Beleaguered Italian carrier Alitalia may have outlasted Air Italy, but it continues to struggle. Now it will cut two longhaul routes and ditch three widebody aircraft.
Alitalia has been operating in bankruptcy protection since 2017. Nearly three years later, little has changed. As we reported in December, Alitalia loses approximately 2 million Euros per day.
> Read More: Alitalia Loses 2 Million Euros…Per Day
Alitalia Cuts Santiago And Seoul
Citing continued poor performance, Alitalia will slash service to Santiago, Chile and Seoul, South Korea. The 7,380-mile route to Santiago is currently Alitalia’s longest, clocking in at over 15 hours on westbound flights.
Corriere reports that Alitalia loses €8 million on the Santiago route each year. Despite being the sole carrier to offer non-stop service between the two cities, Alitalia was unable to capitalize on higher fares, with average fares stagnant at €600.
Meanwhile, long before the latest coronavirus outbreak, Seoul has been another losing route for Alitalia. Fares averaged only €450/and the carrier loses €12.7 million per year.
Altogether, Alitalia loses €76,000 per DAY on these two routes alone. Over the last two years, Alitalia has lost a combined €47 million on these two routes. Even the bottomless purse of the Italian government has deemed that these two routes are simply not worthwhile.
Alitalia Returns 1 777-300ER, 2 A330-200s
Alitalia has one 777-300ER in its fleet and will return it. Currently, Alitalia pays $675,000/month to rent it. It will also return two A330-200s it is leasing at a cost of about $500,000/aircraft per month. The A330s were leased by Etihad, who will now assume the monthly leasing costs.
Alitalia allegedly did better in 2019 than it did in 2018 (though it hasn’t released its full numbers yet). Even so, it remains a basket case. It is no wonder Lufthansa and others is so skeptical to invest.
> Read More: Italy’s Plan For Alitalia Centers On Lufthansa
(H/T: Simply Flying)