Lufthansa Finalizes 41% Stake in ITA Airways: A Strategic Move for European Consolidation
Published: [11/13/2025]
Category: Fleet & Finance Analysis, European Market Strategy
The Announcement (The Facts):
Frankfurt, Germany – Lufthansa Group has officially completed its acquisition of a 41% stake in ITA Airways, the successor to Alitalia, for €325 million. The deal, which includes an option for Lufthansa to acquire the remaining shares at a later date, received final approval from the European Commission in late May 2024, following concessions by Lufthansa regarding competitive concerns on certain routes.
The agreement positions Lufthansa as a significant shareholder in Italy’s national flag carrier, aiming to integrate ITA into its existing multi-airline group alongside SWISS, Austrian Airlines, and Brussels Airlines. This move is expected to enhance Lufthansa’s network in Southern Europe, particularly through ITA’s hubs in Rome Fiumicino (FCO) and Milan Linate (LIN).
Source: Lufthansa Group Press Release, European Commission Official Statement.
The Implication (Our Analysis):
This acquisition is not merely a financial transaction; it represents a critical strategic maneuver in the ongoing consolidation of the European airline landscape. For Lufthansa, gaining a foothold in the Italian market offers several advantages:
- Network Expansion & Hub Strengthening: ITA’s robust presence at Rome (FCO) and Milan (LIN) provides Lufthansa with essential feeder traffic from Southern Europe and access to new long-haul destinations, reducing reliance on its traditional German hubs. This could unlock significant revenue synergies, particularly from lucrative North American and African routes where FCO is a key gatewa
- y.
- Market Share & Competitive Advantage: By integrating ITA, Lufthansa directly challenges rival airline groups like IAG (British Airways, Iberia) and Air France-KLM for dominance in a fragmented European market. The concessions made to the European Commission, while impacting specific routes, are likely a small price to pay for the broader strategic benefits of a larger, more integrated network.
- Cost Synergies & Operational Efficiency: The long-term plan to fully acquire ITA will allow Lufthansa to eventually streamline operations, centralize procurement (e.g., fuel, MRO), and potentially integrate fleets, driving down CASM (Cost per Available Seat Mile) across the group. Early integration efforts will likely focus on sales, marketing, and loyalty programs.
Conversely, for ITA Airways, joining a major airline group offers financial stability and access to a global network, which has been elusive since the demise of Alitalia. It provides a credible path to sustained profitability and modernization.
The Data Point:
European Airline Group Market Share (2023 Passenger Numbers, approximate):
| Airline Group | Estimated Market Share | Key Hubs |
| Ryanair Group | 17-18% | Dublin, Stansted, Charleroi |
| Lufthansa Group | 15-16% | Frankfurt, Munich, Zurich, Vienna, Brussels |
| IAG Group | 12-13% | London-Heathrow, Madrid, Dublin |
| Air France-KLM | 11-12% | Paris-CDG, Amsterdam |
| EasyJet | 7-8% | London-Gatwick, Milan-Malpensa |
| ITA Airways (Pre-Lufthansa) | 1-2% | Rome-Fiumicino, Milan-Linate |
Note: Market share figures are approximate and based on 2023 passenger volumes. Post-acquisition, ITA’s share will be consolidated under Lufthansa Group, significantly bolstering its position.
This acquisition further illustrates the trend of consolidation within Europe’s legacy airline sector as carriers seek scale and network power to compete against low-cost carriers and global mega-carriers.
