ITA Airways cut net loss to only 5 million euros in 2023

By Thomson Reuters Mar 27, 2024 | 6:48 AM

ROME (Reuters) – ITA Airways posted a 2023 net loss of only 5 million euros ($5.4 million), a strong improvement from the year before, and revenues of 2.4 billion euros amid an increase in the flights it operates, the company said on Wednesday.

Germany’s Lufthansa is seeking to buy a stake in state-owned ITA, which officially replaced loss-making Alitalia in 2021, but the negotiation is facing hurdles as European regulators warn it could harm competition and push up prices.

The company, which generated adjusted core profit (EBITDA) of 70 million euros in 2023, had posted a net loss of around 486 million euros in 2022 due to lingering effects of the pandemic and rising fuel costs. ITA’s 2022 revenues amounted to 1.5 billion.

“These extremely positive results are the result of considerable efforts by ITA Airways staff,” Chairman Antonino Turicchi told a news conference.

ITA carried 14.8 million passengers in 2023, up 46.9% from 2022, achieving a 79% load factor on its planes, company slides showed. It ended last year with around 450 million euros in cash liquidity.

Lufthansa is planning to buy a 41% stake in ITA from the Italian Treasury for 325 million euros. Following the EU antitrust warning this week both parties said they would come up with remedies to clear the deal. ($1 = 0.9231 euros)

(Reporting by Angelo Amante and Giuseppe Fonte; Editing by Keith Weir)