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Wednesday, March 21, 2012

Air Berlin outlines plans for €200m earnings improvement

Germany's Air Berlin is aiming for more than €200 million ($261 million) in earnings improvements during 2012, after posting huge losses for last year.
The carrier has indicated that it plans to source this from €70 million in yield and revenue management - by optimising distribution channels and improving sales platforms - and €55 million in cost initiatives, such as fuel savings.
Network reduction and productivity will generate another €45 million. The airline is to cut back its fleet from 170 to 152 aircraft by summer this year.
Air Berlin also expects €20 million in benefits through its tie-ups with the Oneworld alliance and Middle Eastern carrier Etihad Airways.
It will derive another €20 million from maintenance savings and "process improvements", such as more self-service terminals at airports and pooling of station resources.
Air Berlin intends to achieve 13% of the overall €200 million enhancement in the first quarter of this year, with 22%, 31% and 34% being realised in successive quarters - some two-thirds of the improvement will come in the second half of the year.
Last year the airline posted a €247 million operating loss. Air Berlin says that higher fuel costs and aviation taxes placed a €395 million burden on the company, the equivalent of over 9% of sales, which "could not be passed on to the ticket price".
Excluding these factors, it says, the operating result would - in "purely arithmetical terms" - have been positive at €148 million.

source: http://www.flightglobal.com/news/articles/air-berlin-outlines-plans-for-200m-earnings-improvement-369589/

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