Alitalia halves losses in first half of 2010

MILAN (AFP) - Italy's struggling flag-carrier Alitalia said Friday it had almost halved its net loss in the first half of 2010 to 164 million euros (214 million dollars) from 324 million euros last year.

Italy's Alitalia said Friday it had cut its first half net loss to 164 million euros (214 million dollars) (© AFP/File - Filippo Monteforte)

With sales growing by 13 percent to 1.48 billion euros, Alitalia said it was satisfied with the results in a period that saw high fuel prices and ash clouds from an Icelandic volcano that forced the closure of large parts of European airspace in April.

Alitalia also confirmed its target of breaking even on the operating side in 2011, the company said in a statement. Its operating loss for the first six months of 2010 also shrank to 129 million euros from 273 million euros in 2009.

After risking bankruptcy, Alitalia was taken over by a group of prominent Italian business leaders and merged with Italy's number two carrier Air One as Air France-KLM acquired 25 percent of the company.

Earlier this month, Alitalia joined an alliance with Delta Air Lines of the United States and Air France-KLM.

The three partners say they now account for about a quarter of trans-Atlantic ridership.