Austrian Airlines swings to the black for the first half of 2023

Austrian Airlines issued this financial report:

• Half-year result of +15 million euros due to high demand
• Austrian Airlines team performs as “Best Airline Staff in Europe” and sets records in punctuality
• Growth of 400 new employees since the beginning of the year
• CEO Annette Mann: “After three tough years, we have clearly landed in the black and are now working towards a very good annual result. We are thus reducing our crisis deficit and getting ready for the upcoming mammoth investments for our guests.”

For the first time since 2020, Austrian Airlines was able to start the year with no corona-related restrictions. High demand and good load factors were the key drivers for the national carrier’s comeback into the profit zone. With this result, Austrian Airlines is laying an important foundation to gradually increase financial stability and make future investments that are necessary for the transformation into a more sustainable aviation.

The results in detail

In the second quarter of 2023, Austrian Airlines’ revenue rose by 39 per cent year-on-year to 664 million euros (Q2 2022: 478 million euros). In the same period, total operating revenue was 36 per cent up at 680 million euros compared to the same quarter last year (Q2 2022: 501 million euros). Total operating expenses in the second half of the year were at 592 million euros, 19 per cent higher than in the same period last year (Q2 2022: 498 million euros). Due to high passenger demand and a continued high load factor, the second quarter of the year closed with a result of 88 million euros (adj. EBIT Q2 2022: 3 million euros).

Austrian Airlines was able to significantly increase its revenue (+57 per cent) to 1.064 billion euros compared to the first half of 2022 (H1 2022: 678 million euros). Total operating revenue increased by 54 per cent to 1.093 billion euros in the first half of 2023 (H1 2022: 709 million euros). Total operating expenses increased by 32 per cent to 1.078 billion euros compared to the same period last year (first half of 2022: 815 million euros). The first half of 2023 thus closed with an adj. EBIT of 15 million euros (H1 2022: -106 million euros).The positive half-year figures mainly result from a further increase in passenger numbers.

Austrian Airlines flew over 6.1 million passengers in the first half of the year, which is an increase of 47 per cent (H1 2022: 4.2 million). Available seat kilometres increased by 27 per cent to 11.6 billion in the same period (H1 2022: 9.2 billion), with an average seat load factor of 80.0 per cent on Austrian Airline’s flights (H1 2022: 72.1 per cent).

Dynamic environment demands flexibility and teamwork

A moderate development of fuel prices since the beginning of the year and a stable operational performance were key drivers for the the good half-year result. CEO Annette Mann: “After three tough years, we have clearly landed in the black and are now working towards a very good annual result. We are thus reducing our crisis deficit and getting ready for the upcoming mammoth investments for our guests. We continue to rely on good teamwork and look forward to welcoming new colleagues in the second half of the year to master the challenges ahead.” The driving factors for Austrian Airlines’ transformation for more sustainable operations are the modernisation of the long-haul fleet with ten new aircraft, new, more efficient medium-haul aircraft and investments in sustainable aviation fuel (SAF).

Austrian Airlines is European champion

In the first half of 2023, the Austrian Airlines team once again demonstrated the quality of the national carrier. After Austrian Airlines performed as the most punctual airline in Europe in the months of February and March, all employees were awarded “Best Airline Staff in Europe” by Skytrax in June this year. COO Francesco Sciortino: “Our employees are showing every day, and in all areas of the company, what hospitality means.”  In May 2023, salaries for all employees were increased by 11 per cent, with increases of up to 23 per cent implemented in the lower pay grades. This is one of the highest wage settlements in Austria this year. Austrian Airlines is constantly working on its attractiveness as an employer and is increasingly focusing on flexibility and individualisation. “As with our guests, we focus on people and their needs also when it comes to our employees. We are pleased that we were able to win 400 new colleagues to take off together”, Sciortino continues.

Summer highlights and a continuing desire to travel

With new European destinations from Porto to Palermo, the summer flight schedule on short- and medium-haul routes offers more destinations than in 2019. Overall, Austrian Airlines’ mid-summer offering is already at more than 90 per cent compared to mid-summer 2019. Austrian Airlines Business Class travellers on long-haul routes have been able to enjoy a new catering concept refined by the Flying Chefs since July. “Our guests enjoy flying with Austrian Airlines. Our focus is finally back on our core competence of being a warm-hearted host above the clouds”, concludes CCO Michael Trestl.

Overview of key facts and figures first half year 2023:

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• Source: https://worldairlinenews.com/2023/08/04/austrian-airlines-swings-to-the-black-for-the-first-half-of-2023/