Austrian Airlines achieved an operating profit

Austrian Airlines achieved an operating profit of plus 31.6 million Euro in the 3rd Quarter of 2011, thereby improving its result by 30 percent (3rd Quarter of 2010: 24.3 million Euro). Cumulatively, this means an operating loss of ?31.5 million Euro for the first nine months of 2011. This is the equivalent of an improvement of 29 percent compared to the previous year ?(1-9/2010: minus 44.4 million Euro). The EBITDA fell by 10.8 percent to ?104.1 million Euro (1-9/2010: 116.7 million Euro). Total operating income in the first nine months of 2011 rose by 1.8 percent to 1,648.1 million Euro compared to last year (1-9/2010: 1,619.4 million Euro).

“We have improved the result from last year in the first nine months of this year despite the crises in Japan and the Middle East, higher oil price and the initial effects of the second financial crisis and we have developed against the wider trend throughout the aviation industry,” said Peter Malanik and Andreas Bierwirth from the Austrian Airlines Executive Board. “We will not achieve our original goal for this year – a positive operating result. We will also feel growing uncertainty on the part of customers due to the financial crisis.”

For the winter of 2011/2012, Austrian Airlines is expecting to see an increasingly difficult economic environment. As a result, it will be expanding its capacity in the winter schedule, measured in Available Seat Kilometres (ASK), less strongly than originally planned, increasing the figure by around 3 percent on last year.

Positioning relative to competition: more flights to CEE
Austrian Airlines is reacting to the changed competitive situation at the Vienna location and reorienting its capacities: as of 14 November, it will be taking two destinations in Western Europe – Helsinki and Milan Linate – out of its programme (Austrian Airlines will now be concentrating all its traffic to Milan on the city’s Malpensa Airport). This move will create the space to increase the number of flights on strategically important routes in CEE in the summer of 2012. This applies first and foremost to Belgrade, Sofia and Bucharest. Austrian Airlines is also temporarily ceasing flights to Damascus for winter 2011/12 due to the uncertain situation there at present.

The Austrian Airlines Executive Board, Peter Malanik and Andreas Bierwirth, said the following: “We are sending a clear signal to the market, and confronting the competition. We want to consolidate our position as the leading hub into CEE.”

Austrian Airlines is also continuing to invest in improvements to the quality of its product: During the current business year, the company has converted the 32 aircraft of the medium-haul fleet – the Airbus A320 family and Boeing 737 – to a new interior design featuring the new, innovative Europa seats. In the winter of 2012/2013, the ten aircraft of the long-haul fleet will also be given a modern interior design with highly modern seats. The company is investing a figure running into a three-digit-million Euro amount in this project.

Outstanding Quality
The quality focus of Austrian Airlines was recognised this year when the company won two awards at the World Airline Awards: “Best Business Class Catering” and “Staff Service Excellence Europe”. In addition to this, Austrian Airlines took first place worldwide in the “Best Business Class” category of the customer survey of German travel magazine Reise & Preise, and third place in the judging of “Best Airline in Europe”.

This quality also includes, most importantly of all, punctuality: Austrian Airlines is one of the most punctual airlines in Europe. In the months from January to September of this year, the airline was once again amongst the leading players in the 25 member airlines of the AEA (Association of European Airlines): with a level of departure punctuality of 88.5 percent and arrival punctuality of 87.5 percent, the figures of Austrian Airlines were above the AEA average.

Staff numbers
The staff numbers at Austrian Airlines AG including its fully-consolidated subsidiaries on 30 September 2011 stood at 6,836 employees (30 September 2010: 7,060 employees. Note: in the first quarter of 2011, Austrian Airlines began indicating its staff numbers in terms of “employees”, instead of “full-time posts” as before, so taking over the Lufthansa reporting method).

Traffic numbers
In the period from January to September 2011, passenger numbers stood at a total of around 8.6 million, or 2.5 percent above the level for last year. Capacity measured in Available Seat Kilometres (ASK) rose by 5 percent, while demand measured in Revenue Passenger Kilometres (RPK) rose by 0.7 percent.

In the Scheduled segment, the number of passengers carried in the period from January to September 2011 rose by 3.5 percent to around 8 million passengers. In the Europe business segment, Austrian Airlines carried around 6.7 million passengers, 4.5 percent more than last year. The load factor rose by 0.2 percentage points to 72 percent. ASK rose by 4.6 percent, and RPK by 5 percent.

In the Intercontinental business segment, Austrian Airlines carried around ?1.3 million passengers in the period January to September 2011, or ?1.2 percent fewer than last year. The load factor fell by 6 percentage points to 75.6 percent. The consequences of the crises in Japan and the Middle East are recognisable in this segment. Austrian Airlines increased its ASK by 8.7 percent. The RPK rose by 0.7 percent.

In the Charter segment, Austrian Airlines reduced its ASK by 14.8 percent due to the capacity restrictions of the EU. The number of passengers carried fell by 10.6 percent to 575,700 passengers. The load factor fell by 3.1 percentage points to 77.4 percent. RPK fell by 18.1 percent.

Austrian Airlines
Austrian Airlines is Austria’s largest carrier and operates a global route network of round 130 destinations. In Central and Eastern Europe, the route network is particularly dense: With 46 destinations Austrian Airlines is the market leader throughout the region. Thanks to its favourable geographical location at the heart of Europe, the company’s hub at Vienna International Airport is the ideal gateway between East and West. Austrian Airlines is part of the Lufthansa Group, Europe’s largest airline group, and a member of the Star Alliance, the first global alliance of international airlines.