EANS-Adhoc: Austrian Airlines AG / Global economic crisis brings slump in demand and decline in revenue

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quaterly report

05.05.2009

Result of the Austrian Airlines Group, Q1 2009

Dr. Andreas Bierwirth, member of the Austrian Executive Board,
said the following about the first quarter of 2009: "The
world economic crisis, recession in Europe and the most serious
economic downturn seen in the post-war period in Austria have all
ensured that the start to the 2009 financial year has been
difficult in the extreme. Meanwhile many countries in Central and
Eastern Europe have also been affected by the crisis, which has led
to a temporary reduction in traffic flows of crucial
importance to us. However, we are anxious to maintain the network
by operating smaller aircraft. In the Middle East, meanwhile, growth
is continuing despite the crisis. The corrections necessary in
this region have been relatively minor. In the summer months, for
instance, we now offer just one, rather than two, flights a day
to Dubai, and we now fly to Tel Aviv using an A321 instead of a
Boeing 767. Should the general downward trend continue over the
course of the coming year, however, we are prepared. Further
capacity adjustments would be evaluated on a step-by-step
basis, and would be implemented taking into consideration the
transfer flows of importance to the company."

Furthermore Dr. Bierwirth summed up the result for the first quarter
of 2009: "Due to the industry-wide slump in demand, flight revenue
fell by 17% to EUR 415.3 million in the first three months of
this year. Our EBIT in the first quarter stood at EUR -77.0
million, compared to EUR -52.8 million the previous year. The
reduction in fuel costs was only able to compensate for the slump
in demand to a partial extent. The result for the quarter from
January to March fell by EUR -27.7 million, to EUR -88.1 million."
Dr. Peter Malanik, member of the Austrian Executive Board continued:
"In light of the drastic nature of framework conditions, we
introduced a range of measures at the beginning of this year in
an effort to compensate for the expected decline in revenue and
counteract the crisis. We have set ourselves the goal of making
total cost savings in the order of EUR 225 million. We have already
succeeded in implementing numerous packages of measures, beginning
with production cutbacks, through to internal optimization measures
as well as Group- wide measures impacting personnel such as
short-time working, temporary deferments in compensation and
suspension of pension fund contributions. We have also been
involved in negotiations with system partners such as Flughafen
Wien AG, with whome we agreed on more competitive framework
conditions. The cut in the security charge for transfer passengers
at Vienna Airport also has the potential to provide us with cost
savings." Dr. Malanik also made following statement on the status of
the privatisation: "The privatisation is going ahead as planned. We
have examined the takeover offer published by Lufthansa in detail,
and are recommending to shareholders in Austrian Airlines AG that
they accept that offer. The Supervisory Board has agreed with
our recommendation. The essential prerequisite for final
performance of the contracts is that Lufthansa control over 75% of
the shares in Austrian Airlines by the end of the normal acceptance
period of the public

takeover offer. It is also necessary for us to gain the approval of the
European Commission under Competition and State Aid Law. We are confident of
achieving closing by mid-2009."

Overview of Financial Result, first Quarter 2009

|Key indicators | |1-3 /2009 |1-3 / 2008|+/- % PY |
|Revenue |EURm |438.8 |525.3 |-16.5 |
|EBITDAR1,2 |EURm |-8.2 |26.8 |- |
|EBITDAR1,2 adjusted3 |EURm |-1.5 |34.7 |- |
|Result from operating activities
|(EBIT)2 EURm |-77.0 |-52.8 |-45.8 |
|Result from operating activities
|(EBIT)2 adjusted3 EURm |-70.3 |-44.9 |-56.6 |
|Net result for the period |EURm |-88.1 |-60.4 |-45.9 |
|Cash flow from operating
|activities EURm |-13.8 |43.8 |- |
|Net gearing |% |527.3 |135.3 |- |
|Passengers carried (scheduled &
|charter) passengers|1,942,391 |2,299,382 |-15.5 |
|Passenger load factor (scheduled
|services) % |67.8 |71.8 |-4.0P |
|Employees (end of period) | |7,681 |7,842 |-2.1 |

1 Result from operating activities (EBIT) before associates, before
depreciation and rentals 2 The expected income from plan assets was
reclassified from personnel expenses to financial expenses. 3
Adjusted by the result from the disposal of assets, other costs of
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
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ots Originaltext: Austrian Airlines
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Austrian Airlines AG

Corporate Communications

Patricia Strampfer

+43/5/1766-11231

Austrian Airlines AG

Investor Relations

Thomas Krammer

+43/5/1766-13311

Branche: Air Transport
ISIN: AT0000620158
WKN: 875224
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