Lufthansa has confirmed it will exercise its option to acquire an additional 49 percent stake in ITA Airways, taking its total holding to 90 percent. The deal, worth 325 million euros (approximately £277 million at current rates), is expected to complete in the first quarter of 2027 following regulatory sign-off from the European Commission and the US Department of Justice. The Italian Ministry of Economy and Finance will hold the remaining 10 percent for now, with Lufthansa holding an option to acquire that final tranche in 2028.

Why Now, and Why Does It Matter

The original deal structure, agreed with the Italian government back in June 2023, included an annually recurring option for Lufthansa to move from minority to majority control. Lufthansa only formally completed its initial 41 percent acquisition in January this year. The fact that it is pulling the trigger on the next tranche just months later tells you something about how that first phase has gone.

Carsten Spohr told shareholders at today’s Annual General Meeting that the group had promised the fastest airline integration in its history, targeting all major steps within 18 months of the first acquisition. He says they came in ahead of even that schedule. That is not the sort of claim Spohr tends to make lightly (and given Lufthansa’s track record with Swiss and Brussels Airlines, the bar for what counts as “fast” is reasonably well established).

What Is Already in Place

The degree of integration already completed is, frankly, more than I would have anticipated given the timeline. ITA Airways passengers are already booking through unified systems, accessing Miles and More as the frequent flyer programme, travelling under the Star Alliance umbrella, and using Lufthansa Group lounges at relevant airports. That is a meaningful set of changes to push through in the time available, and it matters to anyone who flies ITA regularly or connects onto it from another Lufthansa Group carrier.

On the cargo side, Lufthansa Cargo has been marketing ITA’s belly capacity since last year. Spohr’s figure of three equivalent Boeing 777 freighters worth of additional capacity is a useful illustration of the commercial logic here. ITA’s medium-haul network out of Rome Fiumicino and Milan Linate gives the group meaningful feed into its Frankfurt and Munich hubs, and the cargo angle appears to have added genuine value on top of that.

The one area where full integration is not yet in place is North Atlantic flying, where the regulatory process is still running its course. That is not a surprise given how long transatlantic joint venture approvals tend to take, but it is worth noting for anyone planning itineraries that involve ITA on a transatlantic segment.

What Remains to Be Seen

325 million euros for 49 percent of an airline that was, not very long ago, the restructured remains of Alitalia requires a degree of faith in the turnaround story. ITA launched in October 2021 with a smaller fleet and a mandate to avoid the financial habits that sank its predecessor. The early signs under Lufthansa’s partial ownership appear to have been positive enough to justify moving ahead of the option schedule, but full organisational and financial consolidation, which Lufthansa says will follow completion, will be a more demanding test than booking system alignment.

It also remains to be seen how the Italian government handles its residual 10 percent. Politically, retaining a symbolic stake in the national carrier carries obvious appeal. Whether MEF exercises its right to hold on past 2028 or quietly accepts Lufthansa’s offer when the time comes will depend on factors that have nothing to do with airline economics.

For now, though, this looks like a deal proceeding broadly as intended. Lufthansa gets a fifth network airline with a strong position in Rome and Milan, a ready-made feed network, and a cargo contribution that is already generating returns. ITA gets the capital, systems, and alliance membership it needs to compete seriously.