EANS-News: Air Berlin PLC / Air Berlin records an EBIT of minus EUR 28.2 million for the second quarter

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Subtitle: Charges due to volcanic eruption amount to EUR 40 million

London/ Berlin (euro adhoc) - Air Berlin PLC's consolidated sales for the second
quarter of 2010 decreased to EUR 877 million due to the charges incurred as a
result of the volcanic eruption in Iceland and the prolonged flight ban
resulting therefrom. In the corresponding period of the previous year,
consolidated sales (pro-forma, i.e. including the acquired TUIfly City Carrier
business) amounted to EUR 935 million. EBITDAR (Earnings before interest, taxes,
depreciation, amortization and leasing expenses) amounts to EUR 124.3 million.
In the pro-forma comparison, this figure amounted to EUR 160.1 million. EBIT
(Earnings before interest and taxes) for the second quarter amounts to minus EUR
28.2 million due to the flight restrictions related to the volcanic eruption in
April. In the corresponding quarter of the previous year, EBIT amounted to EUR
15.3 million (on a pro-forma basis). Net result for the second quarter of 2010
amounts to minus EUR 56.9 million, as compared to a Group result (including the
acquired TUIfly City Carrier business) of EUR 4.7 million for the second quarter
of 2009. The number of passengers traveling on Air Berlin in the second quarter
of 2010 decreased by 3.1 percent to 7.99 million.

On a pro-forma basis, business in the first quarter of 2010 still showed an
improvement over the corresponding period of the previous year. However, the
exceptional charges resulting from natural phenomena occurring in the second
quarter had a negative impact on the earnings statement for the first half-year
of 2010. For the half-year period, sales revenue amounted to EUR 1.567 billion,
i.e. 4.8 percent less than in the corresponding period of the previous year
(2009: EUR 1.647 billion). EBITDAR for the half-year period decreased by 11
percent to EUR 168.3 million (2009: EUR 189.1 million). EBITDA (Earnings before
interest, taxes, depreciation and amortization) amounts to minus EUR 78.5
million (2009: minus EUR 39 million) and results from operations (EBIT) amount
to minus EUR 126.9 million (2009: minus EUR 92.3 million), on a pro-forma basis.

In addition to the charge resulting from the flight cancellations in the second
quarter, the results for the first half-year of 2010 were also burdened by the
significantly higher cost related to the harsh winter conditions in the first
quarter of the year. For instance, service delays, de-icing and longer waiting
times resulted in charges amounting to a total of approximately EUR 28 million.
Overall, for the 1st half-year of 2010, exceptional charges approximating EUR 69
million had to be absorbed.

The harsh winter, the weak start of the year, and the numerous flight
cancellations related to the volcanic eruption in Iceland negatively impacted
the number of passengers: After a positive development in February and March,
the number of passengers in April decreased by 16.5 percent as compared to the
corresponding month of the previous year. The uncertainty with respect to the
prospect of further eruptions of the Icelandic volcano led to a very weak
recovery of the passenger volume. For the six-month period, the number of
passengers decreased by 0.8 percent to 14.23 million (2009: 14.34 million
passengers). Fleet capacity rose by 2.2 percent to 19.6 million. The seat load
factor (seat capacity utilization) decreased by 2.18 percentage points to 72.59
percent.

Developments of the passenger numbers observed in the first weeks of the current
quarter point towards improved business for the second half of the year.
Furthermore, growing consumer confidence in Germany is likely to bring about
further positive impulses. On the expenses side, Air Berlin's optimized hub
concept and relentless cost control should have a positive effect on the
operating margin. Moreover, one-time earnings stemming from the previously
announced sale of aircraft and occurring in connection with the first-time
consolidation of the subsidiary company NIKI will compensate for the exceptional
charges incurred in the first half-year of 2010. Therefore, Air Berlin's Board
of Directors upholds its previous forecast that earnings before interest and
taxes in 2010 will surpass those of the previous year.

Further inquiry note:
Hans-Christoph Noack
Director Corporate Communications
Tel.: +49 (0)30 3434 1500
Fax: +49 (0)30 3434 1509
E-Mail: [email protected]
end of announcement euro adhoc
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issuer: Air Berlin PLC
The Hour House, High Street 32
UK-WD3 1ER Rickmansworth, Herts
phone: +49 (0)30 3434 1500
FAX: +49 (0)30/3434-1049
mail: [email protected]
WWW: http://www.airberlin.com
sector: Air Transport
ISIN: GB00B128C026
indexes: SDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English

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