After two and a half years of disaster, Austrian Airlines flew back into the black with a document summer time. In spite of quite a few systemic challenges in European aviation, Austrian Airlines achieved the very best quarterly end in over 20 years with a great and secure operational efficiency. Good liquidity and the granting of a credit score line by Lufthansa Group enable 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 minimize early for all staff underlines the upswing at Austrian Airlines.
New plane and a great reserving state of affairs 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 targets. “The Austrian staff used the disaster to place itself competitively. Now we’re reaping the fruits of our onerous work and are even rising once more. A continued good reserving state of affairs in direction of heat water, European and North Atlantic locations signifies a secure flight stage 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 robust as within the earlier yr (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 as a result of sharp rise in kerosene prices. At EUR 110 million, adjusted EBIT, which excludes valuation positive aspects/losses from plane gross sales and valuations, is the very best quarterly end in a long time (Q3 2021: EUR 3 million).
More than 4 million passengers – and thus 73% greater than in the identical interval final yr (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 supplied greater than 30,000 flights with a median occupancy fee of 87.6%.
Austrian Airlines says ‘thank you’ – summer time efficiency paves the best way for refinancing
With this robust 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, enable 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 yr.
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 staff fought for this outcome regardless of robust 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 staff, 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 staff agreed within the 2020 disaster package deal will probably be regularly phased out by June 2023. In settlement with the works councils and unions of the flying and commercial-technical workers, the early finish of wage cuts will probably be adopted within the coming yr 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 yr.
At the tip of the third quarter 2022, Austrian Airlines employed 5,557 folks. The firm is at the moment recruiting new workers in all areas to be able 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 staff chief on the collective agreements.