Lufthansa Group Expands ITA Codeshare to Long-Haul Routes

Strategic Integration of ITA Airways

Lufthansa Group has officially expanded its codeshare agreement with Italia Trasporto Aereo (ITA) to include long-haul flights, effective July 1, 2025. This development marks a significant milestone in the Lufthansa Group ITA codeshare strategy, designed to integrate the Italian carrier into the group's broader network. The expansion follows a progressive acquisition strategy, with Lufthansa having secured a 90% equity stake in the Italian flag carrier by May 2026. This move accelerates ITA Airways long-haul flights connectivity, providing passengers with seamless booking options across the group's global network, including destinations in Asia, Africa, and the Americas.

Evolution of Airline Industry Consolidation

This integration is a central component of ongoing airline industry consolidation in Europe, as flag carriers increasingly align under three major holding groups. According to Lufthansa Group Press Release, the group finalized its initial 41% minority stake in ITA for €325 million in January 2025. By May 2026, Lufthansa exercised an option to acquire an additional 49% stake for another €325 million, cementing its majority position. The transition has been rapid; ITA Airways formally exited the SkyTeam alliance and joined the Star Alliance on April 1, 2026, fundamentally shifting the alliance landscape in Southern Europe.

Regulatory Context and Remedies

The merger process remains subject to rigorous oversight by the European Commission under Merger Regulation Case M.11071. To preserve market competition, regulators mandated strict slot divestitures at major hubs, including Rome Fiumicino Airport (FCO) and Milan Linate Airport (LIN). These remedies have created opportunities for low-cost carriers such as easyJet to expand their operations at these capacity-constrained airports. Furthermore, the Star Alliance integration necessitates ongoing regulatory clearance from the U.S. Department of Justice to allow ITA Airways to participate fully in the group’s North Atlantic joint venture.

Technical Analysis: Network Synergy

From an operational perspective, the integration leverages ITA Airways' fleet of approximately 100 aircraft to feed into the Lufthansa hub-and-spoke model. The shift to a Star Alliance-compatible network allows for harmonized Miles & More loyalty benefits and reciprocal perks for frequent flyers. Historically, this pattern mirrors Lufthansa's 2016 acquisition of Brussels Airlines, which successfully integrated a national carrier into the group's multi-hub architecture. The accelerated timeline—which Lufthansa Group CEO Carsten Spohr described in May 2026 as the fastest in the group’s history—suggests that the technical and commercial synchronization of ITA into the wider group is proceeding ahead of the initial 18-month target.

What Comes Next: Full Integration

Looking ahead, the group is focused on achieving full regulatory approval for the North Atlantic joint venture, which is expected between late 2026 and 2027. Following the current 90% ownership level, Lufthansa holds an option to acquire the remaining 10% of the carrier from the Italian Ministry of Economy and Finance (MEF) by 2028. These milestones are critical to stabilizing the carrier’s long-term financial structure and completing the transition to an entirely new-generation Airbus fleet, which is targeted for completion by 2030.

Why This Matters for Passengers

For travelers, the expanded codeshare eliminates the friction of multi-ticket itineraries, offering unified baggage handling and seamless connections across the combined Lufthansa-ITA network. This integration positions the Lufthansa Group to capture a larger share of the Southern European premium travel market while providing ITA Airways with the financial and operational backing of a global aviation conglomerate. As the industry continues to consolidate, the success of this integration serves as a bellwether for similar cross-border airline mergers in the European market.