Low-cost Air Berlin flying high

Low-cost airline Air Berlin today saw a strong rise in revenues during the first five months of the year.

The German-based airline, which flies to 22 European airports from London Stansted, said revenues were currently up 25% – 7% above its year-end target.

Air Berlin is Germany’s second-largest airline and Europe’s third-largest low-cost carrier. It started low-cost fares two years ago, offering allocated seats and in-flight services.

Operations at Stansted started in autumn 2002 and the airline is now the airport’s third biggest carrier.

The company today pledged to use its own resources to grow and said it hoped to remain private.

Joachim Hunold, chief executive of Air Berlin, said: “Ideally we will be able to grow using our own capital. We will consider all of our available options to ensure that we build on the success of our full service low cost model.”

A 30% increase in passenger traffic has been a contributing factor to its success, the operator said, with 2,271,158 passengers flying with the company in the first quarter of 2004.

Air Berlin’s City Shuttle, which operates flights from eight German airports to European cities, saw passenger numbers nearly double, the airline added.

Air Berlin was founded by a former PanAm captain Kim Lundgren, in 1978, in Oregon, US, and began with flights from Berlin to Mallorca. Mr Lundgren still holds 26% of shares in the airline.

In 2004 Air Berlin acquired a 24% stake in NIKI, the new airline owned by the Austrian Niki Lauda, three times Formula One world champion.