Alitalia says its future is uncertain as losses deepen
Wednesday 14 May 2008
Struggling flag carrier Alitalia said its future was increasingly uncertain Wednesday as it reported it had fallen deeper into the red in the first quarter due to soaring fuel costs.
Wednesday 14 May 2008
By AFPStruggling flag carrier Alitalia said its future was increasingly uncertain Wednesday as it reported it had fallen deeper into the red in the first quarter due to soaring fuel costs.
It said its three months to March pre-tax loss had widened to 215 million euros (331 million dollars) from the year-earlier 152 million euros.
Total revenue was little changed at 1.06 billion euros but fuel costs jumped some 28 percent to 285 million euros.
Alitalia said it had funds of only 96 million euros at the end of March and this made "necessary a recapitalisation in the shortest time possible."
The failure to reach a tie-up agreement with Air France-KLM earlier this year had increased the uncertainty about its future, it added.
The government has given Alitalia a 300 million euros loan to tide it over while its future is settled, with newly installed Prime Minister Silvio Berlusconi promising that there will be an Italian solution to its problems.
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