11.12.2003 – 08:40

Austrian Airlines

euro adhoc: Austrian Airlines AG
Strong Finish to Year Results in EBIT Plus of EUR 15 Million (E)

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Forecast result 2003 / Forecast 2004

The projection for the 2003 financial year of Austrian Airlines
Group, as presented to the Supervisory Board on 10 December 2003, has
forecast a positive result of around EUR 15 million. This renewed
success is based upon the consistent cost reduction and improvement
of overall efficiency, increasingly strong load factors since
September based on a series of innovation offensives as well as
positive currency management. Introduced in the autumn of 2003, the
new product features a new, simplified and highly competitive pricing
system, an expanded flight programme in the direction of Eastern and
Central Europe and a modernised line of services. It was well
accepted by the market and combined with the above-mentioned effects
produced the change in trend.

"For the aviation industry, 2003 was characterised by numerous crises
and was extremely difficult overall. We didn’t allow ourselves to be
paralysed by the Iraq war or SARS outbreak. We reacted at speed in
order to conceive and implement a range of innovations by the
beginning of the second half-year. Through early counter-management
on the costs and capacity side, and based on the implementation of
our new marketing mix, we succeeded in turning round the result from
autumn onwards with a strong finish to the year," was the analysis of
Chief Executive Officer Vagn Soerensen, who went on to say: "Although
with 8.5 million passengers we are slightly down on our figures for
the previous year (8.8 million passengers), we will presumably be
able to increase our average load factor for the year on scheduled
services from 70.5 % to more than 71 %. To summarise: already in the
fourth quarter of 2003 the Group was regaining significant strength
and is in a markedly stronger position than a number of our industry
competitors."

Outlook to 2004
For the financial year 2004, the Austrian Airlines Group is
forecasting a result from operating activities (EBIT) of plus EUR 50
million. For 2004 hedging measures have been set for approximately 40
% of the annual demand of jetfuel. At approximately 9.4 million
people, the Group plans to increase the number of passengers carried
by 10.9 %. Expansion of the Group’s long-range services and on its
routes feeding into Central and Eastern Europe will make the most
significant contributions to this rise. Around 60 new frequencies to
Central and Eastern Europe will be added from the beginning of the
2004 summer schedule, while direct flights will operate from
Bratislava to Brussels, Paris and London from May onwards and new
long-range services to Almaty, Shanghai and Singapore are planned to
begin on a stepped basis between March and June 2004.

end of announcement        euro adhoc 11.12.2003

Further inquiry note:

Konzernkommunikation:
Johannes Davoras
Johann Jurceka
Tel.: 051766-1231

Investor Relations
Karl Knezourek
Tel.: 051766 - 3328

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