Austrian Airlines boosts 2017 results on increased European demand

Austrian Airlines has reported a 2017 adjusted EBIT of E94m, up 62% from E58m in 2016. Earnings before interest and taxes (EBIT) rose 55% to E101m. The Star Alliance member cited an increasing demand for European flights—mainly because of the bankruptcy of airberlin and its Austrian subsidiary NIKI—for the positive results. Outgoing CFO Heinz Lachinger said the figures represent the “best results in our 60-year history, even if we still have a long way to go with respect to upcoming investments.” Full-year revenue increased 9.5% to E2.4b, complemented by an income of E7m from sales of the Fokker 70/100 fleet to Alliance Airlines in Australia. Despite a 7% increase in the number of employees—mainly related to the hiring of pilots and flight attendants—operating expenditures grew only 6% to E2.4b. Capacity rose 7% to 26b ASKs, as Austrian concluded the integration of 17 Embraer aircraft to replace the Fokker 70/100s. Passenger numbers increased 13% to 12.9m. Traffic was up 7.6% to 20b RPKs, resulting in a full-year load factor of 76.1%. As of Dec. 31, 2017, Austrian operated 83 aircraft and flew a total of 143,999 flights. Looking ahead, Austrian expects a challenging year in 2018 because of the predicted rise in jet fuel prices and ongoing investments in aircraft, product improvements and increased LCC competition, especially in Vienna.<br/>