Italy's ITA Airways Posts First-Ever Profit, Lufthansa Partnership Pays Off

Italy's national carrier ITA Airways has turned a profit for the first time since its establishment, marking a critical milestone for the airline as it integrates with German aviation giant Lufthansa. The company posted a net profit of €209 million for 2025, signaling that the troubled carrier's financial struggles may finally be behind it.

Why This Matters

• First-ever profit: ITA Airways has operated at a loss since replacing Alitalia—this reversal validates the strategic partnership with Lufthansa Group.

• Revenue surge: Total income reached €3.2 billion, with passenger fares accounting for €2.8 billion of that figure.

• Operational improvement: Earnings before interest and taxes (EBIT) hit €25 million, up €22 million year-over-year.

The Lufthansa Effect

The transformation comes after Italy's partial privatization of the carrier through a stake sale to Lufthansa, finalized in stages throughout 2024 and early 2025. Under the arrangement, the German carrier gradually acquired majority control, bringing ITA Airways into its multi-hub European network alongside Swiss, Austrian Airlines, and Brussels Airlines.

Joerg Eberhart, ITA Airways' CEO, attributed the turnaround to the partnership: "2025 has marked a turning point for ITA Airways: we are closing with a profit for the first time, confirming that we have taken the right course. This is the result of the commitment of the entire company and the first tangible effects of industrial collaboration with the Lufthansa Group."

The integration has delivered code-sharing agreements, more efficient procurement, and access to Lufthansa's maintenance and training infrastructure—efficiencies that were out of reach when ITA Airways operated independently.

Financial Snapshot

ITA Airways also posted an EBITDA of €404 million, a key metric in aviation that reflects operational health before accounting for debt servicing and non-cash expenses. Passenger revenue made up the majority of income, reflecting the carrier's focus on leisure and business travel within Italy and to European and international destinations. The airline has prioritized rebuilding Rome Fiumicino as a strategic hub, leveraging its geographic position as a gateway between Northern Europe and North Africa.

Sandro Pappalardo, chairman of ITA Airways, stated: "The approved results confirm the solidity of ITA Airways' path and the value of collaboration between its shareholders."

What Changes Can Italian Residents Expect?

For people living in Italy, this profit milestone translates into concrete benefits:

• Schedule stability: A profitable carrier is more likely to maintain and expand flight schedules from major Italian cities. Residents can expect fewer cancellations and greater frequency on popular routes from Rome, Milan, Venice, and Naples.

• More route options: Lufthansa's network integration means potential new direct flights from Italian cities to key European hubs (Frankfurt, Munich) and beyond, reducing connection times for business and leisure travelers.

• Better frequent-flyer benefits: ITA Airways frequent-flyer members will gain improved integration with Lufthansa's Miles & More program, offering more redemption options across the alliance and partner airlines.

• Service improvements: Expect gradual alignment with Lufthansa Group standards in areas like baggage handling, customer service, and airport lounge access for premium passengers.

• Job security: With roughly 5,000 employees across Italy, a stable, profitable airline means better job security for workers in Rome, Milan, and other hub cities—an important factor given youth unemployment concerns in Italy.

Economically Speaking

The turnaround eases pressure on the Italian treasury, which invested significant state aid into the carrier after Alitalia's collapse in 2021. ITA Airways was created to absorb select assets and employees, but critics questioned whether it would simply repeat its predecessor's losses. The 2025 results provide the first evidence that the German-Italian partnership can deliver sustainable operations.

Competitive Reality

ITA Airways faces strong competition from low-cost carriers like Ryanair, Wizz Air, and easyJet on short-haul routes from Italian airports. The Lufthansa partnership provides advantages through alliance pricing power and corporate contracts, but aviation profitability remains vulnerable to fuel price swings, labor disputes, and geopolitical disruptions.

Looking Ahead

Analysts will watch whether ITA Airways can maintain profitability through a full economic cycle. The 2025 results benefited from robust post-pandemic travel demand and stable fuel prices. A downturn in European tourism or energy cost spikes could test the carrier's resilience.

Lufthansa has indicated plans to deepen ITA Airways' integration over the next two years, potentially standardizing service offerings across the Group. For Italy-based travelers, this means more seamless connections with other Lufthansa Group airlines and coordinated schedules.

The carrier's board has approved the 2025 accounts, opening the way for potential dividend discussions and further strategic capital allocation as the airline transitions from recovery to growth.