Air Berlin, Germany's second-biggest airline after Lufthansa, said today it expected revenue per seat it sells -- the so-called yields -- to remain stable in the second half of the year.
As demand for air travel has fallen, airlines have been trying to lure customers with promotions to keep their planes filled, but Air Berlin has been managing to raise prices over recent months.
The company kept its 2009 outlook, saying it was well on track to weather the global economic crisis, after reporting better-than-expected quarterly operating profit.
Industry body IATA said last week the slide in passenger numbers in business and first class -- the most lucrative sector for airlines -- was showing signs of stabilising. Many airlines had discounted premium tickets to keep seats filled.
Air Berlin said earlier this month its load factor, a measure of capacity utilisation, widened for the first time this year in July as it reduced capacity faster than demand for air travel declined.
In the second half of this year, it expects load factors to decrease slightly due to a further decline in demand, Air Berlin said today.
Air Berlin reported late yesterday its second-quarter operating profit rose 33 per cent to 17.6 million.
Revenues fell by 3.8 per cent to €836.2 million, in line with estimates.
Air Berlin's stock has fallen by nearly a quarter so far this year and have lost about 70 per cent of its value since the company's initial public offering in 2006.
Airlines around the world have been suffering from both rising oil prices and weak air travel demand as consumer and businesses rein in their spending. Industry body IATA has said it sees airlines losing $9 billion this year.
To limit their losses, carriers have cut capacity and grounded airplanes. Air Berlin in July reduced the number of seats on offer by 3.4 per cent.
Reuters