Austrian Airlines CEO Jaan Albrecht stated (31-Oct-2013) that "following a good summer, we are confident of ending 2013 on a positive note with profit in the low double-digit millions.” The carrier, in a prelude to the carrier's financial results as of 30-Sep-2013, said: "Austrian Airlines has improved the operating profit in the first nine months of the year (before one-time effects) by €10.3 million to €19.4 million. This increase was primarily achieved on the cost side, which also includes savings from the merger of the flight operations of Tyrolean and Austrian. Operational expenditure fell in the reporting period by €74 million or 4.3 percent from €1,722 million to €1,648 million". It also noted, "In the previous year, the transfer of flight operations to Tyrolean Airways significantly increased the profit by €67.5 million. The subsequent application of the new accounting standards IAS 19R increased this one-off effect by an additional €134.4 million. The unadjusted operating profit was therefore €210.9 million as at 30 September 2013". [more - original PR - German]
Austrian Airlines confident of ending FY2013 with profit in 'low double-digit millions'
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Lufthansa still Number 2 vs IAG & Air France-KLM. Soft RASK justifies more ASK trimming for all
Lufthansa Group's detailed 2Q2016 results confirmed the headline numbers that it pre-released with a profit warning on 20-Jul-2016. After increasing its operating profit in 1Q, the group suffered a decline in 2Q. Among Europe's big three legacy airline groups, Lufthansa was the only one to report lower 2Q profits. In 1H2016, IAG again has the best operating margin of the three, followed by Lufthansa and then Air France-KLM. However, LCCs Ryanair and Wizz Air are more profitable than any of them.
Lufthansa's full 2Q report provides an opportunity to compare the capacity growth and unit revenue performance of each of the Lufthansa Group, Air France-KLM and IAG for 2Q2016. Unit revenue has been soft for some time for all three, but seems to be weakening further. Lufthansa cautioned that advance bookings, especially on long-haul, have declined significantly, citing repeated terrorist attacks in Europe and greater political and economic uncertainty.
Against this backdrop, IAG and Lufthansa have reduced their capacity growth plans, while Air France-KLM has retained its 1% ASK growth outlook for its network airlines. CAPA's analysis highlights the inverse relationship between capacity growth and RASK growth. Further capacity haircuts may follow.
Alitalia: "everyone has to pull in the same direction" – ongoing issues, and viability is at stake.
After Alitalia’s board approved the second phase of its business plan on 22-Dec-2016, CEO Cramer Ball stressed the importance of achieving the support of its workforce. He said, “Everyone has to pull in the same direction to make Alitalia a viable, sustainable success story and help the airline achieve its ambition of long-term growth and profitability”. Alitalia suffered strike action from some flight crew in 2016.
Full details of the plan, which has received the support of Italy's government, have not yet been made public. Alitalia's network strategy includes further long haul growth and a reworking of its short haul operation, with an emphasis on feeding long haul via Rome and Milan. Other elements of the plan include cost-cutting, reduced headcount and possible changes to joint venture agreements. Details are to be presented to Alitalia’s workforce in Jan-2017.
Also on 22-Dec-2016, Alitalia's shareholders approved short-term funding and gave management 60 days to begin negotiations with key stakeholders - lessors, suppliers and distribution companies, in addition to trade unions. Alitalia needs their support for deep cost reduction measures, in order to win the long-term financing needed to secure the airline's future.