Alitalia Adopts Low-Cost Model In New Focus On Profits

Italian airline Alitalia will adopt a low-cost carrier model in hopes of returning to profitability by the end of 2018.

Alitalia announced on Thursday that it will cut 1 billion euro in staffing and operating costs by 2019, mostly in its short- and medium-haul network.

It will add seats to its narrowbody aircraft and will start charging for services such as checked luggage, food, seat selection and priority boarding, making those flights a new low-cost option for travelers.

Alitalia said it will also cut 20 planes from its 78-plane fleet and put a new emphasis on transatlantic flights to the United States, including adding routes to new cities beyond Boston, New York and Miami.

The plan is designed to increase its revenue by 2019. Alitalia lost almost 200 million euros in 2015.