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ROME: ITA Airways on Tuesday posted a 2022 loss of around 486 million euros ($526.97 million) due to lingering effects of the pandemic and rising fuel costs, despite strong revenues of 1.58 billion euros.

The Italian state-owned carrier, which officially replaced money-losing Alitalia in 2021, said in a statement the results were “consistent with the company’s ‘start-up’ phase” in a market that remained weak in the first few months of the year due to the pandemic.

Higher fuel costs due to the Ukraine conflict and a negative forex dynamic also weighed on last year’s performance, it added.

ITA reported revenue of 90 million euros in 2021.

Germany’s Lufthansa is negotiating with the Italian government to acquire 40% of the airline, potentially followed by the remaining stake later.

ITA forecast significant revenue growth and improvement in operating results this year, as its expanding fleet flies to more destinations.

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