Lufthansa’s ITA Airways Takeover Reshapes Europe’s Skies

Lufthansa’s decision to move from minority shareholder to near-full owner of ITA Airways is the clearest sign yet that Europe’s fragmented airline landscape is entering a new chapter, with Italy’s flag carrier set to become a central pillar of the German group’s growing network.

From Minority Stake to Near-Control of Italy’s Flag Carrier

The latest step in Lufthansa’s expansion comes with its plan to exercise an option to lift its holding in ITA Airways from 41 percent to 90 percent. According to publicly available company information, the group acquired the initial 41 percent stake in January 2025 following European Commission approval in July 2024, which allowed joint control by Lufthansa and Italy’s Ministry of Economy and Finance. The remaining 59 percent initially stayed with the Italian state, alongside options for future share purchases.

Lufthansa now intends to buy a further 49 percent stake for a previously agreed price of 325 million euros, subject to competition clearances in Europe and the United States. Reports indicate that completion of this majority acquisition is targeted for the first quarter of 2027. At that point ITA would be fully consolidated into the Lufthansa Group, with the Italian ministry retaining a residual 10 percent that could be sold later in the decade.

The move cements ITA’s status as the group’s fifth network carrier, alongside Lufthansa, Swiss, Austrian Airlines and Brussels Airlines. Industry analysts note that the deal echoes Lufthansa’s earlier expansion through acquisitions of Swiss and Austrian Airlines, reinforcing the group’s position as Europe’s largest airline system by network carriers under a single corporate umbrella.

For Italy, the transaction marks a decisive shift from years of financial turbulence around the previous flag carrier Alitalia toward integration with a large pan-European airline group. Public filings suggest that ITA carried around 18 million passengers in 2024, giving Lufthansa an immediate boost in the strategically important Italian market.

What Changes for Travelers Out of Italy and Beyond

For passengers, the most visible impact is expected on connectivity rather than on airline branding in the short term. ITA has already been adding links from Rome Fiumicino and Milan to Lufthansa Group hubs in Frankfurt, Munich, Zurich, Vienna and Brussels, aligning schedules and codeshares to feed long haul services. Once majority ownership is in place, observers expect more tightly coordinated schedules, shared sales platforms and harmonized policies across the group’s brands.

Rome is positioned to become a stronger southern gateway in Lufthansa’s network, particularly for traffic to and from the Mediterranean, Africa and Latin America. Travelers in secondary Italian cities could see more one-stop options to global destinations via a combination of ITA and other Lufthansa Group carriers, instead of relying heavily on connections through non-Italian hubs used by rival groups.

Onboard, changes are likely to arrive in stages. Publicly available information shows that ITA has been upgrading cabins and service standards, and the airline is already described as integrated with Lufthansa in many operational areas. Over time, travelers may notice more consistent product features, such as aligned cabin classes, Wi-Fi options and ancillary services, as the group moves to standardize its offer across the network airlines.

The risk for consumers is that consolidation can reduce choice on some routes, particularly where ITA and Lufthansa Group carriers were previously competitors rather than partners. However, the conditions imposed by regulators are designed to preserve at least a baseline of competition, especially on key city pairs linking Italy and central Europe.

Loyalty Programs and Alliance Shifts on the Horizon

The acquisition also accelerates a significant realignment in the global alliance landscape. ITA, which took over from Alitalia in 2021, initially joined the SkyTeam alliance. Following the Lufthansa transaction, the Italian carrier announced its departure from SkyTeam, completed its exit transition in April 2025, and is expected to join Star Alliance in 2026.

For frequent flyers, this shift has immediate implications. SkyTeam loyalists who relied on ITA for connections through Rome will gradually lose alliance benefits on those flights, such as reciprocal lounge access or mileage accrual with SkyTeam partners. At the same time, members of Lufthansa’s Miles & More program and other Star Alliance frequent flyers stand to gain new opportunities to earn and redeem miles on ITA-operated routes.

Publicly available information indicates that integration of ITA into Lufthansa’s loyalty ecosystem is advancing, with changes to ITA’s Volare program and expanded recognition of elite status across the group. Industry commentary suggests that once ITA formally joins Star Alliance, Italy-based travelers will have access to a far wider set of partner airlines worldwide, connecting through Rome as well as other Lufthansa Group hubs.

These loyalty and alliance changes could subtly influence travel patterns. Business travelers in Italy may increasingly favor itineraries built around Star Alliance connections, while some SkyTeam-focused passengers could shift to rival carriers at Rome and Milan that remain aligned with Air France-KLM or other groups.

Regulatory Conditions Aim to Protect Competition

Lufthansa’s path to control of ITA has been shaped by a lengthy European Commission review, reflecting concerns about reduced competition on certain short haul and long haul routes. The Commission’s 2024 clearance of the initial 41 percent stake was conditional on a series of remedies offered by Lufthansa and the Italian state shareholder, particularly on city pairs where the combined entity might otherwise hold a dominant position.

According to published coverage of the case, the remedies include the transfer of slots and related assets on specific short haul routes from Rome and Milan to rival carriers such as easyJet, IAG affiliates and Air France-KLM companies designated as so-called remedy takers. These measures are intended to enable competitors to launch or expand non stop services, maintaining alternative options for consumers.

On long haul markets, especially transatlantic routes where Lufthansa already cooperates closely with United Airlines and Air Canada, the Commission examined whether the addition of ITA would significantly restrict competition. The agreed package foresees capacity and connectivity commitments and the possibility for rivals to gain improved access on certain routes, helping to keep fares and service standards in check.

Further approvals will still be required for Lufthansa to increase its stake to 90 percent, including scrutiny from authorities in the United States. Analysts note that regulators on both sides of the Atlantic are paying closer attention to airline consolidation, balancing the need for financially viable carriers with pressure to preserve competition after the pandemic.

Consolidation and the Future Shape of European Air Travel

Lufthansa’s deepening commitment to ITA is part of a wider consolidation trend as Europe’s major airline groups compete for scale against large US and Gulf carriers. The Lufthansa Group has already built a portfolio of flag carriers in Germany, Switzerland, Austria and Belgium, and has publicly expressed interest in stakes in other European airlines in recent years.

For travelers, consolidation can bring both benefits and drawbacks. Larger groups can sustain more extensive networks, invest in modern fleets and roll out digital services across a broad base of passengers. At the same time, critics argue that fewer independent players reduce pricing pressure and leave some regional airports with limited choice, particularly if low cost carriers retrench or focus on leisure routes.

The ITA deal also highlights how governments are rethinking the role of national flag carriers. Italy is shifting from full state ownership toward a minority stake alongside a strategic investor, mirroring moves seen in other European markets where states have gradually stepped back while retaining some influence through golden shares or minority holdings.

As ITA becomes more firmly embedded in the Lufthansa Group, the balance of power among Europe’s three big airline families Lufthansa Group, IAG and Air France-KLM is likely to sharpen. Travelers across the continent may find that loyalty to one of these networks increasingly shapes their choice of routes, fares and benefits, with Rome now set to play a more prominent role on the map of European air travel.