Lufthansa targets early 2027 ITA takeover as TAP Air Portugal stake deal boosts EU airline shakeup

Lufthansa Group aims to complete its acquisition of a 90% stake in ITA Airways by early 2027, while simultaneously signing an agreement to acquire up to 49.9% of TAP Air Portugal, according to information confirmed at a Lisbon ceremony attended by Portugal’s prime minister.

The deals signal a new wave of consolidation in the European airline sector, positioning Lufthansa to significantly expand its footprint across Southern Europe. The company’s planned integration of both ITA Airways and a near-majority share in TAP Air Portugal is designed to boost its operational scale and competitive strength within the EU market.

Industry observers say these moves could intensify competition among Europe's largest airlines, especially as Lufthansa seeks synergies between the Italian and Portuguese carriers. The acquisitions come as airlines across the continent face pressure to improve efficiency and profitability amid volatile demand and rising operational costs.

However, the transactions are expected to draw close scrutiny from European regulators. Antitrust concerns could delay or alter the structure of the acquisitions, as authorities assess the impact on market competition and consumer choice. Regulatory approval remains a key hurdle for Lufthansa’s expansion strategy.

The company’s growing presence in Southern Europe could reshape airline alliances and influence routes between Europe and Latin America, given TAP’s established connections to Brazil and other key markets. The consolidation may also affect ticket pricing, network coverage, and partnership dynamics within the sector.

Investor reactions will be closely watched as the deals progress. While the opportunity for increased market share and operational synergies is clear, any regulatory setbacks or integration challenges could affect Lufthansa’s share price and broader industry sentiment.