euro adhoc: SkyEurope Holding / quarterly or semiannual financial statement / Half year results 2008: Improved cost base offsets record high fuel prices, cost reductions

--------------------------------------------------------------------------------
Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
--------------------------------------------------------------------------------

6-month report

30.05.2008

SkyEurope reports a record unit cost reduction in H1 by 17.7% despite
an increase in fuel prices of 42% as turnaround continues
Vienna/Bratislava, 30 May, 2008. SkyEurope Holding AG, listed on the
Vienna Stock Exchange´s Prime Market segment, has published its
financial results for the 1st half of the 2008 financial year (1
October - 31 March 2008).

After 6 months of operations under the revised base network and
schedule, the positive effects on the cost base can be seen in the H1
2008 results of SkyEurope Holding AG. Fewer bases led to significant
improvements in aircraft and crew utilisation and substantially less
overheads. Operating margins have continued to improve in H1. EBITDAR
and EBIT margins improved by 2.1pp and 1.8pp respectively despite
high fuel prices and the new capacity based in Vienna and Prague.

Nick Manoudakis, CFO said "The H1 results clearly demonstrate the
success of our determined drive to eliminate complexity and reduce
costs in a big way. We are probably the only airline without a fuel
hedge reporting a decrease in unit costs despite the massive
increases in fuel costs. We have put the low back into low cost and
we are determined to continue our efforts to lower our costs even
further.

In addition, our Vienna base is now 1 year old and our new routes out
of Vienna and our other bases are maturing. We have also revised our
aircraft delivery schedule to allow for more managed growth. Taken
together, our Company fundamentals going forward are strong"

Notwithstanding solid results in cost reduction, SkyEurope does not
expect to meet original revenue growth guidance due to a combination
of lower load factors and capacity reductions. Load factors were
affected by substantial increases in capacity in new markets (62.5%)
while non-productive capacity was eliminated as a result of high fuel
prices. Further to this, high fuel prices have significantly
increased SkyEurope´s costs impacting its ability to meet full year
guidance on EBITDAR.

SkyEurope expects to achieve a cost per seat reduction (excluding
fuel) in excess of 10%; however they do not expect to meet original
guidance of cost per seat reduction (including fuel) of 5-10% which
was given assuming no material adverse changes in fuel prices.

SkyEurope will continue to improve on its business fundamentals,
growing revenues and delivering cost reductions versus 2007 (assuming
current fuel prices). The capacity increase in H2 2008, will be
significantly less than the 51.9% increase in seats added in H1 2008
and therefore less pressure on revenue per passenger and load factors
is expected. SkyEurope has been operating from Vienna for more than 1
year now and is expecting to see the benefits of market maturity
already experienced in Prague. The Vienna advance bookings for the
summer period are very strong and load factors and yields are
expected to continuously improve.

SkyEurope has developed its network into one that focuses on both
business and leisure passengers by flying to convenient airports with
frequent flights. This type of network is less seasonal,
price-sensitive and is better able to cope with high fuel prices and
the results of a slowing global economy. Moreover, revenue and seat
load factor benefits are already being realised thanks to more
convenient schedule, maturity of new markets and a more manageable
growth rate.

The full financial report on the First Half (H1) for the FY 2008 can
be found on www.skyeurope.com/investor relations.

end of announcement euro adhoc
--------------------------------------------------------------------------------

ots Originaltext: SkyEurope Holding
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

SkyEurope Holding AG

Nick Manoudakis, CFO

Tel.:+421 915 782 432

mailto:investor.relations@skyeurope.com

Branche: Air Transport
ISIN: AT0000497003
WKN: A0F5WU
Index: WBI
Börsen: Wiener Börse AG / official market