The earnings decline is mainly due to three factors: the costs incurred as a result of works meetings and the warning strike in March, the weak demand in the Middle East and intensified competition at the Vienna flight hub.
Nevertheless, Austrian Airlines succeeded in expanding its business with passenger volume increasing up 13.3 percent to 2.5 million.
“Even if we are very pleased with the increased number of passengers, we begin the new year with an even higher deficit after the traditionally unprofitable winter quarter,” stated Wolfgang Jani, chief financial, officer, Austrian Airlines. “We will make a considerable effort to make up for the losses.”
Revenues fell by 10 percent to EUR396 million due to the application of International Financial Reporting Standards (IFRS) 15; adjusted for the IFRS 15 effect, they were up by 6.8 percent because of the expansion of the fleet and business in European traffic. Total revenues grew by 4.9 percent.