Air Berlin’s net loss narrows in 2009; Reduces B787 orders as part of efforts to gain higher earning

Partly thanks to profits on a convertible bond transaction, Air Berlin narrowed its net loss to EUR22 million in 2009, a considerable improvement from a EUR70 million net loss in 2008, as it reduced operating expenses by 5.0%, exceeding the 4.4% revenue reduction in the period (following growth of 33.6% in 2008 and 61.0% in 2007). The carrier stated 2009, which it had labelled “annus horribilis”, did not end as dramatically as many feared, turning out to be a “year of recovery”, enabling the carrier to maintain and achieve its forecast and report improving operating results in 2009. [3340 words]

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This report contains the following subheadings:

• One of the few airlines to post better results in 2009 than in 2008: CEO
• Double-digit EBITDAR margin; better than forecast EBIT result
• Revenues down 4%
• RASK improvements in 2009, as Air Berlin focuses on ‘Hybrid supplier’ model
• Profit is the strategy
• Unit costs on the rise, reflecting structural change in operations
• Fifth largest European carrier in 2009
• Gaining market share in a shrinking market
• Reduces net indebtedness; improves equity position
• Planning for the future: Reducing B787s orders, selling aircraft, focusing on business passengers, increased stake in NIKI
• Current fleet 152, to grow 4% annually
• Selective growth opportunities planned in 2010
• Outlook: Expecting a noticeable increase in profits in 2010

This report contains the following charts and tables:

• Air Berlin financial highlights for the 12 months ended 31-Dec-2009
• Air Berlin EBITDAR (EUR, mill) and EBITDAR margin (%): 2007 to 2009
• Air Berlin revenue split: 2008 vs 2009
• Air Berlin revenue per ASK (RASK) growth (% change year-on-year) and trend line: Apr-2008 to Feb-2010
• Air Berlin’s hybrid model
• Company corporate agreement growth: 2005 to 2009
• Air Berlin CASK excluding fuel: 2008 vs 2009
• Air Berlin CASK including fuel: 2008 vs 2009
• Air Berlin cost growth in 2009
• International aviation industry vs Air Berlin capacity (ASKs) and traffic (RPKs) growth: Dec-2008 to Dec-2009
• Operational performance by business segment: 2008 to 2009
• Air Berlin passenger numbers and passenger load factor: 2007 to 2009
• Passenger development across the industry: year-on-year growth during 2009
• Air Berlin Top 10 markets: 2009 
• Air Berlin traffic targets for 2010 
• Air Berlin major shareholders: 31-Dec-2009
• Air Berlin key strategic developments: 17-Feb-2010 to 17-Mar-2010  
• Air Berlin fleet composition: 2007 vs 2008 vs 2009
• Air Berlin growth opportunities for 2010