Austrian Airlines

euro adhoc: Austrian Airlines AG
quarterly or semiannual financial statement / Challenging competitive environment and extremely high kerosene price burden result

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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."

@@start.t2@@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 aircraft

Rückfragehinweis / 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-

Die Angaben  zur  Offenlegung  gemäß  §§  24  und  25  Mediengesetz  sind  unter@@end@@ auffindbar / Please find  further  information   concerning  the disclosure according to §§ 24 and 25 Media Act on

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ots Originaltext: Austrian Airlines
Im Internet recherchierbar:

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

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