Board approves Lufthansa offer
Austrian Airlines has reported a loss of €35.2m in 2008, compared to a profit of €55.7m the year before.
Austrian blamed the steep fall in adjusted full-year earnings on "extremely high" fuel prices and falling demand for seats.
Despite an "optimistic" start to 2008, Austrian said its situation had "worsened rapidly due" throughout the year.
According to results released today (March 13), the airline's net result was a loss of €429.5m for the year down from a profit of €3.3m in 2007.
"Cripplingly high fuel prices and rapidly falling demand for flights due to the economic slump had an unmistakable impact on our result from the fourth quarter onwards," said executive board member Andreas Bierwirth.
Austrian's fuel expenditure jumped 31.5% in 2008, with fuel surcharges unable to compensate.
The International Air Transport Association (IATA) last week said the world's airlines had lost $8bn (€6.3bn) due to "recession and fuel hedging losses," $3bn (€2.4bn) more than the expected.
But Austrian said its 20% fuel hedging policy had safeguarded it against further rises oil price fluctuations.
In a separate statement issued today, Austrian recommended its shareholders accept Lufthansa's takeover offer of €4.49 per share.
Executive board member Peter Malanik said the sale would be important for "ensuring the long-term future of the Austrian Airlines Group."
The deal is subject to EU approval.
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