euro adhoc: Austrian Airlines AG / other / Project launched to evaluate strategic options Positive net result not achievable in 2008 due to extremely high kerosene price

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09.06.2008

At the Extraordinary Meeting of the Supervisory Board on 9 June
2008 the Management Board has presented and the Supervisory Board
has acknowledged a project to determine the additional result
potentials that could be produced by internal optimisation and extra
potentials of a strategic partnership. The project is being
carried out by the Board of Management of the company with the
support of the Boston Consulting Group (BCG). It will produce
initial interim results at the end of July and a detailed
recommendation over what action the owners should take by the end
of September. Evaluation of the possible effects on the result is
based on the current situation of the Austrian Airlines Group, which
is under strain due to the high price of kerosene.

The additional costs produced by the extremely high kerosene
price and associated difficult peripheral conditions are currently
shaping the entire airline industry, which has adjusted its
expectations for the current year significantly downwards.

In preparation for the Meeting of the Supervisory Board, Austrian
Airlines has carried out new forecasts based on the dramatic
increase in the kerosene price in recent weeks. Based on the
current price of kerosene and the level of the US dollar, the
Austrian Airlines Group calculates that its additional costs for
kerosene will reach EUR 130 million this year. Austrian Airlines
expects that due to the introduced countermeasures these costs will
not fully affect the result and therefore expects that its net
result for the financial year 2008 will be within a bandwidth of
between EUR -70 million and EUR -90 million. The outlook for the
financial year 2009 is strongly dependent on the trend in
kerosene prices. While we do not believe that the oil price is likely
to remain at levels of US$ 130 or more per barrel in the medium
term, it is difficult to estimate when prices will begin falling
again as the situation stands at present. Due to the current
situation in the industry the previous forecasts for 2009 are
outdated. It will not be possible to produce reliable result
forecasts for 2009 and subsequent years before the results of
the project become available.

For further information: Investor Relations, Dr. Prisca
Havranek-Kosicek, Austrian Airlines AG, Tel.: +43 (0)5 1766 -
13311, Fax: +43 (0)5 1766 13899, e-mail: prisca.havranek-
kosicek@austrian.com

Die Angaben zur Offenlegung gemäß §§ 24 und 25 Mediengesetz
sind unter www.austrian.com auffindbar / Please find further
information concerning the disclosure according to §§ 24 and 25
Media Act on www.austrian.com

end of announcement euro adhoc
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ots Originaltext: Austrian Airlines
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Corporate Communications:

Livia Dandrea-Böhm

Tel.: 051766-11231

Investor Relations

Dr. Prisca Havranek-Kosicek

Tel.: 051766 - 13311

Branche: Air Transport
ISIN: AT0000620158
WKN: 875224
Index: WBI, ATX Prime
Börsen: Wiener Börse AG / official market