Austrian Air 3Q Net Loss Widens As Sales Drop, Revamp Weighs
October 29 2009 - 4:17AM
Dow Jones News
Austrian carrier Austrian Airlines AG, or AUA (AUA.VI), Thursday
said its net loss widened considerably in the third quarter of 2009
as a decline in passenger numbers and restructuring costs burdened
the bottom line.
The carrier, which was recently acquired by Deutsche Lufthansa
AG (LHA.XE), didn't provide full-year guidance, but maintained its
previously stated target of producing a positive cashflow in
2010.
The third-quarter net loss came to EUR75.7 million, compared
with a loss of EUR16.4 million a year earlier. Sales fell to
EUR557.7 million, from EUR697.2 million.
Austrian Airlines, which has struggled with high fuel prices and
declining passenger figures lately, didn't provide specific
information on the one-off charges incurred in the third quarter.
For the first nine months, however, special charges, which included
impairment losses on aircraft and restructuring provisions,
totalled EUR191.6 million.
Excluding these special items, tax and interest, Austrian Air's
earnings swung to a profit in the quarter, it said. Core earnings
came to EUR24 million, up from a loss of EUR0.3 million a year
earlier, mainly helped by extensive cost cut measures across the
company.
-By Flemming E. Hansen, Dow Jones Newswires; +43 1 513 69 22 10;
flemming.hansen@dowjones.com