By Mauro Orru
Germany's Deutsche Lufthansa said it would take majority control of ITA Airways by acquiring an additional stake for nearly $400 million, moving to further integrate Italy's flagship airline into its operations.
The carrier group commands a 41% stake in ITA Airways that it bought from the Italian Ministry of Economy and Finance as Rome sought to gradually relinquish control of the airline and hand it to a private owner. That deal from June 2023 gave Lufthansa the option to acquire an additional 49% stake, lifting its holdings to 90%.
Lufthansa said it would exercise that right next month to buy the stake from the Italian government for 325 million euros, equivalent to $383 million. Rome will retain a 10% stake in the carrier, though Lufthansa said it might acquire that stake in 2028 and take full ownership of the airline.
The deal shows that Lufthansa is seeking to tighten its grip on the airline, which turned a profit of 209 million euros last year.
Alitalia, ITA Airways' predecessor, had built a reputation for flying Hollywood movie stars and became the official airline of the pope. However, it struggled to make money as it faced stiff competition from European low-cost carriers like Ryanair Holdings and Wizz Air Holdings. It had for years been embroiled in special bankruptcy proceedings.
Building a majority stake would also allow Lufthansa to better integrate ITA Airways into its operations as the group's fifth network airline: Deutsche Lufthansa controls Austrian Airlines, Swiss International Air Lines and Brussels Airlines, aside from the eponymous Lufthansa.
"All customer-facing interfaces are already integrated today--with the exception of North Atlantic flights, where, as is well known, regulatory approval for our merger is still pending," Deutsche Lufthansa Chief Executive Carsten Spohr said.
The group said ITA Airways would be fully integrated both organizationally and financially once the deal closes, giving it more control over its network of flights to the U.S. and Asia. Italy represents Lufthansa's largest catchment area outside the U.S. and its other home markets, making Italy a key hub for connecting passengers.
ITA Airways welcomed the deal, saying that coming under the Lufthansa fold would help it to consolidate its role as Italy's reference carrier. The airline will continue to operate under its own brand following the transaction.
Lufthansa said the deal, which is subject to regulatory approvals from the European Union and the U.S. Justice Department, is expected to close in the first quarter of 2027.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
May 12, 2026 06:07 ET (10:07 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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