Lufthansa to Buy Stake in ITA in Bet on Italian Market

German airline has plan to expand fleet and add workers
ITA predecessor Alitalia has been historically unprofitable

An ITA Airways aircraft on the tarmac at Fiumicino airport in Rome.
Photographer: Alessia Pierdomenico/Bloomberg

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By William Wilkes and Alberto Brambilla

May 25, 2023 at 3:00 PM UTC

Updated on

May 25, 2023 at 4:02 PM UTC

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Deutsche Lufthansa AG agreed to buy a stake in Italian carrier ITA Airways, allowing the German airline to expand in Europe’s third-largest aviation market while letting Rome rid itself of an asset that’s soaked up billions of euros in state support.

Lufthansa, the region’s biggest airline group, will invest €325 million ($349 million) via a capital increase for a 41% stake, with the Italian government contributing an additional €250 million, according to a statement by the airline. The company has the option to increase its stake or buy all of ITA outright, with the purchase price depending on certain financial metrics that need to be met.