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airberlin sees profits improving in 2015

03/27/2015 | airberlin
Tags : airberlin

airberlin sees profits improving in 2015
© airberlin
airberlin's preliminary operating result (EBIT) stands at -278.8 to -303.8 million euros in the 2014 fiscal year (2013: -231.9 million euros) - a business year dominated by high restructuring costs. Total revenue for 2014 is 4.16 billion euros (2013: 4.15 billion euros) - an increase of 0.3 percent from the previous year.

Allowing for expenses of 85-110 million euros, which were incurred for the turnaround, the preliminary adjusted EBIT stands at -193.3 million euros. Restructuring measures include, inter alia, additional expenses associated with fleet harmonisation and workforce-related activities, among other things. The amount of the restructuring related measures to be recognised for the 2014 fiscal year is currently undergoing final review. As a result, the final Consolidated and Annual Financial Statement for 31 December 2014 is expected to be presented at the end of April 2015.

The preliminary net income in fiscal 2014 was -361.7 to -386.7 million euros (2013: -315.5 million euros). As of 31 December 2014, Air Berlin PLC’s cash position amounts to 259.2 million euros (financial year 2013: 223.1 million euros).

airberlin's average yield dropped to 120.1 euros in 2014, down from 121.0 euros in the previous year. While the yield dropped by 2.1 percent from the previous year in the first three quarters of 2014, the fourth quarter yield increased by 4.0 percent due to the successful restructuring of the network in the fourth quarter. This positive trend continued in the first months of the current 2015 fiscal year due to continued further improvement of yield management. The management expects a yield increase of approximately 4.2 percent (about 4.9 EUR/passenger) from the previous year for the 1st quarter of 2015.

In 2014, the number of flights increased by 2.1 percent and available seat kilometres (ASK) were up 3.1 percent. At 83.5 percent, the capacity utilisation fell slightly below the previous year's capacity utilisation of 84.8 percent. The total revenue per available seat kilometre (RASK) was 7.05 euro cents (previous year: 7.24 euro cents).

Turnaround measures already introduced in the previous year meant that unit cost per available seat kilometre (CASK) for 2014 decreased by 4.6 percent from the previous year, down from 7.75 to 7.40 euro cents.

Passenger numbers on codeshare routes with oneworld® partners have risen, boasting growth of 9 percent to 1.113 million. The partnership with Etihad Airways also remained on a positive trend in 2014. Passenger numbers on shared routes have grown during the reporting period to a total of over 600,000, an increase of nearly 7 percent. Additional codeshare routes from Berlin, Stuttgart and Vienna to Abu Dhabi have contributed to further growth.

Overall, company results for 2014 are well below airberlin's initial expectations. Based on the already launched fundamental realignment of the business model, airberlin expects significantly improved results for the current 2015 fiscal year that will lay the groundwork for the targeted return to profitability in 2016.

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