Extensive program accomplished

Air Berlin’s Management Board takes stock of an eventful 2007 –

Now is the time for profit optimization

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air transport/annual results 2007

Berlin (euro adhoc) - Despite the decline in earnings, the Management
Board of Air Berlin PLC rates the company´s 2007 performance as
positive. The airline company has grown considerably, both
organically and through acquisitions and partnerships, and has
secured its second-place ranking in the German market. 2008 will be
the year of profit optimization.

At the Press Conference on the Annual Financial Accounts in Berlin on
Monday, Joachim Hunold, Air Berlin´s CEO, declared 2007 the "Year of
Growth". He designated the completion of the integration of dba, the
Munich-based airline company which was bought last year, the
acquisitions of the Düsseldorf-based LTU and the Swiss airline
Belair, and the cooperation with the Dortmund-based airline company
Walter as "milestones in Air Berlin´s corporate history". Air Berlin
put its 100th jet into service, ordered 25 environmentally-friendly
"Dreamliners" from Boeing, founded independently operating technology
companies in Berlin and Düsseldorf, completed a capital increase and
placed a convertible bond, extended the "Top Bonus" program and
designed a new intercontinental product. Since 2005, the former
charter airline company has almost doubled the number of passengers
transported, and has gained ground as a "premium carrier". "We have
come a long way," concluded Hunold.

Nevertheless, 2007 was also a year in which the company had to
overcome major obstacles. As Ulf Hüttmeyer, Air Berlin´s CFO,
explained: Exceptional effects resulted in approximately EUR 70
million in taxes on earnings. This was caused by the delayed start of
the integration of LTU, the technical problems encountered with the
system integration and capacity monitoring, and the extreme
weather-related weakness in demand in April, with the ensuing yield
deterioration in the following two months.

Sales revenue up 61 percent

For the 2007 financial year, sales revenue climbed from EUR 1.58
billion to EUR 2.54 billion, i.e. a 61 percent increase. EBITDAR
(earnings before interest, taxes, depreciation, amortization and
lease expenses) increased by 48 percent, i.e. from EUR 257 million to
EUR 379 million. Due to non-recurring expenses, EBIT (operating
income before interest and taxes) dropped by 67 percent, i.e. from
EUR 64 million to EUR 21 million. Net profit amounted to EUR 21
million. In the ad hoc press release of 12 March 2008, the company
had estimated this figure at approximately EUR 11 million.

The difference resulted from the circumstance that Air Berlin had
activated a tax asset in 2006 and thus realized latent tax proceeds.
In the context of preparing the 2007 Annual Financial Statements, it
has now become apparent that this activation, in accordance with
IFRS, has to be retroactively adjusted in 2006. As a result, the 2006
tax profit and thus also the net profit after taxes are reduced by
EUR 10 million (net profit after taxes of EUR 40.1 million, instead
of EUR 50.1 million originally disclosed). Consequently, for 2007,
the tax profit and the net profit after taxes increased by the same
amount. Net profit for 2007 reached EUR 21 million or EUR 0.33 per
share (2006: EUR 0.76 per share). Operating income and pre-tax profit
for these two years are not affected by this period shift which has
no effect on liquidity.

Cost-efficient Internet sales

The sale of individual seats increased by 3 percentage points to
reach 63 percent of sales revenue. Despite strong linear growth,
charter business decreased from 40 to 37 percent of sales revenue.
Hüttmeyer was especially pleased with the percentage of Internet
sales: Currently, cost-efficient Internet sales represent 46 percent
of sales revenue. Furthermore, due to the successful integration of
LTU´s "Redpoints" program, the Frequent Flyer program, "Top Bonus",
now counts 1.3 million members. The number of corporate agreements
increased from 330 to 493, i.e. an increase of 49 percent.

Air Berlin was able to reduce the share of direct operating costs by
3.2 percentage points, i.e. from 61.3 to 58.1 percent, by lowering
airport charges from 26.2 to 23.5 percent and by lowering the cost of
catering from 3.8 to 3.4 percent, among other things. As a share of
direct operating costs, fuel cost only increased marginally from 22
to 22.1 percent. Despite rising staff and technology costs and the
expenses related to integration, unit cost (CASK) at 3.54 Eurocents
(3.50 Eurocents in the previous year) remained practically unchanged.
The fleet increased from 88 to 124 aircraft, mainly as a result of
the acquisition of LTU and Belair. Equity interest increased from 23
to 28 percent. As at 31 December 2007, the company had liquid funds
amounting to EUR 469 million (+105 %).

Potential for improving performance

According to CEO Joachim Hunold, the 2008 optimization program will
include eliminating unprofitable flight routes, reducing flight
frequencies on routes which are also served by other companies within
the Air Berlin Group, consolidating yield management, replacing
Fokker 100 aircraft with Q400 turboprops, and reducing the
utilization of short-term wet leases. Furthermore, sales will be
rendered more efficient through a uniform structure for all the
companies within the Air Berlin Group, and strengthened through
world-wide ticket sales. The price structures of Air Berlin and LTU
will be harmonized, and fee schedules adapted to the competitive
level. Moreover, plans exist for aligning the collective agreements
within the Group.

For 2008, all things considered, Air Berlin´s Management Board sees a
potential for improving operating performance by EUR 100 million.
Inflation-triggered and growth-related cost increases could also be
offset therewith. The company will have an average of 127 airplanes
in service, with the fleet growing moderately to reach 134 airplanes
by the end of the year. On average, 74 percent of 2008 fuel costs are
hedged.

end of announcement euro adhoc
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ots Originaltext: Air Berlin PLC & Co Luftverkehrs KG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Press Contact:

Peter Hauptvogel

Director of Corporate Communications, Air Berlin

phone: +49 30 3434 1500

fax: +49 30 3434 1509

e-mail: abpresse@airberlin.com

Branche: Air Transport
ISIN: GB00B128C026
WKN: AB1000
Index: SDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
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