Lufthansa, Air France-KLM, IAG and Others Now Continues to Expand with its Strategic Acquisitions and Stakes Accumulation in the Independent Carriers

Published on August 2, 2025

Europe’s biggest airline groups are scrambling to increase their power in the industry, with Lufthansa, Air France-KLM and International Airlines Group (IAG) all seeking strategic acquisitions and investments. Recently, Lufthansa Group has made subscribe a significant step by both the acquisition of ITA Airways and buying out in airBaltic. In the meantime, Air France-KLM is buying more and more shares of SAS to become its dominant owner. While IAG has not bought anything recently, the group remains united in its enthusiasm to take a stake part on some of Europe’s remaining independent carriers – including TAP Air Portugal and Air Europa.

The Lufthansa Group’s Strategic Purchases

Lufthansa’s acquisition of ITA Airways has been one of the most significant moves in the European airline industry in recent months. The Lufthansa Group has also strengthened its position in the region by purchasing a stake in airBaltic, further expanding its footprint in the Baltic and broader European markets. These strategic investments position Lufthansa as a dominant player in the European airline landscape, helping it diversify and solidify its network.

Air France-KLM’s Majority Stake in SAS

Air France-KLM, another key player in European aviation, has also been busy expanding its reach. The airline group recently increased its stake in Scandinavian Airlines (SAS), becoming the majority shareholder. This move strengthens Air France-KLM’s presence in the Nordic market and further enhances its ability to compete with Lufthansa and IAG. By taking control of SAS, Air France-KLM can better leverage the airline’s network to extend its influence across northern Europe.

IAG’s Focus on TAP Air Portugal and Air Europa

While IAG has not made any recent acquisitions, it remains one of the most active players in the European airline market. The group has been particularly focused on acquiring stakes in some of Europe’s remaining independent airlines, with TAP Air Portugal and Air Europa being of particular interest.

IAG had previously attempted to increase its stake in Air Europa from 20% to a majority share, but its efforts were hindered by the European Commission’s demands, which the airline deemed too costly. However, IAG is still keen on securing ownership of TAP Air Portugal, which offers significant value due to its strong market share in South America. IAG’s subsidiary Iberia already has a well-established presence in the South American market, making TAP a strategic acquisition that would further solidify its position in the region. Ownership of TAP, whether partial or full, would also effectively block its competitors, Lufthansa and Air France-KLM, from gaining a significant foothold in South America.

Independent Airlines Still on the Market

Among the independent airlines remaining in Europe, only TAP Air Portugal and Air Europa are currently up for grabs. Other major independent carriers, including LOT Polish Airlines and Aegean Airlines, have not shown any signs of being on the market. TAP and Air Europa, however, remain highly sought after, as they each hold valuable market positions within Europe and beyond.

TAP Air Portugal’s strategic importance lies primarily in its extensive routes to South America, making it a valuable asset for any airline group looking to expand in the region. Similarly, Air Europa holds a significant share of Spain’s domestic and international markets, particularly within Europe and Latin America, making it a target for Lufthansa, Air France-KLM, and IAG.

The Strategic Importance of South America

South America represents a particularly important region for European airline groups, as it offers significant growth potential and access to lucrative markets. IAG, through its subsidiary Iberia, has already established a strong presence in South America. Acquiring TAP Air Portugal would strengthen its position in the region, potentially making it a dominant player in the transatlantic market.

In contrast, Lufthansa and Air France-KLM are focused on expanding their European networks and enhancing their competitive edge within the European market. Although both airlines have expressed interest in TAP, neither has the same level of existing infrastructure or market knowledge in South America as IAG. As a result, an acquisition of TAP by IAG could block its competitors from making inroads into one of the world’s most profitable aviation markets.

Airlines race for Dominance in the Aviation Market

European airline sector consolidates, with two assets each, by Air France-KLM and Lufthansa respectively. Recent acquisitions by Lufthansa of ITA Airways and airBaltic, Air France-KLM’s majority in SAS, or the persisting intentions from IAG for TAP Air Portugal and remaining stake in Air Europa shows one side of increasing competition and ambition within the sector.

In the meantime, TAP Air Portugal and Air Europa are hot properties at IAG is perfectly positioned to take on control of TAP as well with all those routes into South America. The plans are set to reshape European aviation and further consolidate the power of Europe’s three biggest airline groups as competition in the market for standalone carriers contracts.