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Back in January 2025, I wrote about Lufthansa receiving antitrust approval from the European Union (EU) to buy a 41% stake in Italian national carrier, ITA Airways. The $350 million deal was reached after Lufthansa ceded some routes and slots and was expected to close in Q4 2024. Since then the deal has closed and ITA Airways has been folded into the Lufthansa Group. The remaining stake in ITA Airways was made available at the time and Lufthansa just exercised its option. It will soon own 90% of the Italian airline.
ITA Airways is the rebirth of former carrier Alitalia. The airline went through a restructuring and transformation in 2021, but it was not enough to make it with government support. Privatization was necessary for this carrier to grow and Lufthansa has been waiting in the wings for some time. The deal will boost Lufthansa’s presence in the Southern Europe market and is needed to boost scale and offset rising operational costs. ITA’s Leonardo da Vinci-Rome Fiumicino Airport (FCO) hub will also provide better access to Africa and Latin America where Lufthansa sees room for growth.
According to the company, Lufthansa’s Supervisory Board approved the decision during a meeting held yesterday, paving the way for the acquisition of an additional 49% stake for a previously agreed purchase price of €325 million.
The transaction remains subject to regulatory approval, including review by the European Commission and the US Department of Justice. Lufthansa said the deal is expected to close during the first quarter of 2027. Once completed, ITA Airways will be fully integrated into the Lufthansa Group both operationally and financially.
Lufthansa initially acquired a 41% minority stake in ITA Airways in January 2025, after signing a purchase agreement with Italy’s Ministry of Economy and Finance (MEF) in June 2023. As part of that agreement, Lufthansa secured an annual option to purchase an additional 49% shareholding (an option the airline is now formally exercising).
The Italian government, through the MEF, will continue to hold the remaining 10% stake following the transaction. Lufthansa noted that it may also acquire that final tranche in 2028.
Even before the majority acquisition is finalized, ITA Airways has already become increasingly integrated into Lufthansa Group operations. The Italian carrier has been aligned with the group’s broader network strategy across scheduling, partnerships, and commercial operations, joining Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, and Air Dolomiti within the company’s European airline portfolio.
The acquisition strengthens Lufthansa’s presence in Southern Europe and expands its access to the strategically important Italian aviation market (one of the largest in Europe for both business and leisure travel). Industry analysts have long viewed Italy as a key growth opportunity for Lufthansa, particularly through Rome Fiumicino Leonardo da Vinci International Airport (FCO) and Milan Linate Airport (LIN) where ITA Airways maintains a strong presence.
The investment in ITA Airways is part of Lufthansa Group’s broader strategy to consolidate its position as one of Europe’s largest airline groups through acquisitions and strategic partnerships. Over the past two decades, Lufthansa has expanded its multi-airline model through stakes in carriers across Europe, including SWISS, Austrian Airlines, Brussels Airlines, and others.
Carsten Spohr, CEO of the Lufthansa Group and Chairman of the Executive Board of Deutsche Lufthansa AG, said:
Following the acquisition of the first 41 percent stake in ITA Airways last year, we promised the fastest airline integration in our history. We aimed to complete all major integration steps into the Lufthansa Group within just 18 months.
We have not only kept this promise. We were even faster: All customer-facing interfaces are already integrated today—with the exception of North Atlantic flights, where, as is well known, regulatory approval for our merger is still pending.
Passengers already experience ITA Airways as an integrated part of the Lufthansa Group. With unified booking, sales, and fare systems, the Miles and More frequent flyer program, Star Alliance membership, and access to our global network of premium lounges.
Integration is also progressing in the cargo business. Since last year, Lufthansa Cargo has been marketing ITA Airways’ cargo capacity, which alone corresponds to the additional capacity of three Boeing 777 freighters. In light of this success story, we decided to exercise our option to acquire an additional 49 percent stake as early as June of this year.”
Anthony’s Take: With ITA Airways now on track to become majority-owned, Lufthansa gains another major network airline that can strengthen connectivity between Italy, Europe, and long-haul international markets. I’m happy to see it as part of the Lufthansa Group and Star Alliance as it was always a bit off in its integration in SkyTeam.
(Image Credits: Lufthansa Group.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
