Lufthansa Group will exercise its option in June 2026, acquiring an additional 49% stake in ITA Airways, bringing its ownership from a minority 41% to a majority 90% stake.

The move, which has been a long time in the making and highly touted for $382 million, has been approved by the Supervisory Board and comes hot on the heels of further approval to acquire 20 more Airbus and Boeing widebody jets as well.

The Italian Ministry of Economy and Finance will retain 10% under this new agreement; however, a buyout option will also be available in 2028. Pending approval from the EU and the U.S., this stake transaction is expected to close in Q1 2027.

Carsten Sphor, the CEO, labelled the integration between the Lufthansa Group and ITA Airways the fastest in history and commended all those involved in making this acquisition possible.

Lufthansa Group & ITA Airways Background

Talks between Lufthansa Group and ITA Airways have been ongoing for some time, following the collapse of Alitalia and the birth of ITA Airways as the new national airline.

With ITA Airways concerned about its future without intervention and analysts flagging a fate similar to Alitalia despite new strategies and aircraft, there was an opening for a company to swoop in and commit heavily to the Italian carrier.

Years ago, Lufthansa, alongside other parties, expressed interest in the prospective takeover, initially for only a majority stake, with the German company gaining the upper hand and moving forward with that stake.

Throughout the negotiations, Lufthansa Group indicated that it was also very interested in moving forward with majority control should the initial stake it acquired prove valuable to the business. Now that it has proven valuable, it has acted quickly and acquired full control of the airline.

The Benefits For Lufthansa Are Clear

With a 90% controlling stake in ITA Airways, the Lufthansa Group now has near-total control without incurring full ownership costs for the time being, which improves overall harmony between the Italian carrier and the airlines that already call the Group home.

ITA Airways will act as the fifth hub airline out of Rome Fiumicino, feeding Frankfurt/Munich traffic and enabling broader codeshare agreements that extend into frequent-flyer programs, Star Alliance memberships, lounge access, and joint ventures with transatlantic partners.

ITA Airways’ aircraft would also fall under Lufthansa maintenance, a fleet build that aligns with the Group’s direction toward renewal and next-generation planes, meaning costs will be low, efficiency will be boosted, and benefits will be felt immediately.

For the Lufthansa Group, Italy has also been a problem child market, a location it simply hasn’t been able to crack. This sector is highly lucrative but also extremely competitive, particularly between the former Alitalia and budget carriers.

Now, Lufthansa Group is able to capture key demand at Rome’s hub and serve destinations across the Mediterranean and Africa, but even beyond that, with ITA Airways’ grip, it is solidifying its presence across Europe, widening it, if anything, to cover more regions.

Source: djsaviation