Alitalia narrows half-year loss to €94 million
Published: August 3, 2011
Alitalia 777-200. Photo: By Rob Finlayson.
Alitalia Group reported a net loss of €94 million ($ 134.9 million) in the 2011 first half, a 43% improvement from the €164 million deficit incurred in the year-ago period. It incurred a €5 million net loss in the second quarter. Half-year operating loss was €69 million compared to a €129 million operating loss in the year-ago period, yet EBIT was positive in the second quarter at €17 million.
Half-year revenue rose 7% year-over-year to €1.56 billion and passengers carried increased 5.7% to 11.2 million, including 8.8% growth in the second quarter. Load factor was level at 68%.
AZ said the financial improvement was “even more significant” considering a 10% revenue decrease in two key markets, Japan and North Africa, and the sharp increase in costs associated with the spike in fuel prices, its fleet upgrade project and the end of labor cost benefits.
As of June 30, AZ’s operating fleet comprised 150 aircraft, of which 27 (four Airbus A330s, 22 A320s and one A319) have been delivered since 2009. The average fleet age now stands at 8.9 years. AZ’s fleet renewal will continue in the 2011 second half with delivery of 10 new aircraft (one A330, four A319s and five Embraer E-jets) (ATW Daily News, Jan. 21). In addition, the carrier has begun renewing the cabins of its 10 Boeing 777s.
Third-quarter outlook shows an “important acceleration of passenger and revenue growth” over the year-ago period, it said, adding that growth will be “particularly driven” by the intercontinental segment.