euro adhoc: Austrian Airlines AG / other / Difficult global business environment leaves its marks on Q3

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quaterly report

28.10.2008

Result of the Austrian Airlines Group, January to September 2008

Austrian CEO, Alfred Oetsch commenting on the result: "The
difficult business environment encountered in the first half-year
2008 once again deteriorated. The high level of economic
uncertainty as well as the financial and banking crisis are
intensifying the incipient economic downturn. The positive effects
of declining fuel prices are partially offset by the stronger US
dollar. We can build upon our successful strategic positioning
despite these major challenges. In our core Focus East markets, we
offer a strong network of destinations in countries posting
disproportionately high growth rates. The geographical location
of the Vienna hub provides us with significant cost and
quality advantages for transfers to the East. The current financial
market crisis, the economic slowdown which has had an
increasingly negative impact on flight demand, as well as ongoing
high fuel prices, which reached a record level of USD over
140/barrel during the summer months despite the steep price decline
in the meantime, make 2008 an extremely challenging financial year.
Due to these external influencing factors, the strong performance
of Q3 2007 could not be matched in the year 2008. EBIT in the
third quarter of 2008 amounted to EUR - 9.4m, down from EUR 42.7m
in Q3 2007. The net result for the first three quarters 2008
also declined to EUR -65.1m. Despite the difficult business
environment, the expansion of short- and medium-haul route capacity
by +4.0% in the first three quarters of 2008, measured in available
seat kilometres (ASK), was well implemented in many regions. This
is confirmed by an increase in revenue per passenger kilometre
(RPK +4.6%), accompanied by a corresponding rise in the
passenger load factor.

As the situation stands at present, we anticipate that the fourth
quarter of the 2008 financial year will be characterized by an
abrupt slump in demand, negative effects from fuel hedging and the
increase in value of the US dollar. The economic downturn has
already led to a decline in flight bookings. The new revenue
forecast through the end of the fiscal year indicated that the
previous guidance could no longer be upheld. As announced on
October 16, 2008 the expected sales-related revenue losses are
higher than the relief in the area of fuel costs, meaning a net loss
of EUR 100m to EUR 125m before special effects can be expected for
the 2008 fiscal year.

In the current privatization process, no decision was taken yet for
the sale of the OIAG stake in Austrian Airlines. The Supervisory
Board of the OIAG has requested an extension of privatization
mandate. We have described the situation for the company and we
are confident that the privatization process can be finished in a
positive way. Measures which would have to be implemented

in case of a failure, will not be initiated yet, because the chance for a
successful privatization is still there and cut-backs could have
counterproductive effects."

Overview of Result January to September 2008

|Key Figures | |1-9 / 2008|+/- % py |7-9 / 2008 |+/- % py |
|Revenue |EURm. |1,891.9 |- |697.2 |1.4 |
|EBITDAR1,2 |EURm. |212.8 |-32.5 |73.9 |-43.1 |
|EBITDAR1,2 adjusted3 |EURm. |232.3 |-26.0 |74.5 |-45.4 |
|Result from operating

activities (EBIT)2 |EURm. |-34.0 |- |-9.4
|- | |Result from operating activities (EBIT)2

adjusted3 |EURm. |-14.5 |- |-8.8 |- |
|Net result for the
period |EURm. |-65.1 |- |-16.4 |- |
|Cash flow from
operating activities |EURm. |170.3 |-32.6 |31.6 |-48.2 |
|Net Gearing |% |135.4 |- |- |- |
|Earnings per share |EUR |-0.77 |- |-0.20 |- |
|CVA |EURm. |-158.0 |- |-46.1 |- |
|Passengers carried
(total) | |8,380,039 |0.2 |3,163,354 |-3.1 |
|Passenger load factor
(scheduled service) |% |75.0 |-0.5P. |77.6 |-0.5P. |
|Employees (end
of period) | |8,036 |0.7 |- |- |

1 Result from operating activities (EBIT) before associates,
depreciation and rentals. 2 Regrouping of interest costs of
allocation of provisions for pensions,

severance payments and anniversary payments from personnel expenses to
financial expenses.
3 Adjusted by the result from the disposal of assets, other costs related the
transfer of aircraft, foreign currency valuations at the reporting date and
impairment of the value of aircraft.

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