Air Berlin's net loss widens
Air Berlin PLC, Germany's second-biggest airline, today said that its net loss widened last year as a result of tax expenses related to a restructuring effort, but reported an improvement in revenue.
Air Berlin, which did not immediately provide fourth-quarter figures, reported a net loss of 75 million euros ($100 million) for the full year, compared with a loss of 39.9 million euros in 2007.
Its pre-tax loss, however, narrowed slightly to 57.8 million euros from 59.4 million euros. Revenue increased by 6.7%, to 3.4 billion euros from 3.19 billion euros.
Air Berlin has moved to cut unprofitable routes. The company said that, while its efficiency program improved operating earnings, its financial result "worsened significantly."
It said it incurred tax expenses "primarily from the write-off of deferred tax assets on tax loss carryforwards due to restructuring."
Air Berlin shares were up 6.8% in Frankfurt at 3.29 euros.
The earnings report followed news at the weekend that Turkish investor ESAS Holding A.S. plans to take a 15.3% stake in Air Berlin.
That came on top of a separate agreement last week between Air Berlin and Germany's TUI Travel PLC, in which a TUI subsidiary will take on 19.9% of Air Berlin.
