ITA Airways has shifted from being a financial drain to becoming a revenue-generating entity. The airline has also secured lines of credit to acquire its first fleet of proprietary aircraft. However, as reported by Corriere della Sera, the crucial need to join a larger aviation conglomerate is the key to reaching the ambitious goal of serving 30 million passengers by 2025. Approval from the European Union for Lufthansa’s entry into the Italian airline is imperative for this endeavor.
Antonino Turicchi, CEO of ITA, divulged key figures for 2023 and outlined projections for the current year. Turicchi reported that ITA concluded the previous year with 15 million passengers and €2.4 billion in revenue, of which €2.1 billion stemmed from passenger transport and €300 million from cargo and charter services. These figures are expected to rise to €3.4 billion this year, with intercontinental flights contributing €1 billion in revenue in 2023.
To support its industrial plan, the company has negotiated €90 million in credit lines from Italian banks. Moreover, €80 million will be allocated for the purchase of its first proprietary aircraft, an Airbus A330neo. Subsequently, additional financing will be sought for 7 or 8 more aircraft, including 5 Airbus A220s and 2 or 3 A330neos. Turicchi emphasized that 2023 marks the true beginning of the company’s operations, as its fleet expands from 83 to 96 aircraft, serving 56 destinations, including Chicago, Toronto, Riyadh, Accra, Kuwait City, and Jeddah.
Partnership with Lufthansa and Commercial Challenges
Turicchi clarified that, intending to have a fleet of 150 aircraft, ITA requires a strategic partner. In this regard, Lufthansa could ensure the optimal development of ITA, positioning it in competition with industry giants handling 100 to 150 million passengers. On another front, discussions about the Alitalia brand, acquired for €90 million in September 2021, are ongoing. Turicchi is optimistic about its eventual return, pending Lufthansa’s decision.
Finally, concerns about slots at Linate Airport (Milan) have sparked internal discussions at ITA. The airline has proposed the potential release of slots if deemed necessary by the EU.
