Austrian Airlines (AUA) recorded a loss before taxes and interest of 122 million euros in the first quarter of the current year, marking a 70 percent decrease compared to the previous year’s quarter. This represents the second worst Q1 result in the company’s history. The main reasons for this higher-than-expected loss include financial damage from union works meetings and strikes, resulting in booking reluctance and increased location and personnel costs. Additionally, ongoing negotiations with KV and uncertainty among customers are expected to have a significant impact on the second-quarter results, with the previously targeted profit margin for the year no longer achievable.
Lufthansa, Austrian Airlines’ parent company, has also lowered its profit target for the year due to strike costs and slower supply growth. In the first quarter, strikes within the Lufthansa group and at airports impacted earnings by around 350 million euros, leading to an operational loss of 849 million euros. Strike costs in the second quarter are expected to be around 100 million euros, with capacity increases less than originally planned. AUA boss Annette Mann has threatened a downsizing course if the workforce persists in their demands. Ultimately, the outcome of a vote by Vida union on a new collective agreement for on-board staff will have significant implications for both Austrian Airlines and its parent company.
