Lufthansa will acquire a 41% stake through an investment of €325 million. The deal comes at a time when European airlines are looking to improve their financial stability following the impact of the COVID-19 pandemic, and established carriers are exploring consolidation as a means to increase their competitiveness against low-cost airlines. Another interesting element of the agreement is the inclusion of options allowing Lufthansa to potentially acquire the remaining shares of ITA Airways.

For several years now, Germany has proven to be too small a market for Lufthansa. To expand its horizons, Lufthansa has made strategic acquisitions such as Swiss, Austrian Airlines and Brussels Airlines. The ultimate aim of the deal is to take control of the emerging Italian airline and integrate it into its extensive portfolio of European carriers. This investment is an important milestone for the Group, as it allows it to gain a strong position in the southern region of Europe, specifically in the third largest economy of the EU.

Upon completion of the integration process, ITA Airways, currently a member of SkyTeam, will transfer to Lufthansa's Star Alliance. However, the main obstacle to be overcome is the growing financial losses. After its founding in October 2021, ITA Airways suffered a loss of around €148 million in the first two and a half months, which further climbed to €486 million in 2022. The German group therefore aims to urgently reverse this unfavourable trajectory after taking management control of the Italian carrier. By joining the Lufthansa Group, ITA Airways will gain access to an extensive network of partners, benefit from centralised revenue management and global sales and marketing channels. The aim will be to resolve the financial challenges facing ITA Airways and ease its path to stability and growth.

The deal represents the culmination of nearly three years of efforts by the Italian government to find a private buyer for the national airline.