Concerns over terrorism lead to large losses for Air Berlin

Air Berlin announced that its losses in Q2 more than doubled on the back of a fall in demand for holiday destinations caused by the threat of terrorism. Sales between April and June were said to be down 9.4%, with the German airline posting a net loss of €89.1m net loss for the period compared to a €37.5m loss the prior year. Air Berlin is the latest in a string of European airlines to warn on the impacts of terrorist attacks on profits, with routes to North Africa and Turkey among the hardest hit. 

LONDON--Air Berlin PLC on Tuesday said its second-quarter loss more than doubled after demand to vacation hot spots was dented by terrorist attacks.

The struggling German carrier said it suffered an 89.1 million euro net loss ($99 million) in the period compared with a EUR37.5 million loss in the year prior. Sales in the April-through-June period fell 9.4% to EUR970.6 million.

"Demand, especially on flights to holiday destinations, suffered from terrorist attacks in Europe and had a major and negative impact" on the carrier's financial performance, Chief Executive Stefan Pichler said.

About a third of sales at Germany's second-largest airline are linked to leisure travel. Appetite for flights on routes to North Africa and Turkey were among those hit hard by political turmoil. While demand to traditional west European vacation destinations held up, oversupply of flights caused prices to tumble, Air Berlin said. Per-seat revenue fell 6% in the second quarter.

Air Berlin is only the latest in a long list of European airlines to warn of the effects of falling ticket prices and reduced demand because of terrorist attacks. Larger rival Deutsche Lufthansa AG last month warned that full-year profit would be below 2015's level. EasyJet PLC said it had to stimulate demand even in the peak summer season to fill planes.

Air Berlin, which is 29.2% owned by Etihad Airways and has been propped up by the Abu Dhabi-based state-owned airline, warned that per-seat revenue would remain under pressure in the current quarter, typically when airlines make most of their profits. The airline added it was uncertain how global instability would further affect consumer behavior.

Air Berlin, which is in the midst of the latest of several turnaround plans, said it would seek to boost its long-haul flights to deliver stronger results. The carrier plans to add further U.S. flights next year, including linking Berlin with San Francisco and Los Angeles, to bolster its more lucrative transatlantic service.

Write to Robert Wall at robert.wall@wsj.com