EANS-Adhoc: Austrian Airlines AG / Extreme fuel prices, financial crisis and slump in demand due to global downturn put strain on Annual Result 2008

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annual report

13.03.2009

Annual Result of the Austrian Airlines Group for Financial Year 2008

Summarising the position of the company over the past twelve months,
Dr. Peter Malanik, member of the Austrian Executive Board today
made the following statement: "2008 was an extraordinarily
difficult year for the Austrian Airlines Group. While our
prospects gave us good reason to be optimistic in the early months
of the year, the situation worsened rapidly due to the extremly
high price of fuel, which was quickly followed by a dramatic fall in
the volume of bookings due to the world financial and economic
crisis. With the signature of the contracts governing the sale to
Deutsche Lufthansa AG of ÖIAG's 41.56% share in Austrian Airlines
AG on 5 December 2008, an important step was taken towards
ensuring the long-term future of the Austrian Airlines Group.
The transaction remains subject to approval in accordance with the
Competition and Funding Guidelines of the European Commission."

Dr. Andreas Bierwirth, member of the Austrian Executive Board
said the following about the Annual Result 2008: "The business
trend of the Austrian Airlines Group was decisively shaped in 2008
by the markedly negative economic environment around the world.
Cripplingly high fuel prices and rapidly falling demand for flights
due to the economic slump had an unmistakable impact on our result
from the fourth quarter onwards. Despite this challenging
economic environment, we have stuck consistently to our Focus East
strategy, continuing to expand our key markets in Central and
Eastern Europe and the Middle East, introducing the innovative
Premium Service into the Middle East, and implementing
numerous improvements in our quality and service. In this way, we
have succeeded in holding passenger volume relatively stable at
10.7 million passengers carried despite the challenging economic
environment, ensuring that flight revenue, at EUR 2,361.0 million,
was only slightly down on the previous year. Despite this, a number
of factors - most notably the 31.5% jump in fuel expenditure
-produced a fall in our EBIT from operating activities, to EUR
-312.1 million. The EBIT adjusted for one-off effects stood at
EUR -35.2 million, again below last year's figure. One-off effects
not having an effect on payment, the majority of which were
based on depreciation of aircraft, produced a significant burden
totalling EUR 334.4 million. Consequently, the Group recorded an
annual result after taxes of EUR - 429.5 million."

The two men went on to remark: "Even before the magnitude of the
present crisis became clear, we realised that countermeasures of an
operational nature would not be sufficient. This is why we put
together the most fundamental change in strategy the company has
seen in recent decades, and recommended to our majority
shareholder ÖIAG that a privatisation process be instigated, and
that the company be sold to a strategic partner."

An Overview of the Annual Result 2008

|Key Indicators | |2008 |2007 |+/- abs. |+/- % |
| | |adjusted |

|Operating revenue |EURm |2,530.6 |2,550.9 |-20.3 |-0.8 |
|Operating expenses |EURm |-2,842.7 |-2,508.8 |-333.9 |-13.3 |
|EBITDAR |EURm |256.9 |389.7 |-132.8 |-34.1 |
|EBITDAR adjusted1 |EURm |295.4 |403.2 |-107.8 |-26.7 |
|Operating result2 (EBIT) |EURm |-312.1 |42.1 |-354.2 |- |
|Operating result2 (EBIT)
adjusted3 |EURm |-35.2 |55.7 |-90.9 |- |
|Financial result |EURm |-32.5 |-53.2 |20.7 |38.9 |
|Result before tax |EURm |-334.4 |2.8 |-337.2 |- |
|Result before tax adjusted3|EURm |-77.7 |11.0 |-88.7 |- |
|Net result |EURm |-429.5 |3.3 |-432.8 |- |
|Net result for the year
adjusted 4 |EURm |-76.8 |11.5 |-88.3 |- |
|Net cash from operating
activities |EURm |171.1 |276.7 |-105.6 |-38.2 |
|Net gearing |% |365.0 |125.0 | | |
|Equity ratio |% |11.7 |27.7 | | |
|Passengers carried total
(millions) |Passengers |10.7 |10.8 | |-1.1 |
|Passenger load factor
(scheduled services) |% |74.4 |75.1 | |-0.7 P |
|Cargo |Tons |142,624 |149,535 | |-4.6 |

1) Adjusted by the gains/losses resulting from the disposal of assets, other
costs arising from the transfer of aircraft and foreign currency adjustments at
the balance sheet date.
2) Before inclusion of associated companies.
3) Adjusted by the gains/losses resulting from the disposal of assets, other
costs arising from the transfer of aircraft and foreign currency adjustments at

the balance sheet date, as well as impairment gains or losses in
connection with the valuation of aircraft. 4) Adjusted by the
gains/losses resulting from the disposal of assets, other costs
arising from the transfer of aircraft and foreign currency
adjustments at the balance sheet date, as well as impairment gains or
losses in connection with the valuation of aircraft and depreciation
of deferred taxes.

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 Communictions:

Livia Dandrea-Böhm

Tel.: 051766-11231

Investor Relations

Thomas Krammer

Tel.: 051766-13311

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