Tag Archives: Airberlin

Airberlin’s second quarter and first half loss widens

Airberlin (airberlin.com) (Berlin) has not stemmed its losses. The airline reported a second quarter net loss of €37.5 million ($41.8 million). This represents a 2Q widened net loss from €8.6 million ($9.5 million) reported in the same period a year ago.

The company’s first half net loss was also reported as €247.6 million ($276 million), widened from the €201.2 million net loss ($224.4 million) previously reported for the same period a year ago.

The airline issued this financial report:

Airberlin logo-2

Revenue performance in the second quarter of 2015 was characterized by tactical capacity adjustments. At 1.07 billion euros in Q2 2015, revenue fell by 7.0 percent compared to the same period last year (Q2 2014 1.15 billion euros). Accordingly, Group revenue also declined by -2.3 percent (from 1.91 billion euros to 1.87 billion euros) in the first half of 2015. As a result of capacity consolidation, revenue decreased compared to last year, but capacity utilisation and revenue per available seat kilometre (RASK) improved.

Stefan Pichler, CEO airberlin:

“Following a good first quarter, the second quarter was a transition quarter in line with the market trend, as expected and announced. We are optimistic about the outlook for the second half of the year. I am convinced that airberlin is well positioned, thanks to the efficiency improvement measures we have introduced. The noticeable 2.1 percent load factor improvement in July to 87.3 percent shows that we’re on the right track. In the fourth quarter, we will begin the consistent transformation of our business model.”

Operating earnings (EBIT) were -15.9 million euros in Q2 2015 (Q2 2014: -6.9 million euros). This year’s shift in the Easter holidays and last year’s Lufthansa strike affected earnings performance during Q2 2015. Benefits due to the low oil prices were offset by fuel hedging and the US dollar development. Over the half-year, however, airberlin improved its operating earnings (EBIT) by 7.3 percent compared to last year (HY 2014: -189.7 million euros, HY 2015: -175.8 million euros).

Net profit in the second quarter is -37.5 million euros (Q2 2014: 8.6 million euros). In the first half-year, net profit was -247.6 million euros (HY 2014: -201.2 million euros), which was primarily due to pronounced currency effects when evaluating derivates.

Positive RASK performance thanks to efficient capacity and revenue management

In a competitive market environment, Airberlin slightly increased revenue per available seat kilometer (RASK) in the second quarter, which coincided with the system-driven realignment of its revenue management. Total revenue per available seat kilometre (RASK) was 7.20 eurocts (Q2 2014: 7.16 eurocts), which represents a 0.6 percent increase. In terms of half-year results, RASK also increased by 1.2 percent, from 6.90 eurocts to 6.99 eurocts. In terms of yield performance, the average yield fell by -1.6 percent, from 120.5 euros to 118.5 euros. Compared to the same half-year period last year, the yield improved by 0.7 percent, from 119.0 euros to 119.8 euros.

In the second quarter, Airberlin offered 15.0 billion available seat kilometers (ASK), which, in accordance with its capacity planning, represents a fall of 7.1 percent (Q2 2014: 16.0 billion). Cost per ASK (CASK) rose by 1.5 percent from 7.20 eurocts to 7.31 eurocts.

Realignment of business model

During the first phase of the realignment, the management structure and management processes of the Airberlin Group were more closely aligned to operational airline processes. In addition to the short-term capacity consolidation, the airberlin group continues to focus its efforts on the redesign of its revenue management and sales.

A fundamental review of the current network operated by Airberlin is nearing completion and is aimed at significantly improving both the starting position of the operating costs per ASK (CASK) and the revenue per available seat kilometre. Optimising internal business processes and increasing focus on core business will continue during the 2nd half of 2015.

Outlook

The second half of the current financial year will aim at implementing the optimisation measures initiated during the first half year. Considerable improvements in yield, capacity utilisation and RASK are expected.

Copyright Photo: Rolf Wallner/AirlinersGallery.com. Airberlin is phasing out its Boeing 737 fleet and is going to an all-Airbus fleet. The last 737 should be retired by the end of next year unless the carrier decides to cut additional loss-making routes. Boeing 737-86J D-ABME (msn 37766) painted in the Oneworld scheme taxies at Zurich.

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Air Serbia applies for codeshare service to the U.S. via partner Airberlin

Air Serbia (Belgrade) hopes to serve the United States again. Formerly as Jat Airways, the company previously flew to the USA starting in 1970 with Boeing 707s. Later McDonnell Douglas DC-10-30s were deployed on those routes starting in 1978 (below).

Above Copyright Photo: Rolf Wallner/AirlinersGallery.com. JAT-Yugoslav Airlines (later Jat Airways) McDonnell Douglas DC-10-30 YU-AMA (msn 46981) approaches Zurich.

Now as Air Serbia, the airline has filed an application with the U.S. Department of Transportation (DOT) to serve the U.S. via a codeshare agreement with partner Airberlin (Berlin) using Airbus A330s (above).

Air Serbia logo

If approved, the Air Serbia code would be shown on Airberlin flights to Chicago (O’Hare), Miami and New York (JFK) via Berlin (Tegel) and Dusseldorf according to Airline Route.

Top Copyright Photo: Jay Selman/AirlinersGallery.com. Airberlin’s Airbus A330-223 D-ALPC (msn 444) approaches the runway at New York’s John F. Kennedy International Airport.

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Airberlin to restore Berlin – Miami service this winter

Airberlin (Berlin) has announced it will restore the Berlin (Tegel) – Miami route again on November 5. Every Thursday and Saturday, Airberlin will fly an Airbus A330-200 Airbus to Florida.

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Airberlin is also expanding its existing US services from Berlin this winter: Airberlin will fly to Chicago (O’Hare) every Monday, Wednesday, Friday and Sunday this winter, once more than last year. The number of flights to New York (JFK) from Berlin will also be expanded this winter, with two additional services. This winter, Airberlin will therefore offer daily service to the Big Apple for the first time.

Airberlin operates daily service from Dusseldorf to Miami and New York (JFK) and three flights a week to Fort Myers.

Copyright Photo: AirlinersGallery.com. Airbus A330-223 D-ABXB (msn 322) taxies from the gate at Los Angeles International Airport.

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Airberlin Group’s first quarter net loss remains flat

Airberlin Group logo

Airberlin Group (Airberlin and Niki) (Berlin) reported its first quarter net loss narrowly widened to €210.1 million ($237.6 million), up slightly from €209.8 million $237.2 million) in the same quarter a year ago. Stefan Pichler, CEO of Airberlin Group, stated “We are at the beginning of a long road to recovery.”

Here is the full report:

In the first quarter of 2015, EBIT rose to -159.9 million euros, or 23 million euros over the same quarter last year (Q1, 2014: -182.8 million euros). This demonstrates that despite a competitive market environment, the strategic and operational realignment at airberlin had already begun producing some positive effects on earnings at the start of the year.

Summary of consolidated earnings in the first quarter of 2015

Current performance reviews show airberlin’s average yield at 121.66 euros (Q1 2014: 116.72 euros). This represents a yield optimization of 4.2 percent as compared to the same quarter last year, and was achieved primarily through improvements in revenue management.

Revenue development showed an increase to 793.7 million euros, corresponding to a 4.2 percent growth in revenue over the same quarter last year (Q1 2014: 761.8 million euros). Due to an improved performance during the first three months, operating earnings (EBIT), at -159.9 million euros during the first quarter, also showed a 14 percent increase over the same quarter last year (Q1 2014: -182.8 million euros).

Allowing for current exceptional expenses from the ongoing restructuring program as well as non-recurring effects, adjusted EBIT was -151.4 million euros. Net profit in the first quarter of 2015 was -210.1 million euros (Q1 2014: -209.8 million euros). The Net profit decreased owing to higher interest expenditures and shifts in the market valuation of hedge instruments. 287.6 million euros in liquidity as of 31 March 2015 means Air Berlin PLC is in a stable financial position (Q1 2014: 273.0 million euros).

The current cost structure is marked by a slight rise in personnel and technical and maintenance expenses and increased airport charges. The personnel costs have risen by a direct employee takeover from NIKI, tariff developments and non-recurring expenses. Expenses incurred for technical and maintenance as well as airport charges will, however, be offset over the course of the year by systematic structural effects during the ongoing realignment.

Available seat kilometres (ASK) increased by 1.5 percent. Capacity utilization in the first quarter of 2015 stood at 83.2 percent, a modest increase over the same quarter last year`s rate of 81.8 percent. Total revenue per available seat kilometre (RASK) was 6.71 eurocts (up 2.6 percent on Q1 2014: 6.54 eurocts).

Total costs per ASK (CASK) rose by 0.8 percent year-on-year, going from 8.14 eurocts to 8.20 eurocts.

Stefan Pichler, CEO of Air Berlin PLC, comments on the results of the first quarter as follows:

”We have an initial operational earnings impact from the reduction in capacity and a slightly improved yield management approach. At the same time, seasonal effects such as Easter have also positively influenced the result. Still, we are at the beginning of a long road to recovery.“

Partnerships further strengthened, restructuring measures prove effective

Stefan Pichler emphasizes the importance of airberlin’s strengthened partnerships, in particular with Etihad Airways: ”During the first three months of the year, passenger volume increased by another 18 percent year-on-year, accounting for over 174.400 guests. We intensified our collaboration with Etihad Airways by expanding codeshare connections, with new ones available from Abu Dhabi to Hong Kong, Sri Lanka and Nairobi.“

As well within oneworld® a 19 percent increase in the number of passengers was recorded in the first quarter of 2015. Route performance and effective capacity utilization by the airline partner Iberia contributed significantly to growth.

The restructuring program, initiated in 2014, has already been showing initial positive effects since the start of 2015. Initial positive effects on revenue have been produced by the network restructuring concluded in January, further improvements to the revenue management system as well as the establishment of a new fare concept, and should intensify in the coming months.

During the first quarter, the new “airberlin business benefits” brand was introduced, which combines and further expands airberlin’s many existing corporate benefits. At the beginning of May, airberlin launched its new fare concept for short and medium-haul flights. The tailored fares open up new customer groups for airberlin and offer a great deal of flexibility. Another focus is airberlin’s service offensive. This includes its newly introduced customer advisory boards. In June, airberlin will launch its 24/7 service offensive – from the middle of the year, every passenger will receive feedback on their enquiry within 24 hours, and all customer enquiries will be fully processed within seven working days.

Because of increased market pressures and special expenditures, current foreseeable business development in the second quarter has so far not fulfilled expectations. airberlin will be working systematically on realignment in the coming quarters in order to achieve positive revenue development with respect to revenue passenger kilometres (RPK) as well as steady improvement in average revenue (yield). Continued expansion of product offerings is also of strategic importance in this regard.

Stefan Pichler is convinced of realignment`s effectiveness: “The first quarter has turned out properly. We understand, however, that we need to continue the systematic re-engineering of our company in order to achieve the goals we have set and generate the necessary market momentum. I am convinced that we are on the right track. Our focus on an open and inclusive management culture will enable us to drive further operational improvements.“

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin’s Airbus A321-211 D-ALSB (msn 1994) lands at Tenerife Sur.

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Airberlin posts a record loss in 2014

Airberlin (Berlin) issued their annual report for 2014 on April 29. The airline’s loss grew larger in 2014 despite its growing relationship with partner Etihad Airways (Abu Dhabi). The airline reported a net loss €376.7 million ($424.2 million), compared to a loss of €315.5 million ($355.2 million) for 2013.

Download and read the full report: CLICK HERE

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin is phasing out its Boeing 737s as it transitions to an Airbus fleet. Boeing 737-86J D-ABKN (msn 37756) prepares to land at Tenerife Sur.

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Finnair expands its codeshare agreement with Airberlin

Finnair’s (Helsinki) AY designator will be added to selected services operated by Airberlin (Berlin) or its subsidiary Niki (Vienna) to Bucharest, Catania, Chania, Cologne, Larnaca, Málaga, Naples, Palma de Mallorca, Paphos and Stuttgart. Finnair passengers will be able to connect to these cities via Berlin, Düsseldorf, Frankfurt, Munich, Vienna or Zurich.

Most of the new codeshares will supplement Finnair’s own nonstop services from Helsinki, allowing passengers more travel dates and a wider choice of schedules.

Finnair and Airberlin have been codesharing across Scandinavia and Central Europe since 2010.

Top Copyright Photo: AirlinersGallery.com. Airbus A320-214 OH-LXF (msn 1712) taxies at London (Heathrow).

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Bottom Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin’s Airbus A320-214 D-ABNA (msn 5191) prepares to land at Tenerife Sur.

Finnair and Airberlin to expand their codeshare relationship

Finnair (Helsinki) is expanding its codeshare cooperation in Europe with fellow oneworld alliance member Airberlin (Berlin).

Finnair’s AY designator will be added to selected services operated by Airberlin or its subsidiary Niki to Bucharest, Catania, Chania, Cologne, Larnaca, Malaga, Naples, Palma de Mallorca, Paphos and Stuttgart. Finnair passengers will be able to connect to these cities via Berlin, Düsseldorf, Frankfurt, Munich, Vienna or Zurich.

Most of the new codeshares supplement Finnair’s own nonstop services from Helsinki, allowing passengers more travel dates and a wider choice of schedules. The codeshares are planned to take effect from early May.

Finnair and Airberlin have been codesharing across Scandinavia and Central Europe since 2010.

Top Copyright Photo: Airbus A320-214 OH-LXC (msn 1544) of Finnair taxies at London’s Heathrow Airport.

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Below Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airberlin is gradually phasing out its Boeing 737s. Boeing 737-86J D-ABKQ (msn 37760) prepares to touch down in Tenerife Sur (TFS).

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