Airline to cut costs as stocks fall

Berlin: Air Berlin, Germany’s second-biggest airline, said it will shrink its network and slash capacity by more than one million seats as fuel costs, taxes and the impact of Arab unrest push it toward a full-year loss.

Air Berlin fell as much as 6.5% in Frankfurt trading after the company said that it may fail to post positive annual earnings before interest and tax.

Europe’s third-biggest discount carrier, which had been targeting an operating profit, will respond by implementing “far-reaching measures” including second-half capacity cuts, route cancellations and reduced frequencies, it said.