Air Berlin Plc (AIBEF.PK), Germany's second-largest airline, Wednesday said it has decided to realign the entire group and to finish the Turbine turnaround programme by 2014. The company has identified about 900 positions to be eliminated, however, expects that "the path to sustainable profitability is longer than expected."
Wolfgang Prock-Schauer, chief executive officer of the company stated that by the end of 2014, the company wants to achieve turnaround effects of about 400 million euros by changing its current structures and processes, including cost reductions and efficiency improvements.
Prock-Schauer said the company is reviewing all of its processes and entire organizational structure and will reform and simplify them as much as possible.
Aiming to further develop a performance-oriented and highly productive organization, the company has introduced its dual strategy 'Lean & Smart'.
"Despite the major progress we have recently achieved in reducing our costs and increasing our efficiency, we have not yet reached our goal - namely sustainable profitability," said Prock-Schauer in the company's annual report.
For the full-year 2012, Air Berlin reported profit attributable to shareholders of 6.81 million euros, compared to a loss of 420.4 million euros in 2011. On a per share basis, earnings were 0.06 euros, in comparison with a loss of 4.94 euros per share in the prior year. The company has restated its prior-year results.
During the current year, the company recorded a profit on foreign exchange and derivatives totaling 2.58 million euros, while the prior-year had a loss of 39.01 million euros.
In addition, the firm had an income tax benefit of 9.99 million euros in 2012, while it posted 61.55 million euros expenses in 2011.
Annual revenues grew to 4.31 billion euros from 4.23 billion euros in the preceding year.
For the year, Air Berlin increased its capacity utilization rate by 1.6 percentage points to 79.80 percent. It had also optimized flight frequencies by 7.4 percent in yearly comparison. The company transported a total of 33.35 million guests, a decline of 5.5 percent from 35.3 million guests transported in the previous year.
On Frankfurt's Xetra, Air Berlin shares are currently trading at 2.52 euros, down 1.72 percent.
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