EANS-Adhoc: Austrian Airlines AG / Global economic crisis brings slump in demand and decline in revenue

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Result of the Austrian Airlines Group, Q1 2009

Dr. Andreas Bierwirth, member of the Austrian Executive Board, said the following about the first quarter of 2009: "The world economic crisis, recession in Europe and the most serious economic downturn seen in the post-war period in Austria have all ensured that the start to the 2009 financial year has been difficult in the extreme.
Meanwhile many countries in Central and Eastern Europe have also been affected by the crisis, which has led to a temporary reduction in traffic flows of crucial importance to us. However, we are anxious to maintain the network by operating smaller aircraft. In the Middle East, meanwhile, growth is continuing despite the crisis. The corrections necessary in this region have been relatively minor. In the summer months, for instance, we now offer just one, rather than two, flights a day to Dubai, and we now fly to Tel Aviv using an A321 instead of a Boeing 767. Should the general downward trend continue over the course of the coming year, however, we are prepared. Further capacity adjustments would be evaluated on a step-by-step basis, and would be implemented taking into consideration the transfer flows of importance to the company."

Furthermore Dr. Bierwirth summed up the result for the first quarter of 2009:
"Due to the industry-wide slump in demand, flight revenue fell by 17% to EUR 415.3 million in the first three months of this year. Our EBIT in the first quarter stood at EUR -77.0 million, compared to EUR -52.8 million the previous year. The reduction in fuel costs was only able to compensate for the slump in demand to a partial extent. The result for the quarter from January to March fell by EUR -27.7 million, to EUR -88.1 million."
Dr. Peter Malanik, member of the Austrian Executive Board continued: "In light of the drastic nature of framework conditions, we introduced a range of measures at the beginning of this year in an effort to compensate for the expected decline in revenue and counteract the crisis. We have set ourselves the goal of making total cost savings in the order of EUR 225 million. We have already succeeded in implementing numerous packages of measures, beginning with production cutbacks, through to internal optimization measures as well as Group-wide measures impacting personnel such as short-time working, temporary deferments in compensation and suspension of pension fund contributions. We have also been involved in negotiations with system partners such as Flughafen Wien AG, with whome we agreed on more competitive framework conditions. The cut in the security charge for transfer passengers at Vienna Airport also has the potential to provide us with cost savings."
Dr. Malanik also made following statement on the status of the privatisation:
"The privatisation is going ahead as planned. We have examined the takeover offer published by Lufthansa in detail, and are recommending to shareholders in Austrian Airlines AG that they accept that offer. The Supervisory Board has agreed with our recommendation. The essential prerequisite for final performance of the contracts is that Lufthansa control over 75% of the shares in Austrian Airlines by the end of the normal acceptance period of the public

takeover offer. It is also necessary for us to gain the approval of the European Commission under Competition and State Aid Law. We are confident of achieving closing by mid-2009." Overview of Financial Result, first Quarter 2009 |Key indicators | |1-3 /2009 |1-3 / 2008|+/- % PY | |Revenue |EURm |438.8 |525.3 |-16.5 | |EBITDAR1,2 |EURm |-8.2 |26.8 |- | |EBITDAR1,2 adjusted3 |EURm |-1.5 |34.7 |- | |Result from operating activities |(EBIT)2 EURm |-77.0 |-52.8 |-45.8 | |Result from operating activities |(EBIT)2 adjusted3 EURm |-70.3 |-44.9 |-56.6 | |Net result for the period |EURm |-88.1 |-60.4 |-45.9 | |Cash flow from operating |activities EURm |-13.8 |43.8 |- | |Net gearing |% |527.3 |135.3 |- | |Passengers carried (scheduled & |charter) passengers|1,942,391 |2,299,382 |-15.5 | |Passenger load factor (scheduled |services) % |67.8 |71.8 |-4.0P | |Employees (end of period) | |7,681 |7,842 |-2.1 |

1 Result from operating activities (EBIT) before associates, before depreciation and rentals
2 The expected income from plan assets was reclassified 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

Please find further information concerning the disclosure according to §§ 24 and 25 Media Act on www.austrian.com

end of announcement euro adhoc

emitter: Austrian Airlines AG Office Park 2 Postfach 100 A-1300 Wien-Flughafen phone: +43 (0)5 1766 1 FAX: +43 (0)1 688 55 05 mail: livia.dandrea-boehm@aua.com WWW: http://www.aua.com sector: Air Transport ISIN: AT0000620158 indexes: WBI, ATX Prime stockmarkets: official market: Wiener Börse AG language: English

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