euro adhoc: Austrian Airlines AG
other
Difficult global business environment
leaves its marks on Q3
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quaterly report
28.10.2008
Result of the Austrian Airlines Group, January to September 2008
Austrian CEO, Alfred Oetsch commenting on the result: "The difficult business environment encountered in the first half-year 2008 once again deteriorated. The high level of economic uncertainty as well as the financial and banking crisis are intensifying the incipient economic downturn. The positive effects of declining fuel prices are partially offset by the stronger US dollar. We can build upon our successful strategic positioning despite these major challenges. In our core Focus East markets, we offer a strong network of destinations in countries posting disproportionately high growth rates. The geographical location of the Vienna hub provides us with significant cost and quality advantages for transfers to the East. The current financial market crisis, the economic slowdown which has had an increasingly negative impact on flight demand, as well as ongoing high fuel prices, which reached a record level of USD over 140/barrel during the summer months despite the steep price decline in the meantime, make 2008 an extremely challenging financial year. Due to these external influencing factors, the strong performance of Q3 2007 could not be matched in the year 2008. EBIT in the third quarter of 2008 amounted to EUR - 9.4m, down from EUR 42.7m in Q3 2007. The net result for the first three quarters 2008 also declined to EUR -65.1m. Despite the difficult business environment, the expansion of short- and medium-haul route capacity by +4.0% in the first three quarters of 2008, measured in available seat kilometres (ASK), was well implemented in many regions. This is confirmed by an increase in revenue per passenger kilometre (RPK +4.6%), accompanied by a corresponding rise in the passenger load factor.
As the situation stands at present, we anticipate that the fourth quarter of the 2008 financial year will be characterized by an abrupt slump in demand, negative effects from fuel hedging and the increase in value of the US dollar. The economic downturn has already led to a decline in flight bookings. The new revenue forecast through the end of the fiscal year indicated that the previous guidance could no longer be upheld. As announced on October 16, 2008 the expected sales-related revenue losses are higher than the relief in the area of fuel costs, meaning a net loss of EUR 100m to EUR 125m before special effects can be expected for the 2008 fiscal year.
In the current privatization process, no decision was taken yet for the sale of the OIAG stake in Austrian Airlines. The Supervisory Board of the OIAG has requested an extension of privatization mandate. We have described the situation for the company and we are confident that the privatization process can be finished in a positive way. Measures which would have to be implemented
in case of a failure, will not be initiated yet, because the chance for a successful privatization is still there and cut-backs could have counterproductive effects."
Overview of Result January to September 2008
|Key Figures | |1-9 / 2008|+/- % py |7-9 / 2008 |+/- % py | |Revenue |EURm. |1,891.9 |- |697.2 |1.4 | |EBITDAR1,2 |EURm. |212.8 |-32.5 |73.9 |-43.1 | |EBITDAR1,2 adjusted3 |EURm. |232.3 |-26.0 |74.5 |-45.4 | |Result from operating
activities (EBIT)2 |EURm. |-34.0 |- |-9.4 |- | |Result from operating activities (EBIT)2
adjusted3 |EURm. |-14.5 |- |-8.8 |- | |Net result for the period |EURm. |-65.1 |- |-16.4 |- | |Cash flow from operating activities |EURm. |170.3 |-32.6 |31.6 |-48.2 | |Net Gearing |% |135.4 |- |- |- | |Earnings per share |EUR |-0.77 |- |-0.20 |- | |CVA |EURm. |-158.0 |- |-46.1 |- | |Passengers carried (total) | |8,380,039 |0.2 |3,163,354 |-3.1 | |Passenger load factor (scheduled service) |% |75.0 |-0.5P. |77.6 |-0.5P. | |Employees (end of period) | |8,036 |0.7 |- |- |
1 Result from operating activities (EBIT) before associates, 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 related 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
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