Italia Airline improves financial performance in 2023, with losses reduced to 5 million euros and revenues reaching 2.4 billion euros. The company is optimistic about its merger with Lufthansa, hoping it will be finalized within the year. The newco closes the year with a decreased loss of 481 million euros compared to 2022, while total revenues increase to 2.4 billion euros. The EBITDA is positive at 70 million euros, and the break-even point is achieved one year ahead of schedule as per the industrial plan. Italy Airline also reports a cash liquidity of 450 million euros, which is 26 million euros higher than in 2022, including a 250 million euro capital increase from the Ministry of Economy and Finance. The number of passengers transported in the year reaches approximately 15 million, a 47% increase compared to the previous year.
“Ita Airways’ results are extremely positive,” says Antonino Turicchi, the president of Italy Airline, during the press conference held at the company’s headquarters in Fiumicino to present the 2023 financial report. Turicchi emphasizes that “the company has been able to develop both economically and financially, which has been crucial, even without benefiting from the capital increase, and allows the company to grow.” The positive trend continues in the first months of this year. In the first quarter, Ita Airways’ revenues grew by 41% compared to the same period last year, with a load factor of 78% (+5%), according to the CEO, Andrea Benassi. Benassi explains that “intercontinental flights are still driving growth,” and adds that “even in the first quarter, which is usually a challenging period, we are achieving better results compared to the same period last year,” giving us hope for the entire year.
Meanwhile, there is still anticipation for the European Union’s approval of the merger with Lufthansa, following the concerns raised by the EU Antitrust Authority on Monday regarding potential reduction in competition and deterioration of service for consumers. Turicchi states, “We don’t have a Plan B because we strongly believe in Plan A, and the results we are achieving prove it. I firmly believe in this marriage where Ita Airways is the promised bride.” He explains that “this operation is not to save Ita Airways. For the Mef shareholder, this is an operation to make Ita Airways grow, a market operation.” Turicchi emphasizes this point to the Commission, stating, “Through this operation, no aircraft are being reduced, routes are increasing, and aircraft are increasing. Therefore, we can’t understand why there is concern from the regulator that this operation would be detrimental to consumers. We have a strong motivational factor to demonstrate this vision to the Commission.”
Among the concerns raised by the European Commission are Ita Airways’ intercontinental routes and slots. Turicchi explains, “We have grown significantly in long-haul flights, but we only have 15 routes, and if 8 of them are considered problematic, it is a significant number for us. We want to reduce this number.” Regarding the number of slots, Turicchi clarifies that “we haven’t set any limits on the numbers; we are very open to discussion.”
According to sources in Brussels, all options are still possible and viable, and remedies are expected by April 26th. There is no negative atmosphere surrounding the decision. The hope is to meet the final deadline for the investigation set for June 6th. However, President Turicchi does not exclude the possibility that the Commission’s decision may be postponed from June 6th to June 26th or 27th.