Alitalia's Board of Directors approves the Group financial statement for 2010

In the fiscal year ending 31 December 2010, the Alitalia Group recorded revenues of 3,225 ml. € (+14.1%), 23.4 million passengers carried (+7.4%) and an operating result of - 107 ml. €, up by 167 ml. € compared to 2009. The net result, after accruals and extraordinary charges, is equal to -168 ml. €, up 159 ml. € compared to last year. Therefore, the objective of cutting operating losses in half was amply exceeded.

Growth was driven above all by intercontinental and international activity, that respectively recorded increases of 13.7% and 11.5% in the number of passengers carried and 32.9% and 15.3% in terms of revenues. Contributing significantly to the result was the opening of new intercontinental routes to Miami and Los Angeles and international routes to Amman, Vienna, Malaga and, from Turin to Berlin, Istanbul, Amsterdam and Moscow.

The increase of passengers recorded by Alitalia (+7.4%) was more than two percentage points higher than the growth of European demand (+5.1%) and slightly higher than the growth of passengers from Italian airports (+7%).

These results were achieved in a context in which, despite there being an upswing in passenger traffic, especially in the high-yield component, critical factors affected the air transport industry. Among these, there was the restriction of air traffic due to the eruption of the Icelandic volcano, and the severe weather disruptions in Europe and North America.

The financial situation improved compared to last year. As at 31 December 2010, there was net financial indebtedness equal to 839 ml. € (847 ml. € as at 31 December of 2009), mainly due to the indebtedness on the Company-owned aircraft fleet equal to 774 ml. € (880 ml. € in 2009), and total liquidity equal to approximately 415 ml. € (347 ml. € in 2009).

The load factor in 2010 was equal to 70.5%, up 5.5 points compared to last year.

During the year, the renewal process of the Alitalia fleet continued, with the phase-out of the old Boeing 737s fleet and the entry into service of 12 new Airbus, of which 2 A330s for the long-haul.

Today the Alitalia fleet, with an average age of 8.6 years is among the most modern in Europe.

During 2011, investments will continue with the entry of new short and medium haul aircraft, Airbus and Embraer, and new long-haul Airbus A330 aircraft.

During the year, important progresses in the quality of service have been achieved. On-time performance was 80.0%, up 6.6 points from 2009 and 1.5 points higher than the average of the AEA, the Association of European Airline Companies.

The regularity of the flights was 99.5%, up from the previous year, and the level of customer satisfaction reached 80.5% (+6.5% from 2009). Compared to last year, the number of misplaced baggage was halfed, dropping to 1 per 100 passengers, and placing Alitalia among the best airlines in Europe.

Concerns have been expressed to the Board regarding the freezing of investments for the Fiumicino Airport infrastructure, which are crucial in the light of the Company's planned traffic growth.

Despite recent fuel cost increase, a matter of great concern for the entire sector, Alitalia confirms its plan for an operating break-even in 2011.