The Alitalia successor expanded its network and acquired next-generation aircraft during its first full year in operation.
Italy’s ITA Airways (Italia Trasporto Aereo) today announced its 2022 preliminary financial results. ITA Airways operated around 97,000 scheduled flights in its first full year of operations and transported over 10 million passengers. A significant increase in air traffic became evident in the second half of 2022 as the carrier launched a flurry of new routes and increased its market share.
The airline posted a net loss of €486 million ($528 million), based on revenue of roughly €1.576 billion ($1.7 billion). The announcement came at Thursday’s Board of Directors meeting, which approved the preliminary 2022 Financial Report. Other report highlights include the fact that the company ended the year with net equity of €524 million against €400 million in cash, much of which came as support from the Italian government in November.
Overall, finances and passenger numbers are up exponentially from 2021, when the airline carried just over 1.3 million passengers between commencing operations on October 15th and the end of the year. Total revenue for 2021 totaled €90 million ($97.5 million).
Where ITA Airways did well
ITA Airways scored well in the regularity of its operations and consistently earned top rankings despite delays and difficulties in the sector as a whole, particularly in Europe. According to the annual report, the airline had 81% of its flights land on time in 2022. In 2022, the SkyTeam member also recorded a yearly net promoter score of 26.2, which is above the values in the industry in the same period.
The airline emphasized that its 2022 results met expectations and highlighted that the company was still in a “start-up status in a market that was still weak in the first months of the year due to the continuing Covid pandemic.” The carrier also cited a significant impact due to the rise in fuel costs following the outbreak of the Russian-Ukrainian conflict and the value of the Euro falling against the dollar, which decreased revenue for the company. ITA Airways sought to mitigate these issues through careful cost control and cautious management.
When those two factors are excluded, the airline’s operating performance was better than its business plan and budget forecasts for 2022. Global economic conditions also contributed to the overall situation, with the report attributing a significant portion of the loss to “the deterioration of the macroeconomic scenario.”
The carrier’s expectations for the 2023 financial year are for substantial growth in revenue volume. This evolution will be driven by adding destinations to the airline’s network this summer and the continuing savings in efficiency that come with the next-generation aircraft currently being delivered to the airline.
Next steps for ITA Airways
The airline has already received several new aircraft for its all-Airbus fleet. Five Airbus A320neos are already flying for ITA, and two more will be delivered by Avolon later this year. This move is part of ITA’s goal to have 80% new generation units in its fleet by 2026.
ITA Airways is also expecting some brand-new Airbus A330neos. The next generation of widebodies will take off from June 1st to destinations including Miami, Delhi, São Paulo, and New York John F. Kennedy International Airport.
Elsewhere, Lufthansa CEO Carsten Spohr confirmed on Wednesday at the Airlines 4 Europe Aviation Summit that negotiations to acquire a minority share in ITA Airways from the Italian government have entered the final phase. Spohr is due to meet with the Italian Minister of Economic Affairs and Finance on Thursday to discuss the matter further. The proposed agreement would give Lufthansa a 40% stake in ITA for the reported price of €300 ($325 million) and the option to acquire the rest of the airline at a later time. Italy is one of Lufthansa’s most robust markets in Europe.
Source: ITA Airways, Reuters, FlightGlobal