Rome — Ita Airways recorded a net loss of €486 million ($527 million) for 2022, the state-owned Italian carrier said on Wednesday ahead of its planned partial takeover by Germany's Lufthansa.
For current business, the successor to the Alitalia airline reported a minus of €338 million in earnings before interest, taxes, depreciation and amortization (EBITDA).
Ita cited the aftermath of the Covid-19 pandemic, increased fuel costs due to the Ukraine war and the poor euro-dollar exchange rate as causes of the dismal figures.
The airline generated revenues of €1.576 billion in 2022 and said it expects revenues to increase in 2023 as more destinations are flown to and the fleet expands. In total, it carried just over 10 million passengers on around 97,000 flights last year.
Lufthansa has been negotiating for months with the Ministry of Economy and Finance in Rome about taking a stake in the airline. After signing a letter of intent at the end of January, the sides are close to an agreement, La Republica and Corriere della Sera newspapers reported on Wednesday.
A contract could be signed in the next few days, according to media reports that put Lufthansa's initial acquisition at more than 40% of Ita's shares, rising to a controlling stake at a later stage.
As Lufthansa eyes good prospects in the Italian market, Italy's government hopes the deal will bring more economic security and an upgrading of the airports in Rome and Milan.
After a contract is signed, the deal must be reviewed by national and European competition regulators. According to media reports, the partial takeover could then be completed in the summer.
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