Austrian Airlines - Profit guidance for FY08 remains unchanged

The recently announced guidance for the annual loss before one-off effects for the 2008 financial year remains unchanged, and will be within a bandwidth of EUR 100 to 125 million. In addition to this, impairment not affecting payment of approx. EUR 240 million to EUR 290 million will be reflected in the result after taxes due to the one-off effects mentioned. Some EUR 150 million to EUR 200 million of this figure will be charged to the impairment of aircraft in use for the longer term, and around EUR 90 million to the impairment of activated latent tax deferral positions. In the event that provisions have to be made for fluctuations in the value of the securities holdings, which were already taken into account in the equity capital as not affecting net income as at 30-Sep-08, the annual loss will increase by a further EUR 60 million.

These depreciations reflect the current tense situation of the airline industry and the extreme volatility of financial markets. The privatisation process is not affected by this new forecast, as the underlying company-specific evaluation parameters were evident for the bidders within the framework of the due diligence, and therefore known to them. Only the external influencing variables (e.g. the US dollar exchange rate) have substantially changed once again.

Due to the difficult situation on the financial markets and in order to prevent further possible sharp declines in the market demand, the Austrian Airlines Group is scheduled to take out interim financing to safeguard its business model until EU approval is received for the OIAG funds.
 


(c) Centre for Asia Pacific Aviation. Date posted: 01-Dec-08
 

Other Austrian Airlines News

• Remaining minority shareholders of Austrian Airlines to receive 0.50 euros per share
• Austrian: Peter Malanik is voted onto AEA Presidents’ Committee
• TAM signs agreement with Austrian Airlines
• Austrian Airlines management and works councils agree time-limited savings package
• Austrian Airlines enhances efficiency and service with IT from Lufthansa Systems
• Austrian Airlines reports Jan - Apr-2009 traffic results
• Austrian expands route network
• Austrian Airlines and Vienna Airport reach successful negotioations to safeguard location
• Austrian Airlines Group passenger volume reduction
• Austrian Airlines releases statement in regards to Lufthansa bid