Alitalia reports profit decline in 2011

Alitalia recently announced its operational results for 2011 and sounded downcast at the financial outcome.

Alitalia flights made huge losses last year. The airline said in a statement that it had witnessed a sharp decline in its profit and suffered a net loss of $92.5 million.

The airline attributed several factors over the losses made in 2011. Alitalia revealed that high fuel prices ($110 per barrel in 2011 as against $83 per barrel in 2010) resulted in higher operational costs.

The airline also suffered a sharp fall in passenger demand because of the natural disasters and crises in its two key markets – Japan and North Africa.

The economic and financial slump also caused a significant decline in high-yield demand from the corporate segment starting from Q4 2011.

Meanwhile, Alitalia also stated that over the year its fleet saw the phasing out of 12 old aircraft, and also witnessed the entry of 13 new aircrafts. Among the new aircrafts, three were wide-body aircrafts.

The airline further disclosed the fleet renewal plan in on course for 2012, and at least 20 new aircrafts will be included in Alitalia’s fleet. The airline stated that among the 20 new aircrafts, five will be airbus A330s for intercontinental routes.