European airlines are currently engaged in a buying frenzy, with Lufthansa recently acquiring a 41% stake in Italy’s national airline, ITA, for €325m. This move has caused some concern among investors, leading to a drop in Lufthansa’s share price. ITA, formerly known as Alitalia, has struggled financially over the years, with the Italian government having to intervene multiple times to keep the company afloat. Despite rebranding as ITA in 2020, the airline continues to face challenges. Air France-KLM and Etihad, previous minority stakeholders, have already written off their investments in ITA. The Italian government’s significant financial support during the pandemic highlights the precarious situation of the airline industry. For more information, you can visit www.economist.com.
