Troubled Italian flag carrier Alitalia on Thursday said its net losses widened to 294 million euros ($396 million) in the first half of the year, compared to a loss of 201 million euros over the same period in 2012.
A majority of the company's board also voted to approve a capital increase of at least 100 million euros -- although Italian media reported that Air France-KLM board members were against the decision.
Air France-KLM owns a 25-percent stake in Alitalia and is looking into possibly increasing its share, a controversial issue for Italy, which has so far resisted the French-Dutch carrier buying a majority.
Recent comments by Italian Transport Minister Maurizio Lupi point to a possible change of heart, however.
He has said the government would not be against Air France-KLM taking a controlling stake although he has said other partners could also be a possibility.
Alitalia's board of directors will meet again on October 3 ahead of a shareholder meeting on October 14.
The company on Thursday also said it had managed to reduce its debt to 946 million euros by June 30 from 1.023 billion euros in March.