Airberlin: Etihad to the rescue after another loss in 2013. Meanwhile codeshare partners are booming

Another year, another loss for airberlin - a worse one, in fact. Its 2013 operating loss was double that of 2012 and marked four successive losses (excluding the gain from the sale of its FFP to Etihad in 2012). Capacity cuts helped unit revenues to increase, but unit costs grew faster, in spite of progress with the Turbine restructuring programme. It was always going to take time to turn the ailing airline around and airberlin expects further savings in 2014 and is more optimistic about this year, planning a return to capacity growth and targeting both an increase in RASK and a cut in CASK. Nevertheless, a return to a positive operating result will be a challenge.

Two years into its equity partnership with 29% shareholder Etihad, airberlin is still reliant on the latter's deep pockets and patience. Having such a backer creates breathing space, but is not a substitute for a viable strategy. Another rescue recapitalisation, now planned in 2014, should ensure airberlin's medium term survival, but it is in need of fundamental reform if it is to survive and thrive into the long term. Acknowledging this, airberlin CEO Wolfgang Prock-Schauer has announced a review of its business model.