Italian national carrier Alitalia posted a pre-tax loss of 364 million euros last year, a statement from the airline said on Thursday.
The result narrowed negative results by 241 million euros compared to 2006, when the 197 million euros fleet write-down dragged results down.
The pre-tax loss for the last quarter of 2007 stood at 109 million euros, down 221 million euros from the same period a year earlier.
The figures include the results posted by low-cost carrier Volare which Alitalia acquired in 2006.
The company's operating revenue totalled 4.586 billion euros, up 132 million euros or 2.8%.
In the fourth quarter it climbed 4.0% year-on-year to 1.28 billion euros.
Spending on fuel increased by 2.0% to a total 1.033 billion euros, while in the last quarter of 2007 alone the spending totalled 287 million euros, rising by an annual rate of 20.3%.
According to Alitalia's board of directors, the negative figures were attributed mostly to strikes, which brought revenue losses of around 150 million euros and tarnished the carrier's image, and to the strong pressure exercised by low-cost rivals operating on the domestic and international markets.
Revenue from traffic stood at 4.356 billion euros last year, down by 0.4% or 17 million euros compared to 2006, the company said.
Alitalia reported a 6.5% year-on-year drop in revenue from traffic to 1.031 billion euros in the fourth quarter of 2007.
On an annual basis, the carrier's revenue from cargo traffic rose 5.1%, while revenue from passenger traffic fell 1.8 % over 20067.
Alitalia's operating revenue went up 2.8% on the year to 4.866 billion euros. The operating revenue amounted to 1.28 billion euros for October to December 2007, up 4.0% compared to the same period of 2006.
Alitalia's net financial debt stood at 1.191 billion euros on November 30, 2007.
