Air Berlin gains on ESAS stake

Bloomberg

Air Berlin rose as much as 12 percent, the biggest jump since Dec. 19, after ESAS said Sunday that it would acquire the stock from UBS to strengthen its business. The purchase comes just as Air Berlin agreed to swap stakes with the German unit of TUI Travel.

"As long as the shares were at UBS there was always the risk that they may have been placed in the market," said Frank Skodzik, a Frankfurt-based analyst at Commerzbank. "For the time being we expect the positive news from the new shareholder to offset the weaker-than-expected net results for 2008."

The ESAS deal helped boost the Berlin-based carrier after it reported a wider full-year net loss as the slowing economy pressured airlines to cut ticket prices. Air Berlin’s net loss increased to 75 million euros ($99 million) in 2008 from 39.9 million euros the previous year, it said in a statement yesterday.

Air Berlin was trading at 3.12 euros yesterday afternoon in Frankfurt, having gained 3.12 percent. The company’s stock has fallen 33 percent this year, reducing its market value to 209 million euros ($276 million). The airline last year cut its fleet by 14 planes to 120 to eliminate 80,000 seats.