General Manager ITA Airways: Saudi Arabia is a Rapidly Expanding and Strategic Market for ITA Airways
Summer is a unique opportunity to explore and appreciate everything Italy has to offer, with Michelin-starred chefs on our newly designed aircraft and crew uniforms by renowned fashion designer Brunello Cucinelli. By the end of 2024, ITA's fleet will consist of 96 aircraft, 67% of which will be new-generation planes.
The Kingdom is a strategic market for ITA Airways, experiencing rapid expansion, especially in business travel. Our new flight to Riyadh reflects the close relationship between the two countries, particularly in shared cultural and historical fields.
Rome's centrality makes ITA Airways pivotal for travel to Italian, European, and North American destinations. We take pride in the excellence of our business class on the "A321neo" aircraft, a true ambassador of the "Made in Italy" brand.
Andrea Benassi, General Manager of ITA Airways, stated in an interview with Al Riyadh Daily, "The global aviation sector has faced unprecedented challenges due to the COVID-19 pandemic. Initially, travel restrictions and lockdowns dramatically reduced passenger numbers, grounded fleets, and caused significant financial losses for airlines worldwide. However, the sector has shown remarkable resilience and adaptability and is now gearing up for a record-breaking year, with projections of nearly five billion passengers to be transported in 2024. This will significantly surpass the previous record set in 2019," according to recent estimates from the International Air Transport Association (IATA) released in Dubai during the Annual General Meeting.
What is the current state and future outlook of the aviation sector in Italy and Europe, considering competition and other factors?
The aviation sector in Italy and Europe is experiencing a period of recovery and transformation, with a projected increase in passenger demand driven by both leisure and business travel. The European aviation market remains highly competitive, with legacy carriers, low-cost airlines, and emerging players vying for market share. To enhance competition, European airlines are investing in fleet modernization and sustainable aviation fuels to reduce their environmental footprint, aligning with the EU's Green Deal objectives.
In Italy, the tourism sector is preparing for an extraordinary summer with a significant influx of visitors. ENIT, the Italian Tourism Office, estimates around 1.6 million airport passengers between June and September. Most of them, about 82.7%, are coming from abroad, while 17.3% are from within Italy. We’re seeing a 4% increase in Italian travelers compared to last year.
We’re really focusing on offering tourism that’s not just tied to the traditional seasons, contributing to making Italy the top destination in the world. With this challenging scenario, we’re excited to contribute to the mobility options for tourists coming to Italy.
ITA Airways is the leading Italian airline. How does the air transport market in Italy stand out, and what is ITA Airways' role?
ITA Airways is the leading Italian airline. We started flying on October 15, 2021, during the COVID-19 pandemic and the aviation sector's low season, tackling this significant challenge with pride and commitment. Our growth and industrial plan focus on four key pillars: Sustainability, Innovation, Digitalization, and Customer-Centricity. Our objective is to contribute to national development by ensuring internal and international connectivity, supporting citizen mobility, business, and tourism.
Our mission is to be an efficient and innovative carrier, representing our country worldwide as a true ambassador of “Made in Italy.” This is achieved through personalized services that ensure a completely Italian experience at every stage of the journey, including a business class menu designed by Michelin-starred chefs, interior design of the new aircraft curated by Walter De Silva, and uniforms for crew and ground staff created in consultation with fashion designer Brunello Cucinelli. A key strategic pillar for the Company is also its commitment to sustainability, achieved through continuous fleet renewal and the adoption of technologically advanced and efficient aircraft. ITA Airways' fleet has grown from 52 to 94 Airbus aircraft, including 51 latest-generation models, such as the A320neo family, A220-300, A220-100, A330-900, and A350-900. By the end of 2024, our fleet will total 96 aircraft (22 wide-body and 74 narrow-body), with 67% being new generation.
How important is air transport from the Arab Gulf region, especially Saudi Arabia, to ITA Airways, and what are your goals and directions in this market?
Saudi Arabia is a rapidly expanding and strategic market for ITA Airways, especially for business travel. With our new flight to Riyadh, Italy and Saudi Arabia are now closer, enhancing our shared rich cultural and historical ties. Starting August 1st, ITA Airways will further expand its travel options in the region with a nonstop flight to Jeddah. Our codeshare agreements with Saudia enable ITA Airways customers to easily reach various destinations within Saudi Arabia and numerous international locations through Jeddah and Riyadh. Additionally, travelers from Saudi Arabia can conveniently access a wide range of Italian, European, and intercontinental cities via ITA Airways' hub in Rome Fiumicino.
Rome's centrality makes ITA Airways pivotal for travel to Italian, European, and North American destinations. We take pride in the excellence of our business class on the "A321neo" aircraft, a true ambassador of the "Made in Italy" brand.
Given the intense competition in the Middle East region, what distinguishes ITA Airways from other competing airlines in the region?
Despite the strong competition in the region led by European and GCC carriers, we are focused on promoting our A321 Neo product, which offers a high-quality and comfortable travel experience with five weekly frequencies connecting our two countries. Our excellent product caters not only to point-to-point traffic but also benefits from perfect connectivity through our Rome Fiumicino Hub to Italian, European, and North American destinations. This makes us the best alternative to our European competitors and a reliable "Made in Italy" solution for all customers from Saudi Arabia.
What is your approach in terms of pricing, especially in the Saudi Arabia market where you are opening new routes?
Regarding pricing in the Saudi Arabia market, ITA Airways applies dedicated pricing policies for new routes to promote the flight, the brand, and the onboard experience, facilitating market penetration. While it is challenging to predict fare trends due to numerous uncertain variables, including global geopolitical scenarios and inflation, our approach aims to offer competitive prices to attract new customers.
What are ITA Airways' results in terms of passengers transported, destinations, etc.?
We are a young company with nearly three years of operations, and we are very proud of how we started 2024. In the first four months of this year, our average load factor reached 78%, which is 3.6 percentage points higher than the same period in 2023, with peaks of 82% in the intercontinental sector. Additionally, we carried over 5 million passengers, marking a 29% increase compared to the previous year, and generated 38% more revenue than in 2023. Our performance continues to improve in the current summer season, and we anticipate a more than 25% increase in passengers carried compared to the same period last year. The intercontinental segment shows the largest growth with a 61% increase over 2023, followed by a 30% increase on international routes and a 15% increase on domestic routes.
In terms of network, we are flying to 57 destinations, including 16 domestic, 26 international, and 15 intercontinental in the current summer season. We are introducing new nonstop flights from our Rome Fiumicino hub to key markets in North America, Africa, and the Middle East. Among our highlights are the recently launched routes to Chicago (opened in April), Toronto (inaugurated in May), and Riyadh and Accra (launched in June). Next month, we will open a nonstop flight to Dakar and a second destination in Saudi Arabia with the opening of Jeddah in August. These additions complement ITA Airways' existing portfolio of intercontinental destinations, including New York, Boston, Miami, Los Angeles, Washington, San Francisco, São Paulo, Rio de Janeiro, Buenos Aires, Tokyo, and New Delhi, offering seamless connectivity to travelers worldwide. As a preview of our winter schedule, we have recently announced a new direct flight to Dubai at the end of October, which will further strengthen our presence in the Middle Eastern region.
Andrea Benassi, General Manager of ITA Airways
