Lufthansa, which acquired a stake in ITA Airways, is confident that the Italian company will be profitable by 2025.
Carsten Spohr, chief executive of Lufthansa Group, shared his optimistic outlook, highlighting strategic plans to boost ITA Airways' financial performance.
ITA Airways had a net loss of €486 million (R$2,6 billion) in 2022, influenced by high fuel costs and the ongoing impacts of the pandemic, according to available data.
However, Spohr believes the company has the potential to achieve the expected return on investment once Lufthansa assumes operational control, which is expected to occur in approximately six months.
Spohr emphasizes that the total acquisition of the operation is conditional on the performance of ITA Airways. According to him, “the option mechanism ensures that we cannot be forced into a full acquisition until the goals of the joint business plan are achieved.”
The executive also highlights the intention to improve earnings and reduce Lufthansa's dependence on domestic markets. He promises to boost the group's strategic positioning, aiming to transform it into a solid national carrier capable of connecting Italy to the global market.
Payment for the minority stake is scheduled for September 2023, followed by the possible acquisition of full or partial control, depending on ITA Airways' performance.
The agreement signed between the companies provides for Lufthansa to acquire 41% of ITA Airways through a capital increase of €325 million, while the Italian Ministry of Finance holds the company's remaining assets.
During a conference call with analysts, Spohr made a point of differentiating ITA Airways from its predecessor, Alitalia, stating that “ITA has nothing in common with the old Alitalia other than its market”.
Based on Lufthansa's planned strategies and confidence in its investment, ITA Airways is expected to reach profitability by 2025, boosting the aviation scene in Italy and strengthening its presence in the global market.
ITA will join a group of national airlines already under the Lufthansa umbrella, including Swiss and Austrian Airlines.
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