Coronavirus Nearly Doubles Alitalia’s Losses

Alitalia suffered a record loss in the first half of 2020 due to the corona crisis and international travel restrictions. The Italian airline reported a loss of 430 million euros compared to a loss of 250 million euros a year prior.

During the same period, Alitalia transported approximately 3.6 million passengers, almost two-thirds less than in 2019. The company was most affected by the travel restrictions in place between the beginning of March and the early June.

Concerns about the pandemic and weak economic growth around the world weighed on the company’s balance sheets, even after travel restrictions were lifted in June.

Alitalia has been saved from bankrupcy by the Italian government with a cash injection of three billion euros. As a result, the airline, which has been in financial trouble for years, is once again fully in the hands of the Italian state.

Last month, Italian newspaper Corriere della Sera reported that the new, nationalized Alitalia hopes to become profitable in the future by flying with a simplified fleet of only Boeing 787s and Airbus A320s. The fleet must also reduce in size.