BERLIN (AP) — Germany’s second-biggest airline, Air Berlin, says it has canceled an order for 33 new Boeing jets with a list price of some $5 billion.

Air Berlin said Friday that an agreement to terminate orders for 18 Boeing 737 aircraft and 15 Boeing 787 aircraft doesn’t involve any compensation to the American plane maker.

The airline’s chief financial officer, Ulf Huettmeyer, said that canceling the planes “will significantly reduce future capital expenditure for Air Berlin and improve our balance sheet.”

Air Berlin, in which the United Arab Emirates’ Etihad airline holds a minority stake, is engaged in a long-term effort to cut costs.

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