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Austrian Airlines Generates Clearly Positive Results but Below the Prior-Year Level

Posted : 30 October 2018 04:04:13 | By TWO Bureau | New Delhi

Austrian Airlines Generates Clearly Positive Results but Below the Prior-Year Level

Austrian Airlines, Austria’s flag carrier, can look back at an economically successful summer season. Adjusted earnings before interest and taxes (adjusted EBIT) totaled EUR 86 million, while EBIT was at EUR 92 million. The earnings decline of 14.0 percent compared to the first three quarters of 2017 is mainly attributable to two factors i.e. the significant rise in prices for jet fuel and higher expenses for flight irregularities. In contrast, the fleet expansion and service measures had a positive effect, with passenger volume up eight percent to 10.6 million.

 

“We enjoyed a good boost in earnings in the summer quarter despite increased jet fuel costs and airspace restrictions”, says Austrian Airlines CFO Wolfgang Jani.

 

In line with the application of rules contained in IFRS 15*, revenue mathematically declined by eight percent to EUR 1,665 million in the first three quarters 2018, and total operating revenue fell by nine percent to EUR 1,729 million. However, adjusted for this effect, revenue was actually up by five percent and total revenue climbed by three percent. Operating expenditures were down nine percent to EUR 1,643 million but rose four percent when adjusted for the effect of IFRS 15. Fuel costs of EUR 331 million, up 13.0 percent or EUR 38 million year-on-year, were the biggest cost drivers (refer to the enclosed chart for details).

 

Adjusted EBIT, which, for example, deducts book gains from aircraft sales, amounted to EUR 86 million, comprising a drop of 14.0 percent or EUR 14 million from the comparable figure of EUR 100 million in the previous year. EBIT totaled EUR 92 million, down from EUR 106 million in the prior-year period.




Tags : #Austrian Airlines, # Generates, # Positive Results, # Prior Year, # Level,


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