AUA reported a 75.7 million-Euro loss

Austrian Airlines (AUA) reported a 75.7 million-Euro loss in the third quarter of this year – growing from a loss of 16.4 million Euros in the same quarter last year, according to Austrian Times.

AUA added it had lost 242.3 million Euros during the first nine months of 2009, compared to a loss of 65.1 million Euros during the same period of 2008.
Company officials said turnover in the third quarter had fallen 20 per cent year on year to 557.7 million Euros and turnover in the first nine months of the year had dropped 21.1 per cent year on year to 1.49 billion Euros.

Its adjusted earnings before interest and taxes (Ebit) had shown a loss of 64.4 million Euros during the first nine months of the year but had improved in the third quarter to move to plus 24 million Euros for the first time this year.

AUA co-chiefs Peter Malanik and Andreas Bierwirth said the economic crisis was still having a devastating impact on the airline.
"The results clearly reveal our weaknesses and show that we still have a lot of work to do to restructure the business," they added.

They predicted AUA would have positive cash-flow in 2010 that would cover the cost of capital.

The co-chiefs also said AUA would concentrate on European markets with rising numbers of passengers, adjust its route network and increase the number of seats on its flights. By the end of 2010, they claimed, the number of AUA’s full-time employees would have fallen from the present figure of 7,500 "in the direction" of 6,000.

They said they would demand lower prices from suppliers, reduce personnel cost by 150 million Euros and make use of synergies with new parent airline Lufthansa in the areas of marketing, ground operations and purchases.
The German airline, which acquired AUA at the beginning of September, is pressuring it to cut costs and restructure.

Lufthansa chief Wolfgang Mayrhuber said today that AUA’s restructuring would proceed at full steam and the airline would cut costs by 200 million Euros by 2012.
He also claimed Lufthansa had been less affected by the crisis in the civil-aviation industry than most other airlines. "We have managed to grab a big piece of a small cake," he said.

Source: Transportweekly