Air Berlin, the German carrier, has walked out on its goal for full-year profits and said that it would cut all the non-profitable routes from its network in order to deal with increasing fuel costs.
The carrier still hopes to reach an operating profit for the full year based on the current prices of jet fuel but it has abandoned its estimate for 2008 earnings before interest and tax of 73 million euros to 120 million euros.
In a statement released on Thursday, the carrier said, "As a result of the current difficult market environment, in particular the high fuel prices, it is anticipated that operating income will be adversely affected during the further course of the year, making it difficult to obtain the envisaged EBIT corridor".
The carrier said that it now estimated this year fuel costs to be around 80 million euros, more than it had predicted in the month of March.
Joachim Hunold, Chief Executive of the carrier, refused to give a new target range for earnings before interest and tax and said during a news conference that any fresh range could not be taken seriously, given market behaviour.
The Head of EADS-the parent of European aircraft manufacturer Airbus-told the ILA Berlin Air Show this week that he was concerned about the effect of the rising prices of oil on the finances of the carrier.
Hunold of Air Berlin said the carrier was reviewing all of its long-haul services and would also seek to pass some burden of high fuel costs on to customers through higher fares.
