Austrian Airlines

euro adhoc: Austrian Airlines AG
Quarterly or Semiannual Financial Statements
Continuing challenging conditions have negative effect on result

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27.04.2005

Group unlikely to achieve annual forecast due to market conditions

Quarterly Result of the Austrian Airlines Group (January to March 2005)

The first quarter of 2005 featured weakness in the load factor, overcapacity in the market and extremely high fuel costs (marked by spikes of up to US$ 600 per tonne). These negative conditions led to a situation whereby the passenger load factor on scheduled services fell by 2.7 percentage points to 68.0 % compared to the same period the previous year. Transport performance on scheduled and charter services fell by 3.9 % to 1.86 million passengers carried.

Compared to last year, the adjusted EBIT fell from EUR -27.7m to EUR -64.0m. The EBIT fell from EUR -40.7m to EUR -73.6m. Profit before tax was EUR -81.0m, compared to EUR -47.6m the previous year (adjusted figure EUR -74.5m, following EUR -34.9m in Q1 2004).

Vagn Soerensen, the Chief Executive Officer of the Austrian Airlines Group, issued the following comment on the quarterly result: ‘We reacted rapidly to the fall in demand and reduced our planned growth. Although our marketing measures, which have included subsidising transfer charges, introducing the ‘silverticket - upgrade to business’ to stabilise Business Class load factors and global sales offensives have had a positive impact, it has proved impossible to compensate entirely for external market factors.

Consequently, as the situation stands at present, it will not be possible to meet the demands of our annual forecast to date (to improve on the adjusted EBIT for 2004 of EUR 10 million). As a result of the existing framework conditions - fuel prices and overcapacity in particular - we expect to see a negative adjusted EBIT for the full year of 2005.

We will continue to build upon our strategy of specialisation as the dominant player in the market for services to Central and Eastern Europe with a dense network of long-haul connections to Asia and Australia. The successful future of the Austrian Airlines Group lies in this niche market."

Financial Result for First Quarter 2005

~
Key Business Indicators      Unit         1-3/2005      1-3/2004      +/- %
Revenue                                EURm              462.5          471.0      -1.8
Operating revenue                EURm              469.7          464.7        1.1
Operating expenses              EURm            -543.3         -505.4      -7.5
EBITDAR                                EURm                -5.0            16.3          -
EBITDAR adjusted 1              EURm                 4.6            42.4    -89.2
EBIT                                    EURm              -73.6          -40.7    -80.8
EBIT adjusted 2                  EURm              -64.0          -27.7          -
Profit before tax                EURm              -81.0          -47.6    -70.2
Profit before tax
adjusted 2                          EURm              -74.5          -34.9          -
Profit after tax                 EURm              -81.0          -47.6    -70.2
Profit after tax
adjusted 3                          EURm              -74.5          -34.9          -
Cash flows from
operating activities          EURm                 9.1            61.0    -85.1
Net loss for the period      EURm              -80.8          -47.9    -68.7
Financial result                 EURm                -7.4            -6.9      -7.2
Passengers carried on
scheduled and charter
services                                            1,863,639    1,940,271      -3.9
Passenger load factor
(scheduled services)                %                68.0            70.7      -2.7 P.
Cargo                                Tonnes            34,607         33,057        4.7
~

1 Adjusted for profits/losses from the disposal of assets and for exchange rate valuations at the reporting date. 2 Adjusted for profits from the disposal of assets, exchange rate valuations at the reporting date and revaluations of aircraft. 3 Adjusted for profits/losses from the disposal of assets, exchange rate valuations at the reporting date, revaluations of aircraft and changes in corporate tax rates.

end of announcement                                euro adhoc 27.04.2005 07:28:56
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Further inquiry note: Konzernkommunikation: Johannes Davoras Johann Jurceka Tel.: 051766-1231

Investor Relations Dr. Prisca Havranek-Kosicek Tel.: 051766 - 3642

Branche: Air Transport
ISIN:      AT0000620158
WKN:        062015
Index:    WBI, ATX Prime, ATX
Börsen:  Wiener Börse AG / official dealing



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