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Problems deepen for Air Berlin

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Restructuring costs push losses even further down
Air Berlin posted an even deeper loss for 2016, at €781.9 million, compared to a €446.6 million loss in 2015.
The new figure includes €334.8 million in restructuring costs, while revenue fell to €3.79 billion from €4.08 billion. The airline explained that the poorer revenue was mainly due to a 4% capacity reduction.
Earnings before interest and tax fell to minus €667.1 million, from €307 million in 2015.
The results for Q1 2017 continued along the same lines, as the company blamed “the challenging structure of the old airberlin business model” for a 60% fall in net profit to €293.3 million. The recent strike at Berlin’s airports added to the airline’s woes.
“Old airberlin’s indistinct market position, the strongly season-dependent route network and the high operating costs have together led to highly unsatisfactory financial results,” said the carrier’s newly appointed CEO Thomas Winkelmann.
Airwise

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