Alitalia has announced double-digit profits for the third quarter of 2010.
After being saved from bankruptcy last year by a consortium of Italian buyers, the Italian airline made a net profit of €39 million between July and September this year.
The figure is a €24 million improvement on the same period in 2009.
The Skyteam member carried 7.1 million passengers between July and September, 11% up on last year.
Alitalia confirmed it is on track to reach its operating break-even target by 2011, and has predicted better than expected full-year results for this financial year.
The airline said recovery in demand from both intercontinental and international markets continues to be strong, while demand within Italy is beginning to show signs of growth.
Alitalia said its market share rose to 53% during Q3. The load factor was 76%, compared to 74.2% during the same period last year.
During the quarter, Alitalia took delivery of its first new A330, the first plane to join the fleet with the airline's new business class seat and first ever Classica Plus premium economy product.
The airline has also changed its baggage policy on all flights to be the same as Delta and Air France KLM, with which it partners on a transatlantic joint venture.
The hand baggage allowance has been increased from 5kg to 8kg, while the limit per piece of checked baggage has risen from 20kg to 23kg.
Economy passengers can check in one piece of baggage, premium economy passengers can check in two, and business class passengers can check in three.
Members of Alitalia’s frequent flyer programme can check in an extra piece of baggage on top of the allowance given for each class.