Etihad Airways-affiliated German carrier Air Berlin sees itself confronted with yet another year of record losses, incurring a 447 million euro loss for their 2015 financial year.
One excuse given by airline executives. Air Berlin benefitted only to a limited extend from the more favorable fuel price in 2015 and its fuel hedging transactions, coupled with the sharp decline in the US dollar. It was a missed opportunity amounting to more than €200 million. This should look different in 2016.
The airline saw revenues drop by 2% to €4.1 billion in 2015, mostly due to a 6.8% reduction in capacity, while costs were reduced by 1.5% to €4.4 billion. This left the airline with an operating loss of €307 million, slightly worse than the previous year’s €293 million. The overall net loss broadened to €447 million from €377 million the previous year due to the additional financial impact of various taxes and debt revaluations. …
Several other factors negatively impacted the financial performance in 2015 including a protracted and damaging dispute over codeshare flights in the final quarter of 2015 and the beginning of 2016.
Etihad might have to search for routes to inject extra cash into the airline in the long run should Air Berlin find itself unable to finally turn a profit.