After two and a half years of crisis, Austrian Airlines flew back into the black with a record summer. In addition, thanks to the upturn, AUA will repay the state-secured loan granted in 2020 early at the end of the year.

Despite numerous systemic challenges in European aviation, this summer Austrian achieved its best quarterly result in more than 20 years with a good and stable operational performance: AUA made a profit of 110 million euros in the summer. Due to the high liquidity after a strong summer quarter and a credit line from the German parent company Lufthansa, the loan can be repaid early and in full, the airline said.

The carrier welcomed over four million passengers in the third quarter of the year - and thus 73 percent more than in the same period of 2021. However, there is still a good ten percent missing from the pre-crisis level of 2019. The more than 30.000 flights offered under the red-white-red tailfin had an average occupancy rate of 87,6 percent.

Sales doubled in the third quarter

After the pandemic low of the past two years, AUA posted high sales and a three-digit operating profit in the holiday months of July and August as well as in September this year. Sales more than doubled compared to the third quarter of 2021, from 304 to 687 million euros. The quarterly turnover was even six percent or 39 million euros above the last summer quarter before the outbreak of the global pandemic. The total revenue of Austrian Airlines in the summer months amounted to 718 million euros, while the total expenses rose to 609 million euros, partly due to the sharp increase in kerosene costs.

One is proud to be able to repay the loan early, “even if the deep financial scars of the pandemic will only be completely healed in a few years,” said AUA CEO Annette Mann during the press conference. Originally, the loan would have run until the end of 2025. Originally, the loan would have run until the end of 2025. "A good summer is far from making up for the consequences of the pandemic, there is still a lot to do." Among other things, the negative equity had to be worked up.

In the meantime, the amount of the credit line provided by the parent company has also been announced. Accordingly, this is at the same level as the early repayment. The AUA was saved in June 2020 after the first wave of the pandemic by the turquoise-green federal government with a total of 450 million euros. 150 million euros flowed directly from the state treasury into the airline's accounts and did not have to be repaid - the company does not think about that even after a strong summer. The Republic assumed liability for the 300 million euro loan. The owner of Lufthansa donated a further 150 million euros.

Best quarterly result in decades

The operating profit (Adjusted EBIT), which excludes changes in the valuation of the aircraft fleet, was the best quarterly result in decades at EUR 110 million. In the summer quarter of 2021, the airline was only just in the black with two million euros. Without the high cost of kerosene, the profit would have been even higher this year, according to the AUA management. Overall, however, the airline will not be in the black this year. The traditionally rather weak final sprint and the considerable loss of around 109 million euros in the first quarter are given as reasons. The profit zone is targeted for the next year.

The salary waiver for the entire AUA workforce agreed in the 2020 crisis package will be gradually phased out by June 2023. The premature dissolution will be followed in the coming year by inflation compensation, which was agreed with the works councils and unions for flying and commercial-technical staff. All in all, this will lead to an average increase in the original salary of 10,4 percent next year, according to the Lufthansa subsidiary. At the end of the third quarter of the year, Austrian Airlines employed a total of 5.557 people.

Ticket price development dependent on a new factor, among other things

The overall economic situation also has a significant impact on the ticket price, according to AUA Sales Director Michael Trestl. Fuel costs are rising, and so are ticket prices – fuel accounts for around a third to 35 percent of the costs. Depending on the route and area, prices are estimated to have increased by 20 to 30 percent in the summer. The further development also depends on how fuel prices develop. However, a hitherto unique and unexpected factor in particular is currently responsible for the strong increase. The processing costs of crude oil into kerosene have increased tenfold - a direct consequence of the Ukraine crisis. For a long time Europe got diesel from Russia. Now this has to be produced in the refineries themselves - this also creates direct competition for capacities and the costs skyrocket.