Austrian Airlines, the flag carrier of Austria, has reported its second-worst first-quarter performance in the company’s history. This substantial loss is primarily attributed to the financial impact of works council meetings and strikes, reduced bookings, and a sharp rise in location and personnel costs relative to other EU nations. Historically, the first quarter is the weakest for Austrian Airlines in terms of revenue generation. This year, revenues were EUR 403 million, nearly matching the EUR 400 million from the first quarter of 2023, despite an 11% increase in operations. However, total expenses climbed by 11% to EUR 538 million (Q1 2023: EUR 486 million), though fuel costs were down by 2% from the previous year. The adjusted EBIT was EUR -122 million, marking a 67% decline from the EUR -73 million of Q1 2023, and resulting in one of the poorest first-quarter results in the airline’s history.Annette Mann, the CEO of Austrian Airlines, expressed that the company had anticipated a slightly weaker result than in the previous year due to growth and the phase-in costs for the introduction of two new long-haul aircraft. However, this was then compounded by a loss of around 35 million due to the industrial action by the vida union. This means that the operating profit margin of at least five percent targeted for 2024 will probably not be achieved. An operating profit margin of 5.4 percent was reached in 2023; Austrian Airlines wanted to at least maintain this level in order to be able to finance upcoming investments. In the long term, the aim is to achieve a margin of 8 percent in order to be able to further develop the location.For the coming weeks and months, Annette Mann emphasized that regaining the trust of passengers is the main focus. The airline aims to impress with its strengths of reliability, punctuality, and hospitality on board.In the first quarter of 2024, Austrian Airlines saw an 11% increase in passenger numbers, reaching approximately 2.5 million, up from around 2.3 million in the same period of 2023. Available seat-kilometers also increased by 11% to about 5.2 billion, compared to 4.7 billion in the first quarter of the previous year. However, the load factor experienced a minor decline of 0.2 percentage points from the previous year, settling at 77.0%. As of March 31, 2024, Austrian Airlines employed 6,209 individuals, marking an 8% increase in staff numbers from 2023, aligned with the expansion of their long-haul fleet.Looking ahead to the summer of 2024, Austrian Airlines will introduce Boston as a new long-haul destination, enhancing its summer destination portfolio to over 125 locations. The inaugural flights to Bremen and Tbilisi are scheduled for early May, while services to Boston will commence in early July.CCO Michael Trestl expressed delight in offering three new destinations in the airline’s flight program this year: Tbilisi, Bremen, and Boston. The airline also plans to continue expanding its offer on existing routes, especially popular holiday destinations around the Mediterranean, ensuring that Austria is connected to the world according to guests’ needs.As summer draws near, Austrian Airlines prioritizes the trust of its guests above all. Backed by a seasoned team and the continued assistance of seasonal travel helpers from the previous year, the airline is committed to maintaining the highest standards of operational reliability. Aiming for a top three spot in the European punctuality rankings once more, Austrian Airlines is setting high goals. Starting in May, the first Boeing 787-9, also known as the Dreamliner, will join the fleet, with plans to completely replace the current long-haul fleet by 2028.COO Francesco Sciortino stated that they are ready for their Dreamliners. They have started training pilots on the new aircraft type weeks ago and have already completed the first test flights on short-haul routes. Nothing stands in the way for the aircraft entering into service on long-haul routes in mid-June.
Austrian Airlines Reports Weakest First Quarter Performance in Company History Amid Strike Impacts and Rising Costs
