Alitalia to post loss of about 280 mln euros-source

Tue May 13, 2008 11:06pm BST
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ROME (Reuters) - Near-bankrupt Italian airline Alitalia SpA will report a first-quarter pretax loss of around 280 million euros ($432.8 million) on Tuesday as it reels from the impact of higher oil prices, a company source told Reuters.

The loss is nearly double the 146.5 million euros it lost in the year-earlier quarter. About 70 million euros of the deficit are due to higher oil prices, the source said.

Alitalia (AZPIa.MI: Quote, Profile, Research) is expected to report results later on Tuesday.

The airline, which the Italian government has unsuccessfully tried to sell for more than a year, is clinging on for survival while it seeks a new owner to inject cash into its coffers.

It managed to avoid imminent bankruptcy after the collapse of a planned sale to Air France-KLM (AIRF.PA: Quote, Profile, Research) last month by obtaining a 300 million euro emergency loan from the government.

Italian Prime Minister Silvio Berlusconi has pledged to keep the airline flying and find a group of Italian businessmen to take it over, but his efforts have yet to lead to a new bid.

(Editing by David Holmes)

 
 
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