Loss-making Alitalia will ask banks for additional funding and could be forced to launch another share issue if the business does not perform as planned.
The carrier is struggling to keep flying and raised €300 million in an emergency capital increase last month having agreed €200 million in bank financing in October.
Chief executive Gabriele Del Torchio told a shareholder meeting: “If the business plan targets are not reached another cash call will be inevitable.”
Earlier in January newspaper Il Messaggero said Alitalia had asked banks to extend existing loan agreements by €50 million.
Talks are underway with Etihad to bring the Abu Dhabi-based airline on board, with sources close to the matter having said Etihad is willing to take a stake of up to 40%.
But Etihad said yesterday it would not be rushed into making a decision over an investment.
Del Torchio said the talks with Etihad were in an exploratory phase, but added he was “optimistic,” Reuters reported.
Italy’s biggest retail bank, Intesa Sanpaolo, is Alitalia’s leading shareholder with a 20.6% stake, while UniCredit is its third-largest investor with 13%.
Air France-KLM was Alitalia’s biggest shareholder with 25% but its stake fell to around 7% after the Franco-Dutch group snubbed a recent rights share offer.
Del Torchio also told shareholders Air France-KLM was still interested in a co-operation deal.
Alitalia needs money to invest in more lucrative long-haul routes after a focus on domestic and regional flights failed to pay dividends due to competition from budget carriers and high-speed trains.