Lufthansa, Europe's largest airline group by revenue, has announced its intention to acquire a controlling 90% stake in Italy's ITA Airways for €325 million. The move, approved by Lufthansa's board on Monday, marks a significant step in the consolidation of the continent's aviation sector.
The German carrier already held a 41% minority stake in ITA Airways since January 2025, with an option to gradually increase ownership. The Italian government, which previously owned 59% of the airline, will retain a 10% stake after the transaction.
Lufthansa said it will exercise its option to purchase the majority stake in June 2025, subject to regulatory approvals from both the European Commission and the U.S. Department of Transportation. The company expects the acquisition to be completed by the first quarter of 2027.
Strategic Expansion in Southern Europe
The acquisition gives Lufthansa stronger access to the Italian market, one of Europe's largest aviation markets, and opens long-haul growth opportunities via Rome's Fiumicino Airport. Analysts view the deal as a key move in the ongoing consolidation of Europe's airline industry, where major groups like Lufthansa, Air France-KLM, and IAG are vying for market share.
Lufthansa CEO Carsten Spohr noted that customer-facing systems are already integrated, with the exception of North Atlantic flights, where regulatory approval for the merger is still pending. "All customer-facing interfaces are already integrated," Spohr said, adding that the full integration will allow ITA Airways to compete more effectively on international routes.
ITA Airways CEO Joerg Eberhart welcomed the deal, calling it "a step of major industrial and strategic significance for ITA Airways." He added that full integration into the Lufthansa Group will enable the airline to compete more strongly in international markets.
The deal comes amid broader challenges for European aviation, including rising fuel costs and geopolitical tensions. Lufthansa recently warned that fuel costs related to the Iran conflict would hit annual profits, even as it posted record revenue. The group has also faced disruptions from strikes, such as the recent halt of flights at Belgium's Charleroi Airport.
For Italy, the sale reduces state involvement in the airline sector, a trend seen across Europe as governments seek to offload stakes in national carriers. The Italian government had previously bailed out Alitalia, ITA's predecessor, before restructuring it into ITA Airways in 2021.
The deal is expected to strengthen Lufthansa's position in the Mediterranean and could lead to expanded routes from Italy to North America, Asia, and Africa. However, the European Commission is likely to scrutinize the merger for potential competition concerns, particularly on routes between Italy and Germany.
Lufthansa's move also reflects a broader strategy of building multi-hub networks, similar to its acquisitions of Swiss, Austrian, and Brussels Airlines. The group now operates hubs in Frankfurt, Munich, Zurich, Vienna, Brussels, and soon Rome.
