ROME (AFP) - Italian airline Alitalia made a net loss of 620 million euros in the first half of 2004, the group announced after a board meeting.
At the end of August, management had said it expected a net loss similar to that of the first half of 2003, which came to 519.7 million euros.
The board of directors decided to set before December 15 a date for a special shareholders' meeting which would be asked to decide on increasing the company's capital by 1.2 billion euros to finance planned investments under the 2005-2008 industrial plan.
Alitalia bosses and union and government officials forged a deal last week to save the troubled Italian flag carrier, but the company's restructuring plan immediately came under fire from rival airlines who complained of illegal state aid.
Government officials and both Alitalia sides emerged with an agreement after thrashing out the fine details of redundancy payments for 3,700 workers who will lose their jobs in a restructuring plan.
Alitalia chairman and chief executive Giancarlo Cimoli said it guaranteed the company's future.
The plan has yet to be submitted to the European Commission.
The agreement opens the way for the release of a 400-million-euro (490-million-dollar) state-guaranteed bridging loan for Alitalia, ensuring the company has sufficient cash until the launch of a capital increase expected early next year.