Air Berlin 2010 loss widens to €97 million

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading ... Loading ...
By
Published: March 28, 2011

Air Berlin 737-800.

Air Berlin incurred a 2010 net loss of €97.2 million ($ 137.3 million), widened from a pro forma 2009 net loss (including Australian LCC Niki and TUIfly city-to-city routes now operated by AB) of €21.9 million, marking its third consecutive loss-making year.

CEO Joachim Hunold said, “We are not satisfied with the way earnings developed in 2010.” But he noted that the company has “taken significant strategic decisions to prepare itself for the future” including reaching agreement to join oneworld in 2012 and consolidating Niki fully within AB. “The decision to join oneworld [ ATW Daily News, March 17 ] is one of the most important strategic steps in the history of [AB] and with Niki attractive opportunities for growth, particularly in Eastern Europe, are opening up for us.”

Full-year revenue generated by Germany’s second largest airline rose 1.1% compared to 2009 to €3.72 billion while expenses increased 2.4% to €3.79 billion. EBIT was reported at negative €9.3 million, reversed from positive EBIT of €29 million in 2009. AB said in a statement that its 2010 “operating result fell short of expectations due to the harsh winter in Europe, the air space restrictions imposed as a result of the volcanic eruption in Iceland, the air traffic controller strike in Spain and the announcement of strikes against Air Berlin.”

Traffic in 2010 increased 3% compared to 2009 to 45.24 billion RPKs on a 3.7% lift in capacity to 58.78 billion ASKs, producing a load factor of 76.8%, down 0.7 point. AB operated a fleet of 169 aircraft at the end of 2010 led by 76 Airbus A320 family aircraft and 65 Boeing 737NGs.


Powered By iWebRSS.com


Tagged with: , , , , ,

Email This Post Email This Post