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airberlin records profit in 2012

Positive operating result (EBIT) of 70.2 million euros – an improvement of more than 300 million euros over the previous year. Group revenue of 4.31 billion euros, capacity utilization increased from 78.21 to 79.80 per cent, Yield improved by 7.7 per cent to 120.05 euros.

airberlin, the second largest German airline, has returned to profitability. Air Berlin PLC recorded an operating profit before interest and tax (EBIT) of 70.2 million euros in 2012, reflecting a significant improvement of 317.2 million euros as compared to 2011. The Company’s net income of 6.8 million euros marks a return to profitability for the first time since 2007 and follows a loss of -420,4 million euros in 2011 (restated, reported: – 271.8 million euros). In the past year, airberlin successfully increased its group revenue to 4.31 billion euros (2011: 4.23 billion euros).

airberlin’s CEO, Mr Wolfgang Prock-Schauer, commented: “We were able to conclude the past year with an operating profit. Moreover, we are also pleased to have returned a net profit. We managed to accomplish this despite increased competition and the continued extremely challenging environment. Nevertheless, we have not yet reached our target and are mindful that non-recurring events also contributed to the result of the 2012 financial year.

“We are confident that our recently launched turnaround programme, “Turbine”, will enable airberlin to be competitive in the future and achieve sustainable profitability. One of the programme’s key elements is a focus on cost efficiency which involves implementing a range of initiatives, including a staff reduction.”

EBITDA (earnings before interest, taxes, depreciation and amortization) improved from -161.6 million euros for the 2011 financial year, to 144.3 million euros in 2012. EBITDAR (earnings before interest, taxes, depreciation, amortization and leasing expenses) improved from 425.9 euros by 72.9 per cent to 736.4 million euros in the same period.

Earnings per share based on an annual average of 114.552.461 shares outstanding amounted to 0.06 euros (undiluted and diluted) compared to -4.94 euros in financial year 2011 (restated, previously reported -3.12 euros).

The financial result has improved from -111.9 million euros to -73.6 million euros, and was driven in particular by a small gain in foreign exchange.

Due to a retroactive adjustment of deferred tax assets, airberlin has corrected the EUR -271.8 million net result in fiscal year 2011 by EUR -148.6 million to -420.4 million euros. In connection with this value adjustment the EUR 253.7 million equity reported as of 31 December 2011 was reduced to EUR 105.2 million.

The German Financial Reporting Enforcement Panel (DPR e.V.) requested information on the valuation of deferred tax assets. In this context, Air Berlin PLC has decided that deferred tax assets as at 31 December 2011 will be restated retroactively. This restatement is non-cash relevant, independent from management’s assessment of expected business developments and takes account of the strict requirements of the International Financial Reporting Standards (IFRS) regarding deferred tax assets.

Total assets of Air Berlin PLC as at 31 December 2012 amounted to 2.217,6 million euros (previous year: 2,125.6 million euros), total equity amounted to 130.2 million euros (previous year: following value adjustment 105.2 million euros), its cash position amounted to 327.9 million euros (2011: 239.6 million euros) and net debt amounted to 770.2 million euros (previous year: 813.0 million euros).

While the number of passengers decreased in 2012 by 5.5 per cent to 33.3 million (previous year: 35.3 million), capacity utilisation increased by 1.6 percentage points to 79.80 per cent (previous year: 78.21 per cent). This was achieved by a further reduction of the fleet by 15 aircraft to 155 aircraft and optimising the flight schedule. Yield (revenue per passenger) improved by 7.7 percent to 120.05 euros (previous year: 111.43 euros).

The efficiency programme Shape & Size contributed significantly to the positive developments, generating significant earnings contribution of 250 million euros. This contribution has helped to considerably offset an increase in fuel prices of 80 million euros.
The strategic partnership with Etihad Airways has generated additional income for airberlin. By combining both airlines’ flight networks and the frequent-flyer programmes, the number of available flights for both airlines increased to include 239 destinations in 77 countries. In 2012, Etihad Airways brought 219,000 passengers into airberlin’s network, generating revenue of 50 million euros.

Mr Wolfgang Prock-Schauer, commented: “Our results are just now reflecting the first 12 months of a long term partnership which will deliver substantial commercial and operational benefits. In 2013, we are confident that we’ll achieve further revenue enhancements and, above all, further cost synergies with our partner, Etihad Airways.”

airberlin’s membership in the global airline alliance, oneworld, presents further opportunities for growth by providing airberlin with access to new destinations and additional passengers.

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