Air Berlin, partly-owned by UAE carrier Etihad Airways, has announced a net loss of 265.6 million euros (US$348 million) for 2011, Bloomberg reports.
Air Berlin, which is Europe’s third largest discount carrier, said the losses were as a result of tax, fuel expenses, and a restructuring strategy.
The discount carrier has cut routes and flights as an economic slump continues to hurt demand.
Capacity has been cut by more than 1 million seats to save 250 million euros, whilst the carrier has also closed bases in Erfurt and Dortmund, shaving $508 million from spending.
The German Airline reported losses of 97.2 million euros ($128 million) in 2010.
Air Berlin is almost 30 per cent owned by Etihad Airways after the Abu Dhabi-based carrier agreed to a US$350 million package of financing and funds for planes in December.
According to the business and finance news source, the Gulf carrier remains confident it will recoup a 105 million-euro equity investment it has made in the airline in two years.