The publish Austrian Airlines back on course appeared first on TD (Travel Daily Media) Travel Daily.
After two and a half years of disaster, Austrian Airlines flew back into the black with a file summer time. In spite of quite a few systemic challenges in European aviation, Austrian Airlines achieved the perfect quarterly lead to over 20 years with a very good and steady operational efficiency. Good liquidity and the granting of a credit score line by Lufthansa Group enable for early reimbursement of the state-backed mortgage granted in July 2020 on the finish of 2022. In addition to the section in of 4 brand-new plane, the choice to finish the wage lower early for all staff underlines the upswing at Austrian Airlines.
New plane and a very good reserving state of affairs create a optimistic outlook
After the continual downsising attributable to the disaster, the primary of 4 Airbus A320neos has joined the prevailing fleet in mid-October. The section in of the brand new plane mannequin is an funding into the Vienna hub and contributes to Austrian Airlines’ company long run targets. “The Austrian group used the disaster to place itself competitively. Now we’re reaping the fruits of our onerous work and are even rising once more. A continued good reserving state of affairs in the direction of heat water, European and North Atlantic locations signifies a steady flight stage for the approaching winter months,” says CCO Michael Trestl.
The results of the third quarter intimately
At EUR 687 million, income within the third quarter of 2022 was greater than twice as sturdy as within the earlier yr (Q3 2021: EUR 304 million). Austrian Airlines’ complete working income amounted to EUR 718 million (Q3 2021: EUR 316 million). Total bills rose to EUR 609 million (Q3 2021: EUR 313 million), partly as a result of sharp rise in kerosene prices. At EUR 110 million, adjusted EBIT, which excludes valuation features/losses from plane gross sales and valuations, is the perfect quarterly lead to many years (Q3 2021: EUR 3 million).
More than 4 million passengers – and thus 73% greater than in the identical interval final yr (Q3 2021: 2.3 million) – flew Austrian Airlines within the third quarter of 2022. In spite of quite a few challenges in European midsummer journey, Austrian Airlines flights took off with a regularity of 99.2%. The flag provider supplied greater than 30,000 flights with a mean occupancy price of 87.6%.
Austrian Airlines says ‘thank you’ – summer time efficiency paves the best way for refinancing
With this sturdy monetary end result Austrian Airlines begins into the final quarter of 2022, which the corporate will finish with the early reimbursement of the state-backed mortgage. Good liquidity and a credit score line from Lufthansa Group, enable for the Austrian flag provider to repay the remaining EUR 210 million of the whole mortgage of EUR 300 million early and in full by the tip of the yr.
The reimbursement of the state-backed mortgage granted in July 2020, initially deliberate for the tip of 2025, offers the corporate extra flexibility for the long run. Austrian Airlines CEO Annette Mann: “The Austrian group fought for this end result regardless of sturdy headwinds. We are proud to have the ability to repay the state-backed mortgage in full early, even when the deep monetary scars of the pandemic stay to be healed! We thank our staff, our passengers, the Austrian federal authorities and all our companions who’ve positioned their belief in us!”
Solidarity waiver of wage to be lifted early
The wage waiver for all Austrian Airlines staff agreed within the 2020 disaster bundle can be regularly phased out by June 2023. In settlement with the works councils and unions of the flying and commercial-technical employees, the early finish of wage cuts can be adopted within the coming yr by a sustained inflation adjustment. All in all, this can result in a mean plus of 10.4% to the unique wage within the subsequent yr.
At the tip of the third quarter 2022, Austrian Airlines employed 5,557 folks. The firm is presently recruiting new employees in all areas with a purpose to compensate for retirements and fluctuation and to operationalise the fleet development. “We are very happy that we were able to put together a sustainable package for our employees with our social partners. This makes Austrian Airlines even more attractive as an employer. As a leading Austrian company, increasing apprenticeship wages by an average of 40% from 2023 was a major concern for us,” says Francesco Sciortino, COO and negotiating group chief on the collective agreements.
The publish Austrian Airlines back on course appeared first on Travel Daily.