Tag Archives: AirBerlincom

Airberlin narrows its second quarter loss

Airberlin (airberlin.com) (Berlin) narrowed its second quarter loss to 8.1 million euros ($10.8 million), down from a loss of 29.4 million euros for the same quarter a year ago. The airline has been downsizing, eliminating 300 positions.

The company issued this statement:

In the second quarter of 2013, Airberlin improved its operating result (EBIT) despite a difficult market environment. Airberlin was able to increase EBIT (earnings before interest and taxes) to EUR -8.1 million, an improvement of two-thirds over the corresponding quarter of 2012 (EUR -29.4 million). EBITDAR (earnings before interest, taxes, depreciation, amortization, and leasing expenses and rentals) increased by 12 percent to EUR 166.4 million (2012: EUR 148.0 million). Despite a noticeable eight percent capacity reduction, Airberlin’s total revenue at EUR 1.11 billion remained at the level of the previous year (EUR 1.13 billion). Airberlin reduced its net loss for the second quarter to EUR -38.0 million, an improvement of almost two-thirds over the previous year’s corresponding quarter (EUR -99.8 million).

Increased capacity utilization, RASK and Yield

In the second quarter, Airberlin further increased its capacity utilization, revenue per available seat kilometer (RASK) and revenue per passenger. The number of routes flown in the second quarter decreased from 520 in 2012 to 440 in the current year, while the number of route frequencies increased by 14 percent. Capacity utilization increased by four percentage points, to 83.7 percent (previous year: 79.7 percent). Revenue per available seat kilometer (RASK) increased by 4.8 percent to 7.20 Eurocents (previous year: 6.87 Eurocents). Average yield (revenue per passenger) increased to EUR 113.74 (previous year: EUR 112.85).

Presenting the second quarter results for 2013, Airberlin’s CEO Wolfgang Prock-Schauer comments: “An improved operating income, increased capacity utilization, increasing revenue per seat kilometer and stable revenue despite capacity reduction, demonstrate that important key numbers are moving in the right direction. The positive effects of our Turbine program will bear fruit later in the year. As a result of the generally muted economic conditions and the market environment, the ability to reach our targets is becoming increasingly challenging.”

Turbine implementation according to plan

The implementation of Turbine is continuously progressing according to plan, and will due to increasing challenges continue to be advanced as a matter of priority over the course of the year. The focus remains on increasing efficiency, expanding services, and negotiating with relevant stakeholders.

Airberlin has concluded new collective labor agreements with all relevant employees. This is the first time that uniform collective labor agreements have been concluded for all pilots and respectively for all cabin crew. These long-term collective agreements enable planning reliability and give Airberlin the required flexibility for further restructuring and increasing productivity. Personnel cutbacks are proceeding as planned, and by the end of July, Airberlin had eliminated 300 full-time positions.

Wolfgang Prock-Schauer comments: “The Turbine program is progressing as planned. The negotiations with our contracting partners have yielded productive results, and we are continuously optimizing our structure and our operating performance. More than 80 percent of the Turbine program’s planned contribution for 2013 has already been attained, with respect to both earnings and costs. Despite the challenging environment, we continue to strive to reach the target figure of EUR 200 million for 2013. For the coming winter flight plan, we will implement a streamlined concept of aircraft-positioning, in order to use our fleet even more efficiently.”

Improved liquidity

At the end of the first half-year, Airberlin had liquid assets amounting to EUR 436.8 million at its disposal, those assets having grown by more than one-third from EUR 315 million in the first half-year of 2012. Equity capital at the end of the traditionally weak first half-year amounted to EUR -116.3 million as at the reporting date of 30 June. As a valuation at the reporting date according to IFRS, equity capital has no impact on the economic operation of the company.

Airberlin’s Chief Financial Officer Ulf Hüttmeyer explains: “The traditionally weak earnings position in the first six months together with the non-recurring charges stemming from our turnaround program lead to negative equity capital. We expect the equity capital to increase over the following quarters. The target of reaching an equity capital ratio of 15 to 20 percent in the medium-term remains unchanged.”

Partnerships exceed expectations

In the second quarter, the strategic partnership with Etihad Airways (Abu Dhabi) again delivered strong growth in the number of Airberlin passengers stemming from the code-share flights. The number of passengers more than tripled from 75,000 in 2012 to 267,000, based on a half-year comparison. With 449,000 passengers – this includes bookings made through July – the expectations for the entire year for the common code-share routes of Etihad Airways and Airberlin have already been exceeded. Furthermore, Airberlin is benefitting from code-share agreements with partners of Etihad Airways’ “Equity Alliance”, including Virgin Australia, Air Seychelles and Air Serbia. Airberlin and Etihad Airways are also expanding their cooperation in other fields such as maintenance and procurement.

The number of passengers traveling on oneworld® alliance flights likewise exceeded expectations. In the first half of the year, 267,000 passengers had already traveled on code-share flights operated by Airberlin and its oneworld partners.

Read the analysis by Reuters: CLICK HERE

Copyright Photo: Pedro Pics/AirlinersGallery.com. Boeing 737-7Q8 D-ABBW (msn 30642) taxies at London (Stansted).

Airberlin: AG Slide Show

Airberlin and Jat Airways begin code sharing on August 1

Airberlin (airberlin.com) (Berlin) and Jat Airways (Belgrade), the national airline of the Republic of Serbia, will offer their passengers selected flights under shared flight numbers, subject to government approvals. The codeshare agreement is valid for flights from August 1, 2013.

Under the agreement, Airberlin will offer the nonstop Jat Airways flights between Belgrade and Berlin, Dusseldorf, Frankfurt and Stuttgart under an AB flight number, thereby expanding their route range in South East Europe.

In return, Jat Airways passengers will be able to connect from Berlin, Dusseldorf, Frankfurt and Stuttgart to numerous Airberlin German domestic flights. From Airberlin’s hub in Berlin there will be further codeshare flights to prime destinations in Northern Europe to cities such as Copenhagen, Oslo and Stockholm.

Top Copyright Photo: Ton Jochems/AirlinersGallery.com. Airberlin’s Boeing 737-86J D-ABMC (msn 37752) in the Oneworld color scheme taxies to the gate at Palma de Mallorca.

Airberlin: AG Slide Show

Jat Airways: AG Slide Show

Bottom Copyright Photo: Keith Burton/AirlinersGallery.com. Jat Airways’ Boeing 737-3H9 YU-AND (msn 23329) prepares to land at London (Heathrow).

Airberlin returns to profitability, produces a $8.7 million net profit for 2012

Airberlin (airberlin.com) (Berlin) has announced its financial results for 2012. The company has returned to profitability and issued this statement:

  • Net result of EUR 6.8 million ($8.7 million), 33.3 million guests
  • Group revenue of EUR 4.31 billion, capacity utilization and yield increased
  • Strategic partnership with Etihad Airways provides joint revenue of EUR 100 million, new code share routes expected to provide further growth
  • First “Turbine” measures started – EUR 400 million until the end of 2014
  • 180 positions already cut between January and the end of March 2013
  • As of summer 2013, the Berlin and Dusseldorf hubs will be strengthened with increased flight frequencies and new destinations
  • Revenue growth with fewer routes and increased frequencies: routes will be reduced from 523 in summer 2012 to 438 in summer 2013.
  • Fleet reduction by twelve aircraft to 143 aircraft by the end of 2013
  • The goal for 2013 is operational profitability, break-even at the EBIT level

Over the first months of the year, Airberlin, Germany’s second-largest airline, implemented numerous measures of the “Turbine” turnaround program. At the press conference on the 2012 results, airberlin’s CEO Wolfgang Prock-Schauer stated: “With Turbine, we are setting up airberlin in line with the market. We are becoming leaner, faster and are, at the same time, continuously improving our service and flight offers. In the first months of 2013, we have initiated a number of measures. It goes without saying that such programs have a start-up phase and start-up costs. We will reach ‘cruising altitude’ by the end of 2014.”

This two-year program will enable Germany’s second-largest airline to further expand its presence in core markets and to make structural changes aimed at making the company sustainably fit for the future. For that purpose, airberlin will further promote its integrated business model through which the company caters to tourist travelers and business clients. Up to the end of 2014, the Turbine program includes initiatives of approximately EUR 400 million, so as to achieve a sustainably competitive profit situation.

Turbine program with multiple measures started

The turnaround program comprises in particular the areas network and fleet, sales & distribution, products and services as well as operations. The first Turbine measures have already been implemented in this year’s summer flight schedule. The optimized offer strengthens airberlin’s presence in Europe and further expands the long-haul connections to North America. Airberlin is carrying out the network optimization by using the principle of increasing frequencies on economically profitable routes. The target is a robust network that is less susceptible to seasonal fluctuations and provides for more productive aircraft and personnel. As a result the airline is strengthening its long-haul hubs Berlin and Dusseldorf with additional long-haul frequencies and improved flight connections. These will increase in Berlin from ca. 7,600 to ca. 11,000, and in Dusseldorf from ca. 3,000 to ca. 4,050. At both airports, the number of weekly flight frequencies will grow by a total of 61 additional connections as compared to the previous year. At the same time airberlin has reduced economically unprofitable routes, with the number of routes decreasing from 523 to 438 on an annual comparison. With the optimized flight schedule, the fleet will be reduced from 155 aircraft at the end of 2012, to 143 aircraft at the end of 2013.

Network and station optimization will result in increased crew productivity. In the future, comprehensive aircraft maintenance (Base Maintenance) will only be carried out in Munich.

In connection with the restructuring cost reductions in personnel are necessary. Between January and the end of March 2013, 180 jobs will have been eliminated.

Airberlin is expanding its service in line with passenger requirements. From mid-year onwards, a modular catering concept will be introduced on the short and medium-haul flights. This will provide passengers with services commensurate with the duration of the flight. An example is the new Business Class seats introduced on long-haul flights.

Net profit for 2012

Airberlin concluded the 2012 business year with a return to profitability. The operating profit before interest and taxes (EBIT) of EUR 70.2 million was a significant improvement over the previous year results. The company’s net income of EUR 6.8 million marks a return to profitability and follows a loss of reported EUR 271.8 (restated: -420.4 million) in the 2011 business year.

In the past year, airberlin increased its group revenue to EUR 4.31 billion (2011: EUR 4.23 billion). While the number of passengers decreased by 5.5 per cent to 33.3 million (previous year: 35.3 million), capacity utilisation increased by 1.6 percentage points to 79.80 per cent (previous year: 78.21 per cent). This was achieved by a further fleet reduction of 15 aircraft to 155 aircraft and improvements of the flight schedule. Yield (revenue per passenger) improved by 7.7 percent to EUR 120.05 (previous year: EUR 111.43).

The spin-off of the frequent-flyer program “topbonus”, the implementation of the efficiency program “Shape & Size” and the increasing synergy effects resulting from the strategic partnership with Etihad Airways have contributed to the positive development of the operating result. In this context, Shape & Size has contributed EUR 250 million.

“The profit of the past financial year and the successful placement of the convertible bond enabled us to further stabilize the financial basis of the company. The favorable conditions, the swift placement and over-subscription of the bond demonstrate the market’s confidence in our company,” stated Airberlin’s Chief Financial Officer, Ulf Hüttmeyer. The goal for 2013 is a break-even at the EBIT level and therefore operational profitability.

The strategic partnership with Etihad Airways, which started at the beginning of 2012, has already shown positive effects within less than 12 months. By the end of 2012, codeshare routes enabled the two airlines to generate together a revenue increase of EUR 100 million. airberlin and Etihad Airways have already concluded almost 100 agreements with companies and sales partners and through synergies have further increased revenue and reduced operating costs. By further expanding codeshare routes with other Etihad Airways partners, airberlin will be able in the future to offer more destinations and increase revenue generated by codesharing. Furthermore, the strategic partnership is increasingly reducing costs for both airlines. For example, in the areas of procurement, maintenance, training and product harmonization, the two airlines are increasingly making use of their synergy potentials and expect these to reach their full potential in the coming years.

Global network established

Wolfgang Prock-Schauer assesses the advantages of the strategic partnership with Etihad Airways: “Our cooperation with Etihad Airways exceeds all our expectations.” This cooperation enabled airberlin to set up a global route network in the course of the past year. Within one year, Etihad Airways and airberlin have increased the number of codeshare routes to 90 connections and are flying to a combined 239 destinations in 77 countries. In 2012 alone, more than 320,000 passengers used the common flight network.

Airberlin’s membership in the global airline alliance, oneworld®, which started in March 2012, is also positive. The number of passengers traveling on these codeshare routes increased to 310,000 passengers.

Airberlin CEO Wolfgang Prock-Schauer added: “Our optimized route network together with the global network of our partners will enable us to be sustainably successful in the future. For that purpose, we need a functional hub in Berlin and the new airport BER that adheres to the operating times as foreseen in the official planning.”

Copyright Photo: Ole Simon. Airbus A320-214 D-ABFK (msn 4433) climbs away from Stuttgart.

Airberlin: AG Slide Show

Airberlin returns to profitability with a net profit of $8.97 million in 2012

Airberlin (Berlin) has returned to the black with a reported $8.97 million net profit in 2012.

Read the full report from the airline: CLICK HERE

Copyright Photo: Mark Durbin. Airbus A330-223 D-ALPI (msn 828) in the delayed Berlin Brandenburg Airport scheme taxies at San Francisco.

Airberlin: AG Slide Show

Airberlin issues a statement concerning the new delayed opening of the new Berlin Bradenburg Airport (BER)

Airberlin (airberlin.com) (Berlin) has issued the following statement concerning the new delay for the opening of the new Berlin airport:

“Airberlin is disappointed about the latest postponement of the opening date for the new airport Berlin-Brandenburg BER. This will have an adverse effect on all passengers and on airlines. Airberlin has already insisted many times on receiving a reliable opening date which can therefore be planned around. A renewed postponement means that the unsatisfactory situation for all passengers will continue.

Because of the latest postponement, Airberlin expects the airport company to do everything possible in Tegel to achieve an even better standard. Airberlin itself incurs considerable expense in passenger control for the rising numbers at the old airport and will continue to do everything to keep the effects on our passengers to a minimum. The additional service staff will also be available to Airberlin passengers in Tegel in the future, and ensure that the process runs as smoothly as possible.

Airberlin continues to place great emphasis on BER. As the market leader in the German capital, airberlin intends to expand its position, grow continuously and further build up the hub with international long-haul flights.”

In other news, Airberlin has appointed a new CEO. As of January 7, 2013, Wolfgang Prock-Schauer, 56, will take over the post of Chief Executive Officer of Air Berlin PLC from Hartmut Mehdorn, who has been in the position on a transitional basis since September 1, 2011. At the same time Prock-Schauer will become an Executive Director on the Board of Directors of Air Berlin PLC. Hartmut Mehdorn will remain a member of the Board.

Copyright Photo: Gunter Mayer. Boeing 737-86J D-ABMJ (msn 36872) was the 2012 “Flying home for Christmas” Santa Claus logojet. The airliner is pictured resting overnight at Nuremberg.

Hot New Photos: AG Hot New Photos

Airberlin: AG Slide Show

Airberlin to start Berlin-Warsaw service on March 23 as it expands to the east

Airberlin (airberlin.com) (Berlin) will offer three flights a day on the Berlin – Warsaw route starting on March 23, 2013. The company will also expand to three flights a day on the Berlin – Krakow route also on the same day as the airline focuses on eastern Europe. Airberlin issued the following statement:

Airberlin is expanding its route network competencies in Poland and from March 23, 2013 will operate up to three flights a day from Berlin to Warsaw. The Polish capital is already the third destination in Poland for Germany‘s second largest airline. In addition Airberlin will increase the number of flights from Berlin to Krakow, also from March 23, 2013, thereby operating a total of up to 48 flights a week from Berlin to its European neighbor.

Hartmut Mehdorn, CEO Airberlin, said: “We have strategically revised our network for the summer of 2013. The adjustments and new introductions on the flight schedule are in line with our drive for increased efficiency. In the future we will concentrate even more on our core business areas, that is, our touristic flight programme and our scheduled services. The main priority here is to strengthen the visibility of the airline in strategic core markets such as Central and Eastern Europe.”

On the financial side, in the third quarter, Airberlin was able to increase its net income to EUR 66.6 million (2011: EUR 30.2 million), an increase of more than 120 percent over the corresponding quarter of the previous year. The operating result improved by 4.5 percent to EUR 101.2 million (EUR 96.8 million). Revenue increased by 1.4 percent over the previous year, to EUR 1,395.1 million (EUR 1,375.5 million), despite a targeted capacity reduction of 5.4 percent. Capacity utilization increased slightly by 0.4 percentage points to 84.54 percent (84.14 percent). Yield (revenue per passenger) improved by 3.1 percent to EUR 115.84 (EUR 112.39).  EBITDAR (Earnings before interest, taxes, depreciation, amortization and leasing expenses) increased by 3.8 percent to EUR 279.5 million (EUR 269.3 million). Total equity at the end of the quarter amounted to EUR 186.3 million, which corresponds to an equity ratio of eight percent.

Airberlin recorded a continuing reduction of direct operating costs – excluding fuel costs – as a result of the “Shape & Size” program, which yielded a contribution of EUR 70 million in the third quarter. Over this period, fuel costs increased by EUR 35 million.

For the fleet, AB will cut its operational fleet from 158 aircraft to 135 per ATW.

Copyright Photo: Paul Denton. The Boeing 737-800 fleet will continue to grow. Boeing 737-86J D-ABKT (msn 36881) arrives at Antalya, Turkey.

Airberlin: 

 

Airberlin to reduce winter schedules at Hamburg due to the aviation tax

Airberlin (airberlin.com) (Berlin) will adjust its winter capacity according to existing market requirements. The airline is canceling unprofitable routes during the upcoming winter. According to the carrier, “the additional burden caused by aviation tax has meant that a number of flight connections can no longer be operated profitably and must therefore be completely removed from the winter schedule.”

Airberlin is removing routes from the winter schedule that are unprofitable due to the reduced capacity utilization. From Hamburg flights to Karlsruhe, Barcelona and Zurich will be dropped. This reduces the winter schedule in Hamburg from the 220 flights to 182 flights per week.

Airberlin is also canceling Stuttgart – Milan and the flight between Sylt and Cologne. Overall Airberlin is reducing its winter capacity by two percent compared to the winter schedule of 2011/12.

Copyright Photo: Stefan Sjogren.

Airberlin: