Italy's struggling national carrier Alitalia has said its net loss narrowed marginally in the first half of the year but it still has enough cash reserves to keep flying for another year while new management seeks a buyer.
The airline, which is 49.9% state-owned, said its first-half net loss was €211.1m, a slight narrowing from the €220.2m loss reported in the same period a year earlier.
It said in a statement issued late yesterday that first-half revenue edged up 3.1% to €2.31 billion from €2.24 billion a year earlier, but operating costs grew 3% to €2.44 billion from €2.37 billion.
The Rome-based company did not comment on progress in the search for a buyer in the wake of the government's failed attempt to auction its stake earlier this year.
Alitalia yesterday denied Italian press reports that it was in high-level talks with Air France-KLM, which has often been put forward by analysts as a likely buyer for the company.
New chairman Maurizio Prato said earlier this month that, in association with the airline's financial adviser, Citigroup, he intends to sound out all potential suitors by the end of September.
These include private equity house TPG, privately owned Italian airline Air One, and Russian flag carrier Aeroflot, all of which have previously expressed interest in the airline.
Alitalia's plight has been exacerbated by the rapid growth of low-cost carriers like Ryanair and easyJet, and by persistent labour unrest, as powerful unions seek guarantees over future staffing despite management's attempts to broach the issue of restructuring.
Alitalia reported last month that the company's net debt was €1.05 billion at the end of July, while its market capitalisation has slipped about 20 percent since the start of the year to just under €1.2 billion.
The restructuring programme also includes a plan to downsize operations at Milan's Malpensa airport, but some sector analysts have warned that this may put off potential buyers.
Alitalia and Air France-KLM are already linked by cross ownership stakes of 2% each.
