Austrian Airlines reported an adjusted EBIT of -€43 million for the first half of 2025, an improvement of 31% over the previous year but still falling short of expectations due to rising costs and geopolitical headwinds.
While revenues rose 10% year-on-year to €1.2 billion, the carrier faced persistent challenges: elevated airport fees in Austria (up 23%), continued inflation, and fallout from Middle East conflicts, which disrupted vital connecting traffic—particularly affecting transatlantic routes via Vienna.
“We improved in reliability, punctuality, and customer satisfaction, and we met our efficiency goals,” said CEO Annette Mann. “But unfavorable conditions in Austria and instability in core markets like the Middle East make profitability extremely difficult.”
Despite economic headwinds, Austrian delivered strong operational performance, with significant gains in departure (+5.7 points) and arrival (+3.8 points) punctuality. The airline also shone at the Skytrax Awards, winning “Best Airline Staff Service in Europe” for the eighth time and “Best Cabin Crew in Europe”, further solidifying its reputation for premium service.
The critical third quarter began on a high note, with Austrian carrying 50,000 passengers daily since the summer holidays began. The airline added five new destinations in H1—including Edinburgh, Lofoten, and Sylt—and will retain successful long-haul additions like its twice-daily Bangkok service in the winter 2025/26 schedule. Austrian’s network now spans over 120 destinations.
Austrian Airlines aims to beat its full-year 2024 result, but rising costs and the geopolitical climate remain key hurdles. CEO Mann renewed calls for competitive reforms at Vienna Airport, warning that high local fees are harming Austria’s attractiveness as an aviation hub.
The carrier, backed by the Lufthansa Group, is pushing ahead with major investments:
>€3 billion planned for long-haul fleet renewal with Boeing 787-9 Dreamliners
Airbus A320 family upgrades on short- and medium-haul routes
€35 million investment in new Vienna lounges
€10+ million annually in digital customer experience tools
“We don’t ask for subsidies,” Mann said. “But if Austria wants to stay competitive, long-term structural change is essential.”
With solid summer performance and ambitious fleet and service upgrades underway, Austrian Airlines is focusing on growth, but warns that sustained profitability will depend on more favourable framework conditions at home.
This post was published on 31 July 2025 14:39
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