Lufthansa Takes Majority Control of ITA Airways in €325m Deal

Lufthansa is set to take majority control of Italy’s ITA Airways through a new €325 million deal that will raise its stake to 90 percent, marking a pivotal shift in Europe’s airline landscape and strengthening the German group’s grip on key Mediterranean routes.

From Minority Stake to Near Full Control

The new transaction builds on Lufthansa’s existing position in ITA Airways. Publicly available company statements show that the German group completed the purchase of a 41 percent stake in ITA through a €325 million capital increase in January 2025, following conditional approval from the European Commission in July 2024. The Italian Ministry of Economy and Finance retained the remaining shares, keeping joint control in Italian hands during the first phase of the partnership.

On 12 May 2026, Lufthansa announced that its supervisory board had cleared the exercise of an option to acquire a further 49 percent stake in ITA. The second tranche, priced at another €325 million, will lift Lufthansa’s overall holding to 90 percent and give it exclusive control of Italy’s flag carrier once all regulatory approvals are secured. The company plans to exercise the option in June 2026, with closing targeted for the first quarter of 2027.

Corporate disclosures indicate that ITA is already being integrated into Lufthansa Group structures as the group’s fifth network airline, alongside Lufthansa, Swiss, Austrian Airlines and Brussels Airlines. The majority takeover will formalize that shift, allowing deeper alignment in areas such as fleet planning, commercial strategy and digital platforms.

The Italian state is expected to retain a minority holding after the latest deal, although detailed shareholding arrangements after closing have not yet been fully spelled out in available documentation. For Italy, the transaction represents the culmination of a yearslong search for a long term industrial partner for its successor to Alitalia.

Regulatory Conditions and Competitive Concerns

The path to Lufthansa’s control of ITA has been shaped by an extensive European competition review. The European Commission cleared the initial joint control deal in July 2024 under the EU Merger Regulation, but only after securing a wide ranging package of remedies intended to preserve competition on critical routes where the combined group would have strong market power.

According to published summaries of the decision, Lufthansa and the Italian Ministry of Economy and Finance committed to releasing airport slots and traffic rights to rival carriers. EasyJet, International Airlines Group and Air France KLM were later approved as remedy takers on several short haul and long haul routes to and from Italy, particularly at Milan Linate and on transatlantic corridors. The measures are designed to ensure that travelers keep alternative options on city pairs where ITA and Lufthansa previously competed directly or indirectly.

Consumer groups have nonetheless voiced reservations about the broader impact of the deal on fares and service quality. A position paper from the European consumer organization BEUC, published during the merger review, argued that consolidation involving national flag carriers risked leading to higher prices, reduced choice and weaker connectivity if not accompanied by strong safeguards. The organization called for robust enforcement of slot and route commitments and for close monitoring of post merger market behavior.

The new move to majority ownership by Lufthansa will require further scrutiny from competition authorities, including another round of assessment by the European Commission and a review by the United States Department of Justice. Industry observers expect regulators to revisit whether the existing remedy package remains sufficient once ITA is no longer jointly controlled with the Italian state but fully integrated into Lufthansa’s global alliance structure.

Strategic Bet on Italy and the Mediterranean

For Lufthansa Group, raising its stake to 90 percent in ITA is a strategic wager on Italy’s importance as both an origin market and a tourist magnet. Italy ranks among Europe’s largest economies and is one of the continent’s most visited destinations, giving its national carrier a central role in intra European and long haul demand flows.

Company communications describe Italy as one of Lufthansa’s most important foreign markets, particularly on north south routes linking German, Swiss, Belgian and Austrian hubs with Italian business and leisure centers. By fully incorporating ITA, Lufthansa aims to channel more traffic via Rome Fiumicino and Milan airports, using them as southern gateways feeding into its wider network to the Americas, Africa and Asia.

ITA itself has been undergoing a restructuring process, with recent financial disclosures pointing to a return to profitability in 2025 and efforts to simplify its fleet and network. Integration within Lufthansa’s portfolio is expected to accelerate that turnaround through joint purchasing, coordinated schedules and shared loyalty and sales platforms. Observers note that the move also strengthens Lufthansa’s position relative to rivals that have built up strong Mediterranean footprints, including International Airlines Group in Spain and Air France KLM in France.

The deal further underlines a broader trend of consolidation among full service carriers in Europe, as they seek scale to compete with low cost operators on short haul routes and with Gulf and North American airlines on long haul markets. Lufthansa’s investment in ITA places it at the center of that reshaping, particularly on routes touching Southern Europe.

Implications for Travelers and Rival Airlines

For passengers, the shift to majority Lufthansa ownership could translate into changes in how they book and earn rewards on ITA flights. Following Lufthansa’s entry as a shareholder, ITA announced plans to leave the SkyTeam alliance, the grouping historically anchored by Air France and KLM, signaling an eventual alignment with Lufthansa’s network and its Star Alliance partners. Travel industry analysts expect closer coordination on schedules, shared codes on more routes and integration with Lufthansa’s Miles and More loyalty program over time.

Short term, some travelers may experience adjustments as remedial measures mandated by regulators take effect, such as the introduction or expansion of competing services by rival carriers on Italy to Central Europe routes. These shifts could create new one stop options via airports operated by EasyJet, International Airlines Group or Air France KLM, particularly on itineraries that previously relied heavily on Alitalia or ITA.

Rival airline groups are likely to respond by reinforcing their own Italian offerings or deepening partnerships with local and regional carriers. Low cost airlines have already carved out substantial shares at airports such as Milan Bergamo, Bologna and Naples, and may seek to capitalize if slot reallocations create fresh opportunities. For long haul competitors, the integration of ITA into Lufthansa’s system could sharpen competition on transatlantic and Middle East connecting traffic originating in Italy.

Travelers watching the changes are being advised by industry commentators to pay attention to evolving alliance links, fare structures and schedule patterns over the next two years. The final closing of the majority deal, expected in 2027 if approvals arrive on schedule, will likely mark the moment when the full impact on route networks, frequent flyer benefits and pricing becomes visible across the Italian and wider European markets.