Lufthansa and ITA Airways Launch Codeshare on 100+ European Routes

Lufthansa Group and ITA Airways have launched their comprehensive codeshare agreement, activating joint sales on more than 100 new routes across Europe. The partnership, which follows Lufthansa's strategic acquisition of a stake in the Italian carrier, marks a significant step in the integration of ITA (Italia Trasporto Aereo) into the German airline group's multi-hub system.

This codeshare is the first major operational integration following the European Commission (EC)'s conditional approval of Lufthansa's investment. For passengers, it provides streamlined booking, single-ticket itineraries, and synchronized connections between the two carriers' networks. For the industry, it signals the acceleration of ITA Airways' transition from the SkyTeam alliance to Star Alliance, fundamentally reshaping the competitive landscape in the Southern European market.

Regulatory Approval and Consolidation

The partnership is built upon Lufthansa Group's acquisition of a 41% stake in ITA Airways for €325 million, a deal jointly managed with the Italian Ministero dell'Economia e delle Finanze (MEF). According to European Commission filings, the deal received conditional antitrust approval in July 2024 under the EU Merger Regulation. To address competition concerns, the EC mandated remedies, including the divestiture of a specific number of take-off and landing slots at Milan Linate (LIN) airport. The EC and consumer advocates had initially warned the merger could otherwise reduce competition and lead to higher fares on certain short-haul routes to Central Europe and long-haul routes to North America.

This acquisition follows Lufthansa's established strategy of European legacy carrier consolidation. The pattern is similar to its previous integration of national carriers like SWISS, Austrian Airlines, and Brussels Airlines. In 2009, Lufthansa's acquisition of Austrian Airlines was also approved by the European Commission subject to slot concessions in Vienna—a pattern that supports the current situation's regulatory framework. The context for this deal is the 2021 cessation of Alitalia, which was succeeded by the state-owned ITA Airways, prompting the Italian government to seek a stable partner to secure the new flag carrier's future.

Codeshare Details and Passenger Benefits

The initial phase of the codeshare agreement covers over 100 new European routes. According to Dieter Vranckx, Chief Commercial Officer of Lufthansa Group, this is a "critical milestone" for integrating ITA into the group's commercial structure. The primary benefit is the ability for customers to book a single ticket for journeys involving flights from both airlines, including seamless baggage transfer and coordinated schedules.

For frequent flyers, the partnership enables reciprocal benefits between Lufthansa's Miles & More and ITA's Volare loyalty programs. Members can now earn and redeem miles across the combined network. The agreement also extends elite status benefits, such as priority boarding and access to over 130 lounges for eligible travelers.

Alliance Realignment and Market Impact

A major consequence of the deal is the realignment of airline alliances. ITA Airways is exiting the SkyTeam alliance to align with Lufthansa's Star Alliance. This move significantly reduces SkyTeam's footprint in the key Italian market. Conversely, it strengthens Star Alliance considerably, which will gain over 360 daily flights and a strategic hub at Rome Fiumicino upon ITA's formal entry.

The competitive impact extends beyond the alliances. While rival airlines argued during the EC's market investigation that such consolidation stifles competition, the mandated slot divestitures at Milan Linate provide an opportunity for other carriers. Low-cost carriers like Ryanair and easyJet, which have a strong presence in Italy, are expected to compete for these slots, potentially increasing their services from the capacity-constrained airport.

What Comes Next

The integration of ITA Airways into the Lufthansa Group will proceed in stages. According to a Lufthansa Group press release, the next major step is the expansion of the codeshare to long-haul intercontinental flights, which is confirmed to begin on July 1, 2025.

Following this, ITA Airways is expected to officially join Star Alliance in early 2026, fully integrating its network with alliance partners. Looking further ahead, Lufthansa Group is expected to exercise its option to acquire the remaining 59% stake in ITA Airways from the Italian government sometime after 2025, pending final regulatory processes.

Why This Matters

This strategic partnership solidifies Lufthansa Group's position as a dominant force in European aviation, securing a crucial foothold in the Italian market, one of Europe's largest. The move strengthens the Star Alliance network against competitors like SkyTeam and oneworld, while intensifying the competitive pressure on low-cost carriers. For passengers, it promises greater connectivity and a more unified travel experience, but regulatory oversight will be key to ensuring it does not lead to reduced competition and higher fares on key routes.

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