Austrian plans further restructuring amid stalled recovery

Austrian Airlines is planning to implement further restructuring measures in response to lower-than-predicted travel demand amid the current wave of Covid-19 infections. The Lufthansa Group carrier says it is currently operating around 15% of pre-crisis capacity. It had previously forecast that the level would reach 50% during the winter season ending in March. CE Alexis von Hoensbroech states that Austrian has “sufficiently full” coffers as a result of the E600m financial support package agreed by the Austrian government and Lufthansa Group in 2020, as well as its own cost-cutting efforts. But he adds: “The second coronavirus wave and new lockdowns have costed us important reserves. We have to take precautions if the summer turns out to be weaker than hoped and the longer-term recovery takes longer than previously planned.” Austrian therefore intends to implement measures to “further secure” liquidity in the short term and improve the company’s financial performance in the long term. An effort to halve the airline’s head-office space has been accelerated, moving the deadline forward to summer from autumn 2021. Further measures are being evaluated, Austrian says, noting that short-time working arrangements currently in place for the airline’s 6,400-strong staff are “essential” to reduce pressure on the business.<br/>