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Air Berlin posts modest return to profit

Germany’s Air Berlin has reported a return to profit in the second quarter of year.

Recapitalisation and a cost-cutting programme helped the carrier, in which Etihad has a stake, turn last year’s €38 million loss into an €8.6 million net profit.

Revenue increased 3.6% to almost €1.2 billion, while the company’s operating loss shrunk from €8.1 million to €6.9 million.

Air Berlin chief financial officer Ulf Hüttmeyer said: “Our liquidity has reached a sufficient level to carry out the restructuring and deal with upcoming bond maturities.”

Chief executive Wolfgang Prock-Schauer said a restructuring programme would help the airline move to sustained profitability.

The carrier aims to work closely with Alitalia, in which Etihad recently took a 49% stake.

Prock-Schauer confirmed the airline would continue to focus on Europe, long haul and tourist destinations.However, capacity is due to be cut by about 10%.

The airline aims to increase efficiency by introducing narrow body jets across its fleet.

Prock-Schauer said: “We will announce further details and the complete range of measures at the end of September.”

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