Austrian Airlines – Everyone is looking forward to summer

Finance Results

• Adjusted EBIT in the first quarter of 2021 at EUR -106 million
• Decline in passengers of 84 percent compared to the first quarter of 2020
• CEO Alexis von Hoensbroech: “We still have sufficient altitude – planned travel easings are crucial for summer recovery”

Due to the ongoing Corona crisis and the consequently reduced flight schedule, Austrian Airlines recorded a passenger decline of 84 percent in the first quarter of 2021 compared to the same period of the previous year, during which the pandemic accelerated. Revenue at Austria’s home carrier consequently fell by 79 percent to 61 million euros (Q1 2020: 287 million euros). Efficient cost management reduced total expenses by 61 percent to 171 million euros in Q1 2021 (Q1 2020: 440 million euros). Adjusted earnings before interest and taxes (EBIT) amounted to -106 million euros after the first three months of the current year. Liquidity remains above business plan despite lower production, partly due to deferrals.

“The high infection rates in Europe, delays in the vaccination process and the associated global travel restrictions have left their mark, which is reflected in the first quarterly results of this year. We still have sufficient altitude – to keep it that way, planned travel easings must be implemented quickly. Then we will be able to take off again, as people in Austria finally want to travel again”, explains CEO Alexis von Hoensbroech.

Since the recovery of the aviation industry is progressing at a slower pace than predicted at the beginning of the crisis, Austrian Airlines continues to rely on many internal measures and consistent cost management. “Instruments such as the current short-time working model help us a lot in these times. An extension of short-time work until March 2022 for particularly hard-hit industries, such as ours, is essential”, explains Alexis von Hoensbroech.

The results in detail
Due to the ongoing Corona pandemic, Austrian Airlines’ revenue in Q1 2021 fell by 79 percent, compared to last year, to 61 million euros (Q1 2020: 287 million euros). Total revenue also fell by 79 percent to 65 million euros (Q1 2020: 304 million euros). Due to efficient cost management and short-time working, total expenses were reduced to 171 million euros, a decrease of 61 percent compared to the prior-year quarter (Q1 2020: 440 million euros). Adjusted EBIT, which excludes valuation gains/losses from aircraft sales/valuations, amounted to -106 million euros in the first quarter of the year. As of 31 March 2021, the domestic airline had 6,314 employees. The decrease of 629 people, about nine percent, was caused by natural attrition.

Passenger development and load factor
The passenger decline of 84 percent compared to the same quarter last year reflects the impact of the Corona-related travel restrictions on air traffic. As a result, Austrian Airlines carried a total of 308,000 passengers in the first quarter of 2021 (Q1 2020: 1.9 million). Capacity measured in available seat kilometers (ASK) had to be reduced by 82 percent to 0.8 billion (Q1 2020: 4.5 billion) The load factor of Austrian Airlines flights in the first quarter was at 52.6 percent (Q1 2020: 68.2 percent).

Network to be gradually solidified by summer
The red-white-red airline expects increased demand in the tourism sector in summer and is thus steadily adding to its services to vacation destinations and other regions. Until July, over 100 destinations are to be served. Certainly, any further developments are highly dependent on the progress of the pandemic and the associated travel guidelines.

“With our summer flight schedule, we are creating an attractive vacation offer for all Austrians. The main focus will be on Greece and Cyprus, but our hopes are also on Italy, Spain and Turkey”, says Austrian Airlines Chief Commercial Officer Michael Trestl.

Overview of Key Facts and Figures

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