Saturday 22 June 2024

Pichler...expecting yields to improve in H2

Air Berlin plans business model revamp in H2

BERLIN, August 13, 2015

German airline Air Berlin, in which UAE's Etihad holds stake, plans to restructure its business model in the fourth quarter of the year, after it reported a wider second-quarter loss on Wednesday.

The airline has made operating losses in four of the last five years and changed its chief executive four times in the last three years as it seeks to stem losses and reduce debt.

Air Berlin, known in Germany for its tourist flights to Majorca, is reviewing its network and fleet needs and said it was almost done with the review, which it hopes will reduce costs and improve yields, a measure of pricing.

Chief executive Stefan Pichler, who has previously said the carrier has one last shot at a turnaround, said in the statement on Wednesday the company expected yield, load factors and sales to improve in the second half of the year.

Air Berlin reported a second-quarter loss before interest and taxes (EBIT) of €15.9 million ($17.8 million), against a loss of €6.9 million a year ago as the strong US dollar and fuel hedging contracts eroded the benefits of cheaper jet fuel. - Reuters

Tags: loss | airberlin |

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