euro adhoc: Austrian Airlines AG
Quarterly or Semiannual Financial
Statements
Continuing challenging conditions have negative effect
on result
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
27.04.2005
Group unlikely to achieve annual forecast due to market conditions
Quarterly Result of the Austrian Airlines Group (January to March 2005)
The first quarter of 2005 featured weakness in the load factor, overcapacity in the market and extremely high fuel costs (marked by spikes of up to US$ 600 per tonne). These negative conditions led to a situation whereby the passenger load factor on scheduled services fell by 2.7 percentage points to 68.0 % compared to the same period the previous year. Transport performance on scheduled and charter services fell by 3.9 % to 1.86 million passengers carried.
Compared to last year, the adjusted EBIT fell from EUR -27.7m to EUR -64.0m. The EBIT fell from EUR -40.7m to EUR -73.6m. Profit before tax was EUR -81.0m, compared to EUR -47.6m the previous year (adjusted figure EUR -74.5m, following EUR -34.9m in Q1 2004).
Vagn Soerensen, the Chief Executive Officer of the Austrian Airlines Group, issued the following comment on the quarterly result: We reacted rapidly to the fall in demand and reduced our planned growth. Although our marketing measures, which have included subsidising transfer charges, introducing the silverticket - upgrade to business to stabilise Business Class load factors and global sales offensives have had a positive impact, it has proved impossible to compensate entirely for external market factors.
Consequently, as the situation stands at present, it will not be possible to meet the demands of our annual forecast to date (to improve on the adjusted EBIT for 2004 of EUR 10 million). As a result of the existing framework conditions - fuel prices and overcapacity in particular - we expect to see a negative adjusted EBIT for the full year of 2005.
We will continue to build upon our strategy of specialisation as the dominant player in the market for services to Central and Eastern Europe with a dense network of long-haul connections to Asia and Australia. The successful future of the Austrian Airlines Group lies in this niche market."
Financial Result for First Quarter 2005
~ Key Business Indicators Unit 1-3/2005 1-3/2004 +/- % Revenue EURm 462.5 471.0 -1.8 Operating revenue EURm 469.7 464.7 1.1 Operating expenses EURm -543.3 -505.4 -7.5 EBITDAR EURm -5.0 16.3 - EBITDAR adjusted 1 EURm 4.6 42.4 -89.2 EBIT EURm -73.6 -40.7 -80.8 EBIT adjusted 2 EURm -64.0 -27.7 - Profit before tax EURm -81.0 -47.6 -70.2 Profit before tax adjusted 2 EURm -74.5 -34.9 - Profit after tax EURm -81.0 -47.6 -70.2 Profit after tax adjusted 3 EURm -74.5 -34.9 - Cash flows from operating activities EURm 9.1 61.0 -85.1 Net loss for the period EURm -80.8 -47.9 -68.7 Financial result EURm -7.4 -6.9 -7.2 Passengers carried on scheduled and charter services 1,863,639 1,940,271 -3.9 Passenger load factor (scheduled services) % 68.0 70.7 -2.7 P. Cargo Tonnes 34,607 33,057 4.7 ~
1 Adjusted for profits/losses from the disposal of assets and for exchange rate valuations at the reporting date. 2 Adjusted for profits from the disposal of assets, exchange rate valuations at the reporting date and revaluations of aircraft. 3 Adjusted for profits/losses from the disposal of assets, exchange rate valuations at the reporting date, revaluations of aircraft and changes in corporate tax rates.
end of announcement euro adhoc 27.04.2005 07:28:56
Further inquiry note:
Konzernkommunikation:
Johannes Davoras
Johann Jurceka
Tel.: 051766-1231
Investor Relations
Dr. Prisca Havranek-Kosicek
Tel.: 051766 - 3642
Branche: Air Transport
ISIN: AT0000620158
WKN: 062015
Index: WBI, ATX Prime, ATX
Börsen: Wiener Börse AG / official dealing