euro adhoc: Austrian Airlines AG / quarterly or semiannual financial statement / Qualitative growth and high service quality key factors in successful improvement of result

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Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
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25.07.2006

Financial result of the Austrian Airlines Group, January to June 2006

Commenting on the Austrian Airlines Group’s results for the first
half-year of 2006, Alfred Ötsch, Chief Executive Officer of the Board
of Management of the Austrian Airlines Group, made the following
statement: ‘The continued expansion of our market leadership in
Eastern Europe in the first half-year has enabled us to achieve
respectable, usually double-digit, levels of traffic growth, build
market share gains and generate over 70% of the passenger growth at
Vienna Airport. We have improved our adjusted EBIT by EUR 16.3m to
EUR -47.8m compared to last year, despite having had to overcome an
increase in kerosene expenditure of EUR 72 million. Had kerosene
prices remained at last year’s level, we would actually have seen a
substantial improvement in our result. As the second half of 2006 is
likely to be dominated by factors including continued high kerosene
prices that exceed our budgetary assumptions (already set high as a
precautionary measure) and because of the negative consequences of
the capacity bottlenecks that have emerged at Austrian air traffic
control since spring, it has become necessary to correct our forecast
result for the year as a whole. It will probably not be possible to
achieve a balanced adjusted EBIT. Depending on the political and
economic framework conditions, the annual result will prospectively
be better than the previous year.’

Half-Yearly Result - Summary

Key indicators 4-6/2006 +/- % 1-6/2006 +/- %
Revenue EURm 676.0 9.9 1,222.8 13.5
EBITDAR adjusted1 EURm 88.2 -7.4 126.9 7.3
EBITDAR EURm 94.3 24.4 138.7 53.9
EBIT adjusted2 EURm 6.1 - -47.8 25.4
EBIT EURm 9.1 - -41.0 55.6
Loss before tax EURm -3.3 50.7 -71.0 15.0
adjusted2
Loss before tax EURm -3.9 82.8 -59.5 43.4
Cash flow from EURm 146.3 -5.3 195.1 9.7
operating activities
Total passengers Passengers 2,870,620 +8.8 4,990,640 10.8
carried
Passenger load factor % 71.9 0.0P. 72.1 2.1P.
(scheduled services)

Footnotes - Legend of Table

1 Adjusted for profits / losses from the disposal of assets and
exchange rate valuations at the reporting date.

2 Adjusted for profits / losses from the disposal of assets, exchange
rate valuations at the reporting date and revaluations of aircraft.

end of announcement euro adhoc 25.07.2006 07:09:11
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ots Originaltext: Austrian Airlines
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Further inquiry note:
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Tel.: 051766-1231

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Branche: Air Transport
ISIN: AT0000620158
WKN: 875224
Index: WBI, ATX Prime, ATX
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