Milan - Shares of Alitalia plunged yesterday after Italy's largest airline said it had enough cash to stay in business for about a month.
The stock was down 5.4 percent to a record €0.188 before midday in Milan yesterday, valuing the state-controlled carrier at €728 million (R5.8 billion). The stock has lost 29 percent this year.
Chief executive Giancarlo Cimoli is trying to gain support from unions for a business plan that would cut jobs and costs to rescue the unprofitable carrier.
Available cash at the division, including flight operations, rose 11 percent to €120 million at the end of July from €108 million at the end of June, Alitalia told the exchange after the close of trade.
The cash improved because June and July are part of Italy's summer holiday period and two of Alitalia's most profitable months.
The parent company, including service units, reported a 26 percent rise in available cash to €72 million at the end of July from June's €57 million.
The company expects its full-year loss to match the e510.6 million reported last year.
The Italian government owns 62 percent of Alitalia, which has a state guarantee for a €400 million loan after it puts in place a new industrial plan.