Airberlin reports improvements in third quarter financial performance

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Airberlin reports improvements in its third quarter financial performance, as its long term restructuring programme gathers momentum. Germany´s second largest airline announces an 8.7 per cent increase in Q3 EBIT, with improvements in all key indicators. The main drivers of this positive business performance by Europe’s sixth largest airline include the new fare structure, improved revenue management and additional sales synergies within the Etihad Airways Partners network (EAP). These important restructuring building blocks therefore meant that revenue per available seat kilometre (RASK) could be increased by 5.8 per cent which is 60 million euros in the third quarter. The enhanced revenues were able to compensate for the stronger dollar which has an impact of close to 40 million euros. In sum this leads to an improvement in operating earnings to 81.4 million euros in Q3 2015 (Q3 2014: 74.9 million euros). Since the beginning of 2015, operating earnings (EBIT) have risen by 18 per cent to -94.3 million euros compared to the first nine months of last year (9M 2014: – 114.8 million euros). Stefan Pichler, Chief Executive Officer of airberlin, said the results showed the company’s restructuring programme was having a positive effect: “We have been putting in place the right foundations for successful, profitable operations. This quarter’s results are particularly pleasing. We have reduced capacity, increased yield and we are delivering improved profitability.” Despite tactical capacity adjustments including a reduction in operational routes, revenue in Q3 2015 remained stable, at 1.30 billion euros compared to 1.31 billion euros in Q3 2014. A key driver of this performance was the high capacity utilisation. August 2015 in particular saw an impressive record capacity utilisation of 90.9 per cent. This overall positive performance also influenced net earnings, which rose by 13 per cent, from 49.9 million euros in Q3 2014 to 56.2 million euros in Q3 2015.

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