Lufthansa Tightens Grip on ITA Airways as European Aviation Consolidation Accelerates

2 days ago
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The German group, Europe's largest airline operator by passenger numbers, said on Tuesday that the deal had been approved by its supervisory board on Monday and was announced at its annual general meeting in Frankfurt. The Italian Ministry of Economy and Finance will retain the remaining 10 per cent, with Lufthansa holding a further option to acquire that stake in 2028.

Completion is targeted for the first quarter of 2027, subject to clearance from the European Commission and the US Department of Justice. Lufthansa already owns 41 per cent of ITA, which it secured in January 2025 after a protracted regulatory negotiation in Brussels.

Chief executive Carsten Spohr said the group had "promised the fastest airline integration in our history", with all major integration steps targeted for completion within 18 months. ITA formally joined Star Alliance on 31 March, has migrated its loyalty members onto Lufthansa's Miles & More programme, and has shifted its German operations into Lufthansa's Frankfurt and Munich terminals.

The deal cements ITA's position as Lufthansa's fifth network airline alongside Swiss, Austrian and Brussels Airlines, deepening a multi-hub model that increasingly defines Europe's legacy aviation landscape.

It also lands amid renewed jockeying for TAP Air Portugal, where Air France-KLM remains in the race after IAG withdrew last week. Wider sector headwinds persist: jet fuel prices have roughly doubled since the start of the Iran war, with Lufthansa earlier this month reaffirming full-year guidance after first-quarter revenues rose 8 per cent to €8.7 billion.

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