29 Apr 2016 09:00
Rome, 29 April 2016 – Alitalia confirmed today it is on track to become profitable by 2017, as it reduced its losses by € 381 million in 2015 compared to the previous year.
- Significant reduction in losses from €580
million in 2014 to €199,1 million for 2015
focus on cost control and efficiencies
- Investment of €400 million in 2016 will
deliver significant benefit to business and customers between 2016 and 2020
This important result for 2015 comes as the airline announced its
first full reporting year under a three-year turnaround Industrial Plan.
After posting total revenues of € 3,312.4 million in 2015, Alitalia
was able to report a net result of € -199.1 million for 2015, a
significant improvement on the € 580 million loss recorded in 2014. This
performance is in line with the targets set in its Industrial Plan.
The Chairman of Alitalia, Luca Cordero di Montezemolo said: “Reducing our losses is a first important step,
together with the relentless commitment to improve our services, our fleet and
our network with the opening of new strategic intercontinental routes. This has
been made possible due to the determination and passion of Alitalia’s men and
women to whom I want to extend my heartfelt thanks. Return to profitability in
2017 remains our goal. Today’s results show that Alitalia has become more
efficient in controlling costs and is on track for profitability by 2017.
All our efforts are focused on reaching that target. Few airlines have
undergone such radical change as the new Alitalia. We are delivering on
our promise to create a world class airline”.
During 2015, Alitalia met or exceeded a wide range of performance
indicators, as it moved forward with its extensive restructuring programme.
The airline carried a total of 22.1 million passengers with a load
factor of 76.2 per cent.
There was also a strong and growing contribution of € 235.4 million
from its codeshare partnerships. Its partnership with Etihad Airways has
played a major role. Since January 2015, Alitalia and Etihad Airways have
shared more than 450,000 passengers between their networks, while more than 1.2
million passengers have been shared between Alitalia and Etihad Airways Partner
Alitalia continues to deepen its existing
cooperation with airberlin to strengthen further air connections between Italy,
and Germany, Austria, and Switzerland. Customers benefit from up to 25 per cent
more weekly non-stop flights from Italy. The deeper cooperation with airberlin
paves the way for enhanced competitiveness, and our common passengers are
already benefitting from greater travel comfort, improved connections and a
much more attractive route network.
Alitalia’s relationship with SkyTeam, and in
particular Delta Air Lines, allows its passengers to enjoy a seamless and
consistent travel experience to its extended network in America.
The airline has also achieved significant synergies, operational
efficiencies and cost reduction across all areas of the business as a result of
increased scalability, systems integration, joint procurement, and the
implementation of best practice with its partners.
The airline also started a major fleet upgrade, including new
interiors and inflight Wi-Fi being rolled out across all 122 aircraft.
Its inflight product has been upgraded, with an enhanced service style to
improve quality in all cabins. Investment in lounges will see the new “Casa
Alitalia” concept introduced in Rome and Milan Malpensa, while refurbishments
are in track for Rome, Milan Linate, Naples, Venice, Catania and New York. A
new alitalia.com mobile app has been
introduced, as well as the new Ulisse inflight magazine.
More than 6,000 cabin crew and airport staff have undertaken a new
Customer Excellence training programme, with leadership training also being run
for 600 Senior Cabin Managers and Airport Managers. The airline has also
created a new Guest Response Team to provide faster and more efficient customer
The new operational procedures resulted in an average 80.2 per cent on
time performance in 2015, with mishandled baggage down 50 per cent and
technical reliability at 99.5 per cent.
The new changes have already had an impact with guests. Alitalia’s
market share to and from Italy increased by four percentage points in 2015, to
30 per cent. In April 2016, overall guest satisfaction was 87 per cent,
the highest figure recorded since the start of the new on-board survey in 2012.
Cramer Ball, Alitalia Chief Executive Officer, said: “There is still much to do to reach our long-
term goals, but this year has seen our team achieve many significant
milestones. The next phase of our investment strategy will see €400 million
being committed to fleet, cabins, technology and infrastructure in 2016. Our
most important investment to date, and the one bearing most fruit, has been the
investment in our people. It is the people of Alitalia who are bringing
this brand to life and creating a new force in European aviation. I thank
each and every one of the Alitalia employees for their hard work and dedication”.
The airline’s strong results were achieved despite some significant
challenges. The fire at Rome Fiumicino airport on 7 May 2015 caused
significant disruptions and is estimated to have cost the airline around € 80
million. Alitalia also suspended its Rome-Caracas route due to the
Venezuelan government’s decision not to allow the repatriation of US dollars
from the country, and like other airlines, it also experienced a negative
impact on passenger traffic after the Paris terrorist attacks.
Cramer Ball added: “As an
airline, we face many macro-economic challenges. However, the Alitalia of
today is ready to face the challenges, moving forward as a commercially
successful business. While investment is a key part of our strategy, our
management will continue its forensic focus on cost and leverage every
opportunity to achieve further efficiencies on our journey to profitability”.
Mr Ball also welcomed the success of the €375 million bond issued by
Alitalia last year, which was a signal of market support for the airline’s
progress. Alitalia’s annual financial statements were independently audited by
Deloitte & Touche in accordance with International Auditing Standards.
Codeshare revenues (m)
Net profit (m)
Total passengers (m)
On time performance