Austrian Airlines

euro adhoc: Austrian Airlines AG
Project launched to evaluate strategic options Positive net result not achievable in 2008 due to extremely high kerosene price

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At the Extraordinary Meeting of  the  Supervisory  Board  on  9  June 2008  the Management Board has presented and the  Supervisory  Board has  acknowledged  a project to determine the additional result potentials that could be produced  by internal optimisation and extra potentials  of  a  strategic  partnership.  The project is being carried out by the Board of Management of the company with  the support of the Boston Consulting Group (BCG). It will  produce   initial  interim results at the end of July and a detailed recommendation over  what  action  the owners should take by the end of September. Evaluation of the  possible  effects on the result is based on the current situation of the Austrian Airlines  Group, which is under strain due to the high price of kerosene.

The  additional  costs  produced  by  the  extremely  high  kerosene price  and associated difficult peripheral conditions  are  currently shaping  the  entire airline industry, which has adjusted  its   expectations  for  the  current  year significantly downwards.

In preparation for the Meeting of the Supervisory Board, Austrian   Airlines  has carried out new forecasts based on the dramatic increase in the  kerosene  price in recent weeks. Based on the current price of kerosene and the level of the  US dollar, the Austrian Airlines Group calculates that  its  additional  costs  for kerosene will reach EUR 130 million this year. Austrian  Airlines   expects  that due to the introduced countermeasures these costs  will not  fully  affect  the result and therefore expects that its net result for  the  financial  year  2008 will be within a bandwidth of between EUR -70 million and EUR -90  million.  The outlook for the financial year 2009  is  strongly  dependent  on  the  trend  in kerosene prices. While we do not believe that the oil price is likely to  remain at levels of US$ 130 or more per barrel in the medium term, it is  difficult  to estimate when prices will  begin  falling again  as  the  situation  stands  at present. Due to the current situation in the  industry  the  previous  forecasts for 2009 are outdated. It will  not  be  possible  to  produce  reliable  result forecasts for 2009 and subsequent  years  before  the  results  of   the  project become available.

For further information: Investor Relations, Dr. Prisca Havranek-Kosicek, 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 auffindbar / Please find  further   information  concerning  the disclosure according to §§ 24 and 25 Media Act on

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ots Originaltext: Austrian Airlines
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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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