German airline Air Berlin narrows 2009 net loss to $13 million on cost savings

Air Berlin narrows 2009 loss to $13 million

FRANKFURT — German airline Air Berlin Plc said Thursday its net loss for 2009 narrowed to euro9.5 million ($13 million) as it embarked on widespread cost savings and route reductions during the year.

The Berlin-based company lost nearly euro84 million in 2008.

The airline, Germany’s second largest after Deutsche Lufthansa AG, said revenue for 2009 fell 6 percent to euro3.2 billion from euro3.4 billion in 2008.

Air Berlin, which offers both European and long-haul flights, says it expects to grow faster than the market and a “noticeable” increase in profits this year. It also expects to surpass the 30 million passenger mark. In 2009, the company transported nearly 28 million people.

The company said continuing efforts to improve performance and reduce costs should lead to growth.

“Air Berlin’s business model proved its strength throughout the worst crisis in the history of the airline industry,” Joachim Hunold, the company’s chief executive, said in the report.

“Furthermore, we were able to strengthen our position in a challenging European market environment. Air Berlin is well-positioned for moderate growth and increased profitability,” Hunold said.

Air Berlin said Thursday Lionhart Aviation Ltd., based in Toronto, would buy four of its used Airbus A320, but didn’t disclose financial details. Air Berlin said Lionhart, upon completion of the deal in April, plans to lease the aircraft to the carriers Virgin America Inc. and Azerbaijan Airlines.

Earlier this month, Air Berlin also said it would cancel orders for 10 Boeing 787 aircraft, worth $1.7 billion, and cut its option on five more 787s to adjust to lower market demand. It also delayed delivery of nine Boeing 737 aircraft to 2015 from 2010 and 2011.

Shares of Air Berlin were nearly 2.5 percent higher at euro4.16 in Frankfurt morning trading.

On the Net:

www.airberlin.com