During the third quarter of 2008, Air Berlin PLC was able to increase its operating profits by 57 percent compared to the reference period of the previous year. The net gain was increased by 43.3 percent. For the first time, the one billion margin was surpassed in a three months period. „This is the best quarterly performance in the history of our company“, said CEO Joachim Hunold.
Best Quarter in Company’s History – Improvements in Earning and Expenditures
The program to increase efficiency, introduced by the executive board in spring 2008, is bearing fruit. While the cancellation of unprofitable lines reduced the number of passengers from 8.8 (Q 3/07) to 8.6 million, the returns per passenger kilometer were increased by 15.3 percent from 6.64 to 7.66 Euro-Cents. Revenues increased by 8.6 percent from 978 to 1,062 million Euros. Regarding EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization and Rent), Air Berlin was able to generate an increase of 18 percent: from 177.7 to 209.7 million Euros. Since there were improvements in both income and expenses, the company shows an increase of EBIT (Earnings Before Interest and Taxes) of 89.1 million Euros (Q 3/07: 56.8 million Euros) for the third quarter. This relates to an increase of 57 percent. The group’s net operating profits improved by 43.2 percent from 31.9 to 45.6 million Euros.
The aggregate of the first nine months of the year clearly show the positive development in operating profits. Compared to the respective period of the previous year, the number of transported passengers increased by 2.9 percent (22.1 million). The utilization of aircraft rose by 1.5 percent points from 77.7 to 79.2 percent. Revenues increased by 6.7 percent from 2.424 to 2.586 billion Euros, the EBITDAR by 15.5 percent from 331.6 to 383.1 million Euros. While the EBIT at the end of the third quarter of 2007 showed -9.5 million Euros, there are now cumulative earnings of 35.1 million Euros.
The cost per offered seat kilometer (CASK) rose by 8.8 percent over the first nine month of the year: from 4.69 to 5.10 Euro-Cents, the largest influence in this being the increase in fuel costs from 26 to 30 percent.
On the occasion of the presentation of the quarterly figures, chairman Joachim Hunold explained in Berlin on Thursday: „Despite the difficult market environment for the industry, we performed very well. We did our homework and provided our stockholders with the figures that we had promised them. For the entire year 2008, I expect continuously positive operating profits.“ Given the recession the economy is facing, he finds it too early for forecasts for the year 2009.
