
ITA Anticipates Increased Full-Year Revenue as It Prepares to Join Lufthansa Group – Reuters
By Giancarlo Navach
MILAN (Reuters) – ITA Airways, Italy’s state-controlled airline, announced on Friday that it anticipates a 25% increase in passenger revenue for 2024 compared to the previous year, attributing this growth to fuller flights. This positive outlook follows a successful first half in which the airline reported a turnaround to profitability.
The airline, set to join the Lufthansa group soon, is projecting full-year sales of approximately 2.7 billion euros. The company’s load factor is expected to surpass 80%, up from the current rate of 79%, according to CFO Claudio Faggiani.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) recorded a positive figure of 62 million euros, while cash reserves rose to 393 million euros. The airline’s revenue for the first half reached 1.4 billion euros, supported by a 26% increase in passenger numbers, totaling 8.3 million.
"The cash on hand enables the company to pursue its investment strategy, which has more than doubled compared to the previous year," commented CEO Luca Lazzarini during a press briefing in Milan.
In July, Germany’s Lufthansa received regulatory approval to acquire a 41% stake in ITA for 325 million euros. This approval came after extensive negotiations with authorities in Brussels, which included the relinquishing of certain routes and slots to address competition issues.
Lazzarini expressed confidence in finalizing the deal by the deadline of November 4.
Concerns arose regarding the conditions tied to the EU’s approval, particularly the possibility that ITA, which commenced operations in 2021 as a successor to the defunct Alitalia, might shift its investment focus from Milan’s Linate airport to Rome’s Fiumicino airport.
However, speaking at the company’s new headquarters in Milan, ITA’s Director General Andrea Benassi assured that Linate remains a "strategic" hub and that ongoing investments in the airport would continue.
He also clarified that ITA will need to release a total of 30 slots at Linate, which represent only 1% of the airline’s overall revenue, indicating that this would not significantly affect the business.