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29.10.2009
• Net result for the period amounts to EUR - 242.3m
• Earnings burdened by impairment losses on aircraft and restructuring
provisions totaling EUR 191.6m
• Adjusted EBIT of EUR 24m generated in the third quarter, outperforming
previous year for the first time
• Restructuring measures begin to take hold, but much work remains to be
done
The crisis of the international aviation industry has left its imprint on theearnings figures of the Austrian Airlines Group in 2009. In the first three
quarters of the year, Austrian Airlines posted a net result for the period of
EUR - 242.3m, compared to EUR -42 m in the first nine months of 2008. The
business results contain extraordinary items with a major impact on earnings,
i.e. impairment losses on aircraft totaling EUR -76.1m, and restructuring
provisions of EUR -115.5m. The adjusted result from operating activities (EBIT)
during the period January-September 2009 amounted to EUR -64.4m, down from EUR
-22.5m in the comparable period of the previous year. However, Austrian
Airlines posted an improvement in the third quarter, generating an adjusted
EBIT of EUR 24m, outperforming Q3 2008 (EBIT of EUR -0.3m) and achieving the
first positive operating results in the current financial year.
"The measures being implemented are beginning to take hold. Our performance
figures for the third quarter improved when adjusted for the extraordinary
items," according to the Austrian Airlines Management Board members Peter
Malanik and Andreas Bierwirth: "However, we should not fool ourselves. The
crisis is brutally manifesting itself. The earnings figures relentlessly show
our weaknesses. They demonstrate that we still have a lot of work ahead of us
in order to be able to successfully restructure the company and make it
profitable."
Austrian Airlines is implementing a comprehensive restructuring concept
entitled "Austrian Next Generation." The concept has three cornerstones:
1. New market and fleet strategy: Austrian Airlines will remain a network
carrier and maintain its strong position in Eastern Europe. We will
continue to serve our niche markets in Eastern Europe, but will
concentrate more on expanding service to volume markets with high
passenger traffic. We want to gain additional market share in these volume
markets in Western and Eastern Europe by offering high quality service at
attractive prices. In order to achieve this, it will be essential to
significantly reduce our unit costs. This will be achieved by deploying
larger aircraft, making adjustments to our route network and increasing
the number of seats in our aircraft.
2. Cost reductions: We will increase our overall competitiveness by massively
cutting costs. We will create new processes and streamline the company.
The total workforce will be cut from 7,500 full-time employees down to a
level approaching 6,000 people by the end of 2010. We will also reduce
prices charged by our suppliers. We are implementing the EUR 150m package
of measures as the basis for pruning personnel expenses. Moreover, we will
negotiate with the Works Council to reform collective wage agreements in
order to raise productivity.
3. Synergies with Lufthansa: We will work with affiliated companies of the
Lufthansa Group to exploit synergies. For example, we will merge our sales
offices abroad with those of Lufthansa. We are also developing a similar
concept for our ground operations. We will take advantage of Lufthansa´s
sales tool and work closely with its procurement teams to increase our
purchasing power.Austrian Airlines aims to achieve a positive cash flow in 2010. In the upcoming
years we also want to generate a positive EBIT and thus be in a position to
earn the funds required to finance our capital expenditures.
"Developments over the past few months demonstrate that we are on the right
path, but we must continue to work determinedly. We have a good chance to
achieve our goals if we consistently implement our concept," say Management
Board members Bierwirth and Malanik.
Earnings figures at a glance:
|EURm |1-9/2009 |1-9/2008 |+/- % |7-9/2009 |7-9/2008 |+/- % |Revenue |1,492.30 |1,891.90 |-21.1 |557.7 |697.2 |-20 |Operating revenue |1,573.40 |1,941.00 |-18.9 |604.1 |714.8 |-15.5 |Operating expenses |1,798.80 |1,983.00 |-9.3 |667.9 |726.9 |-8.1 |EBITDAR ¹ ² |56.4 |204.8 |-72.5 |6.5 |71.2 |- |EBITDAR ¹ ² |adjusted ³ |141.3 |224.3 |-37 |92.5 |83 |11.4 |Result from |operating activities |(EBIT)² |-225.4 |-42 |- |-63.8 |-12.1 |- |Result from |operating activities |(EBIT)² adjusted³ |-64.4 |-22.5 |- |24 |-0.3 |- |Financial result |-30 |-24.9 |-20.5 |-15.4 |-6.1 |- |Result before tax |-254.6 |-56.7 |- |-77.4 |-16.4 |- |Net result for the |period |-242.3 |-65.1 |- |-75.7 |-16.4 |-
1 Results from operating activities (EBIT) before associates, 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 related
to the transfer of aircraft, foreign currency valuations at the reporting date
as well as impairment losses on the value of aircraft.
The detailed Austrian Airlines Group quarterly report (January-September 2009)
is available on our Website at:
http://www.austrianairlines.co.at/eng/Investor/reports/default.htm
Owner, editor, distributor: Austrian Airlines AG, Corporate Communications,
public.relations@austrian.com. Further information concerning the disclosure
pursuant to § 24 and § 25 Media Act is available at www.austrian.com.
Further inquiry note:
Austrian Airlines AG
Corporate Communications:
Martin Hehemann
Tel.: 05 1766-11231
Investor Relations:
Thomas Krammer
Tel.: 051766-13311
Ende der Mitteilung euro adhoc
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issuer: Austrian Airlines AG
Office Park 2 Postfach 100
A-1300 Wien-Flughafen
phone: +43 (0)5 1766-11231
FAX: +43 (0)1 688 55 05
mail: Patricia.strampfer@austrian.com
WWW: http://www.austrian.com
sector: Air Transport
ISIN: AT0000620158
indexes: WBI, Prime.marketstockmarkets: official market: Wien
language: English
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