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Alitalia approve FY 2012 budget draft

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THE BOARD OF DIRECTORS APPROVES ALITALIA THE DRAFT BUDGET 2012.

IN 2012 REVENUES 3594 ML. € (+ 3.3% VS 2011), OPERATING PROFIT - 119.1 ML. €, NET A - 280 ML. € WEIGHTS ABOUT 91 MILLION NET OF EXPENSES DEPRECIATION AND MAINTENANCE FLEET.

CONFIRMED REVERSE TREND IN THE SECOND PART OF THE YEAR COMPARED WITH THE FIRST 6 MONTHS OF 2012. THE FOURTH QUARTER OPERATING IN FINISHED WITH A DRAW.

THE GROUP HAS DELIVERED IN 2012 ALITALIA MORE THAN 24 MILLION 275 THOUSAND PASSENGERS. LOAD FACTOR A 74.6%, up 1.8 percentage points compared to 2011.

ALITALIA SCALE THE RANKINGS OF OPERATIONAL EXCELLENCE: IN 2012 AND 'THE FIRST AIRLINE OF EUROPE FOR REGULAR' FLYING IN 2009 WAS BETWEEN THE LATEST IN THE LIST.

GROWING IN 2012 ALSO ON TIME 'FLYING ALITALIA (86.9% + 1.5 percentage points compared to 2011).

COMPLETED THE FLEET RENEWAL.

REACHED THE MINIMUM THRESHOLD, 95 MILLION OF SIGNATURE OF LOAN PARTNERS.


Rome, February 25, 2013 - The Board of Directors of Alitalia - Compagnia Aerea Italian SpA met today in Rome, chaired by Roberto Colaninno, and approved the draft budget for 2012, reported in the consolidated Group, presented by CEO Andrea Ragnetti.

2012 was one of the worst years in the field of European air traffic memories, characterized by the financial crisis that has hit the Eurozone and in particular the countries of the Mediterranean basin, including Italy, an area on which the recession is proving to be even more profound and long the dreaded, causing a significant reduction in demand.

CONFIRMED REVERSE TREND IN THE SECOND PART OF THE YEAR COMPARED WITH THE FIRST SIX MONTHS OF 2012
Alitalia has closed the 4th quarter of 2012 with 5 million and 245 thousand passengers, revenues of 690 ml. € and an operating profit in balance.

ALITALIA GROUP PERFORMANCE IN 2012
The fiscal year ended December 31, 2012, of continued macroeconomic situation still strongly negative, the Alitalia Group has reported revenues for 3594 ml. € (+ 3.3% compared to 2011).

Revenues related to international and intercontinental rose 7% and reached 64% of the total revenues from passenger traffic.

With the belly cargo service, Alitalia carried more than 62,500 tons of cargo, with volumes slightly down compared to 2011, but with revenues up 5% thanks to higher incidence of long-haul.

The operating result (EBIT) amounted to - 119 ml. € (- 6 ml. € in 2011) and net income, after provisions and extraordinary expenses, amounted to - 280 ml. € (- 69 ml. € in 2011). Extraordinary expense must be reported about 91 ml. € due to depreciation, maintenance and sales of aircraft, as part of the renewal of the fleet ended in December 2012.
 
Net debt at 31 December was 1028 ml. € up to 175 ml. € compared to 31.12.2011 (854 ml. €), accounting for the debt on the fleet of owned aircraft equal to 612 ml. € (675 ml. € in 2011).
 
At the end of 2012, the total cash and cash equivalents - including lines of credit used - amounted to about 75 ml. € (326 ml. € in 2011).

IN 2012 THE GROUP HAS DELIVERED ALITALIA 24,275,604 MILLION PASSENGERS.
The result is slightly lower than that of 2011, should be seen in a generalized context of rationalization of capacity in the market in which even the Alitalia Group, in response to a sharp drop in demand due to the economic and financial crisis, has taken action to optimization of its capacity reduced by a total of 2.6% of their offer.

In 2012, the market share of Alitalia Group - on all three segments intercontinental, international and domestic - remains stable at around 22.6%.

The activities of the Smart Carrier Air One in 2012 marked a growth of approximately 45% of the number of passengers that has reached 2 million (1.4 million in 2011), thanks to the flight due to the opening of two new operational bases in Venice (May 2012) and Catania (October 2012), as well as those of Milan Malpensa and Pisa.

The rate of occupancy of aircraft in 2012 (load factor) rose again and reached a value of 74.6%, up 1.8 percentage points from the previous year (72.8% in 2011).

OPERATIONAL PERFORMANCE CONTINUOUS IMPROVEMENT: ALITALIA FIRST IN EUROPE FOR REGULAR 'AND BETWEEN THE FIRST EUROPEAN CARRIERS FOR ON TIME'.
In 2012, significant progress has been achieved in the quality of service, confirming the trend already in place in previous years.

The index of regularity of flights Alitalia - ie the number of flights operated on the total number of connections in the program - has reached 99.7%, allowing the company to become the first carrier in Europe to regular flights. In the 2009 rankings Alitalia was in late position.
 
The punctuality of the A15 - the number of flights landed within 15 minutes of arrival - in 2012 reached a value of 86, 9%, an increase of 1.4 percentage points compared to 2011, when the punctuality stood at 85.5%. With this result, Alitalia is now at the top of the rankings of the most punctual airlines in Europe, while in 2009 the Company was in late position.

Alitalia is still valid, and reached the goal of improving its operating performance to become by 2013 the most punctual carrier in Europe.

COMPLETED THE FLEET RENEWAL
At December 31, 2012 has completed the renovation project of the operational fleet which now has 140 aircraft with an average age of approximately 6.5 years compared to 9.3 years in January 2009.

The plan for the renewal of the fleet, a long-term plan is very ambitious and was launched in January 2009. At December 31, 2012, Alitalia had received 55 new aircraft, including regional (Embraer E-190 and E-175), medium-haul aircraft (Airbus A319 and A320) and long range (Airbus A330). Of these 55 new entries, 21 occurred in 2012.

For the 2009-2012 period the decommissioned aircraft were 67, of which 41 are from the beginning of 2012. In particular, at the end of October 2012, Alitalia has welcomed the release from its operational fleet of MD80 and Boeing 767 aircraft which they did in the history of the Society and the Italian air transport and have been replaced by more modern aircraft, more comfortable and far more efficient.

The fleet renewal plan launched in 2009 also included a complete reconfiguration of the interior of 89 aircraft in the fleet of medium and long-haul Alitalia. Of these 89 aircraft in 2012, 10 Boeing B777 Alitalia were set up with three new classes of travel intercontinental flights (business class Magnifica, the Classica Plus premium economy and economy Classic) making the service board homogeneous over the entire long-haul fleet of the Company.

NEWS 'NETWORK AND RESULTS OF CUSTOMER SATISFACTION
In 2012, Alitalia has begun an expansion of its range of international and intercontinental flights that has seen the opening of four new destinations served from the hub of Rome Fiumicino Airport: Tbilisi (July 5), Zurich (29 October) Abu Dhabi (December 1) and Yerevan (11 December).

These new destinations have been added 2 more in January 2013 (Fortaleza and Prague) and, from April 2013, will be joined by a further 9 (Copenhagen, Krakow, Ekaterinburg, Oran, Podgorica, Bilbao, Montpellier, Antalya and Djerba) , as well as Moscow, Samara and Rostov served by flights of Air One Smart Carrier.

During the year, the rate of customer satisfaction Alitalia has reached a value of 78%, with a peak of 87% relative to the intercontinental service, for which the Company has received (for the third year in a row) an important international recognition, making it the first carrier in the world for the quality of the menu board (Global Traveler's 2012 survey of 28,000 frequent flyer). Air One in 2012 reached a rate of 81.9% customer satisfaction.