In the second quarter of 2022 of the current year, Austrian Airlines was able to fly a profit of two million euros. However, that wasn't enough to offset the losses it had in the first three months.

According to its own statements, AUA is in the air with around 87 percent of the pre-crisis capacity during the summer high season. In the first half of 2022, around 4,2 million passengers were on board, around four times as many as in the same period last year. In the second quarter of 2022, the bottom line was a profit of two million euros. However, due to the poor first quarter caused by the pandemic and the massive increase in kerosene expenditure, earnings before interest and taxes (Adjusted EBIT) remained negative in the first half of the year (EUR -106 million), but with a significant improvement compared to 2021 (EUR -198 million ).

“Thanks to full summer flights, Austrian Airlines is clearly on the rise again. However, the ongoing pandemic, massive increases in fuel costs and economic uncertainties continue to present us with major challenges,” says CEO Annette Mann. “We have now repaid a third of the state-backed loan, ended short-time work for everyone and completed the restructuring. The proven Austrian team and our new employees are 'ready to fly'. Despite numerous external challenges, we are proving that we are well positioned this summer.”

The results in detail

At EUR 2022 million, total revenues in the second quarter of 502 were almost four times as high as in the same quarter of the previous year (Q2 2021: EUR 136 million). Total expenses roughly doubled in the second quarter of the year due to increased production, but also due to high fuel costs, and amounted to EUR 500 million (Q2 2021: EUR 230 million). The strong increase in passengers and high bookings for the summer months are reflected in slightly positive earnings before interest and taxes (Adjusted EBIT) of EUR 2 million - a significant improvement on the negative result in the previous year (Q2 2021: EUR -94 million).

In the first half of 2022, total revenues increased by 253 percent year-on-year to EUR 710 million (H1 2021: EUR 201 million) and were twice as high as in the first half of 2020, when the pandemic began (EUR 363 million . Euro). The good development of average yields per passenger kilometer in particular contributed to this result (+8,1% compared to the pre-crisis level). Over 70 percent of the total revenue for the first half of 2022 was generated in the second quarter (EUR 502 million). Operating expenses increased in the same period due to higher production and high fuel costs and amounted to EUR 816 million (H1 2021: EUR 399 million, H1 2020: EUR 598 million). Adjusted EBIT was therefore -2022 million euros in the first half of 106, which corresponds to an improvement of 46 percent compared to 2021 (-198 million euros) and 55 percent compared to 2020 (-235 million euros).

The comeback of aviation is primarily reflected in the increase in passenger numbers. In the first half of the year, 4,2 million passengers flew with Austrian Airlines, almost quadrupling compared to 2021 (1,1 million) and doubling compared to 2020 (1,9 million). The available seat kilometers also increased accordingly in the first half of 1 (2022 million) with an increase of 9,2 percent compared to the same period in 216 (first half of 2021: 1 million) or a doubling compared to 2021 (2,9 million). Also encouraging was an improved utilization of the approximately 2020 flights operated, which at 4,6 percent was significantly higher than in the first half of 40.000 (72,1%) and 2021 (53,1%).

Challenges in returning to normal operations

In the first half of the year, short-time work was ended for all employees of the domestic airline. Already in the spring, the cabin crew started to build up more staff. “Foresighted personnel planning and the effective instrument of short-time work are currently the decisive factors in Austrian Airlines being able to stick to its summer flight schedule and not having to make large-scale cuts like other airlines in Europe. In the first half of 2022, almost 99% of all planned Austrian flights took off despite the difficult general conditions throughout Europe,” explains COO Francesco Sciortino. However, external factors such as the persistently tense corona situation, staff shortages at numerous airports and air traffic controllers as well as strikes or weather events can affect the flight schedule at any time and present Austrian Airlines staff with a challenging situation that requires a high level of commitment and flexibility. "We are proud of our team, which gives everything every day to keep the level of service as high as possible and to fly our guests as carefree as possible on vacation. We are assuming that the staff shortages at our partners will be much more balanced in the coming year and that we can again offer the usual service at any time," concludes Francesco Sciortino.

Outlook for the full year 2022

The company's liquidity remains consistently high. At the end of the first half of 2022, another planned installment of the state-backed loan in the amount of 30 million euros was repaid - thus one third of the total loan of 300 million euros has been paid off. In the summer peak, holiday flights to European Mediterranean destinations in particular have an average occupancy rate of more than 90 percent. The offer to continental holiday destinations is currently even 20 percent higher than in 2019. Austrian Airlines' production is thus approaching that before the pandemic and in summer is 87 percent of the pre-crisis level. “Our guests are flying more and more, but also more and more sustainably. Since the option for CO2-neutral flying was integrated directly into the Austrian online booking process, almost every tenth passenger has invested in sustainable fuel or climate protection projects. The question is not whether we fly, but how we fly,” says CCO Michael Trestl. Because the desire to travel is also high in the direction of autumn.

Trestl: “In the winter timetable, we take off much earlier with the tourist long-haul route to the south than in previous years. We offer Austrians a colorful variety of destinations during the cold season: This year, for the first time, Austrian flies to the northern lights in Tromsø and again to sunny Marrakesh, and now also serves Keflavik, Florence, Valencia and Naples in winter!” Even if the current bookings for autumn continue to show a positive development, volatile corona infection numbers and rising fuel costs pose challenges for aviation in the further course of the year. The return of business travel and passenger flows to Asia, which are also being affected by the circumnavigation of Ukrainian and Russian airspace, remains hesitant.

AUA numbers at a glance: