Austrian Airlines' earnings continues to slide, after it posted a loss of €99 million in the first quarter of 2019, a 36% decline, when compared to the €73 million loss suffered in Q1 2018.
The airline has blamed the losses on higher fuel and maintenance costs as well as more intense competition at Vienna Airport.
Austrian Airlines has expanded its passenger volume, which increased by 7% to 2.7 million, despite competition from low-cost carriers.
“The price war in Vienna has now broken out," says Austrian Airlines CFO Wolfgang Jani, commenting on developments. “Even if customers can currently enjoy low ticket prices, we will end up claiming some victims among the low-cost airlines. We will defend our role as market leader”.
Austrian's first quarter revenue fell by 4% to €382 million, whereas total operating revenue was down 3% to €404 million. Operating expenditures rose by 3% to €502 million due to higher fuel and maintenance costs.
Jani added: “We are expanding our capacity, attracting more passengers and also generating a higher passenger load factor. Despite tough competition, our product is well received. We anticipate a difficult year overall in 2019. We will continue to be profitable, but considerably below the previous year.