15-May-2013 9:51 AM

airberlin confirms outlook for 2013, notes continued progress with Turbine turnaround plan

airberlin confirmed (14-May-2013) its outlook for 2013 and noted it continues to pursue the consistent implementation of its Turbine turnaround programme, thereby achieving significant progress. airberlin CEO Wolfgang Prock-Schauer commented: "We are undergoing major changes and are in the process of repositioning airberlin. We have already secured two-thirds of the planned earnings contributions from the Turbine programme for the 2013 financial year. We are confident that we will reach our target amount of 200 million Euros this year. The Turbine effects will positively impact the results from the third quarter.” Details include:

  • Improved liquidity: The carrier has seen a 43% increase in liquidity to EUR470 million in 1Q2013. After the traditionally weak first quarter, equity capital on 31-Mar-2013 amounted to negative EUR53.1 million. CFO Ulf Hüttmeyer commented: “Equity is negative as a result of the typical seasonally weak results and one-off charges. During the subsequent quarters, the typical seasonal increase in business will occur again and will strengthen equity. Our goal remains to achieve an equity ratio in the medium-term of 15 to 20 per cent. Furthermore, with 470 million Euros available in cash at the end of the reporting quarter, we have sufficient liquidity";
  • Cost reductions through further corporate restructuring: Within the framework of Turbine, airberlin has further optimised the network in particular and made substantial progress in negotiations with system partners. By the end of 2013 airberlin will reduce the fleet to 143 aircraft and reduce the number of stations. The workforce reduction will proceed as planned. By the end of May-2013 airberlin will have already eliminated 250 full-time jobs since the start of the turnaround programme. Pilots and engineers are receiving offers to switch to Etihad Airways. Etihad Airways is offering this option for example for more than 50 airberlin pilots;
  • Strong increase in passengers through partnerships: airberlin noted the success already achieved in the first year of the strategic partnership with Etihad Airways, combined passenger numbers continue to develop very positively. By the end of Mar-2013, over 141,000 passengers were already using the joint route network in 2013, ten times the number from the corresponding period of the previous year. Mr Prock-Schauer commented: "The joint route network of Etihad Airways and airberlin has been very well received. We shall strengthen and further expand the joint network. The advance bookings have shown us that we can expect a large amount of growth in this area". He also noted that membership in the oneworld alliance also demonstrates this positive development. The number of passengers on joint codeshare routes doubled in comparison with the previous year to over 103,000 in 1Q2013;
  • Earnings expectations confirmed: airberlin confirmed the earnings target for 2013 and still expects to achieve a break-even result on an EBIT basis for the current year. [more - original PR] [more - original PR - German]

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More