Air Berlin said on Thursday the new programme, "Turbine 2013", would cut spending but declined to confirm a newspaper report in Frankfurt Allgemeine Zeitung that it aimed to save hundreds of millions of euros.

"The company is reacting to a further worsening of the economic environment, the weak euro and consumer behaviour that is marked by growing uncertainty," it said.

Air Berlin has struggled after racking up debt in a few years of rapid expansion. Last year, Abu Dhabi-based Etihad bought almost 30 percent of the carrier but debt continued to grow, reaching eight times shareholder equity by end-June.

While Air Berlin's loss before interest and tax (EBIT.L) is expected to narrow to 104.4 million euros this year from 247 million, according to Thomson Reuters StarMine, analysts are not convinced it will reach its goal of positive EBIT next year.

"They might achieve an EBIT breakeven next year but the market conditions are so tough. That's why I'm so sceptical," analyst Robert Czerwensky of DZ Bank said. Air Berlin is due to publish third-quarter results on November 15.

To access a greater route network, Air Berlin joined the Oneworld alliance this year, which includes British Airways, Cathay Pacific (0293.HK) and Qantas (QAN.AX). It also announced a codeshare agreement with Air France-KLM Group (AIRF.PA) and Etihad this month.

But repeated delays to the Berlin's new airport have hit Air Berlin's hopes to handle more lucrative long-haul flights from its hub this year. The airport will now open in October 2013. (Reporting by Marilyn Gerlach; Editing by Jonathan Gould and Robin Pomeroy)

• A Permanent Economic Emergency