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Lufthansa Group advances integration of ITA Airways with new routes and loyalty changes

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Lufthansa Group advances integration of ITA Airways with new routes and loyalty changes
Research
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Carsten Spohr Chief Executive Officer | Lufthansa Group

Italy's ITA Airways is moving forward with significant changes following its integration into the Lufthansa Group earlier this year. The airline has coordinated its flight schedules with Lufthansa and connected its Volare loyalty program to the group's Miles & More program. ITA also left the SkyTeam alliance to join Star Alliance and has applied to become part of Lufthansa's transatlantic joint venture with United Airlines and Air Canada.

"The integration part is a big challenge," said Joerg Eberhart, CEO of ITA, in an interview. "Lufthansa said this will be the quickest integration the group ever did. ... We are striving, Lufthansa's striving for having this done within two years." Eberhart indicated that ITA could be fully integrated into the Lufthansa Group by 2027, with the group eventually increasing its ownership from 41% to full control.

The integration comes as Lufthansa seeks to improve its financial position compared to other major European airline groups. In September, Lufthansa announced plans to cut costs, enhance efficiency, and centralize management, with ITA's hub at Rome Fiumicino Leonardo da Vinci Airport (FCO) playing a central role in these efforts.

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Eberhart noted the importance of the U.S. market for ITA, saying, "The U.S. market is the most important market for us, besides the domestic market in Italy." Lufthansa and United have applied for U.S. Department of Transportation approval to include ITA in their joint venture, which would allow for greater coordination of schedules and fares between Europe and the U.S. The joint venture also includes Austrian Airlines, Brussels Airlines, and Swiss.

ITA and United launched a loyalty partnership in September. Eberhart explained, "We [will] try then to organize the ITA network the same way that we would have connecting points with the system of United." He mentioned that Houston's George Bush Intercontinental Airport and Newark Liberty International Airport are among the U.S. destinations under consideration for future ITA flights from Rome. Currently, ITA serves seven U.S. airports, including Chicago O'Hare, New York JFK, and Washington Dulles. The airline aims to join the joint venture by October 2026 and operate its first joint schedule in summer 2027.

However, ITA's growth plans face challenges due to limited aircraft availability. The airline operates 22 long-haul Airbus A330 and A350 jets, with six new A330-900s on order intended to replace older models. Eberhart said, "It's more or less a challenge of availability as we want to grow our new technology A350." He noted that acquiring new aircraft is difficult because of long delivery times and high leasing costs, but ITA may benefit from Lufthansa's larger orderbook after full integration.

Lufthansa also faces delays in receiving new wide-body aircraft from Airbus and Boeing, and in certifying new premium seats. Financially, ITA reported a €46 million ($54 million) operating loss in the first half of 2025. Eberhart previously stated that the airline aims "to get very close to break-even" in the second half of the year.

Looking south, Lufthansa Group CEO Carsten Spohr has described FCO as a potential new gateway to Africa and Latin America. Compared to Air France-KLM and International Airlines Group, which have established southern hubs in Paris and Madrid, respectively, Lufthansa lacks such a hub. ITA is considering new routes to Abidjan, Lagos, Bogota, Lima, and Santiago, but expansion into South America and the U.S. would require additional wide-body aircraft. The airline is also evaluating the use of long-range single-aisle Airbus A321neos for routes to Africa and possibly to the U.S. East Coast and Middle East.

Regarding loyalty and alliances, Eberhart said that Volare will be merged into Miles & More by the end of February. The airline has already synchronized its earning and redemption systems with the group. ITA plans to complete its Star Alliance membership by June 2026. Eberhart added, "We're already preparing the [Star Alliance] livery for an aircraft," signaling further progress in alliance integration.

The changes come as part of broader efforts by both ITA and Lufthansa to enhance competitiveness and expand their global reach.

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