Air Berlin has cancelled all 15 of its on-order Boeing 787s, along with 18 737s.
The German carrier, which is in the process of restructuring, had originally ordered 787-8s, but in 2013 converted them to the stretched -9 variant.
"The cancellation agreement does not provide for any obligation of the Air Berlin group to make any compensation payments to Boeing," says the airline.
It adds that terminating the orders – which had a list-price value of $5 billion – will "significantly reduce the future capital expenditure", albeit "in the amount of the reduced purchase price that was actually agreed".
Air Berlin intends to "adapt the existing fleet to its needs by the acquisition or leasing of suitable aircraft". However, it says that this will involve "a lower number of aircraft than initially envisaged".