ITA Airways has no plans to cut flights because of rising jet fuel prices, its chief executive said on Tuesday, adding that the group has 80% of its fuel needs covered for the rest of the year. However, the Italian carrier, controlled by Lufthansa, is looking to increase ticket prices this year by between 5% and 10% to compensate for the surge in fuel costs resulting from the U.S.-Israeli war on Iran, CEO Joerg Eberhart said.
Airlines in Asia and Europe have raised fares, added fuel surcharges, adjusted schedules and revised financial outlooks as conflict in the Middle East drives jet fuel costs sharply higher and disrupts major air routes.
"Fuel now costs twice as much as it did before the crisis. Jet fuel accounts for some 30% of our total costs. Without hedging we would have to increase prices by 30%, and this would be difficult," Eberhart told reporters in Rome. He added that the company was also looking at increasing fuel efficiency through technical measures, expanding its destination network and long-haul routes and tapping opportunities in a buoyant Asian market while the Middle East faces major disruptions. As part of its current strategy, ITA is also aiming to bring down the average age of its fleet with more modern jets to improve fuel consumption.
CONSOLIDATION PLANS
Asked when Lufthansa would exercise its option to raise its stake to 90%, Eberhart said, "It's a Lufthansa decision".
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The German carrier holds 41% of ITA, with the remainder owned by the Italian Economy Ministry. Under an initial deal with Rome, Lufthansa has a window to do so in June 2026.
Eberhart said that ITA was hopeful that Lufthansa would proceed with raising its stake as it would allow it to benefit from closer integration with the German parent company.
Once consolidated, ITA could become the "specialist in South American destinations, as it already serves more routes in the region than all of the rest of the Lufthansa group combined," he added.
Eberhart said that although it would require at least six months from the end of the war to "normalise oil flows", the group saw no need to revise its strategy for this year or for the long term.
"The majority of the additional costs (deriving from jet fuel) can be compensated through higher air fares and hedging," the executive explained.
He added that no decision had yet been made regarding flights to Tel Aviv, Riyadh and Dubai - all cancelled until the end of the month - and that ITA would face a loss of about 10 million euros ($11.70 million) if all three destinations remained closed for the entire year.
Airlines in Asia and Europe have raised fares, added fuel surcharges, adjusted schedules and revised financial outlooks as conflict in the Middle East drives jet fuel costs sharply higher and disrupts major air routes.
"Fuel now costs twice as much as it did before the crisis. Jet fuel accounts for some 30% of our total costs. Without hedging we would have to increase prices by 30%, and this would be difficult," Eberhart told reporters in Rome. He added that the company was also looking at increasing fuel efficiency through technical measures, expanding its destination network and long-haul routes and tapping opportunities in a buoyant Asian market while the Middle East faces major disruptions. As part of its current strategy, ITA is also aiming to bring down the average age of its fleet with more modern jets to improve fuel consumption.
CONSOLIDATION PLANS
Asked when Lufthansa would exercise its option to raise its stake to 90%, Eberhart said, "It's a Lufthansa decision".(Join our ETNRI WhatsApp channel for all the latest updates)
The German carrier holds 41% of ITA, with the remainder owned by the Italian Economy Ministry. Under an initial deal with Rome, Lufthansa has a window to do so in June 2026.
Eberhart said that ITA was hopeful that Lufthansa would proceed with raising its stake as it would allow it to benefit from closer integration with the German parent company.
Once consolidated, ITA could become the "specialist in South American destinations, as it already serves more routes in the region than all of the rest of the Lufthansa group combined," he added.
Eberhart said that although it would require at least six months from the end of the war to "normalise oil flows", the group saw no need to revise its strategy for this year or for the long term.
"The majority of the additional costs (deriving from jet fuel) can be compensated through higher air fares and hedging," the executive explained.
He added that no decision had yet been made regarding flights to Tel Aviv, Riyadh and Dubai - all cancelled until the end of the month - and that ITA would face a loss of about 10 million euros ($11.70 million) if all three destinations remained closed for the entire year.
