Austrian marks 15 years in Lufthansa Group: financial stability, but need for fleet modernisation

Austrian Airlines (AUA) has been part of the Lufthansa Group for 15 years.

The sale by the Austrian government in Sep-2009 was prompted by the 2008 global financial crisis, which exacerbated a period of loss-making by its national airline.

Lufthansa's ownership has given AUA a more financially secure footing, and it reported positive operating profits from 2013 until the COVID-19 crisis.

AUA's fleet has been simplified and its route network has been pruned. It recently started replacing its Boeing 777 and 767 widebody fleet (average age 25 years) with 787-9s - a modernisation programme that is due to last until 2028.

AUA's Airbus A320 family fleet has an average age of 19 years, so new narrowbodies must be next on the shopping list.

However, although the airline returned to profit in 2023, AUA's profitability remains somewhat brittle, and its parent will expect a suitable return on any further investment in new fleet.