Change in trend in final four months of 2003 produces EBIT growth to…
Change in trend in final four months of 2003 produces EBIT growth to EUR 63.3m. A range of factors – including a marked improvement in passenger volume based on innovative marketing campaigns against the background of a revival in economic activity in the final four months of last year, a policy of consistent reduction in unit costs and active management of currencies, interest rates and risk – combined to produce a clear improvement in EBIT in the financial year 2003 compared to 2002.
The EBIT (Earnings Before Interest, Tax) of the Group increased strongly by EUR 21.9m or 52.9 %, from EUR 41.4m in 2002 to EUR 63.3m last year, while also achieving a sharp improvement in profit before tax, from EUR 4.2m in 2002 to EUR 25.7m last year. Once again, the Austrian Airlines Group generated a strong cash flow from operating activities of EUR 345.2m.
Even compared to last year`s record figure of 70.5 %, the Group succeeded in increasing its passenger load factor on scheduled services further still to the new record of 71.3%.
In an analysis of the trend of the Austrian Airlines Group, Chief Executive Officer Vagn Soerensen made the following statement: Despite the tough conditions in the first six months of 2003, we managed to increase our EBIT by over 50 % last year and to continue to reduce liabilities and thereby our net gearing. While we were still concentrating on the reorganisation of the Group in 2002, we were able to devote the 2003 financial year to the optimisation of our structures and processes, increasing our ability to withstand crises and to broad market offensives. We are now the clear number one provider of flights and aviation services heading into Central and Eastern Europe, and will take advantage of the eastward expansion of the European Union to expand rapidly. The turnaround process of our Group regained high speed!
Traffic Statistics
Once again, available capacity on scheduled services was tightly managed to meet the trend in demand. Due to very healthy rates of growth in long-haul services, revenue passenger kilometers increased disproportionately by 5.4 %, as a result of which the passenger load factor rose by 0.8 percentage points to the highest level in the history of the Austrian Airlines Group, 71.3 %. Despite difficult external conditions, the Austrian cargo division managed to improv its transport performance in the cargo and mail segment by 5.6 % to 125,291 tons carried.
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