Alitalia has been hit by several wildcat strikes

The carrier saw a pre-tax loss of 65.8m euros ($84.2m; �44.3m) in the third quarter, compared with a profit of 15.7m euros at the same time last year.

Alitalia warned that total losses for 2006 would exceed last year's losses of more than 221m euros.

The Italian government has pledged to draw up a new rescue plan for the airline by the end of January.

Prime Minister Romano Prodi last month described Alitalia's financial problems as "completely out of control".

Brussels warning

Alitalia, which is 49% state-owned, has long been seeking a tie-up with Europe's biggest airline, Air France KLM.

However, the Franco-Dutch giant has ruled that a deal involving Alitalia can only take place once the Italian airline has resolved its financial difficulties.

The Italian government recently indicated that it would now prefer an alliance between Alitalia and an Asian airline.

In October, the European Commission said Alitalia should focus on restructuring its operations rather than looking for a state bailout.

Rome last year gave Alitalia a 400m euro loan as part of a previous restructuring plan.

Despite the third-quarter loss and forecast of increased annual losses, Alitalia forecast a profit for the final three months of year.