Airberlin: narrower 1Q loss helped by lower fuel prices, revenue growth as 2Q below "expectations"

Airberlin narrowed its operating loss in 1Q2015 compared with 1Q2014, by growing unit revenue faster than unit cost, which was almost flat year on year. Unit revenue appears to be benefiting from network changes and a new revenue management system (and also from currency movements). However, the relatively contained unit cost performance owed much to lower fuel prices, without which the operating loss would have increased. Moreover, the airline said that seasonal effects such as Easter also had a positive impact on the result.

Airberlin still expects that yield improvement will lead to a "noticeable" improvement in earnings in 2015 after heavy losses in 2014. However, it says that "current foreseeable business development in 2Q has so far not fulfilled expectations". It continues to face significant challenges in its turnaround.