Home NewsA New Powerful Airline Group Is Emerging in Europe

A New Powerful Airline Group Is Emerging in Europe

Lufthansa plans to raise its stake in ITA Airways to 90%. Here’s what the deal means for Italy, passengers, and the future of the national airline.

by Emanuela Colatosti

Lufthansa Group is moving closer to taking control of ITA Airways, Italy’s national airline. In simple terms, Lufthansa plans to buy more shares and increase its ownership from 41% to 90%. As a result, Lufthansa will become the main decision-maker in ITA Airways.

The company plans to complete this step in June. Lufthansa will pay about €325 million for the additional shares. However, the deal still needs approval from European and American regulators, who check whether large business deals respect competition rules.

What ITA Airways is and why it matters

ITA Airways is the airline owned by Italy. It started in 2021 after the collapse of Alitalia, the old Italian national airline that struggled with debts and losses for many years.

Italy created ITA Airways to replace Alitalia and to build a more efficient company. However, ITA Airways still needed a strong partner to grow and compete with bigger European airlines.

Therefore, Italy allowed Lufthansa to invest in the company. Italy still keeps a small share, but it now relies on Lufthansa’s experience in running large airline networks.

How Lufthansa is building control step by step

First, Lufthansa bought 41% of ITA Airways in early 2025. That deal started the partnership between the two airlines. Now Lufthansa wants to increase its ownership to 90%, which gives it full operational control in practice.

In addition, Lufthansa already planned this structure from the beginning. The company designed the deal in stages so regulators and the Italian government could approve each step more easily.

If everything goes as planned, Lufthansa could later buy the remaining 10% from the Italian state. However, that final step depends on future negotiations.

Why Italy agreed to sell most of the airline

Italy agreed to this deal because ITA Airways needed stability and growth. On its own, the airline faced strong competition from larger European groups like Air France-KLM and IAG, the parent company of British Airways and Iberia.

Moreover, ITA Airways only recently started to make profits. In 2025, the airline reported a net profit of €209 million, which marked its first successful year. Italy sees Lufthansa as a partner that can protect these improvements and help the airline grow further.

At the same time, Italy still keeps a 10% stake. This allows the government to stay involved and protect some national interests, especially in a strategic sector like aviation.

Why Lufthansa wants ITA Airways

Lufthansa wants ITA Airways because it strengthens its position in Southern Europe. In particular, Rome Fiumicino Airport can become a major hub for flights between Europe, North America, and South America.

Furthermore, Lufthansa already owns several airlines, including Swiss, Austrian Airlines, and Brussels Airlines. ITA Airways would become the fifth major airline inside the group.

By integrating ITA Airways, Lufthansa can connect routes better, reduce costs, and improve flight schedules. As a result, passengers may get more direct flights and smoother connections across Europe.

What will happen next

Now the deal moves into the approval phase. Regulators will examine whether Lufthansa’s increased control could reduce competition in the European airline market. If they approve the plan, Lufthansa will finalize the 90% ownership in June, and full integration will follow over the next years.

Eventually, ITA Airways will stop operating as a separate company in many areas and will become part of the Lufthansa network. This will mark a major change for Italian aviation and for the European airline industry as a whole.

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