Air Berlin is determined to press on with restructuring in what it terms a "challenging and volatile" market environment.
"It is to be expected that global political uncertainty and the recent repeated terrorist attacks will adversely affect general consumer behaviour," says the German airline.
While forward ticket bookings thus far "look promising", Air Berlin foresees competition increasing and yields declining. It adds that the second half of 2016 is "subject to greater risks" than management had expected in May.
“Air Berlin will counter these risks by ensuring that it rigorously continues its current restructuring programme to improve efficiency and reduce costs – particularly in the operating areas and in the organisational structure," says the carrier.
It intends to avoid duplication of services among carriers part-owned by Abu Dhabi's Etihad Airways, which is Air Berlin's largest single shareholder with a 29% stake.
During the first six months of this year, Air Berlin reduced available seat-kilometres 5.2%. Traffic fell 5.4%.
Unit costs were reduced 1.3% and, during the second quarter, 3.3%. However, Air Berlin concedes that these savings were a result of fuel price reductions. "This was in part compensated by adverse currency effects and the decline in capacity," it adds.
Air Berlin's staff numbers reduced by 213 to 8,656 during the first half of 2016.
Source: Cirium Dashboard
