ITA Airways expects revenues to exceed $4 billion in 2025, chairman says
ROME, July 21 (Reuters) -Italy's carrier ITA Airways expects its revenues to exceed 4 billion euros ($4.35 billion) in 2025, earlier than forecast, its chairman was quoted as saying, after it reorganises operations under an agreement to sell part of the business.
Earlier this month, German airline Lufthansa LHAG.DE won European Union antitrust approval to buy 41% of state-owned ITA for 325 million euros after agreeing to cede routes and slots to rivals to address competition concerns.
ITA took to the air in 2021 replacing the former Italian loss-making carrier Alitalia, which burned through an estimated 10 billion euros of state funds in its last 14 years of life.
"We estimate that the company will exceed 4 billion in revenues already next year," two years ahead of initial forecasts, chairman Antonino Turicchi told daily Corriere della Sera.
He said ITA revenues amounted to 1.2 billion euros in the first half of 2024, an increase of 33% compared to the same period last year, and the company carried 8.3 million passengers.
Turicchi told Corriere della Sera that within four months the companies will have to "formalise contacts" with carriers willing to take over the short-haul routes, as part of the remedy package agreed with the EU.
The German airline has said it is in talks with Easyjet EZJ.L and Spanish low-cost carrier Volotea on this.
When Lufthansa agreed its 41% deal with Rome's authorities last year, it said it was looking to acquire full control of ITA "at a later date".
The German carrier's CEO Carsten Spohr said this month the company could consider raising its stake in ITA to 90% starting from early next year.
($1 = 0.9194 euros)
Reporting by Angelo Amante;
Editing by Alison Williams
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