ROMA – Ita Airways closes 2023 with an encouraging result. The net result marks a modest loss of 5 million. The state airline has reserves, in terms of cash flow, of 450 million. The cash flow exceeds the figure recorded at the end of 2022 by 26 million and is 158 million higher than the business plan.
Here are the other data:
– total revenues at 2.4 billion euros,
– Ebitda at 70 million (marking an operational break even),
– Ebit at minus 75 million.
Intercontinental routes
The carrier has focused heavily on intercontinental flights, which are the most profitable. One billion in revenues comes from passenger transport on intercontinental routes (out of a total of 2.2 billion in revenues).
So Ita Airways seems capable of flying alone, waiting for that the EU Commission pronounces its verdict on the marriage with Lufthansa. The green light from the EU Commission has not yet arrived. Therefore Ita achieves these results without having received, to date, the capital increase announced by the German buyer.
The (partial) results for the first quarter of 2024 – explains general director Andrea Benassi – are also positive. The company reports revenue growth of 41% (compared to the same period in 2023). The aircraft occupancy rate, another indicator of the health of the carrier, is close to 80%. The data are significant because they come from a quarter, the first of the year, usually unfavorable for companies (waiting for growth in spring and summer).
Flying is fine too
Another encouraging sign comes from the Italian carrier’s loyalty program. “Volare” – says Emiliana Limosani, Chief Commercial Officer – reaches 1.7 million subscribers as of 31 December 2023. At the moment, and therefore at the end of March 2024, members exceed 1.85 million.
“No state aid”
In this positive scenario, the executive president of ITA has his say on the difficulties of dialogue with the EU Commission, which will arise a series of conditions before authorizing the merger between our company (Ita) and Lufthansa.
Turicchi hopes the EU Commission understands that ITA is not a carrier “to be saved”, it is not a lifeboat in the throes of a storm. The company is fine. If the shareholder of Ita (the Ministry of Economy) is looking for a major international ally like Lufthansa, it is to withstand the challenge of competition from large US, Chinese, Middle Eastern and Indian companies.
Turicchi insists: Italy will not have to pay “state aid” to Ita because the airline’s income statement is fine. The union between Ita and Lufthansa is now a “market” operation. The hope, therefore, is that the EU Commission can give the green light without any particular embarrassment, precisely because there is no risk of anti-competitive state aid.
Le low cost
The executive president also notes that our country allows passengers to choose from infinite offers, therefore it is “highly competitive”. Furthermore, the strength of low cost airlines reaches levels seen in no other European nation.
“In the long haul – insists Turicchi – we have grown significantly, but we only have 15 routes. Saying that 8 of these 15 are problematic, as Europe does, seems like an important number to us. We want to reduce this number“.
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– 2024-03-29 16:04:53
