Ladies and gentlemen, shareholders of Deutsche Lufthansa. I would like to open the 65th AGM of Deutsche Lufthansa, and I would also like to welcome the shareholders, the guests, and the representatives of media. I am very happy that so many of you have come despite the very good weather. We have a lot of registrations, and I cannot exclude that more people will enter this hall. In this case, please move to each other so that everybody finds room in this very hall. The invitation for today's AGM was published in the Federal Gazette on the 23rd of March of 2018. It includes the agenda, the proposals of management, the resolution, and other items. I would like to welcome all members of the executive board and also of the supervisory board and the honorary chairman, Herr Weber.
Mr. Kersten von Schenck, our notary public, certifies the minutes of this AGM. You have got quite a lot of information at the accreditation points, and here you can find a lot of information. It is a special pleasure for me to make you listen to the gong, which I have to use when I call you for the voting procedures. It sounds like this. I ask you to take into consideration that my oral explanations or other information will enjoy priority. This time, we won't have any blocks for the voting papers, but you got a special card for the AGM. Please don't lose it. This year, we are going to vote with the aid of these cards, and therefore, I would like to make yourself familiar with the voting procedures.
In case you want to leave the AGM prematurely, please have in mind the information on the back of your card, and if you want to actually have somebody who will be your deputy. We have a number of items on the agenda. If there are any countermotions, please enter your request for the floor. Please use the forms at the table on the left-hand side of where you sit, and if you have actually announced this already, you have to also do this in writing. I now come to item 1 on the agenda.
Item number 1, presentation of the adopted annual financial statements, the approved consolidated financial statements, the combined management report for the company and for the group, the report of the supervisory board, including the explanatory report of the executive board on the statements pursuant to Sections 289a and 315a of the German Commercial Code for each financial year. In accordance with your vote, the supervisory board commissioned PricewaterhouseCoopers with the audit of the annual accounts of the group on annual accounts of Deutsche Lufthansa AG, the summary accounts, and the management report as per 31st December 2017, as well as the system for the early identification of risks. The auditors submitted their declaration of independence to the supervisory board. Subsequently, the priorities of the auditing process were determined. The auditors also approved the system for the early identification of risks and gave their unqualified opinion.
The auditors also audited the combined non-financial report pursuant to the CSR Directive Implementation Act, which likewise received an unqualified opinion. On March 8, 2018, the supervisory board's audit committee discussed the details of the audit report with the auditors and the CFO. The auditors were present at the supervisory board's meeting on March 14, 2018, explaining the outcome of their audit and answering questions. The supervisory board conducted an in-depth review of the annual accounts, the group annual accounts, the summary accounts, the management report, and the combined non-financial report. These were not met with any objections. The supervisory board followed the recommendation of its audit committee and unanimously approved the group annual statements as well as the combined non-financial report. The supervisory board also supported the executive board's proposal of distributing a dividend of EUR 0.80.
We are pleased to be able to offer you once more the option of a scrip dividend this year. The supervisory board would like to thank the executive board and the employees of Lufthansa Group for their hard work and their passionate commitment during 2017, and I would like to add that I'm very pleased to be here today because this is a great company. All who have contributed to its success, particularly the employees, have deserved your applause. This was not a tempestuous applause, but you will be given another opportunity to clap your hands later. Ladies and gentlemen, I would now like to ask Carsten Spohr to give a review of the 2017 financial year. Afterwards, I'm going to report on the activities of the supervisory board, following that, you will have the opportunity to ask your questions on any item of the agenda.
That means we're going to have a general debate as well. Before asking Carsten Spohr to take the floor, I would like to point out that the supervisory board is extremely satisfied with Carsten Spohr's work. We unanimously agreed at its meeting on March 14 of this year that he will be appointed again as the CEO of Lufthansa Group for a period of 5 years. You won so much applause, Mr. Spohr, that you will really have to give your account. First, we'll watch a little film.
If you want to fasten your seat belt, can you please pull up this lap? Storms rage over the Caribbean island, bring floods, leave devastation. Hurricane Maria whirls with wind speeds of up to
Shareholders, dear frequent travelers, I would also like to bid you a warm welcome to the 65th annual general meeting of Deutsche Lufthansa. As we could see in the video clip, we have a lot of good news to report about the past financial year, about the development of the three strategic pillars, about the progress that was made in terms of modernizing your company. I will be speaking about topics that affect us and that we ourselves can have an effect on. I will conclude my report with an outlook for the development of our business in 2018. First, let's start by reviewing the past financial year. 2017 was the most successful year in the history of the company and a third record year in a row. It was our best result ever by far.
Our modernization process is heading in the right direction, this is borne out by the figures, not only by them. Shareholders, today, we can show that we have become more modern in every respect and much more efficient. Of course, that is something that is close to your heart, more profitable. Your company and the Lufthansa share have reached new heights, and we have worked very hard to accomplish this. We have spent the past few years addressing the most important issues and restructuring Lufthansa. Years that were testing times for our customers, our staff, and for our shareholders. However, our efforts have paid off. At last, we hear news about the success of Lufthansa and not only about the problems as in previous years. That strengthens our belief in the course that we have set.
Everybody profited from the modernization of the company, our customers, our staff, and you, our shareholders. The triangle is in balance again. We have continued to improve our products and services for our customers with great success. This is borne out by the passenger figures, 130 million passengers flew with airlines of the Lufthansa Group in 2017. This is a record number. It can also be seen in the many awards, with Lufthansa, Swiss and Austrian Airlines being voted the three best European airlines. Lufthansa, in fact, reached even greater heights in December, as our airline, with the crane, became Europe's first and only five-star airline. This was the crowning achievement among all the awards. In time for the 100th anniversary of our crane symbol, we have proved that tradition and sustainability are no contradiction.
On the contrary, they represent a unique Lufthansa combination and a competitive advantage that cannot be copied by our competitors. Our staff also profited from the modernization process. We have modernized our collective wage agreements and succeeded in reaching a sustainable industrial peace with all professional groups. We have entered a new social partnership, one that deserves the name. In our company, we are developing a culture of constructive solidarity, this can be felt. I personally experience it every day in talks and discussions, the results of our staff and customer surveys confirm this positive trend. Last but not least, you, our shareholders, are also benefiting from the modernization of your company.
On the one hand, through the development of the share price, the Lufthansa share was the winner at the DAX stock market last year and saw a 100% share price increase, more than ever before in a single year and more than any other share listed on the stock market. Even taking into account the share price development this year, until yesterday, it still leaves us with a share price that has more than doubled. On the other hand, you also benefit from the development of the dividend. The outstanding result of 2017 gives us leverage for a higher dividend. You, shareholders, have remained loyal to us throughout the difficult times, now we would like to give you something in return by letting you share in our success with a 60% higher dividend.
This is why we will be proposing a dividend of EUR 0.80 per share, the second highest dividend since Lufthansa became a listed company. Ladies and gentlemen, all other key performance indicators are also pointing in the right direction. Revenue increased by 12.4% to almost EUR 36 billion. We increased our result by almost 70%. The adjusted EBIT, our key performance indicator for economic success, stands at EUR 3 billion. That marks an increase of over EUR 1.2 billion compared to the record levels in 2015 and 2016. We invested EUR 3 billion, one third more than the year before. Despite these higher investments, our free cash flow doubled to EUR 2.3 billion. At the same time, that is very important, our unit costs, adjusted after one-time effects, have gone down by 1.8%.
To sum up, we can say that we can look back on an outstanding business year, 2017, a year which has seen Lufthansa Group grow stronger. We are well-equipped, we are even more financially strong, we are more innovative than before, we are strategically well-positioned. Our company has emerged stronger on its three strategic pillars. All of our business segments are important. Network airlines, Eurowings, our service companies. All have contributed to our success, not only over the past year. The first pillar is remains the strongest pillar, namely the network airlines. Lufthansa, Swiss, Austrian Airlines have increased their result by almost 50%. They have earned EUR 2.3 billion again improved their profit margin by 2.6 percentage points to almost 10%. I'm particularly pleased by the fact that Lufthansa, the heart of the group, is back in top form.
Our core brand is leading the way providing stability to the entire group. This success motivates us not to diminish our efforts. We will continue to improve quality, for example, through cabin equipment and services. Lufthansa will take the next step towards further improving services. For instance, its business class this year, Swiss is modernizing its fleet. That will set new standards in terms of comfort, economic efficiency, environmental friendliness. The airline will very soon have one of the youngest fleets in Europe. In March 2018, Austrian Airlines introduced the new Premium Economy Class on all long-haul flights, we are pleased with the collective wage agreement concluded last week that brings Austrian Airlines back into the fold of reliable providers. In 2020, we will start receiving our first Boeing 777-9X, which will be equipped with an entirely new business class. We will also improve our digital services.
Especially onboard Internet is a particular feature that enhances the possibilities for our passengers. The retrofitting of our A320 fleet will be completed this summer. This means that we remain the leading European airline in terms of digitalization and digital technologies. Last year, we were awarded a prize by the International Air Transport Association, IATA, winning the award Most Digital Airline in the World. Of course, it is clear that our customers benefit from the high level of digital technologies because they save time in travel and greater comfort. Customer loyalty is also enhanced and, of course, we generate additional revenue. Despite all the success that we have seen, we still need to focus on bringing down costs across all airlines, but never at the expense of quality. On the contrary, let me give you a couple of examples.
The most visible example, of course, is the modernization of our fleet. In 2017, we took a new aircraft into service on an almost weekly basis. These new aircraft cost about 20% less to operate than the aircraft they are replacing. We will continue to modernize our fleet in 2018, and we will be receiving a new aircraft every two weeks. Current delivery problems at some aircraft manufacturers impose a limit on us. However, we will also continue to harmonize our fleets. The group overlapping standardized A320 family is the latest example here and will make us more flexible in the deployment of aircraft and, of course, it will also save us money. We have agreed on the reduction of cost with Frankfurt's airport operator, Fraport, for 2018, that is not enough.
Our hub here is still the most expensive airport in our system and in spite of this, it does not yet fulfill the expectations of our customers with regard to premium quality. That must change and as long as it does not change, we will shift our growth to Zurich and Munich and Vienna. Yesterday, we already ordered two additional Boeing 777 aircraft for Swiss. Now to our second pillar, our point-to-point traffic Eurowings. Eurowings has become established. It is already the fourth largest airline in European traffic and is the fastest growing airline in Europe. The development of the key performance indicators is satisfying. Eurowings doubled the revenue to EUR 4 billion. It improved its results by EUR 200 million last year, which marks a strong performance, especially given that the airline had to bear significant burdens.
The Eurowings fleet grew by 77 aircraft alone as a result of the Air Berlin bankruptcy. That is obviously down to the high ramp-up costs. At the same time, Eurowings last year reduced its unit costs by over 6%. Our aim remains to reduce unit costs by 20% until 2020 compared to 2016. About 210 aircraft mean that the largest growth will continue to occur at Eurowings. Eurowings is already the second largest carrier within Lufthansa Group and it remains our platform for consolidation in Europe. At the moment, the integration of parts of Air Berlin and Brussels Airlines is the greatest challenge and the item on our agenda that needs to be given highest priority. The figures of the first quarter of 2018 show that there were adverse effects on our balance sheet and on the revenue. We are also expecting adverse effects in the coming months.
These are one-time project and integration costs and the money is well invested, I can promise you. The investments will allow us to secure our position as the number one in our home markets. Now on to the third pillar, our service companies, the aviation services. They too have recorded very good results. Lufthansa Cargo in particular managed an impressive turnaround. Our freight airline earned EUR 242 million, an improvement in earnings of almost EUR 300 million and a strong performance. In terms of revenue, we are again the largest freight airline in the world. Nevertheless, the logistics business remains volatile. Our cargo team is aware of this and they're preparing for further developments. They will carry on reducing costs and working on even more efficient processes, while at the same time continuing to improve quality.
Yesterday's orders of the new Boeing 777 is another example of the progress that is being made. Of course, we are also introducing digital technologies on the entire freight chain. Lufthansa Technik posted an excellent result of EUR 415 million on the same level as the previous year. Our global market leader continues to grow through new partnerships and will also be modernizing its existing locations. That will lead to a further improvement in the competitiveness of the company that already services and maintains every fifth commercial aircraft worldwide. At the same time, this will also secure the entry into MRO for the next generation of aircraft and engines. Lufthansa Technik is one of the most innovative companies in the industry with its digital maintenance systems. Our engineers were the first to develop a digital aircraft twin called AVIATAR. This optimizes forward-looking MRO services. LSG also posted a positive result.
The company contributed EUR 66 million to the group result. 38 million euros less than the year before, which was down to the transformation of the company's European business, which was necessary in order to increase the results during the coming years. This concludes the look at the individual business segments of Lufthansa Group, let's move on now to a couple of other topics that affect us and that we can have an effect on. Of course, you're all experts on the aviation industry, you will all agree with our assessment that passenger figures are going to continue to grow in the foreseeable future. Last year, passenger figures worldwide rose by about 8%, with over 4 billion people taking to the skies. If experts are right, these figures will double during the next 20 years. Lufthansa Group will share in this growth with its companies.
We are very pleased that this year alone, we will be recruiting 8,000 new staff. Every year, we receive far in excess of 100,000 job applications. We are pleased about the great interest in our company, we are glad to have the opportunity to choose from among the best. As you can see, Lufthansa Group is maintaining its modernization course consistently and continuously. With all this joy about our success, there is always gratitude and humility that we need to show. Gratitude for what we have accomplished because that is what we had to fight hard to achieve. Above all, gratitude for an accident-free year. This is and will always remain the most important thing in our annual report, also in remembrance of the victims of the 24th of March 2015.
We also feel humbled as we look back on the history of this tradition-steeped company, an eventful history with ups and downs, but a major success story that has been written by many generations and some representatives of this history are here among us today. It is the history of a powerful brand that goes from strength to strength and, of course, a story that we would like to continue writing. This year, we will celebrate a special anniversary. Our trademark, the crane, designed by the graphic artist Otto Firle, will celebrate its 100th anniversary. The crane symbolizes our identity, and it has done so ever since the founding of the old Lufthansa. It is our trademark and part of our history, even though the world has changed fundamentally since the early days of the crane. Technologies have made quantum leaps forward.
Globalization and digital technologies have completely changed our company and our working environment and yet the crane has remained. It has always been part of the societal, technological, and the economic development of Lufthansa. From the very outset, we have been pioneers, we have been explorers. We crossed frontiers and already set standards very early on. In the founding year of the old Lufthansa, our predecessors sent two Junkers aircraft on the first East Asia expedition. Our pilots flew 10,000 kilometers and traveled for over five weeks before finally landing in Beijing. Today, the airlines of our group fly this route in nine hours non-stop four times a day. We have always struck out in new directions. We have always been pioneers and remain so to this day, for example, with the introduction of new aircraft or digital technologies. And the crane has always been with us.
It has become the most famous trademark for our entire industry, maybe even the most valuable asset to us. The crane promises the very highest level of service. It stands for premium. It is a symbol of first-class quality, excellent service, the technical and flying expertise of our pilots and engineers. It symbolizes reliability and innovation. Most importantly, the crane symbolizes trust. Especially in turbulent times like these, many people look to companies to get their bearing and opt for brands that they can trust. Lufthansa is one such brand that was recently borne out when we were voted Germany's most trusted brand. To celebrate the 100th anniversary of our crane, we have also polished our appearance. That, too, is part of our modernization process.
There was much discussion going on at the beginning of this year, inside and outside the company, and that just shows the power of the emotional bond to our brand and its symbol. Ladies and gentlemen, to sum up, I would like to address another topic that is important to me. The industry has reached a turning point. Competition remains harsh, which can be seen, for instance, with the bankruptcy of Air Berlin last year. German air traffic has lost market shares for the sixth consecutive year. To foreign competitors. Germany is our home market. Germany is an attractive market, but Germany is also a very cost-intensive market where taxes and fees are very high. At the same time, we face too many restrictions. The conditions here in our home market need to improve, and that's why we need the support of politics.
Air traffic tax alone cost German airlines EUR 600 million in the last year. We paid more than EUR 700 million in aviation security fees. In other countries, these costs are borne by the state. In addition, subsidies also distort competition. The topic that affects us most at the moment is the quality and performance of the German airports. The problems are particularly visible at the security checks, where thousands of passengers are missing their flights because of the infrastructure that is no longer adequate, or maybe it is even outdated. Other countries in Europe are showing how things could be done better, for instance, in Amsterdam or London, where they have much more efficient processes in place. The flights, after all, start on the ground. This is why we need the right quality there.
If we do not have the right quality in place, we will lose customers to other airports and countries. All stakeholders need to act in concert here, airports and airlines, politics, and the federal authorities. The German market remains extremely hard-fought. A total of 160 airlines are currently flying to and from Germany. That is too many in the long run. That too has an effect on the European airline market. We believe we are again strong enough to play an active role in the European consolidation process. Our strategy of network airlines and point-to-point airlines, combined with our aviation services, offers us the best perspectives and opportunities for the future. We have become competitive again. We can invest. We can grow in the future. Those are the foundations for our future success.
Ladies and gentlemen, you know that air transport today is an indispensable component of globalization. It is indispensable for an open society, for international understanding and cultural exchange. It is also an indispensable component of the economy in our exporting nation of Germany. We all benefit from open markets. We benefit from more diversity and transparency. We benefit from freedom, democracy, and international cooperation. Global challenges such as climate change or increasing migration flows can only be mastered with extensive global collaboration. One condition for this is mobility, global mobility. That is what we work for every day, 365 days a year. Today, again, the 750 aircraft of the Lufthansa Group will be taking off and landing over 3,000 times and flying almost 400,000 passengers and 5,500 tons of freight safely and reliably to their destinations in other regions and cultures.
We are proud to make globalization more understandable and human and to fill this abstract term with life. This is why we have dubbed our new brand campaign, Say Yes to the World. This sentence represents our attitude because we will not let up in saying yes to the world. We will not relent in our efforts to get even better. We must become better. The challenges will not become any less challenging in 2018, nor will they become any fewer. We are expecting another eventful year in the air transport industry with many unpredictable trends, geopolitical uncertainties, and rising fuel prices. We just announced the figures for the first quarter of 2018. We are off to a good start into the year. Our network airlines are growing, above all Lufthansa and Swiss. Lufthansa Cargo remains on course for success.
The ramp-up costs for Eurowings placed a burden on the result. They remain a vital investment in the future of the entire group. Looking at 2018, I can tell you two things today. One, we remain on a clear course. Two, our forecast remains unchanged. We expect a result that will be slightly below the record year of 2017. You know that we are always very cautious with our predictions and forecasts. Ladies and gentlemen, people expect a lot from Lufthansa. That is a motivation to us. We will continue to do everything in our power to keep the interests of our customers, staff, and shareholders in balance. It is our firm belief that success can only be sustainable if this balance of interests is ensured. We will continue working on this in the future.
The topics on the way there remain the same: increasing quality, reducing costs, and improving efficiency. All of this is in line or needs to be in line with tradition and innovation. Ladies and gentlemen, your Lufthansa, your company, is back where it belongs, at the top among the best of the best in the aviation industry. For that, I would like to thank our 140,000 employees. You, our staff, our employees, are the ones who have made all of this possible thanks to your efforts. You have always shown commitment. You have never given up. We are very proud of you. You are simply the best in our industry. Also we are very grateful to you. We know that we can manage all future challenges thanks to you. A big thank you also goes to the customers.
You have been loyal to us for decades, also during turbulent times. You value us, you challenge us. You help us to improve and to continue to grow. I can promise to you, not only on behalf of my members, of my colleagues on the Executive Board, but of all the management, we will do everything in our power to continue inspiring you in the future. Last but not least, allow me to thank you, the shareholders. I thank you for your loyalty. Of course, also your patience. You have stood by us. You have believed in us. Thank you for the confidence and stay with us. We merit your trust.
Dear Carsten Spohr, thank you very much for your presentation. The printout of your speech will be available within short at the information stand. I would now like to briefly speak about our activities in the Supervisory Board. We met five times for meetings. The members of the meetings of the Supervisory Board and its committees were present in 95% of the events. In the center of the Supervisory Board, we had the economic development of the Lufthansa Group and its companies. We concentrated very much on Brussels Airlines. Also Air Berlin played a very important part. We concluded agreements between Lufthansa and procured 61 aircraft. In December, we audited the efficiency of our activities. We also talked about a diversity concept for the Executive Board in May 2017. We agreed on a modification of the CEO remuneration, which will be valid from 2017.
It will be paid out after three years and the multi-annual assessment basis of the variable remuneration will be presented. At the end of the 24th of September 2017, Wolfgang Mayrhuber gave up his mandate. Since his election in the year of 2013, he had been Chair of the Supervisory Board and he had been the CEO of Lufthansa Technik for 20 years and then the CEO, and he very much coined the destiny of Lufthansa Group. The Supervisory Board and I personally would like to thank Herr Mayrhuber for his outstanding achievements and his personal properties because he's very much coined the culture of Lufthansa. We will not forget his intellectual curiosity and the fact that he took new ways, and we will not forget his good humor. He is an outstanding Lufthanseat, Lufthansa member. As of the 31st of December, Werner Brandt gave up his mandate.
He had great experiences in the Supervisory Board and as Director of the Audit Committee. We owe him a lot of thanks. With the end of this AGM, Robert Kimmitt is also to give up his mandate. With his great international experience and his broad network, he's played an outstanding role in the activities of Lufthansa. We thank him very much for his expertise and support at any time. On the 9th of March 2018, the Honorary Chair of our Supervisory Board, Dr. Wolfgang Röller, passed away at the age of 88 years. He had been a member of the Supervisory Board for many years and was the Chair since 1993. We owe him the upgrading, privatization and restructuring also in difficult times and he led together entrepreneurial representatives and shareholders. We will remember him. Many of you might not remember Herr Röller personally.
He was a fabulous personality and I think we should thank him with another applause. Beyond this, we would also like to thank the labor representatives who leave the Supervisory Board. Everybody has contributed a lot. Everybody in his or her personal way. I thank Doris Krüger, Birgit Weinreich, Nicolai Baublies and Eckhard Lieb, Jan-Willem Marquardt , Ralf Müller and Andreas Stachel. A very special thanks to all of you.
Ladies and gentlemen, saying goodbye to some members means we have to appoint new ones. We are pleased to announce that four veteran shareholder representatives are running for re-election. Ambassador Miriam Sapiro, Carsten Knobel and Michael Nilles. Mrs. Sapiro and Mr. Nilles were legally appointed to the Supervisory Board and now they are running as regular candidates. I would like to ask the three candidates to introduce themselves briefly. The English introduction of Mrs. Sapiro will be translated.
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Thank you, Mrs. Sapiro. I beg for your forgiveness. We have to bring the original and the translation into line. Next time we will do this better. I'm happy to say that the greatest city in the world, namely Cologne, will also be mentioned here at today's AGM. Mr. Knobel, please. Unfortunately, he comes from Düsseldorf.
Mr. Kley, thank you very much for your introductory remarks. Ladies and gentlemen, shareholders. I would like to use this opportunity at today's AGM to introduce myself as a candidate for the supervisory board of Deutsche Lufthansa AG. I'm Carsten Knobel, 49 years old, married, proud father of two children. I have been on the executive board of Henkel AG, where I've also been CFO. I don't need to say where the headquarters are, of course. I'm responsible for financial affairs, mergers and acquisition worldwide, acquisition, procurement, IT, and services.
From 1990 to 1995, I studied business administration and technical chemicals at Technical University of Berlin. Ever since I started my position with Henkel, I held various leading positions in Europe and in Asia in research and development, marketing, finance and controlling, M&A. Of course, our strategic priorities at Henkel currently are on digital technologies in the company, worldwide rollout of our supply chain activities, value adding harmonization of our IT systems, and automation of all the relevant processes. I am particularly focused on enhancing efficiency and introducing digital technologies. That is something that needs to be done across all companies in the industry. In future, companies face greater challenges in terms of flexibility. That holds true for Henkel, but also for the aviation industry.
I'm also a football fan, just like you, Mr. Kley, and as the deputy chairman of the executive board, I also hold a position for Fortuna Düsseldorf Football Club Of course, we are working hard on continuing to make the club more professional in order to be successful to a similar level in our neighboring town of Cologne. We just managed to rise in the football league. Of course, that is a confirmation of the successful work we've done. I don't want to go into any further comparisons, of course, with other cities. Of course, I am very keen to see how Düsseldorf will perform against Cologne in the Champions League. I would be happy to contribute to continue the success story in the future. Since January of this year, I have been legally appointed at the supervisory board.
I have been a member of the audit committee on the supervisory board. I would be very pleased if this mandate was confirmed by all of you and if I could continue my work. Thank you to all of you.
Thank you, Mr. Knobel. Mr. Nilles, please.
Ladies and gentlemen, first, I wanted to gain your sympathy by saying that I'm from Cologne. Since Mr. Knobel talked about football, I'm not so sure I will merit your sympathy or merit your good opinion.
My name is Michael Nilles. I'm father to two daughters. I'm pleased to present myself to you as a candidate for the supervisory board. I would also like to use this opportunity to introduce myself to you. For more than 20 years, I have been working in digital technologies, especially in an industrial environment. I studied economics and information systems.
After obtaining my degree, I went to China as a software engineer. Afterwards, I worked for Bosch Rexroth. Since 2009, I've been working for Schindler Group as chief digital officer. I'm responsible for introducing digital technologies in the core business, preparing the company for the digital age, and also for developing new business models based on digital technologies. My links to Lufthansa were founded by my experience as an internationally active businessman. Ever since 2015, I have been a member of the supervisory board of Lufthansa Technik in Hamburg, which gave me an in-depth insight into the work of Lufthansa. Digital technologies is not just a fad. We all know that the Internet is established. Companies, in particular, are affected by digital technologies today.
On the one hand, we see new digital platforms spring up everywhere, there are also keywords such as blockchain, the Internet of Things. All these are disruptors. This is the official term that we use. Of course, they will also create opportunities for growth for big companies. Carsten Spohr already explained the progress made by Lufthansa, for instance, thanks to the AVIATAR platform and other innovative applications that are being used to improve the travel experience of customers. I would be very happy to serve on the supervisory board of Lufthansa and to bring to bear my experience. Thank you very much for your attention.
Thank you, Mr. Nilles. I think you are aware why we have proposed these candidates to the supervisory board, because they're all excellently suited.
I would like to inform the shareholders that the supervisory board appointed me as its new chairman at the meeting held on the 21st of September 2017. Further details can be found on pages six and following of the annual report. Now, I would like to ask Ulrik Svensson to give the legally required statement on the capital increase in the last financial year. Ladies and gentlemen, before we start the general debate, I'm required to make the following declaration pursuant to the German Stock Corporation Act. In 2017, again, partial use was made of the Authorized Capital B created by the AGM in 2014 with the aim of issuing new shares to staff and management of Deutsche Lufthansa AG and its affiliated companies.
For this purpose, the share capital was increased by a par value amount of nominal EUR 2,521,920,000 by issuing 985,125 new shares with a pro rata value of EUR 2.56 with regard to the share capital and an issue price of EUR 23.66 per share. The executive board based the issue price on the stock market price of the Lufthansa share. Compared to the stock market price, the issue price set by the executive board did not contain any premium or discount. All new shares were issued to Lufthansa employees as part of the staff shareholding program. The shareholders' subscription right was already excluded when the Authorized Capital B was created by the AGM.
The exclusion of the shareholders' subscription rights was necessary to enable the employees of Deutsche Lufthansa AG and affiliated companies to obtain a greater share of the share capital as part of a long-running participation program, and to involve them to a greater degree in the provision of capital, thereby aligning the interests of the company and its employees. Given that the issue price was based on the stock market price and that the capital increase amounted to only around 0.21% of the share capital at the time, the dilution effect resulting from the exclusion of shareholder subscription rights is negligible.
In addition, in order to pay for the scrip dividend, the Authorized Capital A, created by the AGM in 2015, was used to increase the company's share capital in 2017 by a par value amount of EUR 3,728,550.40 by issuing 1,456,465 new shares with a pro rata value of EUR 2.56 with regard to the share capital. The issue price per share likewise amounted to EUR 2.56. The shares were issued against contribution in kind by giving up dividend entitlements based on a subscription offer. For more details on the use of the Authorized Capital A and B, please consult the note number 30 in the annex to the consolidated financial statements. Thank you. Thanks to all of those who were following the AGM in the Internet.