It has been less than two years since Air Italy went into service. The airline regrettably announced that it would cease operations as of 26th of February and liquidate the company. The two shareholders of the company made the announcement shortly after a shareholders' meeting.
The collapse of Air Italy comes after four airlines shut down in 2019. Qatar Airways, the minority shareholder in Air Italy, stated that it was willing to invest more money into the airline to keep it running, but the majority shareholder, Aga Khan's Alisarda SpA, refused.
Air Italy was formed after Meridiana Airlines collapsed in 2017. Meridiana was one of two major airlines operating in Italy. Qatar Airways quickly invested in the collapsed airline and placed great effort into rebranding the company, improving customer service and routes. The revamped carrier relaunched in 2018 as Air Italy.
The airline has struggled since its inception. The American legacy carriers began protesting Air Italy's new international flights, stating that Qatar Airways was hiding behind the name Air Italy to increase its presence in the United States. In Italy, the carrier still struggled with domestic and European flights along with the high costs of unionized workers. In its first year, the airline lost 164 million euros. In its second year, the losses surpassed the 200 million euros mark.
The airline announced that it would honor all flights from February 11 through February 25, though these flights are to be operated by other airlines. The airline further stated that travelers who are holding tickets for flights scheduled beyond February 25 can also request a full refund without penalty if they aren't interested in the alternative flights offered.