ITA Airways sees operating profit stay steady in third quarter

Italian carrier’s operating profit running ahead of last year over first nine months, but exchange rate fluctuations impacting its net performance.

ITA Airways posted an operating profit of €94 million ($106 million) for the third quarter, in line with its performance for the same period last year despite escalated fuel costs.

The Italian carrier’s revenues were 6% higher for the July-September period at €995 million.

ITA points to the contribution of its fuel hedging strategy, covering more than 80% of its requirements this year, as helping to offset the cost from higher oil prices. The steady quarter takes the SkyTeam carrier’s operating profit for the year to date to €98 million, up by almost two-thirds on the same period last year.

However, ITA says its net profit continues to be affected by fluctuations in the euro-US dollar exchange rate, amid a weakening of the European currency – though without specifying its net result for the third quarter.

ITA Airways chief executive Joerg Eberhart says: “The positive performance over the summer gives us confidence and encourages us to continue the important work underway to strengthen ITA Airways.”

The Italian carrier has moved into the Lufthansa Group fold since the latter acquired a minority stake in ITA last year, and will become a consolidated member of the group when Lufthansa exercises its option to take a majority stake. Lufthansa hopes to complete that deal in the first quarter of next year.

“Our focus on cost control and the gradual development of synergies with the Lufthansa Group are central to our efforts, alongside the quality of service we provide to our customers,” says Eberhart.

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