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After two and a half years of disaster, Austrian Airlines flew back into the black with a file summer time. In spite of quite a few systemic challenges in European aviation, Austrian Airlines achieved the perfect quarterly lead to over 20 years with a superb and secure operational efficiency. Good liquidity and the granting of a credit score line by Lufthansa Group permit for early reimbursement of the state-backed mortgage granted in July 2020 on the finish of 2022. In addition to the section in of 4 brand-new plane, the choice to finish the wage lower early for all workers underlines the upswing at Austrian Airlines.
New plane and a superb reserving scenario create a constructive outlook
After the continual downsising brought on by the disaster, the primary of 4 Airbus A320neos has joined the present fleet in mid-October. The section in of the brand new plane mannequin is an funding into the Vienna hub and contributes to Austrian Airlines’ company long run objectives. “The Austrian workforce used the disaster to place itself competitively. Now we’re reaping the fruits of our laborious work and are even rising once more. A continued good reserving scenario in the direction of heat water, European and North Atlantic locations signifies a secure flight degree for the approaching winter months,” says CCO Michael Trestl.
The results of the third quarter intimately
At EUR 687 million, income within the third quarter of 2022 was greater than twice as sturdy as within the earlier 12 months (Q3 2021: EUR 304 million). Austrian Airlines’ whole working income amounted to EUR 718 million (Q3 2021: EUR 316 million). Total bills rose to EUR 609 million (Q3 2021: EUR 313 million), partly because of the sharp rise in kerosene prices. At EUR 110 million, adjusted EBIT, which excludes valuation positive factors/losses from plane gross sales and valuations, is the perfect quarterly lead to many years (Q3 2021: EUR 3 million).
More than 4 million passengers – and thus 73% greater than in the identical interval final 12 months (Q3 2021: 2.3 million) – flew Austrian Airlines within the third quarter of 2022. In spite of quite a few challenges in European midsummer journey, Austrian Airlines flights took off with a regularity of 99.2%. The flag service provided greater than 30,000 flights with a median occupancy price of 87.6%.
Austrian Airlines says ‘thank you’ – summer time efficiency paves the way in which for refinancing
With this sturdy monetary outcome Austrian Airlines begins into the final quarter of 2022, which the corporate will finish with the early reimbursement of the state-backed mortgage. Good liquidity and a credit score line from Lufthansa Group, permit for the Austrian flag service to repay the remaining EUR 210 million of the full mortgage of EUR 300 million early and in full by the tip of the 12 months.
The reimbursement of the state-backed mortgage granted in July 2020, initially deliberate for the tip of 2025, provides the corporate extra flexibility for the longer term. Austrian Airlines CEO Annette Mann: “The Austrian workforce fought for this outcome despite sturdy headwinds. We are proud to have the ability to repay the state-backed mortgage in full early, even when the deep monetary scars of the pandemic stay to be healed! We thank our workers, our passengers, the Austrian federal authorities and all our companions who’ve positioned their belief in us!”
Solidarity waiver of wage to be lifted early
The wage waiver for all Austrian Airlines workers agreed within the 2020 disaster package deal will probably be step by step phased out by June 2023. In settlement with the works councils and unions of the flying and commercial-technical employees, the early finish of wage cuts will probably be adopted within the coming 12 months by a sustained inflation adjustment. All in all, it will result in a median plus of 10.4% to the unique wage within the subsequent 12 months.
At the tip of the third quarter 2022, Austrian Airlines employed 5,557 individuals. The firm is presently recruiting new employees in all areas so as to compensate for retirements and fluctuation and to operationalise the fleet development. “We are very happy that we were able to put together a sustainable package for our employees with our social partners. This makes Austrian Airlines even more attractive as an employer. As a leading Austrian company, increasing apprenticeship wages by an average of 40% from 2023 was a major concern for us,” says Francesco Sciortino, COO and negotiating workforce chief on the collective agreements.
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