Lufthansa’s merger with ITA could reshape US-Italy flight routes

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Lufthansa’s merger with ITA could reshape US-Italy flight routes

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By Sky Industry News

Nov 29, 2024

With Lufthansa's merger with ITA Airways moving forward, there is speculation about changes to the US-Italy route network. Lufthansa initially plans to acquire a 41% stake in ITA Airways, maintaining its multi-hub strategy across Europe. The CEO of Lufthansa Group, Carsten Spohr, stated that the merger is beneficial for all stakeholders involved and will strengthen competition in the Italian market.

Spohr emphasized Italy's significance as an important market outside the group's home countries and highlighted ITA Airways' potential to connect Italy with Europe and beyond as part of the Lufthansa Group. An agreement has been reached between Lufthansa Group and the Italian Ministry of Economy and Finance (MEF) to finalize the merger.

Currently, US-based airlines like American Airlines, Delta Air Lines, and United Airlines serve major Italian gateways such as Rome and Milan. ITA Airways has scheduled numerous weekly flights from Rome-Fiumicino to various US destinations. By June 2025, they plan to increase these frequencies significantly.

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Lufthansa's network also includes other airlines within its group offering transatlantic flights. The European Commission has expressed concerns about reduced competition on long-haul routes due to coordination among Lufthansa and its partners. However, this merger positions ITA Airways for potential expansion into Africa and Latin America.

The recent tax increases on flights in Germany pose challenges for Lufthansa's profitability in its home market. Despite this, Spohr acknowledged Italy's importance for revenue and inbound tourism, stating that more Americans travel through their hubs to Italy than any other destination.

ITA Airways is set to join the Atlantic++ joint venture with Air Canada and United Airlines pending antitrust approval from US authorities, potentially altering transatlantic networks further.