The "Re di Portogallo" sheered off, but her consort, the "Maria Pia," came rushing down on the disabled "Kaiser." Petz avoided her ram, and engaged her at close quarters, but the shells of the "Maria Pia" burst one of the "Kaiser's" steam-pipes, temporarily disabled her steering gear, and did terrible execution in her stern battery. Petz himself was slightly wounded. With great difficulty he extricated his ship from the mêlée, and cutting away the wreckage, and fighting the fire that was raging forward, he steered for San Giorgio, the port of Lissa, to seek shelter under its batteries. His wooden frigates gallantly protected his retreat and escorted him to safety, then turned back to join once more in the fight. This was the moment when Albini with the Italian wooden squadron might easily have destroyed Petz's division, but during the day all he did was to fire a few shots at a range so distant that they were harmless.
Persano, in the "Affondatore," had for a moment threatened to attack the "Kaiser," as she struggled out of the mêlée. He steamed towards her, and then suddenly turned away. He afterwards explained that, seeing the plight of Petz's flagship, he thought she was already doomed to destruction, and looked upon it as useless cruelty to sink her with her crew.
The fleets were now separating, and the fire was slackening. In this last stage of the mêlée the "Maria Pia" and the "San Martino" collided amid the smoke, and the latter received serious injuries. As the fleets worked away from each other there was still a desultory fire kept up, but after having lasted for about an hour and a half the battle was nearly over.
Tegethoff, having got between the Italians and Lissa, reformed his fleet in three lines of divisions, each in line ahead, the ironclads to seaward nearest the enemy; the wooden frigates next; and the gunboats nearest the land. Every ship except the "Kaiser" (which lay in the entrance of the port) was still ready for action. Some of them were leaking badly, including his flagship, which had started several plates in the bow when she rammed and sank the "Re d'Italia." The fleet steamed slowly out from the land on a north-easterly course, the ironclads firing a few long-ranging shots at the Italians.
Persano was also reforming his fleet in line, and was flying a signal to continue the action, but he showed no determined wish to close with Tegethoff again. On the contrary, while reforming the line he kept it on a northwesterly course, and thus the distance between the fleets was increasing every minute, as they were moving on divergent lines. Gradually the firing died away and the battle was over. Albini, with the wooden squadron, and the ironclad "Terribile," which had remained with him, and taken no part in the fight, ran out and joined the main fleet.
Persano afterwards explained that he was waiting for Tegethoff to come out and attack him. But the Austrian admiral had attained his object, by forcing his way through the Italian line, and placing himself in a position to co-operate with the batteries of Lissa, in repelling any further attempt upon the island. There was no reason why, with his numerically inferior fleet, he should come out again to fight a second battle.
But though the action was ended, there was yet another disaster for the Italians. The "Palestro" had been for two hours fighting the fire lighted on board of her by the Austrian shells. Smoke was rising from hatchways and port-holes, but as she rejoined the fleet she signalled that the fire was being got under and the magazines had been drowned. Two of the smaller ships, the "Governolo" and the "Independenza," came to her help and took off her wounded. To a suggestion that he should abandon his ship, her commander, Capellini, replied: "Those who wish may go, but I shall stay," and his officers and men remained with him, and continued working to put out the fire. But the attempt to drown the magazines had been a failure, for suddenly a deafening explosion thundered over the sea, the spars of the "Palestro" were seen flying skyward in a volcano of flame. As the smoke of the explosion cleared, the heaving water strewn with debris showed where the ship had been.
The Austrian fleet was steaming into San Giorgio, amid the cheers of the garrison and the people, when the explosion of the "Palestro" took place. Persano drew off with his fleet into the channel between Lissa and the island of Busi, and when the sun went down the Italian ships were still in sight from the look-out stations on the hills of Lissa.
The Austrians worked all night repairing damages, and preparing for a possible renewal of the fight in the morning. But at sunrise the look-outs reported that there was not an Italian ship in sight. Persano had steered for Ancona after dark, and arrived there on the 21st.
He was so unwise as to report that he had won a great naval victory in a general engagement with the Austrians in the waters of Lissa. Italy, already smarting under the defeat of Custozza, went wild with rejoicing. Cities were illuminated, salutes were fired, there was a call for high honours for the victorious admiral. But within forty-eight hours the truth was known. It was impossible to conceal the fact that Lissa had been unsuccessfully attacked for two days, and that on the third it had been relieved by Tegethoff dashing through the Italian fleet, and destroying the "Re d'Italia" and the "Palestro," without himself losing a single ship. There were riots in Florence, and the cry was now that Admiral Persano was a coward and a traitor. To add to the gloom of the moment the ram "Affondatore," which had been injured in the battle, sank at her anchors when a sudden gale swept the roadstead of Ancona.