ITA Airways Expects Significant Revenue Growth in 2024

By Giancarlo Navach

MILAN (Reuters) – Italy’s ITA Airways announced on Friday an anticipated increase of 25% in passenger revenue for 2024 compared to last year, citing fuller planes and a positive core profit in the first half.

The state-controlled carrier, soon to join the Lufthansa group, projects full-year sales to reach €2.7 billion ($3.02 billion), with a load factor expected to rise above 80% from the current 79%, as per CFO Claudio Faggiani.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) became positive, amounting to €62 million, while cash reserves grew to €393 million. Revenue for the first half was €1.4 billion, aided by a 26% increase in passenger numbers to 8.3 million.

“The cash allows the company to support the investment plan, which has more than doubled compared to last year,” said Turicchi during a press conference in Milan.

Germany’s Lufthansa was granted approval in July to acquire a 41% stake in ITA for €325 million after lengthy negotiations with Brussels, which required giving up some routes and slots to alleviate competition issues. Turicchi expressed confidence in finalizing the deal by the Nov. 4 deadline.

The EU’s approval conditions raised concerns that ITA might prioritize investment in Rome’s Fiumicino airport over Milan’s Linate airport, following the carrier’s emergence in 2021 as a replacement for the bankrupt Alitalia.

However, ITA’s director general Andrea Benassi assured attendees at the Milan headquarters press conference that Linate remains strategic and that investments in the hub would continue.

He noted that ITA would need to relinquish 30 slots at Linate, constituting only 1% of the company’s total turnover, which will not substantially affect the business.

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