Lufthansa’s CEO expects Italy’s ITA to boost profits by hundreds of millions, FAZ Reuters reports
BERLIN (Reuters) – Lufthansa expects its planned stake in Italy’s ITA Airways to boost the German flag carrier’s profits by hundreds of millions of euros in the coming years, CEO Carsten Spohr told FAZ newspaper in an interview published on Monday.
The German airline is set to take over 41% of ITA, Alitalia’s bankrupt successor airline, for 325 million euros ($335 million) on January 13, a source familiar with the situation told Reuters last week, ending years of negotiations.
“Without the likely earnings contribution in the triple-digit million range, we would not have taken this step,” Spohr said of the Lufthansa acquisition.
In November, the European Commission approved a package of competition measures to secure more routes for the German national carrier’s competitors, paving the way for the deal to come to fruition.
Spohr reiterated that a 100 percent takeover is a “clear goal,” but a stake increase is not currently planned for 2025.
“It is in our interest to keep the Italian government engaged in the coming months,” he said, adding that the companies would need about 18 months to fully integrate their systems.
