Alitalia Q3 liquidity falls by €67 million

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Alitalia narrowed its third quarter total liquidity position, including unused credit lines, to €300 million ($388 million), a decrease of €67 million, from its balance at 30 June.

Net financial indebtedness increased by €61 million to €923 million from the second quarter. Alitalia says its "owned-fleet indebtedness" made up €648 million of this amount.

In the third quarter, Alitalia added five new aircraft - four Embraer 175s and one Airbus A330. It phased out 11 aircraft during the period.

Alitalia says its fleet renewal process will continue through 31 December with the phase out of its Boeing MD80s, with the last flight scheduled on 27 October, and Boeing 767s.

The carrier warns the outlook for fourth quarter "confirms the strong slowdown of demand ascribable to the uncertainties of the global economic and financial scenario, as well as the persistence of high oil-price and euro/dollar exchange-rate levels", which will impact Alitalia's costs.

However, Alitalia says it is committed to revenue growth "not only through cost-containment measures, but also through development-driven commercial policies and significant investments to start operating flights towards new destinations between late 2012 and early 2013".