Austrian Airlines concluded the 2025 financial year with a solid operating result, thus consolidating its position as a stable cornerstone within the Lufthansa Group. In a market environment characterized by geopolitical tensions and volatile economic conditions, the company generated an adjusted operating profit (EBIT) of 81 million euros.
Despite a revenue increase to over €2,5 billion and a record number of around 15 million passengers, management points to the need for increased profitability. With an operating margin of 3,2 percent, the airline is significantly below the European industry average, reigniting the debate about the competitiveness of Vienna as an airport location. To secure ambitious investments in fleet modernization and infrastructure, the company's management plans to intensify its dialogue with policymakers and system partners in 2026. The goal is to alleviate pressure on the airport location, enabling long-term growth and the safeguarding of highly skilled jobs in Austria.
Analysis of financial figures and operational performance
Last year marked a period of moderate growth for Austrian Airlines, coupled with increased efficiency. Annual revenue climbed by three percent year-on-year to €2,541 billion. This increase resulted primarily from capacity expansion; the number of available seat kilometers rose by four percent to 28,614 billion. Particularly noteworthy is the airline's operational reliability: with a 99,3 percent success rate, it was able to operate almost all scheduled flights, thus increasing the stability of its flight schedule.
Despite these positive operational signals, CEO Annette Mann urges caution. While the achieved margin of 3,2 percent represents a profit, it is hardly sufficient to generate the necessary investment capital sustainably in the face of intense competition from other European hubs and low-cost carriers. The International Air Transport Association (IATA) forecasts an average margin of approximately 6,8 percent for European carriers in 2025. Management attributes Austrian Airlines' roughly 50 percent deviation from this forecast to high operating costs in Austria and ongoing cost inflation in materials and personnel. As of the end of 2025, the company employed 6.054 people, a slight decrease of one percent, which underscores its efforts to streamline its operations.
Investment focus: fleet modernization and long-distance expansion
The centerpiece of the strategic future planning is the most comprehensive fleet modernization in the company's history. A key milestone is the replacement of the aging long-haul fleet. Following the rollover, which began in 2024, 2026 will be dedicated entirely to the Boeing 787-9 Dreamliner. A total of three aircraft of this type are scheduled to enter service this year. The third Dreamliner is slated to begin scheduled service on June 1, 2026, with the prestigious New York-Newark route as the first destination. Simultaneously, the engineering department is pushing ahead with the retirement of the older Boeing 767 and Boeing 777 aircraft. By the end of 2028, the long-haul fleet is expected to grow from its current eleven to a total of twelve state-of-the-art aircraft.
A major modernization is also taking place on short- and medium-haul routes. The Embraer regional jets currently in use are being gradually replaced by more efficient Airbus A320neo aircraft. Two Embraer aircraft have already left the fleet, while the arrival of further new Airbus aircraft is expected this year. This technological shift aims to reduce unit costs per available seat kilometer and increase operational flexibility at the Vienna hub.
Customer focus and infrastructure projects at the Vienna hub
In international quality rankings, Austrian Airlines consolidated its position among the top European airlines in 2025. At the prestigious Skytrax Awards, the company was once again recognized for the best personnel service in Europe. Furthermore, its cabin crews achieved first place in a Europe-wide comparison and secured a position among the top 20 worldwide. These successes are reflected in increased customer satisfaction and a strengthened brand presence in the domestic market.
To maintain this level of service on the ground, the company, together with the Lufthansa Group, is investing heavily in the infrastructure of Vienna Airport. Just a few days ago, the shell construction for new lounge areas with a total area of 5.000 square meters was completed. These are scheduled to open in 2027 as part of the planned terminal expansion. In the coming months, the in-flight product will also be upgraded: Premium Economy Class will undergo a comprehensive refurbishment starting next winter. A symbolic step is also planned for 2027: To mark the company's 70th anniversary, the flight crew will receive new uniforms, fundamentally modernizing the company's image after three decades.
Network expansion and tourism stimulus for summer 2026
For the upcoming 2026 summer season, Austrian Airlines has strategically expanded its flight schedule to capitalize on emerging tourism trends and strengthen connectivity at its hub. A total of seven new destinations will be added to the portfolio. These include Ponta Delgada in the Azores, as well as the Spanish cities of Bilbao and Alicante. With the addition of Ohrid in North Macedonia, the airline is also targeting a culturally rich and lesser-known destination. For travelers who prefer milder temperatures, the Norwegian port city of Bergen will be integrated into the flight schedule. These route expansions underscore the airline's ambition to serve as a key hub carrier, not only handling business travel but also connecting attractive holiday regions directly to Vienna.
Outlook and location policy demands
Despite operational successes, the management team is looking ahead to the coming years with some apprehension. While resilience to global political events and extreme weather was demonstrated in the first months of 2026, the structural disadvantages of Austria as a business location remain a key issue. CEO Annette Mann emphasizes that closer cooperation with policymakers and Vienna Airport is essential for sustainable growth and securing investments. The goal is to develop solutions that strengthen the airline's profitability while simultaneously safeguarding the competitiveness of Austria as a whole compared to international hubs. For the current fiscal year 2026, Austrian Airlines aims to maintain its high levels of punctuality and customer satisfaction while significantly improving its financial results to successfully continue the comprehensive fleet rollover.