Air Berlin Plc said today it will permanently ground 14 of its aircraft and drop some of its long-haul destinations to help boost profitability, effective with the start of its winter flight schedule.

The company, which last month issued a profit warning because of surging fuel prices, will cut overall flight capacity by 10 percent this winter, with long-haul capacity reduced by 30 percent, Air Berlin said in a statement. Shares were down 8% today (chart below shows 1 year share price).

The number of aircraft in use will decline to 120 from 134, with primarily older planes being grounded. The airline will suspend its Beijing and Shanghai services, just launched on May 1, and will also halt flights from Dusseldorf, to New York for the winter season. Short haul business flights are likely to be increased however.

There will be fewer long-haul flights to destinations such as Cape Town, Windhoek and Bangkok this winter as well. However, Air Berlin said it will add flights to high-volume destinations such as Miami, Cancun in Mexico and Jamaica’s Montego Bay.

Air Berlin PLC will hold its AGM at Stansted on 24th June this year.

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