ITA expects higher full-year revenue as it prepares to join Lufthansa group
By Giancarlo Navach
MILAN, Sept 27 (Reuters) -Italy's ITA Airways said on Friday it expects passenger revenue to increase by a quarter in 2024 from last year as it flies with fuller planes, after core profit turned positive in the first half.
The Italian state-controlled carrier, which is soon to enter the Lufthansa LHAG.DE group, expects full-year sales to hit 2.7 billion euros ($3.02 billion), with its load factor set to rise above 80% from 79% currently, CFO Claudio Faggiani said.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) turned positive, at 62 million euros, and cash reserves edged up to 393 million euros.
Revenue rose to 1.4 billion euros in the first half of the year on a 26% jump in passenger numbers to 8.3 million.
"The cash allows the company to support the investment plan, which has more than doubled compared to the previous year," Turicchi told reporters in Milan.
Germany's Lufthansa received the green light in July to take a 41% stake in ITA for 325 million euros, after a long negotiation with Brussels which involved ceding routes and slots to rivals to address competition concerns.
Turicchi said the company was confident of closing the deal by the Nov. 4 deadline.
The conditions attached to the EU's approval raised fears that ITA - which took to the air in 2021 replacing bankrupt Alitalia - may lose interest in investing in Milan's Linate airport to the benefit of Rome's Fiumicino airport.
Talking at a news conference at the company's new headquarters in Milan, ITA director general Andrea Benassi denied this, saying Linate remains "strategic" and the airline continued to invest in the hub.
He added that ITA will have to release a total of 30 slots at Linate, which account for only 1% of the company's overall turnover and which won't have a significant impact on the business.
($1 = 0.8945 euros)
Writing by Angelo Amante, editing by Giulia Segreti, Kirsten Donovan
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
