Alitalia despite its bankruptcy has managed to keep flying to both Seoul in Korea and Santiago, Chile, despite mounting losses on both routes.
With losses running at $82,000 a day on the routes – a staggering amount that makes you wonder how many other routes are loss making at such a level, the airline has finally given in and cut them.
On top of that it’s handing back its only 777-300WR EI-LWA to the lessor Long with a pair of A330’s.
The 773 alone will save the company $675,000 a month in lease costs.
These two destinations have cost Alitalia a fortune – some $51 million over 2018/19, where they continually underperformed, mostly because of Korean Air/Asiana and LATAM competition on the respective routes.
Bearing in mind the massive losses are being sustained by loans from Italian tax payers, it’s astounding it took so long to axe the routes. It’s symptomatic of the problems that have made the airline such a basket case.
The airline has a matter of months left before its cash runs out and the government has said there’s no more money. A buyer seems as elusively ever.