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Alitalia's Board of Directors approves the Group financial statement for 2011. Operating result at -6 ml. €, in line with the target. Growth in passengers (+5.5%) and revenues (+7.9%).

24/02/2012

Alitalia's Board of Directors approves the Group financial statement for 2011.
Operating result at -6 ml. €, in line with the target.
Growth in passengers (+5.5%) and revenues (+7.9%).
Mr. Andrea Ragnetti was appointed General Manager.



Rome, 24 February 2011 – The Board of Directors of Alitalia - Compagnia Aerea Italiana S.p.A. met today in Rome, chaired by Roberto Colaninno, and approved the Group financial statement for 2011, presented by the CEO Rocco Sabelli.
In the financial year ended on 31 December 2011, the Alitalia Group recorded revenues worth 3,478 million € (+7.9%) and 25 million* transported passengers (+5.5%). Load factor grew 0.8 points to 72.8%.

Operating result (EBIT) was equal to -6 ml. €, up 100 ml. € from 2010, with a margin of -0.17% on revenues, in line with the operating breakeven objective.

Net result, after provisions and extraordinary costs, was equal to -69 million €, up 99 million € from 2010.

Passenger revenues from international and intercontinental flights rose 7.2%, to 62% of total passenger revenues.

Growth - recorded in passengers, revenues, EBIT and net result - was achieved in a period marked by:

  • an oil price rise (110 dollars per barrel in 2011 against 83 dollars per barrel in 2010) which caused for Alitalia higher costs to the tune of 266 million €;
  • the events occurred in two key markets for Alitalia - Japan and North Africa - which resulted in a sharp fall in demand from these regions;
  • the economic and financial crises, which pushed significantly down high yield demand from the corporate segment, starting from the forth quarter.

Such effects were successfully mitigated through:

  • an effective management of offered capacity - flexibility in scheduling, network design and fleet utilization, the development of long haul charter flights in the winter months - which marked and increase of load factor higher than the demand trend. Among the 10 largest carriers of the AEA, the European Airlines Associations, Alitalia recorded the best load factor improvement in 2011;
  • the implementation of policies and processes aimed at optimising spending and cost cutting;
  • the development of ancillary revenues, co-marketing initiatives and agreements with industrial and commercial partners.


As on 31 December, financial position was characterised by net financial indebtedness equal to 854 million €, mainly due to the indebtedness on the Company-owned aircraft fleet equal to 675 million € (vs. 774 million € in 2010). By including in the net indebtedness as of 31 December 2010, the amount due to the Alitalia LAI’s Receivership Procedure (the former Alitalia), equal to 115 million €, 2011 net indebtedness has increased by 54 million €, mainly due to the change of working capital.

Total liquidity, as of December 31 2001, amounted to 326 million € (vs. 412 million € in 2010).

Over the year, the Alitalia fleet saw the entry of 13 new aircraft (against the phasing out of 12 old aircraft) of which 3 wide body aircraft. As on 31 December, the operating fleet was made up by 152 aircraft (among the youngest in Europe with an average lifetime of 8.3 years). In the period 2009 to 2011, a total of 34 aircraft were phased in, nearly one per month, and 26 were phased out.

For 2012, the fleet renewal plan will be marked by speedier deliveries of long-haul and short-to-medium-haul aircraft, with at least 20 new entrants, of which 5 Airbus A330s for intercontinental routes. Furthermore, by the end of the year, cabins of the 10 long-haul Boeing B777s are planned to be totally renewed (in accordance with the 3 travel classes Magnifica, Classica Plus and Classica) and 16 old aircraft will be phased out.

Operations of the “Smart Carrier” Air One (which started in April 2010) rose 25% in terms of transported passengers in 2011 (like-for-like comparison in the April–December period) with passenger numbers rising to 1.4 million through activity growth in Malpensa and the opening of a new base in Pisa.

By its Cargo Belly service, Alitalia transported more than 58,800 tonnes of goods, in line with the 2010 volumes and revenues grew 15% partly through increased long haul operations.
In 2011 significant progress was achieved in the quality of service, which confirmed the trend already experienced in 2010. Flight punctuality on arrival reached 85.5%, or 5.5 points above the 2010 level and 3.6 points above the average of AEA’s Airlines.

In the year, Alitalia gained important international awards, as the best airline in the world for the quality of in-flight cuisine (according to a survey conducted by Global Traveller among 36,000 frequent flyers), and as one of the top five world airlines for the punctuality of its flights, including those operated by subsidiaries and code-share flights (Flightstats On-time Performance Service Awards 2011).

Prospects of the air transport sector for 2012 remain challenging. In accordance with the Airline Business Confidence Index of January 2012 produced by IATA (the International Air Transport Association), the industry is likely to undergo a further fall of profits in 2012 mainly due to a slowdown in volumes growth, a fall in high yield demand and higher fuel costs. The Eurozone is particularly exposed to such factors as a consequence of the expected GDP fall in the area.

The Executive Committee meeting of Alitalia, equally held on today’s date, approved:

  • a new design of the Milan - London service (more flights to London City Airport, targeted to the business clients, and a new service between Milan Malpensa and London Gatwick, operated by Air One);
  • an enforcement of the loyalty programmes;
  • multi-annual agreements with leading providers of aircraft and engines maintenance;
  • the confirmation of a new service between Rome and Bengasi (Lybia), following the positive results of the services to Tripoli, which Alitalia re-opened in November 2011, first among EU carriers.

The Board of Directors acknowledged the resignation of Mr. Rocco Sabelli from the office of General Manager with effect from today’s date. Rocco Sabelli will continue in his office as Member of the Board and Chief Executive Officer, with full powers, until the natural expiry of the Board’s term of office, which will occur concurrently with the approval of the Company’s financial accounts at 31 December 2011 by the Shareholders.
Whereupon, the Board of Directors appointed Mr. Andrea Ragnetti General Manager, with effect from 5 March 2012.

Mr. Andrea Ragnetti has gained a major Italian and international experience in the areas of business management and of marketing, specifically in the fields fast moving consumer goods, services, telecommunications and consumer technology. His latest position held was Chief Executive Officer of Philips’ Consumer Lifestyle sector - with revenues worth 8.8 billion € and nearly 17,000 employees in 2010 - and he was also a member of the Dutch multinational’s Management Board.