EANS-Adhoc: Austrian Airlines AG
Extreme fuel prices, financial crisis and
slump in demand due to global downturn put strain on Annual Result 2008
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
annual report
13.03.2009
Annual Result of the Austrian Airlines Group for Financial Year 2008
Summarising the position of the company over the past twelve months, Dr. Peter Malanik, member of the Austrian Executive Board today made the following statement: "2008 was an extraordinarily difficult year for the Austrian Airlines Group. While our prospects gave us good reason to be optimistic in the early months of the year, the situation worsened rapidly due to the extremly high price of fuel, which was quickly followed by a dramatic fall in the volume of bookings due to the world financial and economic crisis. With the signature of the contracts governing the sale to Deutsche Lufthansa AG of ÖIAG's 41.56% share in Austrian Airlines AG on 5 December 2008, an important step was taken towards ensuring the long-term future of the Austrian Airlines Group. The transaction remains subject to approval in accordance with the Competition and Funding Guidelines of the European Commission."
Dr. Andreas Bierwirth, member of the Austrian Executive Board said the following about the Annual Result 2008: "The business trend of the Austrian Airlines Group was decisively shaped in 2008 by the markedly negative economic environment around the world. Cripplingly high fuel prices and rapidly falling demand for flights due to the economic slump had an unmistakable impact on our result from the fourth quarter onwards. Despite this challenging economic environment, we have stuck consistently to our Focus East strategy, continuing to expand our key markets in Central and Eastern Europe and the Middle East, introducing the innovative Premium Service into the Middle East, and implementing numerous improvements in our quality and service. In this way, we have succeeded in holding passenger volume relatively stable at 10.7 million passengers carried despite the challenging economic environment, ensuring that flight revenue, at EUR 2,361.0 million, was only slightly down on the previous year. Despite this, a number of factors - most notably the 31.5% jump in fuel expenditure -produced a fall in our EBIT from operating activities, to EUR -312.1 million. The EBIT adjusted for one-off effects stood at EUR -35.2 million, again below last year's figure. One-off effects not having an effect on payment, the majority of which were based on depreciation of aircraft, produced a significant burden totalling EUR 334.4 million. Consequently, the Group recorded an annual result after taxes of EUR - 429.5 million."
The two men went on to remark: "Even before the magnitude of the present crisis became clear, we realised that countermeasures of an operational nature would not be sufficient. This is why we put together the most fundamental change in strategy the company has seen in recent decades, and recommended to our majority shareholder ÖIAG that a privatisation process be instigated, and that the company be sold to a strategic partner."
An Overview of the Annual Result 2008
|Key Indicators | |2008 |2007 |+/- abs. |+/- % | | | |adjusted |
|Operating revenue |EURm |2,530.6 |2,550.9 |-20.3 |-0.8 | |Operating expenses |EURm |-2,842.7 |-2,508.8 |-333.9 |-13.3 | |EBITDAR |EURm |256.9 |389.7 |-132.8 |-34.1 | |EBITDAR adjusted1 |EURm |295.4 |403.2 |-107.8 |-26.7 | |Operating result2 (EBIT) |EURm |-312.1 |42.1 |-354.2 |- | |Operating result2 (EBIT) adjusted3 |EURm |-35.2 |55.7 |-90.9 |- | |Financial result |EURm |-32.5 |-53.2 |20.7 |38.9 | |Result before tax |EURm |-334.4 |2.8 |-337.2 |- | |Result before tax adjusted3|EURm |-77.7 |11.0 |-88.7 |- | |Net result |EURm |-429.5 |3.3 |-432.8 |- | |Net result for the year adjusted 4 |EURm |-76.8 |11.5 |-88.3 |- | |Net cash from operating activities |EURm |171.1 |276.7 |-105.6 |-38.2 | |Net gearing |% |365.0 |125.0 | | | |Equity ratio |% |11.7 |27.7 | | | |Passengers carried total (millions) |Passengers |10.7 |10.8 | |-1.1 | |Passenger load factor (scheduled services) |% |74.4 |75.1 | |-0.7 P | |Cargo |Tons |142,624 |149,535 | |-4.6 |
1) Adjusted by the gains/losses resulting from the disposal of assets, other costs arising from the transfer of aircraft and foreign currency adjustments at the balance sheet date. 2) Before inclusion of associated companies. 3) Adjusted by the gains/losses resulting from the disposal of assets, other costs arising from the transfer of aircraft and foreign currency adjustments at
the balance sheet date, as well as impairment gains or losses in connection with the valuation of aircraft. 4) Adjusted by the gains/losses resulting from the disposal of assets, other costs arising from the transfer of aircraft and foreign currency adjustments at the balance sheet date, as well as impairment gains or losses in connection with the valuation of aircraft and depreciation of deferred taxes.
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 Communictions:
Livia Dandrea-Böhm
Tel.: 051766-11231
Investor Relations
Thomas Krammer
Tel.: 051766-13311
Branche: Air Transport
ISIN: AT0000620158
WKN: 875224
Index: WBI, ATX Prime
Börsen: Wiener Börse AG / official market