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Austrian Airlines Increases Earnings and Raises Forecast for 2017

Posted : 02 August 2017 11:50:50 | By TWO Bureau | New Delhi

Austrian Airlines Increases Earnings and Raises Forecast for 2017

Austrian Airlines generated considerably higher earnings than expected in the first half of 2017. Earnings before interest and taxes (EBIT) totaled EUR 8 million, comprising a year-on-year rise of EUR 6 million. Adjusted EBIT, the relevant indicator for the 2017 forecast which deducts valuation gains from aircraft sales, climbed to EUR 3 million in the first half-year compared to the prior-year level of minus EUR 0.1 million. The basis for the earnings improvement is the stable price of jet fuel, a significant expansion in the airline’s European business as well as an increase in passenger volume and capacity utilization.



“In the second quarter of 2017, we not only compensated for the unfavorable results in the first quarter but even outperformed the previous year. In particular, we are witnessing an upward trend in our business to Europe and with holiday flights”, says Austrian Airlines CFO Heinz Lachinger.



Results at a glance

 

Due to the expansion of the airline fleet and passenger volume, total operating revenues in the first half of 2017 increased by 8 percent or EUR 89 million to EUR 1,149 million (H1 2016: EUR 1,060 million). Total operating expenditures were up 8 percent or EUR 83 million to EUR 1,141 million (H1 2016: EUR 1,058 million), which can be attributed to the higher material and technical costs. However, on balance a higher profit remained: EBIT amounted to EUR 8.0 million as at June 30, 2017 (H1 2016: EUR 2 million). Adjusted EBIT in the first half-year totaled EUR 3 million (H1 2016: minus EUR 0.1 million). Taken alone, the second quarter was particularly good, featuring an adjusted EBIT of EUR 63 million, comprising a year-on-year rise of EUR 34 million compared to the Q2 2016 EBIT of EUR 29 million.



690,000 more passengers in the first half of 2017

 

Austrian Airlines carried close to 5.8 million passengers in the period January to June 2017. This represents a significant increase of 13.5 percent or about 690,000 passengers from the first half of 2016. This rise is primarily attributable to the airberlin aircraft deployed within a wet lease agreement and the related increase in Austrian Airlines’ European flight offering as well as the expanded bilateral flight traffic between Austria and Germany. The flight offering measured in available seat kilometres (ASK) was up 7.6 percent to close to 12.3 billion kilometres. All in all, Austrian Airlines sold more than 9.0 billion revenue passenger kilometres (RPK), a rise of 8.2 percent from the prior-year level. Capacity utilization (passenger load factor) improved slightly by 0.4 percentage points to 73.6 percent.




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