euro adhoc: Austrian Airlines AG
quarterly or semiannual financial statement /
Challenging competitive environment and extremely high kerosene price burden
result
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
24.04.2008
Power to invest in strenghts and pursue strategy even during difficult periods
Financial Result of Austrian Airlines Group, First Quarter 2008
Austrian Chief Executive Officer Alfred Ötsch commenting on the result: "While we are building on the solid base produced by the reorientation of the Austrian Airlines Group during the financial year 2007, the first quarter of 2008 has been strongly influenced by the continued deterioration in market conditions and a range of external factors. Due to the oil price at present, it will be difficult to reproduce the levels of performance seen in 2007. From the current viewpoint, we expect to see a lower adjusted EBIT for the financial year 2008 compared to 2007 due to the time-lagged effect of measures implemented through adjustment of fares and surcharges. Under current framework conditions, it will be a major challenge to achieve a profit that will justify our paying a dividend for the financial year 2009, as the company is striving to do. Despite these difficulties, we continue to pursue our strategy and use the testing surrounding conditions to build on our competitive position relative to other carriers. By expanding our fleet by two A320 aircraft in 2009 in an effort to bring the Premium Service concept to our core markets of Central and Eastern Europe and the Middle East, we are consistently strengthening our strategic positioning. Thanks to the strength of our financial base that we have striven to bolster, we can now also invest in our strengths during difficult periods, so expanding on existing competitive advantage in our core markets, e.g. by incorporating new routes to destinations such as Nizhniy Novgorod, Sochi, Baia Mare, Jeddah and Riyadh. An average passenger growth rate of 7.8% in CEE, compared to 4.8% in Western Europe forecasted by IATA, is confirmation that we were correct to focus on what is one of the highest-growth regions in the world, and distinguishes us from competitive carriers. Due to the existing high concentration of low cost carriers at the hub Vienna a tense yield situation is expected, but the withdrawal of Sky Europe from the Vienna-Innsbruck route shows that the measures we have taken to force back the most aggressive competitors at our Vienna location are now beginning to bear fruit."
Overview of Financial Result, first Quarter 2008
|Key indicators | |1-3 /2008 |1-3 / 2007|+/- % PY | |Revenue |EURm |525.3 |561.5 |-6.4 | |EBITDAR1,2 |EURm |29.5 |74.4 |-60.3 | |EBITDAR1,2 adjusted3 |EURm |37.4 |66.3 |-43.6 | |Result from operating activities (EBIT)2 |EURm |-50.1 |-12.5 |- |Result from operating activities (EBIT)2 adjusted3 |EURm |-42.2 |-20.6 |- | |Net result for the period |EURm |-60.4 |-16.3 |- | |Cash flow from operating activeties |EURm |43.8 |69.0 |-36.5 | |Net gearing |% |135.3 |149.4 |- | |Passengers carried (scheduled & charter) |passengers|2,290,139 |2,246,005 |2.0 | |Passenger load factor (scheduled services) |% |71.9 |74.0 |-2.1 P. | |Employees (end of period) | |7,842 |8,150 |-3.8 |
1 Result from operating activities (EBIT) before associates, before
depreciation and rentals
2 Regrouping of interest costs of allocation of provisions for pensions,
severance payments and anniversary payments from
personnel expenses to financial expenses
3 Adjusted by the result from the disposal of assets, other costs of the
transfer of aircraft, foreign currency valuations at the reporting
date and impairment of the value of aircraftRückfragehinweis / For further information: Dr. Prisca Havranek-Kosicek, Investor Relations, Austrian Airlines AG, Tel.: +43 (0)5 1766 - 13311, Fax: +43 (0)5 1766 13899, e-mail: prisca.havranek- kosicek@austrian.com
Die Angaben zur Offenlegung gemäß §§ 24 und 25 Mediengesetz sind unter
www.austrian.com auffindbar / Please find further information concerning the disclosure according to §§ 24 and 25 Media Act on www.austrian.com
end of announcement euro adhoc
Further inquiry note:
Corporate Communications:
Livia Dandrea-Böhm
Tel.: 051766-11231
Investor Relations
Dr. Prisca Havranek-Kosicek
Tel.: 051766 - 13311
Branche: Air Transport
ISIN: AT0000620158
WKN: 875224
Index: WBI, ATX Prime
Börsen: Wiener Börse AG / official market