DALLAS — Lufthansa (LH) is unlikely to invest in an airline not based in Europe. 

Speaking to Lufthansa Group CEO Carsten Spohr, who was recently in Johannesburg for the Lufthansa Group Market Conference—an internal event attended by various airlines in the LH Group—Spohr explained why LH is not likely to take a stake in an airline operating outside of Europe. 

He states that investing in overseas airlines comes with significant obstacles. Thus, it is improbable, but not outright impossible, for Lufthansa to invest in an airline operating on other continents. 

“We can never say no, but regulatory and cultural reasons make it difficult to invest in airlines abroad,” said Lufthansa CEO Carsten Spohr. 

Preference for the Same Continent

Spohr said that when investing in a carrier, airlines generally prefer investing in airline companies operating on the same continent. “Usually, airlines focus on their own continent,” he said.

Being geographically closer and more culturally aligned makes it easier for airlines to integrate and collaborate more efficiently. However, from a regulatory perspective, navigating the regulatory processes required when investing in airlines based in other parts of the world is rather complicated.

In his vast airline leadership experience, Spohr believes there are few success stories involving airlines investing in carriers operating on other continents.

“There are not many positive examples of airlines investing outside of their own continent,” he said.

Consolidation in Europe

While the Lufthansa Group has expanded significantly in recent years, with the addition of various European airlines, Spohr believes there is still room for further consolidation within Europe. 

“In Europe, consolidation has not ended. The top five airlines, including us, have around 65 percent of the market in Europe. We believe consolidation will continue.” he said.

When asked if further consolidation was on the horizon for the LH Group, Spohr said he does not foresee further expansion now. He did state that the immediate focus was integrating ITA Airways (AZ), the new member airline, into the Lufthansa Group.

“I think we will see more consolidation, but right now, Lufthansa will focus on ITA,” he said. 

That said, Lufthansa plans to add another carrier to the group. Last month, in January 2025, it announced that it intends to bring AirBaltic into the LH Group. The group plans to invest 14 million Euros in AirBaltic for a 10 percent stake in the low-cost carrier (LCC). This deal reinforces the strategic partnership between these airlines and supports AirBaltic's expansion plans.

Benefits for Member Airlines

Belonging to a sizable airline group such as the LH Group of airlines is advantageous for member airlines. These airlines can service business from each other’s hubs while providing convenient flight options for their passengers.

Thus, airlines in the LH Group, including new member AZ, stand to benefit from being able to carry more passengers on their scheduled flights. Being part of a large airline group helps to feed passengers from various other hubs onto their flights.

“That’s why an airline like ITA will benefit from being part of a larger group,” Spohr said.

Lufthansa Group Airlines

The Lufthansa Group is a major European airline group with several well-known airlines and six major hubs within Europe. Key airlines in the Lufthansa Group include Lufthansa, SWISS (LX), Austrian Airlines (OS), Brussels Airlines (SN), Discover (4Y), Eurowings (EW), Air Dolomiti (EN), Edelweiss (WK), and the recently added AZ.

These airlines offer a vast network of services, combining high-quality full-service options with affordable travel choices, covering nearly every corner of the globe.

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