Airberlin: a game of two halves. Can Turbine power it to breakeven in 2013 after 1H losses?

Airberlin narrowed its losses in 2Q2013 versus 2Q2012, but the EBIT loss of EUR197 million for the first half was wider than last year's loss of EUR179 million. Its balance sheet continues to look undercapitalised and, although a recently announced aircraft sales transaction should provide much needed cash, the issue of new capital cannot be completely excluded.

Airberlin is confident that its Turbine cost-reduction programme, which has already achieved 80% of its savings target for 2013, will deliver improved results in 2H2013. With market conditions remaining challenging and airberlin admitting that its breakeven EBIT target for the year now looks more difficult, further savings may be required in order to keep the company on course.