FRANKFURT (Reuters) - Loss-making German airline Air Berlin (DE:AB1) has cancelled orders for Boeing (N:BA) aircraft worth a total of $5 billion (3.06 billion pounds) at list prices as it strives to curb spending and return to profit.
Air Berlin, 29-percent owned by Abu Dhabi-based Etihad, has been slashing jobs, costs and unprofitable routes after a period of rapid expansion left it saddled with debt.
Last month, it presented new turnaround plans including shrinking and harmonising its fleet, which currently comprises planes made by Boeing, Airbus (PA:AIR) and Bombardier (TO:BBDb).
"Not taking on the 33 aircraft ordered will significantly reduce future capital expenditure for Air Berlin and improve our balance sheet," finance chief Ulf Huettmeyer said on Friday.
Air Berlin said it did not owe U.S. planemaker Boeing any compensation for the cancellation of the orders, which had been for 18 Boeing-737 aircraft and 15 Boeing-787.
Its existing 45 next-generation 737s will remain in service on European short and medium-haul routes, it said, adding it would continue to adapt its fleet by buying or leasing aircraft, albeit on a smaller scale than originally planned.
"As our customers operate in a dynamic environment, their overall fleet needs evolve and change. It is our objective to support their needs and to adapt as necessary," a spokesman for Boeing said.
Shares in Air Berlin rose 6.3 percent to close at 1.36 euros. The stock, which once traded at more than 20 euros, has lost 18 percent of its value so far this year.
(Reporting by Maria Sheahan; Additional reporting by Alwyn Scott; Editing by Tom Miles and Mark Potter)