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SkyEurope Holding

euro adhoc: SkyEurope Holding
quarterly or semiannual financial statement / SkyEurope H1 2007 Report

  Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.
6-month report
31.05.2007
Report on the First Half (H1) of the Financial Year 2007
SkyEurope significantly improves H1 Margin while delivering 
substantial growth.
•       EBITDAR margin improves by 22.8pp, reducing significantly the EBITDAR
loss (H1 2007 EUR 17.2 million vs H1 2006 EUR 26.3 million) despite additional
capacity and new markets.  EBIT margin also improves by 20.5pp.
•       Growth is maintained with revenues increasing by 35.1%, while passengers
flown grows to 1.2 million from 0.87 million and at the same time achieving a
much improved load factor of 79.7% (up from 68.4%).
•       Revenue per available seat kilometre improves 13.8%.
•       Flights from Vienna commenced in March, taking advantage of the low
penetration of low cost carriers at the Vienna Airport and capitalising on the
high revenue potential of a larger catchment area.
•       Utilisation improving by 15.2% to 9:22 hours with continued focus put on
efficient operations.
•       On-time performance improves making SkyEurope one of the most punctual
airlines in Europe.
•       Continuing deliveries of new 737-700 NG Aircraft improves average age of
fleet to 3.7 yrs (easyJet: 2.3 yrs), one of the youngest in Europe and is
expected to be fully renewed and even younger (average age of less than 1 year)
by the end of the CY.
•       Strengthened management team with appointment of former easyJet CFO,
Nick Manoudakis.
•       Full year guidance is maintained with full year EBITDAR expected to be
positive with an EBIT positive 4th quarter.
FINANCIAL CALENDAR
31 August 2007                  3rd Quarter 2007
30 November 2007                        Preliminary results for 2007
10 January 2008                 2007 Annual Report
FINANCIAL HIGHLIGHTS OF THE GROUP
for the first half of 2007
In thousands of EUR, unaudited
(6 months ended)        31 March 2007   31 March 2006   Change %
Financial data
Operating revenue       80,622  59,678  35.1%
EBITDAR (17,225)        (26,336)        34.6%
EBITDAR margin  (21.4%) (44.1%) 22.8pp
EBIT    (29,994)        (34,410)        12.8%
EBIT margin     (37.2%) (57.7%) 20.5pp
Equity  (18,210)        326     n.m.
Cash and cash equivalents       30,889  14,815  108.5%
Operating data
Average no. of aircraft           12.0           12.8   (5.9%)
No. aircraft at period end      14      13      7.6%
Passengers        1,246,845         866,843     43.8%
Aircraft utilisation (BH per day)       9:22    8:08    15.2%
ASK (million km)                1,622          1,366    18.7%
RPK (million km)                1,293             934   38.3%
Load factor (RPK/ASK)   79.7%   68.4%   16.5%
Revenue per ASK (EURc)  4.97    4.37    13.8%
Yield in EURc (Rev./RPK)        6.24    6.39    (2.3%)
Average revenue per PAX (EUR)   64.7    68.8    (6.1%)
Cost per ASK (EURc)     6.82    6.89    (1.0%)
Cost per ASK ex fuel (EURc)     5.35    5.27    1.6%
Sectors 11,053         9,929    11.3%
Average stage length, Boeing fleet (km) 1,023   1,048   (2.4%)
*Note: Certain reclassifications were made in H1 2007 affecting several of the
reported items.  The comparative information has been restated where applicable.
 See note 2(a) of the accompanying financial statements.
Operating and financial review of H1 2007 compared with H1 2006
Overview
Network and fleet
In March 2007, SkyEurope commenced flights from Vienna, capitalising 
on the high revenue potential of the larger Vienna/Bratislava 
catchment area (6 million inhabitants) and the low penetration of low
cost carriers at the Vienna Airport.  This has further strengthened 
the Company´s position as the leading low cost carrier in the region.
With the addition of flights from Vienna, SkyEurope now flies a total
of 92 routes to 39 destinations in 19 countries from our 4 European 
bases, Bratislava/Vienna, Prague, Budapest, and Krakow.
At 31 March 2007 our network was serviced by fourteen 737 aircraft.  
Ten of these aircraft were Boeing 737-700 NGs financed through 
operating leases with GE Commercial Aviation Services (an additional 
two were delivered prior to 31 May 2007). The remaining four Boeing 
Classics are on operating lease and are expected to be redelivered 
before the end of the fiscal year.
SkyEurope currently has fourteen additional aircraft on firm order to
be delivered in 2007 through 2010 and an additional six Boeing 
purchase options that are expected to be exercised in FY 2008.  In 
total, we expect to have 32 aircraft in our fleet by 2011.
Management
In May 2007, Nick Manoudakis was appointed as SkyEurope´s Chief 
Financial Officer.  Having graduated with highest honours from the 
University of California at Berkeley with a degree in Accounting, 
Finance, and Computer Science, Nick practiced as a CPA in the U.S. 
before joining a small team to help devise the overall business plan 
for what in 1995 became easyJet.  Nick was the airline´s Finance 
Director between 1995 and the end of 1999 when he became the Finance 
Director of easyGroup, acting as a CFO for several of their ventures.
Nick´s experience as a founding and key member of easyJet, one of the
pioneers of low cost air travel in Europe, will add value to 
SkyEurope which will greatly benefit from Nick´s aviation background 
and depth of experience.
In addition, SkyEurope further strengthened its revenue management 
team by adding Navin Kodkani to lead the revenue management team.  
Navin  previously worked at PremiumAir and SWISS Air and brings to 
SkyEurope over 10 years experience in revenue management.
SkyEurope continually strives to recruit and develop outstanding 
people and considers its people to be the Company´s most important 
assets for future success.
Outlook
For the remainder of the year, SkyEurope´s strengthened revenue 
management and financial teams will continue with the implementation 
of a load factor active policy, targeting an average load factor 
above 80% for the remainder of the fiscal year 2007 and will place 
additional focus on improving network efficiency.
By the end of FY 2007, SkyEurope expects to have fully renewed its 
fleet with new Boeing 737-700 NGs, thereby operating with one of the 
youngest fleets among European airlines.  This will help to improve 
utilisation and further reduce unit fuel and maintenance costs. The 
airline will also place increasing focus in achieving substantial 
improvements in other components of the cost base by simplifying 
operations; eliminating non-value adding activities; improving 
airport and ground handling charges and reducing overheads.
With the overall improvements in revenue and a rigorous cost savings 
programme, the Company maintains guidance for delivering a 
significant improvement in financial performance in coming months, 
and is on track to deliver a positive EBITDAR for the FY 2007 and an 
EBIT positive 4th quarter.
Key Performance Indicators
Available seat kilometre ("ASK")
Available seat kilometre is an indicator used by management to 
measure units of productive output. It represents the seating 
capacity of our aircraft multiplied by the number of kilometres 
flown.  Despite the reduction in the average number of aircraft 
operated (12 in H1 2007 vs. 12.8 in H1 2006), the introduction of 10 
(larger) Boeing 737 NG aircraft and an increase in average daily 
utilisation by 15.2% to 9:22 hours per day (8:08 hours in H1 2006), 
resulted in an 18.7% increase in capacity for the H1 2007 period to 
1.62 million ASKs (1.37 million in H1 2006).
Revenue per available seat kilometre ("RASK")
Revenue per available seat kilometre represents total passenger 
revenue divided by ASKs and is considered by management one of the 
best measures of revenue.  It is a compensating indicator between 
load factor and average revenue per passenger.
Revenue per available seat kilometre increased by 13.8% from EURc 
4.37 in H1 2006 to EURc 4.97 in H1 2007. This was mainly due to the 
16.5% increase in load factor achieved during H1 2007.
Cost per available seat kilometre
Cost per available seat kilometre represents total operating expenses
divided by ASKs and management considers movements in cost per 
available seat kilometre to be the best indicator of management's 
performance in keeping unit costs low.
Cost per available seat kilometre decreased by 1% from EURc 6.89 in 
H1 2006 to EURc 6.82 in H1 2007. Cost reductions in aircraft fuel, 
ground handling, maintenance and administration expenses were offset 
by more expensive leased aircraft added to fleet, higher airport 
charges, and targeted increases in sales and marketing in order to 
strengthen the SkyEurope brand.
Load factor
Load factor represents the average percentage of aircraft seating 
capacity that is actually utilised, calculated by dividing revenue 
passenger kilometres by available seat kilometres.
In H1 2007, the Company implemented a "load factor active" policy 
resulting in an increase in the passenger numbers and overall revenue
per available seat kilometre.  As a result of this, load factors 
increased from 68.4% in H1 2006 to 79.7% in H1 2007.
Income statement
Revenue
SkyEurope´s total revenue has increased by 35.1% from EUR 59.7 
million in H1 2006 to EUR 80.6 million in H1 2007.  RASK increased by
13.8% from EURc 4.37 to EURc 4.97.
Scheduled revenue includes the base fare and booking fees/surcharges 
net of any implied government taxes.  The 30.6% increase in scheduled
revenue in H1 2007 vs H1 2006 was driven by a 43.8% increase in 
passengers from 0.87 million to 1.2 million.  The increase in 
passengers carried reflects a 15.2% improvement in aircraft 
utilisation from an average of 8:08 hours per day in H1 2006 to 9:22 
hours in H1 2007 as well as an increase in load factor from 68.4% to 
79.7%.  The very significant growth in traffic for the period was 
partly stimulated by promotional fares for the seasonally weak first 
half, resulting a 2.3% erosion in yield (total revenue divided by 
revenue passenger kilometres), which was fully offset by the 11.3pp 
increase in load factor.
Ancillary revenue includes fees and charges (including credit card 
surcharges, excess baggage charges, seat assignment fees, sporting 
equipment charges, infant fees, change fees), profit share from 
in-flight sales (including food, beverages, and boutique items), 
cargo, and commissions received from products and services sold (such
as hotel bookings, car rental bookings and travel insurance).   Total
Ancillary revenues per passenger grew very significantly by 67.6%% in
H1 2007 vs H1 2006 which can be attributed to an enhanced portfolio 
of products offered to customers, including seat assignment, car 
rental and hotel bookings, options which are available through 
SkyEurope´s website.
Charter revenue consists of aircraft capacity sold to third parties 
or tour operators.  The charter season is typically the summer season
(Q3 and Q4) and therefore there has been no significant changes in 
total charter revenue in H1 2007 vs H1 2006 (EUR 2.5 million in H1 
2007 vs 1.2 million in H1 2006).
Salaries, wages and benefits
Salaries wages and benefits include all crew, maintenance, sales and 
overhead salaries and related costs and have increased by 21.4% from 
EUR 10 million to EUR 12.1 million from H1 2006 to H1 2007. This 
increase reflects an increase in crew numbers due to increased flying
activities in addition to salary increases made to pilots and 
mechanics during the H1 2007 to bring the compensation to competitive
levels.  Staff costs per ASK has increased from EURc 0.73 to EURc 
0.75.
Aircraft fuel
SkyEurope´s fuel costs increased by 7.6% from EUR 22.1 million to EUR
23.8 million from H1 2006 to H1 2007 primarily due to an increase in 
sectors flown, however SkyEurope benefited from more modern and fuel 
efficient aircraft and a weakening US$/Euro exchange rate.  On a per 
ASK level, costs decreased by 9.4% from EUR 1.62 to EUR 1.47.
SkyEurope has hedged approximately 90% of the planned fuel 
consumption for the FY 2007 at an average price of USD 62.5 
bbl/equivalent.
Aircraft rental
Aircraft rental includes the fixed monthly operating leasing expense 
paid to the Company´s lessors.  The increase in aircraft rental 
expense by 61.5% despite a decrease in the average number of aircraft
in the fleet is due to a higher proportion of more expensive aircraft
being used (Boeing 737-700 NG aircraft vs Boeing Classics).  On a 
cost per ASK basis, aircraft rental expenses have increased by 36% 
from EURc 0.56 in H1 2006 to EURc 0.76 in H1 2007.
SkyEurope is on track to increase its aircraft utilization even more,
which will substantially reduce rental cost per ASK.
Sales and marketing
Sales and marketing expenditures include marketing costs, fees paid 
to credit card providers, external call centres, reservation system 
providers, and other sales and marketing related costs.  These costs 
have increased as expected due to higher booking related costs 
(credit card commissions and call centre fees) attributable to higher
passenger numbers and load factors and targeted efforts made to 
further promoting SkyEurope´s brand in key markets. Sales and 
marketing costs increased by 42.5% from EUR 5.1 million in H1 2006 to
EUR 7.2 million in H1 2007. Sales and marketing expenses per ASK 
increased 20% from EURc 0.37 to EURc 0.45.
Ground handling charges
Ground handling charges have increased by 12% from EUR 7.5 million in
H1 2006 to EUR 8.4 million in H1 2007 due primarily to an increase in
the number of sectors flown which increased 11.3%.  On an ASK basis, 
ground handling charges have decreased from EURc 0.06 to EURc 0.05.
Airport charges
Airport charges which represent landing fees (fixed turnaround 
charges) and per passenger fees charged by airports have increased by
56% from EUR 13.4 million in H1 2006 to EUR 20.9 million in H1 2007 
driven by a 43.8% increase in passengers carried resulting in higher 
total per passenger charges.  Airport charges per ASK have increased 
31.5% from EURc 0.98 to EURc 1.29.
Navigation charges
SkyEurope´s navigation charges which include over-flight fees, air 
traffic control and approach fees increased by 22% from EUR 7.8 
million in H1 2006 to EUR 9.5 million in H1 2007.  The increase was 
primarily due to a 18.7% increase in ASKs flown and a higher average 
maximum take off weight of Boeing 737-700s vs Boeing Classics.  On a 
cost per ASK basis, navigation charges increased by 2.5% from EURc 
0.57 to EURc 0.58.
Maintenance, materials and repairs
SkyEurope´s maintenance expense consists primarily of the cost of 
routine maintenance and spare parts; provisions for the estimated 
future cost of heavy maintenance and engine overhauls on aircraft; 
and advance maintenance payments made to operating lessors charged 
based on the number of flight hours and cycles flown during the 
month.
Significant maintenance expenses were incurred during H1 2007 due to 
redelivery of some Boeing Classics, however this has been offset by 
the effect of lower maintenance costs on newer and more reliable 
aircraft and improved maintenance contracts with suppliers which 
lower our variable maintenance costs.  Overall, maintenance expenses 
have slightly decreased despite increasing aircraft utilization, 
falling 2% from EUR 11.4 million to EUR 11.2 million from H1 2006 to 
H1 2007. On a per ASK basis, costs decreased by 17.4% from EURc 0.84 
to EURc 0.69.
Aircraft and passenger insurance
Aircraft and passenger insurance costs reduced by 4% from EUR 1 
million in H1 2006 to EUR 0.9 million in H1 2007, despite a 43.8% 
increase in passenger numbers. This was a result of lower rates being
negotiated with insurance suppliers and and the effect of the 
strengthening Euro against the US dollar. On a per ASK basis, costs 
reduced by 19.2% from EURc 0.07 to EURc 0.06.
Administrative expenses
Administrative expense decreased significantly by 53% from EUR 7.6 
million to EUR 3.6 million from H1 2006 to H1 2007 due to efforts 
taken to control overheads. Items in this cost category include 
administrative costs, professional fees and operational costs not 
included elsewhere. On a per ASK basis, costs decreased by 60.1% from
EUR 0.56 to EUR 0.22.
Depreciation and amortization
Depreciation relates to charges taken on depreciable fixed assets 
consisting of software, office equipment, and leasehold improvements.
There was no significant change to depreciation and amortization 
expense during the period.
Interest and other finance charges
Interest and other finance charges represents interest paid or 
payable by SkyEurope offset by the revaluation of financial assets 
and liabilities. Finance charges relate predominantly to accumulated 
interest expense on convertible bonds issued in connection with the 
Company´s secondary public offering.
Loss per share
The basic loss per share decreased by 50.6% from EUR 1.68 in H1 2006 
to EUR 0.83 in H1 2007.
Balance sheet
Property, plant and equipment
Property, plant and equipment includes principally predelivery 
payments made to Boeing for aircraft to be delivered in future 
periods which are not expected to be financed through sale and 
leaseback transactions and other depreciable assets including 
software, office equipment and leasehold improvements.
The net book value of property, plant and equipment increased from 
EUR 17.7 million at 30 September 2006 to EUR 43.4 million at 31 March
2007 due to additional predelivery payments made to Boeing during the
period.
Deposits and other long-term receivables
Long-term receivables and other assets consist principally of 
deposits paid to lessors for aircraft under operating lease and other
long-term deposits paid to suppliers. The deposits increased from EUR
8.3 million at 30 September 2006 to EUR 10 million at 31 March 2007 
due to the delivery of new aircraft financed on operating lease.
Deferred tax assets
Deferred tax assets result primarily from the value of tax losses 
incurred in previous years available for carry forward. The Company 
has not recognized any new deferred tax assets during the half year 
ended 31 March 2007.  The Company expects to generate sufficient 
taxable income in the future in order to utilize the deferred tax 
assets.
Trade and other receivables
Trade receivables represent receivables from tour operators, 
outsourced sales desks at airports, lessors, and other miscellaneous 
receivables arising in the normal course of operations.  The increase
in trade receivables from EUR 13.5 million at 30 September 2006 to 
EUR 15.5 million at 31 March 2007 is due to the increase in our 
business activities and hence our trade receivables.
Prepaid expenses
In accordance with industry practices, we pay many suppliers such as 
fuel suppliers and airports in advance and therefore we have a 
significant amount of prepaid expenses.  The increase in prepaid 
expenses from EUR 25.5 million at September 2006 to 42.9 million at 
31 March 2007 is due to an overall increase in the size of our 
operations (more airports and higher fuel consumptions) and the 
additional advance payments made for the historically busy spring and
summer months.
Cash and cash equivalents
Cash and cash equivalents has decreased by 26% from EUR 41.8 million 
at 30 September 2006 to EUR 30.9 million at 31 March 2007 due to net 
operating cash outflow during H1 2007, however has increased 
significantly in comparison to H1 2006.  This increase is due 
primarily to improvements in net cash operating cash-ins driven by 
advance bookings for the 3rd and 4th quarters.
Interest bearing loans and borrowings
Interest bearing loans and borrowings represent predelivery payment 
financing obtained from the Bank of Scotland Corporate for nine 
aircraft to be delivered in 2007 through 2009.  Predelivery payments 
come due in intervals at scheduled dates prior to the delivery of the
aircraft and thus interest bearing loans and borrowings has increased
from EUR 10.9 million at 30 September 2006 to 36.8 million at 31 
March 2007.
Of a total of fourteen aircraft on firm order, predelivery payment 
financing has been secured for nine aircraft and term loan financing 
for four aircraft.
Convertible bonds
The amount recorded as convertible bonds at 31 March 2007 represents 
the carrying value of Tranches A and B of the convertible debt, net 
of the portion of the convertible bond recognized directly in equity.
The increase from 30 September 2006 represents interest accrued on 
the convertible bonds.
Maintenance provisions
Maintenance provisions represent liabilities recorded for future 
maintenance expenses.  Amounts are classified as current if it is 
expected the future maintenance event will occur within 12 months of 
the balance sheet date and non-current if longer than 12 months.
Unearned revenue
Unearned revenue represents advance ticket sales made and has 
increased by 100% from EUR 23 million at 30 September 2006 to EUR 46 
million at 31 March 2007, principally due to our strong growth and 
the seasonality of the business, which means there are more sales in 
advance at 31 March compared with 30 September each year.
Trade and other payables
Trade and other payables represents trade debt owed to our suppliers 
that arise in the normal course of business.  The increase from EUR 
53 million at 30 September 2006 to EUR 73.8 million at 31 March 2007 
is due primarily to the growth of our business.
Equity
The current equity situation reflects the trading of the seasonally 
weak winter season and is expected to improve over the summer trading
period.  As we have a sufficient cash balance to meet our obligations
as they come due, we comply with the trading rules of the Vienna or 
Warsaw stock exchanges where the Company is listed.
Cash flow
Cash flow from operating activities
As a result of the reduced operating loss for the period and a higher
number of advance bookings, net cash outflow from operating 
activities improved and was EUR 14.0 million lower in H1 2007 than in
H1 2006.
Cash flows from investing and financing activities
Cash out flows from investing activities represent predelivery 
payments made to Boeing for future aircraft deliveries.  Financing 
has been secured for most of these predelivery payments and therefore
cash-in from financing activities is approximately equivalent to the 
cash out from investing activities.
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENTS
In thousands of EUR     31 March 2007   31 March 2006   31 March 2007   31 March
2006
(IFRS, unaudited)       3 months        3 months        6 months        6 months
Operating revenue
Scheduled revenue       36,669  28,096  73,676  57,015
Ancillary revenue       2,129   881     4,482   1,486
Charter revenue 1,156   79      2,464   1,177
        39,954  29,056  80,622  59,678
Operating expenses
Aircraft fuel   (11,440)        (10,194)        (23,829)        (22,140)
Sales and marketing     (3,954) (2,932) (7,248) (5,088)
Ground handling charges (4,687) (3,428) (8,432) (7,519)
Maintenance, material and repairs       (6,682) (6,665) (11,218)        (11,441)
Salaries, wages and benefits    (6,233) (5,426) (12,103)        (9,970)
Navigation charges      (4,898) (3,934) (9,477) (7,788)
Aircraft and passenger insurance        (476)   (510)   (963)   (1,004)
Administrative expenses (2,321) (5,655) (3,624) (7,646)
Airport charges (11,253)        (6,688) (20,953)        (13,418)
        (51,944)        (45,432)        (97,847)        (86,014)
EBITDAR*        (11,990)        (16,376)        (17,225)        (26,336)
Depreciation and amortization   (286)   (278)   (490)   (472)
Aircraft rental (5,531) (3,782) (12,279)        (7,602)
Operating loss (EBIT)   (17,807)        (20,436)        (29,994)        (34,410)
Other income (expenses)
Interest and other finance charges, net (847)   547     (2,463) (15)
Loss before income taxes        (18,654)        (19,889)        (32,457)
(34,425)
Income tax credit       -       (1,677) -       816
Net loss for the period after tax       (18,654)        (21,566)        (32,457)
       (33,609)
Weighted average number of ordinary shares at end of period     38,990,000
20,000,000      38,990,000      20,000,000
Basic and diluted loss per share (EUR)  (0.49)  (1.08)  (0.83)  
(1.68)
*Note: Earnings before interest, taxes, depreciation, amortization, 
share profit of associates and lease payments (excluding the 
maintenance reserve component of operating lease payments). 
Maintenance reserve costs are charged to the costs heading 
"Maintenance, material and repairs".
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS
In thousands of EUR (IFRS)              31 March 2007   30 Sep 2006
                (unaudited)     (audited)
Assets
Property, plant and equipment   43,438  17,710
Deposits and other long-term receivables        10,082  8,336
Deferred tax assets             10,264  9,251
Total non-current assets                63,784  35,297
Expendable spare parts and inventories  1,325   1,119
Trade and other receivables             15,481  13,555
Prepaid expenses                42,945  25,472
Cash and cash equivalents               30,889  41,789
Total current assets            90,640  81,935
Total assets            154,424 117,232
Equity
Issued capital          38,990  38,990
Share premium           81,293  81,293
Reserves - cash flow hedges             1,899   (467)
Retained losses         (103,337)       (46,045)
Loss in current period          (32,457)        (57,292)
Currency translation adjustment (4,598) (110)
Total equity            (18,210)        16,369
Liabilities
Maintenance provisions          599     126
Other non-current liabilities           54      69
Interest bearing loans and borrowings   36,839  10,876
Convertible bonds               12,129  10,245
Total non-current liabilities           49,621  21,316
Maintenance provisions - current        2,904   3,644
Unearned revenue                46,308  22,673
Trade and other payables                73,801  53,230
Total current liabilities               123,013 79,547
Total equity and liabilities            154,424 117,232
CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENTS
In thousands of EUR     31 March 2007   31 March 2006
(IFRS, unaudited)       6 months        6 months
Net cash flow used in operating activities      (11,752)        (25,675)
Net cash flow from investing activities         (25,113)        (5,473)
Net cash flow from financing activities 25,965  248
Net cash flows  (10,900)        (30,900)
Cash and cash equivalents at beginning of period        41,789  45,715
Cash and cash equivalents at end of period      30,889  14,815
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS´
EQUITY
In thousands of EUR
(IFRS, unaudited)       Issued capital  Share premium   Cash flow hedge reserve
Retained losses Translation reserve     Total
At 1 October 2006       38,990  81,293  (467)   (103,337)       (110)   16,369
Results from cash flow hedges taken to equity   -       -       2,366   -
-       2,366
Translation reserve     -       -       -       -       (4,488) (4,488)
Loss for the period     -       -       -       (32,457)        -       (32,458)
At 31 March 2007        38,990  81,293  1,899   (135,794)       (4,598) (18,210)
At 1 October 2005       20,000  59,819  -       (46,059)        24      33,798
Results from cash flow hedges taken to equity   -       -       197     -
-       197
Translation reserve     -       -       -       -       (60)    (60)
Loss for the period     -       -       -       (33,609)        -       (33,609)
At 31 March 2006        20,000  59,819  197     (79,654)        (36)    326
SELECTED NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1.      Reporting Entity
SkyEurope Holding AG is a Group domiciled in Austria.  The condensed
consolidated interim financial statements of the Group as at and for the six
months ended 31 March 2007 comprise the Group and its subsidiaries (together
referred to as the "Group").
The consolidated financial statements of the Group as at and for the year ended
30 September 2006 are available upon request from the Group's operational
headquarters at Ivanská cesta 26,  P.O.Box 24,  820 01 Bratislava 21, Slovakia,
or at www.skyeurope.com.
2.      Significant accounting policies
Except as described below, the accounting policies applied by the Group in these
condensed consolidated interim financial statements are the same as those
applied by the Group in its consolidated financial statements as at and for the
year ended 30 September 2006.
a. Reclassification of income statement captions
For the 6 months ended 31 March 2007, the Group has made the 
following reclassifications within captions disclosed in the income 
statement:
•       Surcharges and booking fees have been reclassified from ancillary
revenues to scheduled revenue;
•       Charter revenue previously classified as passenger revenue  has now been
disclosed separately on the face of the income statement;
•       Certain airport charges were netted against scheduled revenue in
previous periods (against airport fee revenue classified within scheduled
revenue) and have been reclassified to a new expense caption called "Airport
Charges";
•       "Aircraft and traffic servicing" has been separated into additional
income statement captions, "Ground handling charges, Aircraft insurance, and
Navigation charges";
•       Variable payments made to lessors based on aircraft 
utilization have been reclassified from "Aircraft rental" to 
"Maintenance, materials and repairs".  These changes do not have an 
impact on net income.
These changes have been made to comply with industry best practices 
and to allow more meaningful benchmarking of revenues and costs vs 
other airlines.  This change is only a change in performance measures
and does not have an impact on net income.
b. Reclassification of balance sheet captions
The Group has chosen to reclassify advance payments made to suppliers
to "Prepaid expenses" from "Accounts Receivable" as it better 
reflects the nature of the asset.
end of announcement                               euro adhoc 31.05.2007 08:12:52

Further inquiry note:

SkyEurope Holding AG
Nick Manoudakis, CFO
Tel.:+421 2 4850 1332
mailto:investor.relations@skyeurope.com
http://www.skyeurope.com

Branche: Air Transport
ISIN: AT0000497003
WKN: A0F5WU
Index: WBI
Börsen: Wiener Börse AG / official market

Weitere Storys: SkyEurope Holding
Weitere Storys: SkyEurope Holding