ROME, ITALY — On Tuesday, Italy's newly established flag carrier ITA Airways reported a 2022 loss of approximately €486 million ($526.97 million) caused by the effects of pandemic and surging fuel prices, despite substantial revenues of €1.58 billion.

The Italian government-owned airline, which officially took over from the financially struggling Alitalia in 2021, stated that these results align with the company's "start-up" phase amid a market that remained sluggish during the year's initial months due to the pandemic.

Increased fuel expenses resulting from the Ukraine conflict and unfavorable foreign exchange dynamics also impacted the previous year's performance.

Lufthansa Group is in talks with the Italian government to acquire a 40% stake in ITA Airways, with the possibility of acquiring the remaining shares later.

ITA Airways anticipates considerable revenue growth and improved operating results in the coming year, as its growing fleet services more destinations.