How Lufthansa’s Merger With ITA Airways Will Alter The US-Italy Route Network

With the Lufthansa and ITA Airways merger, whereupon the former will initially buy a 41% stake in the latter, inching closer and closer, there have been questions about how the two carriers, as well as the Lufthansa Group’s networks, will change going forward.

One thing is certain: the group intends to keep the multi-hub structure spread across Europe, with one hub in Austria, Belgium, and Switzerland each and two in Germany and Italy.

Multi-hub strategy

When Lufthansa Group initially announced the acquisition of 41% of ITA Airways’ shares in May 2023, with an option to acquire the remaining stake at a later date, the company emphasized its multi-brand, multi-hub strategy.

The company highlighted that ITA Airways would become the fifth network carrier in the Lufthansa Group, joining Austrian Airlines, Brussels Airlines, Lufthansa, and Swiss International Air Lines ( SWISS). Airlines, such as Discover Airlines or Edelweiss Air, are classified as leisure carriers by the group.

The current hub network, including ITA Airways’ two hubs at Rome Leonardo da Vinci–Fiumicino Airport (FCO) and Milan Linate Airport (LIN), looks like this:

“Italy represents the most important market outside the Group’s home base countries and the United States. Italy is the third-largest economy in the EU in terms of gross domestic product, with a strong export-oriented economy. This is one among many reasons why business travel to and from Italy is important.”

Carsten Spohr, the chief executive officer (CEO) of Lufthansa Group, added that the merger agreement was a win-win for all stakeholders involved in the transaction, including the Italian Ministry of Economy and Finance (Ministero dell’Economia e delle Finanze, MEF).

Spohr highlighted that a stronger ITA Airways would invigorate competition in the Italian market, and as an airline with a modern fleet and an efficient and expanding hub in Rome, it was perfect for the Germany-based airline group.

“As part of the Lufthansa Group family, ITA can develop into a sustainable and profitable airline, connecting Italy with Europe and the world.”

Current US network

Undoubtedly, Italy has become one of the most important markets for US-based airlines as well. While the big three carriers, namely American Airlines, Delta Air Lines, and United Airlines, have served the country’s main gateways, including Rome and Milan Malpensa Airport (MXP), with a decent number of frequencies, they – excluding American Airlines – have expanded their networks to include more secondary cities, including in Sicily.

Currently, ITA Airways has scheduled 30 weekly departures to the US in November and 63 weekly flights to the country in June 2025, according to data from the aviation analytics company Cirium. All long-haul flights originate from Rome-Fiumicino.

Meanwhile, the Lufthansa Group network to the US, which includes Austrian Airlines, Brussels Airlines, Discover Airlines, Edelweiss Air (does not operate long-haul flights to the US), Lufthansa, and SWISS flights across the Atlantic Ocean, looks like this in June 2025:

Looking at ITA Airways’ and Lufthansa Group’s destinations in the US, there are no apparent surprises in the choices that either of the parties have made for their upcoming summer season schedules.

Perhaps the only three surprising choices are Ted Stevens Anchorage International Airport (ANC), Southwest Florida International Airport (RSW), and Tampa International Airport (TPA).

However, considering that flights from Frankfurt Airport (FRA) to these three US destinations are being operated by Discover Airlines, an airline that Lufthansa has conceived to target the leisure market, these itineraries should not be that surprising.

Potential destinations

One of the potential ITA Airways destinations on the list could be Newark Liberty International Airport (EWR), which is a hub for United Airlines, a Star Alliance member, of which every Lufthansa Group carrier is part of. Currently, ITA Airways remains a member of SkyTeam.

It could also once again fly long-haul itineraries from Milan-Malpensa. The Italian airline had operated flights from the Lombardian capital to New York John F. Kennedy International Airport (JFK) until November 2023.

When the European Commission (EC) gave its approval to the merger in July, it reiterated the concerns that it had expressed in March, including potentially reduced competition on long-haul routes between Italy and the US or Canada.

“Given that Lufthansa and its joint venture partners United Airlines and Air Canada coordinate on price, capacity, and scheduling, and share revenues, the Commission treats the activities of ITA, Lufthansa and its joint venture partners as those of a single entity when assessing this transaction.”

Lufthansa previously said that ITA Airways’ hub in Rome was ideally positioned to diversify its network with new destinations toward Africa and Latin America, which could mean that the group’s primary focus could shift toward those two regions, leaving the US/North American network expansion to other carriers within the group, especially Lufthansa.

A spanner in the works could be the recent tax increases for flights in Germany, with the state now charging passengers 19% more, which can result in taxes being as much as €70 ($73.9) for a flight, depending on the route.

The group already said that it has become increasingly difficult for Lufthansa, the airline, to achieve a positive result in its home market, which was why it has launched a transformation program in July when the group announced its Q2 results.

When the group held a special investor event related to the acquisition of ITA Airways in July, just as the EC approved the transaction, Spohr highlighted not only Italy’s importance for its revenues but also the fact that it was one of the largest inbound tourism markets in the world.

“We have more Americans onboard our aircraft going through our current hubs to Italy than we have Americans going onboard, for example, going to Germany.”

This showed the market’s potential, Spohr added. Furthermore, the executive expressed that if European airlines wanted to compete against the trio of US carriers, the market had to consolidate.

The group’s CEO already said that ITA Airways would join the Atlantic++ joint venture that includes Air Canada and United Airlines, which will be pending antitrust approval from the US authorities. That could very well include changes to the Italian carrier’s and the other joint venture airlines’ networks across the Atlantic Ocean.