German flag carrier Lufthansa Group is pressing ahead with plans to significantly increase its ownership in Italy’s ITA Airways, though the process has encountered a recent setback.
Having finalised its initial acquisition of a 41pc stake in January 2025 through a capital increase of 325m euro, Lufthansa has been in discussions with the Italian Ministry of Economy and Finance (MEF), which retains the remaining 59pc, to exercise pre-agreed options for a further substantial share purchase.
Reports from late 2025 indicated that the German group aimed to raise its holding to 90pc by June 2026, involving an additional payment of around 325m euro for the extra 49pc, potentially supplemented by a performance-linked bonus of up to 100m euro. This would grant Lufthansa near-total control over ITA, facilitating deeper integration into its network alongside partners such as Austrian Airlines, Swiss, and Brussels Airlines, while strengthening its footprint in southern Europe’s key markets from Rome and Milan.
As of early February 2026, however, negotiations have hit a hurdle centred on the earn-out clause tied to ITA’s performance metrics. Disagreements over the 100m euro bonus—equivalent to roughly 118m dollars in recent valuations—have stalled progress, according to industry sources. The option remains exercisable, with any completed transfer of the additional shares potentially deferred until January 2027 even if agreed earlier. Lufthansa continues to emphasise the strategic value of the partnership, as ITA prepares to join Star Alliance in the first half of 2026 following its exit from SkyTeam, and pursues fleet growth and profitability targets under the Lufthansa umbrella.
