Operating performance of the first quarter of 2011.

Rome, 10 May 2011 – The Board of Directors of Alitalia – Compagnia Aerea Italiana – met today, chaired by Roberto Colaninno, to discuss the Group balance sheet for the first quarter illustrated by CEO Rocco Sabelli.

In the first quarter revenues were €684 ml., an increase of 7,1% compared to €639 ml. in the first quarter of 2010.

The number of passengers carried was equal to 4.8 ml. (+1.8% versus the first quarter of 2010). The load factor for the period was 64%, in line with the figure of the corresponding period in 2010. Traffic volumes were affected by the crises of North Africa and by the Japan earthquake, both markets are particularly significant for Alitalia. Already in April there has been an increase in the number of passengers carried, which has seen a growth of more than 12% over the same month last year, indicating a trend of substantial growth in volumes from the second quarter.

The operating result (EBIT) amounted to – €85 ml., in line with the target and improving of approximately €30 ml. compared to the same quarter last year, while net income was – €89 ml., an improvement of €43 ml. compared to the same period in 2010.

The improvement was achieved despite the additional costs related to the increased price of fuel, the planned fleet development and the impact of the crises of North Africa and Japan, estimated at more than €100 ml..

Considering the trend of the first quarter, the break-even forecast has been confirmed for the year 2011, notwithstanding the ongoing tensions over fuel prices and the uncertainties on the recovery of the North African and Japanese markets.

As at 31 March, the net financial indebtedness was equal to €876 ml., of which €729 ml. consisted of debt on the owned fleet, which profited by the positive impact of the rate of exchange Euro / US Dollar. In April, Alitalia has completed a currency swap transaction transforming the former fleet debt previously held in US dollars. At the end of the first quarter, a cash flow value – including lines of unused credit – was equal to €326 ml.

About the operating performance, compared to the first four months of last year, the period from January to April has registered a strong improvement in terms of quality and service reliability, which have reached levels of excellence. Punctuality has reached 91%, regularity 99.8%, the number of mishandled baggage for every 1,000 passengers was 5.8 (about half compared to last year).

The Board of Directors took note of the willingness of Fingen SpA to transfer to October 2008 Srl their equity stake in Alitalia, representing about 1.3% of capital, all members having declined to exercise the right of option.