MILAN, Italy (AP) — The Italian airline Alitalia posted a 2007 loss of about $780 million for 2007 and appealed for new capital to keep flying.

The loss of 495 million euros reported in a statement issued late on Tuesday compared with a loss of 627 million euros posted for 2006. The airline said the losses were due to the rising cost of fuel, competition from low-cost carriers, labor tensions that deter passengers and a devaluation of its fleet. In February, Alitalia announced a 2007 pretax loss of 364 million euros ($574 million).

Alitalia said the failure to come up with a plan to save the airline has reduced its credibility. "In any case, we repeat the need for more capital as quickly as possible," the Alitalia statement said. Air France-KLM walked away from an offer after an impasse with unions, and the new government of Premier Silvio Berlusconi has said it will put together a consortium of Italian investors to put up cash alongside financial institutions to relaunch the airline.