Investing.com — Shares in Lufthansa Group (ETR:) rose slightly on Thursday after the German airline’s CEO said in an interview with Italian newspaper Corriere della Sera that the airline would consider increasing its stake in Italy’s ITA Airways up to 90%, from the beginning of next year.
Carsten Spohr spoke after his company received approval from European Union antitrust authorities on Wednesday to buy 41% of state-backed ITA for 325 million euros.
The deal gives Lufthansa a stronger position in the key Southern European market and strengthens its bid to offset a rise in costs with greater scale. Spohr also said the move will give Lufthansa better access to routes to Africa and Latin America.
The transaction, expected to close in the fourth quarter of 2024, will make Italy Lufthansa’s fifth home market after Germany and the US in terms of market revenue size.
Under the agreement with the EU, Lufthansa and ITA will also cede some Italian short-haul flights to one or two of their colleagues. The deal will not be completed until the rivals – approved by EU officials – have started operating these routes.
