luxembourg) and to the support of the initiatives of its collaborators, a multitude of actions have been implemented, calling on the generosity of its employees, its customers and valued passengers.

Luxair x Télévie: Fighting cancer

Through the year, Luxair supported Télévie and organized various fundraising activities. The first one consisted in the design of a limited “capsule” collection Spread the love created by the artist Sumo, sold exclusively for the occasion and the profits from the sale of which were donated in full to the cause.

Other special internal and external actions, such as the organization of a charity football tournament to raise as many funds as possible, allowed the Télévie charity operation to support scientific research in the fight against cancer and leukemia, in children and adults, so that life can prevail over disease. By working together with Télévie, the airline demonstrated its commitment to making a positive impact on the world and improving the lives of those in need.

Emergency support for children in Ukraine

Alongside partners such as UNICEF and LUkraine, Luxair provided safe drinking water, healthcare, education and protection for children and families in need in Ukraine. The airline also allowed the initiative of one of its employees to see the light of day by organizing internally a collection of products and food that were transported to the Polish-Ukrainian border by volunteers, Luxair employees who have shown great solidarity, using two Luxair vans.

GIVING BACK TO COMMUNITY
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“I am really thankful to be part of this adventure, I love seeing children’s faces light up and the smiles drawn on my animators. It’s rewarding to know that I have contributed to their happiness and an honour to know that we have created unforgettable memories.“,

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Déborah, Responsible-Coach Animation LUXiClub, Luxair history maker since 2019

Bringing smiles to children

Proving, once again, that social responsibility is a value that is dear to its heart, Luxair pursues its commitment to help those in need in Luxembourg and beyond by supporting a beautiful initiative in favour of education of children in Tunisia. On the occasion of a flight to Djerba during summer 2022, Luxair had the pleasure to provide two suitcases free of charge to the organizer of this initiative so that the children could benefit from clothes, toys and chocolates.

As the airline always encourages initiatives from its employees, Luxair also supported in December 2022 the humanitarian travel organized by of one of its employees to Beni Bouayach, a small town in the North East of Morocco, on board a bus called the “Autocoeur” which belongs to Le “Convoi du Coeur” (a charity organisation the employee founded). As it would have been a shame to drive from Luxembourg to Morocco with an empty bus, the Luxair family mobilized to collect products in favour of children, such as warm clothes, toys, school supplies or hygiene products. A great charity action supported by the whole company in the run-up to the festive season.

As the national air carrier of the Grand Duchy of Luxembourg and as the creator of links between communities, Luxair contributed to the transport of young people from the Académie Génération Foot and from the FC Metz to Dakar in Senegal, through the project “Un ballon qui rassemble” of which it is sponsor. In this way, Luxair not only contributed to the transport of these young people and their accompanying persons, but also enabled young children to discover a new culture and continue to develop the values that will make them the world citizens of tomorrow.

Fulfilling the wishes and dreams of the passengers is a passion at Luxair. This is why, on 7 February 2022, on board Luxair flight LG9001 to Dubai, the crew members gave a warm welcome to a 7 year old boy, Leo, passionate about aviation. Indeed, since he was 3 years old, the little boy has been fascinated by airplanes and has watched them take off and land at Findel airport. During his first flight to Dubai, he was able to meet the Captain and visit the cockpit.

For a memorable flight and to mark this occasion, Leo also received a first flight certificate signed by the Captain, the first Officer and the Senior Cabin Crew.

GIVING BACK TO COMMUNITY 46

Raising heart beat for the good cause Luxair’s commitment to supporting breast cancer awareness was evident through various initiatives, including turning the livery of one of its aircraft to pink, in collaboration with Think Pink and Lisa Junius, though this was only one aspect of its dedication to the cause. With over 2 million women affected by breast cancer worldwide, Luxair aimed to go even beyond in its partnership with the association to help fundraise for research.

Luxair provided its staff with webinars created by Think Pink, allowing them to learn more about self-screening for breast cancer, the day-to-day reality of living with cancer and how to support loved ones affected by the disease. And to even further show commitment, Luxair invited its staff members to participate in the Race for the Cure.

In October 2022, the Race for the Cure 2022 took place in Echternach, in Luxembourg, offering participants a choice between a 6km run and a 3km walk. The event was open to

everyone, with no pressure to compete for the fastest time. The true victory was participation, with all registration fees going towards breast cancer research, which Luxair paid for its staff members, their children and partners who participated in the event.

Collaborating for a major cause, numerous staff members, added to the hundreds of other participants, joined to run or walk together in pink to support breast cancer research, while enjoying a beautiful day and raising their heartbeats.

Race for the Cure is a European collaboration supporting breast cancer projects at a worldwide level. Additionally, a support group has been established in Luxembourg to assist those suffering from cancer in the country, while also supporting specific research projects through the Luxembourg Institute of Health.

GIVING BACK TO COMMUNITY 47

Adapting and improving

In a fast-paced and dynamic business environment, Luxair constantly improves its services to meet customer needs and satisfaction and fulfill their ever-changing expectations.

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Unparalleled service provider

Luxair constantly strives to provide unparalleled travel experience to its customers, cementing its position as a customer-centric airline.

In 2022, new destinations to its network were added, to expand its reach and provide even more travel options to its customers, paired

to the introduction of a new loyalty program, to reward its frequent flyers with exclusive benefits and perks.

To further improve the on-board experience, Luxair also invested in its inflight services, with upgraded amenities and enhanced entertainment options.

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Focusing on continuous development, with a priority placed on constant evolution.

Luxair responded to the flourishing demand from its passengers by revitalizing and reimagining multiple facets of the customer experience, spanning from the moment of booking to the journey and adventure itself, encompassing airport arrival, inflight ambience and destination exploration, until the return trip home. 2022 brought an abundance of fresh and innovative concepts…

Optimisation of frequencies

In 2022, Luxair and LuxairTours went, once again, above and beyond to cater to their customers despite the ongoing Covid-19 pandemic, introducing a range of exciting new additions to their flight schedules for the year, bringing the total number of destinations, for the first time of their history, to 90.

Notably, the airline increased its frequencies to London to offer up to seven daily rotations, making it easier than ever to explore the city with unparalleled levels of service.

Meanwhile, the introduction of Dakar, in Senegal, as an exotic destination over Easter proved a huge success, with four flights on offer and a choice of four hotels.

Luxair and LuxairTours continued their development throughout the year, offering more flexibility to customers looking for weekend getaways and winter sun, and introducing new destinations such as Prague, Sylt, Valencia and Marsa Alam Bordeaux was also reintroduced into the airline’s portfolio, with additional flights for the Christmas period.

With such an array of inspiriting options, Luxair and LuxairTours continue to prioritize maintaining mobility and connectivity for their customers, making travel dreams a reality even amidst challenging times.

On-board comfort and convenience

From the moment passengers step onto their Luxair flight, they are greeted with warm smiles from the friendly and attentive cabin crew, who ensure their safety, comfort and enjoyable journey. Luxair offers a range of inflight services, from complimentary food and beverages to a variety of entertainment options.

But Luxair’s commitment to customer satisfaction doesn’t stop there - in fact, the airline is always looking for ways to exceed expectations. In 2022, Luxair took their on-board experience to the next level. For instance, to provide an even better Business Class experience, the LX-LBA aircraft was reconfigured with luxurious seats, offering maximum comfort and relaxation, especially on long haul flights like the Dubai route.

ADAPTING AND IMPROVING
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“Being in direct contact with the aircraft during rotations, to guarantee that the aircraft departs on time, safely and efficiently so that passengers can get to their destination with peace of mind, is a real daily challenge and a dream come true for the true aviation enthusiast that I am.“,

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Anne-Sophie,Turn around coordinator, Luxair history maker since 2018

And for entertainment, Luxair launched a new Inflight Entertainment platform in July 2022, featuring a wide range of free audio-visual content for all ages, including movies, news, sitcoms, cartoons, games, and Luxair brochures, accessible on smartphones, tablets, and laptops.

Additionally, since September 2022, customers have been able to choose from a selection of Luxembourgish delicacies, immersing themselves in the culinary traditions of the country. This 3-course menu showcases the flavors of Luxembourg’s soil, and is sure to delight the taste buds.

Dreamlike holidays on all levels

LuxairTours rimes with exceptional service and unforgettable vacation experiences. Whether looking for a meticulously planned trip or a last-minute break, LuxairTours offers an array of inspirations and services to ensure a smooth and serene journey from start to finish. With the continuation of the free modification policy up to 14 days before departure, LuxairTours ensures the flexibility of changing plans without worries.

The brochures have been revamped to reflect the company’s commitment to excellence with more streamlined covers and hotels segmented according to the type of traveller or vacation desired, making it even easier to select the perfect destination. Moreover, the hotels’ top features are displayed prominently at the top of each page to make the decisionmaking process even easier.

The Excellence offer has also been expanded to include 62 luxurious and elegant hotels that offer exceptional levels of service, top-quality facilities, and sumptuous surroundings.

Furthermore, LuxairTours has extended its gift card redemption possibilities to include LuxairTours destinations and packages, making it the perfect gift for any occasion to create unforgettable memories. LuxairTours strives to provide the best possible vacation experience, and its commitment to excellence is evident in every detail.

ADAPTING AND IMPROVING 52

Rewarding trust

Luxair is always eager to thank and reward its most loyal customers and to adapt to changes in its sector, while meeting customers’ expectations. And in 2022, Luxair once again lived up to its reputation by introducing two innovative solutions to even further enhance customer satisfaction.

One of the ways Luxair achieved this was by launching its very first loyalty program, the 4=1 free by Luxair program. This program is a testament to the airline’s unwavering dedication to its most loyal customers. All Luxair and LuxairTours destinations were covered and the program was entirely free.

To join the program, customers only needed to activate it on their MyLuxair account. Every booking up to a certain date, was added to their program timeline. Four bookings later, customers were rewarded with a gift voucher for a free fifth flight ticket!

Additionally, Luxair also launched the Luxair PRO program in 2022, designed to meet the needs of small and medium-sized businesses. With Luxair PRO, the more you travel, the more you earn. When businesses choose Luxair for their travel needs, they are quickly rewarded. As soon as their expenses reach a certain amount, the rewards start pouring in. From flight discount vouchers to free fast lane access, business lounge vouchers, free changes, free tickets, and even financial rewards, Luxair PRO offers a comprehensive range of benefits to businesses.

Luxair’s innovative approach to customer satisfaction is commendable. By adapting to changes in the industry while consistently meeting customer expectations, Luxair shows its commitment to innovation and customer satisfaction.

ADAPTING AND IMPROVING 53

Financial performance

Despite an economic environment marked by general price increases, 2022 was the year of post-covid recovery.

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Improvement of performance

Luxair closed its fiscal year 2022 with a significant increase in revenues compared to 2021. In view of the difficult geopolitical context and the economic evolution of the post-covid industry, Luxair’s business performance has led the company to a negative operating result but much less than in 2021.

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Consolidated assets

FINANCIAL PERFORMANCE
Consolidated assets Luxair (expressed in euros) 2022 2021 A. Subscribed capital unpaid 0 0 I. Subscribed capital not called 0 0 II. Subscribed capital called but not paid 0 0 Goodwill of first consolidation 0 0 B. Formation expenses 0 0 C. Fixed assets 1.564.713.239 1.119.401.402 I. Intangible assets 23.273 46.046 1. Costs of research and development 0 2. Concessions, patents, licences and similar rights and assets if they were trade marks 23.273 46.046 a. acquired for valuable consideration and need not to be shown under C.I.3 23.273 46.046 b. created by the undertaking itself 0 0 3. Goodwill, to the extend that it was acquired for valuable consideration 0 0 4. Payments on account and intangible fixed assets under development 0 0 II. Tangible assets 157.430.214 183.928.517 1. Land and buildings 22.582.039 24.860.552 2. Plant and machinery 128.936.732 153.193.033 3. Other fixtures and fittings, tools and equiment 5.794.957 5.873.033 4. Payments on account and tangible assets in course of construction 116.486 1.899 III. Financial assets 1.407.259.752 935.426.839 1. Shares in affiliated undertakings 0 0 2. Loans to affiliated undertakings 0 0 3. Shares in undertakings with which the company is linked by virtue of participating interests 1.399.433.500 927.274.888 4. Loans to undertakings with which the company is linked by virtue of participating interests 7.476.317 7.799.052 5. Investments held as fixed assets 137.801 137.801 6. Loans and claims held as fixed assets 212.134 215.098 56
Consolidated assets Luxair (expressed in euros) 2022 2021 D. Current assets 260.429.241 186.247.330 I. Stocks 1.367.590 1.179.858 1. Raw materials and consumables 1.105.560 928.060 2. Work and contracts in progress 0 0 3. Finished goods and goods for resale 262.030 251.798 4. Payments on account 0 0 II. Debtors 38.260.898 40.392.052 1. Trade debtors 23.307.149 21.774.390 a. becoming due and payable after less than one year 23.307.149 21.774.390 b. becoming due and payable after more than one year 0 0 2. Amounts owned by affiliated undertakings 0 0 a. becoming due and payable after less than one year 0 0 b. becoming due and payable after more than one year 0 0 3. Amounts owned by affiliated undertakings with which the company is linked by virtue of participating interests 6.342.822 7.557.750 a. becoming due and payable after less than one year 6.342.822 7.557.750 b. becoming due and payable after more than one year 0 0 4. Other debtors 8.610.927 11.059.912 a. becoming due and payable after less than one year 8.610.927 11.059.912 b. becoming due and payable after more than one year 0 0 III. Securities and other financial instruments 30.137.653 65.474.241 1. Shares in affiliated undertakings and in undertakings with which the company is linked by virtue of participating interests 0 0 2. Own shares or own corporate units 4.713.596 4.713.596 3. Other investments 25.424.057 60.760.645 IV. Cash at bank and in hand 190.663.100 79.201.179 E. Prepayments 7.653.575 6.402.624 Total (Assets) 1.832.796.055 1.312.051.356 57 FINANCIAL PERFORMANCE

Consolidated liabilities

Consolidated liabilities Luxair (expressed in euros) 2022 2021 A. Capital and reserves 1.519.347.267 979.412.848 I. Subscribed capital 13.750.000 13.750.000 II. Shared premium and similar premiums 0 0 III. Revaluation reserves 0 0 IV. Reserves 1.039.373.058 694.744.773 1. Legal reserve 1.375.000 1.375.000 2. Reserve for own shares 4.713.596 4.713.596 3. Reserve provided for by the articles of association 0 0 4. Other reserves 320.403.194 320.403.194 a. other available reserves 251.371.019 246.371.019 b. other non available reserves 69.032.175 74.032.175 5. Consolidated reserve 703.930.085 359.301.800 6. Negative goodwill 8.951.183 8.951.183 V. Profit or loss brought forward -131.121.287 -128.807.775 VI. Result for the financial year 493.668.202 337.812.948 VII. Interim dividends 0 0 VIII. Investment subsides 0 0 IX. Currency translation reserve 103.677.294 61.912.902 B. Provisions 174.658.941 153.919.776 1. Provisions for pensions and similar obligations 1.777.608 1.800.726 2. Provisions for taxation 0 0 3. Other provisions 172.881.333 152.119.050 C. Non subordinated debts 108.762.537 156.493.692 1. Debenture loans 0 0 a. Convertible loans 0 0 i. becoming due and payable after less than one year 0 0 ii. becoming due and payable after more than one year 0 0 b. Non convertible loans 0 0 i. becoming due and payable after less than one year 0 0 ii. becoming due and payable after more than one year 0 0 58 FINANCIAL PERFORMANCE
Consolidated liabilities Luxair (expressed in euros) 2022 2021 2. Amounts owned to credit institutions 1.603.674 59.531.693 a. becoming due and payable after less than one year 1.387.069 9.005.269 b. becoming due and payable after more than one year 216.605 50.526.424 3. Payments received on account of orders in so far they are not shown separately as deductible from stocks 11.534.832 6.507.529 a. becoming due and payable after less than one year 11.534.832 6.507.529 b. becoming due and payable after more than one year 0 0 4. Trade creditors 70.436.799 62.842.094 a. becoming due and payable after less than one year 70.436.799 62.842.094 b. becoming due and payable after more than one year 0 0 5. Bills of exchange payable 0 0 a. becoming due and payable after less than one year 0 0 b. becoming due and payable after more than one year 0 0 6. Amounts owned to affiliated undertakings 0 0 a. becoming due and payable after less than one year 0 0 b. becoming due and payable after more than one year 0 0 7. Amounts owned to undertakings with which the company is linked by virtue of participating interests 659.687 159.120 a. becoming due and payable after less than one year 659.687 159.120 b. becoming due and payable after more than one year 0 0 8. Other creditors 24.527.545 27.453.256 a. Tax 6.996.035 6.654.879 b. Social security 6.252.979 6.896.742 c. Other debts 11.278.531 13.901.635 i. becoming due and payable after less than one year 11.278.531 13.901.635 ii. becoming due and payable after more than one year 0 0 D. Deferred income 30.027.310 22.225.040 Total (Liabilities) 1.832.796.055 1.312.051.356 59 FINANCIAL PERFORMANCE

Consolidated income statement

Consolidated income statement 2022 2021 1. Net turnover 683.085.717 457.452.481 2. Change in inventories of finished goods and of work and contracts in progress 0 0 3. Fixed assets under development 0 0 4. Other operating income 59.910.197 36.341.474 5. Raw materials and consumables and other operating charges 504.428.443 302.227.034 a. Raw materials and consumables 113.717.097 49.468.705 b. Other operating charges 390.711.346 252.758.329 6. Staff costs 186.948.792 169.885.152 a. Wages and salaries 158.767.344 144.122.323 b. Social security costs 24.799.314 22.536.845 i. Social security costs related to pensions 13.091.660 12.386.125 ii. Other social security costs 11.707.654 10.150.720 c. Other staff costs 3.382.134 3.225.984 7. Value adjustments 34.489.031 30.976.018 a. on formation expenses and on tangible and intangible fixed assets 34.441.831 37.434.650 b. on elements of current assets 47.200 -6.458.632 8. Other operating charges 15.594.394 21.393.117 9. Income from financial fixed assets 0 0 a. derived from affiliated undertakings 0 0 b. other income from participating interests 0 0 10. Income from financial current assets 568.186 515.299 a. derived from affiliated undertakings 0 0 b. other income 568.186 515.299 11. Other income and other financial income 7.297.189 3.707.426 a. derived from affiliated undertakings 0 0 b. other interest receivable and similar income 7.297.189 3.707.426 12. Share of corporate losses in equity 493.399.479 367.645.235 13. Value adjustments and fair value adjustments on financial fixed assets 2.067.927 290.179 14. Interest payable and similar charges 6.693.272 3.158.174 a. concerning affiliated undertaking 0 0 b. other interests and similar charges 6.693.272 3.158.174 15. Tax on profit or loss -1.383 -132.269 16. Profit before tax 494.040.292 337.864.510 17. Other taxes not included in the previous caption 372.090 51.562 18. Profit for the financial year 493.668.202 337.812.948
60 FINANCIAL PERFORMANCE

Financial summary at a glance

61 Financial Summary (company accounts, not consolidated) 2022 2021 2020 Turnover (thousand €) 683.086 457.452 263.134 Operating result (thousand €) -711 -33.719 -159.787 Net result (thousand €) 67.172 -2.314 -154.903 Balance sheet total (thousand €) 596.113 510.658 455.697 Capital & reserves (thousand €) 276.292 209.121 211.434 Financial Summary (consolidated accounts) 2022 2021 2020 Turnover (thousand €) 683.086 457.452 263.105 Operating result (thousand €) 1.535 -30.687 -151.907 Net result (thousand €) 493.668 337.813 78.143 Balance sheet total (thousand €) 1.832.796 1.312.051 847.755 Capital & reserves (thousand €) 1.519.347 979.413 581.225 FINANCIAL PERFORMANCE

THIS ANNUAL REPORT HAS BEEN DEVELOPED INHOUSE

Publisher Luxair S.A.

Thank you to all of Luxair history makers and to those in this report

Anne Dieudonné

Anne-Sophie Beck

Antoine Decker

Déborah Labreveux

Maggy Vaz Gomes

Mickel Spinelli

Nihad Jasarovic

Steven Da Silva

Photos by Fabio Cordeiro Mendes (Luxair staff)

Luca Lombardelli

Niclas Karich

Pit Rhein

Steve Rayyan Mack

This annual report was edited and designed by Luxair staff

Lydia Schneider, Communication Specialist

Mélodie Feugère, Communication Specialist

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