Alitalia has entered the continental European equivalent of bankruptcy protection, according to the Financial Times and other business/financial media.
The Italian government has refused to nationalize the company, but has approved a bridge loan of € 600 million, which is enough to keep the airline operating for 6 months. Three trustees nominated by the government have a mandate to either find a new buyer for the company (Etihad, which owns 49%, is not going to put more money), or then liquidate the company.
Contrary to previous Alitalia financial crisis, this time the general mood among the Italian electorate is not in favor, at all, of yet another bailout, nor is the government willing to get itself too involved in the process.
EasyJet and other low-cost airlines are devastating Alitalia intra-European business. The high speed rail services greatly reduced the once cash cow air shuttle Milano Linate - Fiumicino and secondary lucrative routes (eg Torino-Roma). Alitalia is not part of any major global alliance, and its long-distance routes have been under price-wars from OneWorld airlines especially.
So take this into account when planning your trips, and if you have already an Alitalia ticket, make sure to follow closely new developments.