airberlin reports €-781.9m loss for full year 2016

airberlin reported a net loss of €-781.9m for 2016 compared to a net loss of €-446.6m the previous year. The airline reported revenues of €3.79bn, compared to revenues of €4.08bn in 2015. The decrease in revenue in 2016 is due primarily to a capacity reduction of 4% and the decline in revenue per passenger (yield) by 3.8%. airberlin said the threat of terrorism in the eastern Mediterranean region led to excess capacity and an associated fall in prices in the leisure sector. These factors impacted negatively the business results of 2016. As a counter-measure, airberlin expanded its long-haul network, added more XL seats, introduced buy-on-board and launched a new short-haul European business class product. Ancilliary revenue grew by a significant 20% in 2016. The necessary restructuring costs of €334.8m for the transition to the new airberlin saw the EBIT drop to €-667.1m in 2016 compared to the previous year. The provisions were made mainly for fleet harmonisation to Airbus aircraft and staff, plus consulting services.