airberlin increases revenue to EUR 751.6 million

• First quarter 2011 burdened by unrest in Northern Africa, the air transportation tax, the price of kerosene and the absence of the Easter-related tourism business due to Easter falling in the second quarter
• Net result declines from EUR -93.6 million in the previous year to
EUR -120.6 million
• Demand and bookings show a positive trend

airberlin, Germany’s second-largest airline company, remains cautiously optimistic for the further course of the business year, despite the first-quarter results falling short of expectations. As airberlin’s CEO Joachim Hunold stated when presenting the Interim Report for the first quarter of the 2011 business year: "Since demand and bookings are showing a positive trend, we continue to anticipate higher revenue and a positive operating result for the 2011 business year, provided that the framework conditions do not further deteriorate. We expect a four to five percent increase in the number of passengers and a higher seat load factor. We are upgrading our range of services with a slightly extended flight offer and a comprehensive drive for increased passenger comfort. In this context, the focus lies on strengthening our hubs in Berlin, Düsseldorf and Palma de Mallorca, and on the expansion of our destination network in Italy.“ Hunold emphasized that the comprehensive integration of airberlin’s subsidiary, LTU, would result in cost synergies.

In the first quarter of 2011, Air Berlin PLC increased its revenue to EUR 751.6 million, i.e. an increase of 2 percent over the previous year (Q1/2010: EUR 690.9 million). The number of passengers increased by 1.9 percent to 6.87 million (Q1/2010: EUR 6.74 million). airberlin’s CFO Ulf Hüttmeyer commented: “The net result failed to meet our expectations, primarily due to flight cancellations related to the political unrest in several North African countries and because of the important Easter-related tourism business falling in the second quarter this year. Furthermore, the introduction of the air transportation tax made it impossible to pass on the rapidly climbing kerosene price to our customers in its entirety.” EBITDAR (Earnings before interest, taxes, depreciation, amortization and leasing expenses) decreased from EUR 44.1 million to EUR -25.7 million, and EBIT (Earnings before interest and taxes) decreased from EUR -98.6 million to EUR -188.3 million. The financial result improved from EUR -32.9 million to EUR 14.6 million. Total equity decreased from EUR 538.2 million to EUR 376.7 million. Net indebtedness dropped to EUR 531.2 million (2010: EUR 600.1 million).