Lufthansa CEO Expects Italy's ITA to Boost Profits by Hundreds of Millions

Lufthansa's CEO, Carsten Spohr, has expressed confidence in the potential of Italy's national carrier, ITA Airways, to significantly boost the German airline's profits. According to a report by the Financial Times (FAZ), Spohr anticipates that the integration of ITA Airways into the Lufthansa Group could generate hundreds of millions of euros in additional profits. This optimism is rooted in the strategic fit between the two airlines and the expected synergies from their collaboration.

ITA Airways, founded in 2021, has quickly established itself as a competitive player in the European aviation market. With a modern fleet and an efficient hub in Rome, the airline has shown promise in connecting Italy with Europe and the rest of the world. Lufthansa's acquisition of a 41% stake in ITA Airways, announced in 2023, is seen as a strategic move to strengthen its position in the Italian market and expand its network.

The integration of ITA Airways into the Lufthansa Group is expected to bring several operational, network, and financial synergies. These include:

1. Operational synergies: Lufthansa plans to expand ITA's Rome Fiumicino hub as a key transit point, particularly for Eastern Europe and US-bound flights. This will improve connectivity and reduce transit times for passengers, enhancing the overall customer experience. Additionally, ITA Airways will benefit from synergies such as access to the partner network, central revenue management, and the use of Lufthansa Group's global sales and marketing channels. This is expected to improve ITA's revenue generation and cost efficiency.
2. Network synergies: Lufthansa aims to increase ITA's US connectivity, with plans to serve up to six US destinations during the summer season. This will allow Lufthansa to expand its reach in the lucrative transatlantic market and tap into new revenue streams. ITA Airways will join the Star Alliance, allowing it to coordinate routes, schedules, and fares with other alliance members like Air Canada, Lufthansa, SWISS, and United. This will enhance ITA's competitiveness on transatlantic and Central European routes. Lufthansa also anticipates strategic expansion into Africa and South America, with potential flights to Bogotá and expanded seasonal operations to Brazil. This will help diversify ITA's network and tap into new markets.
3. Financial synergies: Lufthansa expects to achieve synergies of €300-400m up to 2027 from the integration of ITA Airways. These synergies are expected to come from improved operational efficiency, network expansion, and increased revenue generation.



The acquisition of ITA Airways is part of Lufthansa's broader strategy to expand its influence across Europe. By acquiring a stake in TAP Air Portugal, Lufthansa can further strengthen its position in the European aviation market and create additional synergies.

In conclusion, Lufthansa's CEO expects Italy's ITA Airways to boost profits by hundreds of millions of euros through operational, network, and financial synergies. The integration of ITA Airways into the Lufthansa Group is expected to strengthen Lufthansa's position in the Italian market and expand its network, ultimately benefiting both airlines and their customers.