Lufthansa Moves to Majority Control of ITA Airways

Deutsche Lufthansa AG has moved to acquire a majority stake in ITA Airways, deepening its integration of the Italian carrier and signaling an ambitious new phase of network expansion and capacity growth across Europe’s crowded aviation market.

From Minority Shareholder to Controlling Stake

Lufthansa’s latest step follows a staged investment strategy that began with an agreement in 2023 to purchase a 41 percent minority stake in ITA Airways from Italy’s Ministry of Economy and Finance. Regulatory reviews in Brussels and Rome focused on ensuring that competition on key European and long haul routes would be maintained while enabling the restructuring of Italy’s state-owned flag carrier.

According to publicly available corporate disclosures, Lufthansa finalized the 41 percent holding in January 2025, bringing ITA formally into the Lufthansa Group’s portfolio of network airlines alongside Lufthansa, Swiss, Austrian Airlines, Brussels Airlines and Eurowings. Subsequent arrangements granted the German group options to increase its ownership over time, subject to additional regulatory clearances and corporate approvals.

New information released by Lufthansa indicates that the company now intends to exercise its option to move from minority shareholder to majority owner in 2026. The transaction is structured via a capital increase at ITA Airways, through which Lufthansa will inject new funds in exchange for additional shares, shifting control of the airline while the Italian state retains a residual stake.

Industry analysts note that this marks the culmination of Italy’s long running effort to stabilize and partially privatize its national carrier after the collapse of Alitalia. The move places ITA firmly within one of Europe’s three large airline groups at a time when scale, alliance membership and network breadth are seen as critical for long term viability.

Strategic Role of Italy in Lufthansa’s Global Network

Italy has long been one of Lufthansa Group’s most important markets outside its traditional home bases in Germany, Austria, Switzerland and Belgium. Company materials describe Italy as the group’s second largest international market after the United States, reflecting high demand for both business and leisure travel linking Italian cities with the rest of Europe and intercontinental destinations.

With ITA under majority control, Lufthansa is positioned to turn Rome Fiumicino into a more prominent southern European hub complementing its existing centers in Frankfurt, Munich, Zurich, Vienna and Brussels. Rome already handles ITA’s intercontinental services to North America, South America and parts of Asia, and greater integration within the group is expected to tighten connections and scheduling across these long haul flows.

Milan Linate is also set to gain strategic relevance within the network. Lufthansa has previously highlighted Linate’s large catchment area in northern Italy and its strong premium demand, positioning it as a key airport for business traffic and high frequency European services. Full integration of ITA’s operations at Linate with Lufthansa Group carriers could strengthen the group’s presence in a region where it competes directly with low cost and full service rivals.

Publicly available information suggests that once majority ownership is in place, ITA’s planned move from the SkyTeam alliance toward closer cooperation with Star Alliance partners will further deepen connectivity. That shift is expected to link Italian travelers more directly into joint networks with carriers such as United Airlines and Air Canada on North Atlantic routes, although certain transatlantic partnerships remain subject to separate competition reviews.

Capacity Growth and Fleet Modernization

Reports on ITA’s recent performance describe the airline as being on a measured growth trajectory, with capacity increases focused on profitable long haul and high demand European routes. Financial statements show that ITA expanded passenger numbers and revenues in 2024, even as it rebalanced its schedule to emphasize higher yielding markets and operational efficiency.

Lufthansa’s majority investment is expected to accelerate this strategy by supporting further fleet renewal and route development. ITA’s existing order book is heavily skewed to new generation Airbus aircraft, including A320neo family jets for short and medium haul services and A330neo and A350 types for long haul operations. These aircraft are designed to offer lower fuel burn and reduced emissions per seat, aligning with both carriers’ commitments to improve environmental performance.

Industry commentary indicates that greater access to Lufthansa Group’s purchasing power, maintenance capabilities and digital infrastructure could lower unit costs for ITA, freeing resources for incremental capacity growth. Shared training, joint procurement and harmonized cabin products are also expected to create more consistency for passengers moving across the group’s airlines.

At the same time, regulatory commitments made during earlier phases of the deal include route concessions and slot divestments in certain markets to safeguard competition. Observers note that Lufthansa will need to balance its ambition for growth with adherence to these conditions, particularly on short haul city pairs where smaller rivals and low cost carriers seek to expand.

Implications for Competition and Passengers

The consolidation of ITA into Lufthansa’s orbit continues a broader pattern of market concentration among Europe’s full service carriers. Commentaries in European business media suggest that regulators have accepted this trend as part of a pragmatic response to the financial fragility of smaller national airlines, provided that safeguards are in place to protect consumers from excessive fare increases or service reductions.

For passengers, the most visible changes are likely to include wider access to connecting itineraries, more coordinated schedules and expanded loyalty benefits. Publicly available information already shows deepening integration of booking platforms, check in systems and codeshares between ITA and Lufthansa Group carriers, with further harmonization expected once majority control is finalized.

Travel industry analysts point out that Italy’s long haul market stands to gain from strengthened links to North America, the Middle East and Asia through a combination of ITA’s own services and those of Lufthansa’s partner airlines. More seamless connections could make Rome and Milan more competitive as gateways for traffic originating in southern Europe, potentially diverting some flows that currently route through other European hubs.

However, competition advocates caution that increased concentration at key airports such as Rome Fiumicino and Milan Linate may limit opportunities for independent carriers, especially on high yield routes. They argue that ongoing monitoring of slot allocation, pricing behavior and service quality will be important to ensure that the promised efficiencies translate into tangible benefits for travelers.

Prospects for Future Growth and Integration

Lufthansa’s decision to exercise its option for a majority stake in ITA underscores the group’s belief in Italy’s long term growth potential. Demographic trends, tourism flows and the country’s role as a manufacturing and business hub point to sustained demand for both domestic and international air travel, even as carriers confront economic volatility and environmental regulation.

Published assessments from aviation analysts suggest that ITA’s integration could help Lufthansa Group rebalance its network, reducing exposure to congestion at some northern hubs while capitalizing on strong demand in southern Europe. Rome’s geographic position also offers opportunities to strengthen connections between Europe, Africa and parts of the Middle East.

Looking ahead, industry watchers will focus on how quickly Lufthansa and ITA can realize promised synergies in operations, fleet, digital services and customer experience. Timelines for ITA’s closer alignment with Star Alliance partners, as well as any expansion of joint ventures on transatlantic and other long haul markets, will be seen as key indicators of progress.

As consolidation reshapes the continent’s aviation landscape, Lufthansa’s move to majority control of ITA Airways stands as one of the most significant developments in southern Europe’s airline sector. The outcome will help determine whether a stronger, more integrated Italian carrier can deliver the efficiency gains and expanded capacity that policymakers and industry leaders have sought for more than a decade.