Nov. 17 (Bloomberg) -- Air Berlin Plc, Germany’s second- biggest carrier, is targeting debt reduction of about 100 million euros ($135 million) by year end as it cuts costs.
The airline, based in Berlin, plans to reduce net debt to between 500 million euros and 550 million euros from its current level of 644 million euros, Chief Financial Officer Ulf Huettmeyer said on a conference call with journalists today.
Air Berlin is also reducing capacity by more than one million seats as it tries to trim 200 million euros in costs. Job cuts are under consideration, though no decision has been made on reducing headcount, Chief Executive Officer Hartmut Mehdorn said on the conference call.
“We are making good progress,” Mehdorn said. “We’re not relaxed but we are confident we can meet our targets.”
The company today published full third-quarter results after announcing partial figures Oct. 26. Net income fell 78 percent to 30.2 million euros as fuel costs rose and Germany’s aviation tax narrowed margins.
--Editors: Jerrold Colten, Chris Reiter
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