Lufthansa will take over ITA Airways in a few years

Negotiations between Lufthansa, ITA Airways, and the Italian Government continue, with the German airline group expected to fully take over the Italian carrier in the mid-2020s, despite missing the previous April 24 deadline.

A new deadline of May 12 has been set, but sources suggest that the deal could be concluded before then. Under preliminary plans, Lufthansa would purchase an initial 40% stake in ITA Airways for between €200 and €250 million ($220.6 million and $275.7 million), with a full acquisition expected by H1 2026. The deal would be contingent on ITA Airways breaking even, which would trigger the contractual close for Lufthansa to acquire the remaining 60%.

The Italian flag carrier recorded a net loss of €486 million ($536 million) in 2022 despite revenues surging to over €1.5 billion ($1.6 billion), with management stating that the losses are consistent with the start-up phase of the company. Lufthansa submitted its bid for ITA Airways on January 18, 2023, and on March 30, 2023, ITA Airways announced that the joint business plan with Lufthansa was approved by the company’s shareholders.