European airline consolidation will go on, Lufthansa CEO says

There is scope for further consolidation in the European airline sector, the chief executive of Germany's Lufthansa said on Monday, having just bought a 41% stake in Italy's state-owned ITA.

"We have too many airlines in Europe. I am convinced consolidation will go on," Lufthansa CEO Carsten Spohr told a news conference.

Lufthansa paid 325 million euros ($332 million) for the ITA stake, in a deal designed to boost the carrier's presence in the lucrative southern European market.

Lufthansa last week agreed to acquire a 10% stake in Latvian airline airBaltic, its latest move to expand its European presence and gain access to more planes to relieve its supply constraints.

Spohr said that Lufthansa would buy additional shares in ITA in 2025 but was not planning to raise its stake to as high as 90% this year.

When Lufthansa agreed its acquisition with Rome's authorities last year, it said it was looking to acquire full control of ITA at a later date. The remaining 59% of ITA will continue to be held by Italy's Economy Ministry.

Speaking at a press conference in Rome, the first since the deal's closing, the executive added that the German airline would start making money from its investment from this year.

Newly-appointed ITA CEO Joerg Eberhart said that growth would start in 2026, especially with long-term routes, and that the Italian carrier aimed at a larger share of the traffic at Rome's Fiumicino airport, its main hub.

He added the group expected to employ new staff starting from 2026, mainly due to an increase in the size of its fleet.

ITA is set to join the Star alliance, the world's largest airline alliance, of which Lufthansa is part, at the beginning of next year, Spohr also said.

As well as its core brand, Lufthansa also owns Austrian Airlines and Swiss International Air Lines. ($1 = 0.9778 euros)