Italian carrier Alitalia made a net loss of €326m in 2009, the first year of operations under Compagnia Aerea Italiana.
Despite recording revenues of €2,921m last year, the airline's net debt currently stands at more than €799m.
Alitalia says it plans to break even by 2011, and that the annual results are in line with this aim.
Roberto Colaninno, Alitalia's president, said: "In 2009, the air transport sector was hit by a crisis of historic proportions. That Alitalia, in its first very delicate year of relaunching, contained the effects of the crisis better than many of its competitors, strengthens my conviction that the industrial project is of absolute quality."
The airline said there had been a positive trend in revenue per passenger in 2009, rising 5.7% from the first half to the second half.
Passenger load factor also increased, from an average of 59% in the first six months of last year to 71% in the latter half of 2009.
Since merging with Air One under the new company, the airline has gone on to represent 53% of the domestic market share, higher than the total share held by Alitalia and Air One in 2008.
www.alitalia.com