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The European Commission has approved a further EUR73.02 million euros (USD90.5 million) in Italian state support for Alitalia (AZ, Rome Fiumicino), declaring it to be in line with EU state aid rules.

The funding, which takes the form of a direct grant, is aimed at compensating the carrier for damages suffered “according to a route-by-route quantitative analysis of 19 eligible routes submitted by Italy” due to the coronavirus pandemic between June 16 and October 31, it said in a statement dated December 29.

The restrictions in place in Italy and other countries to limit the spread of the virus have heavily affected Alitalia's operations, especially regarding international and intercontinental flights, the EU watchdog said, and as a result the airline “incurred significant operating losses” at least until the end of October.

The measure is proportionate, as the analysis “appropriately identifies the damage attributable to the containment measures, and therefore the compensation does not exceed what is necessary to make good the damage” on the 19 routes.

As with other state aid provided to airlines...