Air Berlin disappointed analysts yesterday despite reporting a 4.5% increase in third-quarter profits.
Pre-tax earnings rose from €96.8m in the third quarter of last year to €101.2m, but analysts had expected a bigger increase from Europe’s third largest budget airline.
"We are on the right track, but the journey is far from over," said CEO Hartmut Mehdorn in the statement. "Our goal remains a return to profit next year."
Air Berlin, 29% owned by Etihad Airways, said a second cost-cutting programme announced last month should ensure it achieves a positive result in 2013. Further details will be released in the next few weeks.
A project set up last year to cut annual costs by €250m exceeded targets, it said, but Europe’s worsening economy mean more efficiencies are needed to return the airline to profitability. It has already cut seat capacity by 2.2%, dropped routes and closed bases in Erfurt and Dortmund in Germany.
