Long-haul cuts boost Austrian results

Austrian Airlines has delivered a much improved financial result for the first six months of 2007 when compared to the 2006 figures. The Chief Executive Officer of the Austrian Airlines Group, Alfred ?-tsch, made the following
statement to mark the release of the Group’s half-year results: ‘The operating result (EBIT)
improved significantly in the first half-year compared to the same period in 2006, rising from
EUR -41.0m to EUR -2.9m, a positive upward trend. We have decided upon and implemented a
number of important new directions. These include cancelling unprofitable long-haul destinations,
putting in place the associated staffing measures and completing the valuation of our Airbus A330
fleet. Both our quality offensive and Focus East strategy have been consistently expanded. The
significant improvements in our EBIT in the first half-year and second quarter show that we are on
the right course. Despite this, the financial year 2007 should be seen as a transitional year, when
the positive effects of the cancellation of unprofitable destinations have still to fully impact the
operating result and it has not yet been possible to reduce the total remaining costs. We are
progressing according to plan, and striving to generate a profit that will justify our paying a
dividend by 2009.«

Chief Financial Officer Thomas Kleibl made the following statement: ‘We have been able to
rapidly complete the valuation of the Airbus A330 fleet, and the aircraft will be removed from
service by the end of September. As a result, we have succeeded in taking a decisive step in the
harmonisation of our long-haul fleet. We have reached a commercial agreement with Lufthansa
Technik concerning the general conditions for a strategic cooperation. With a significant order
volume per year an important contribution for a sustainable securing of the future of the location
will be achieved.«

Austrian Chief Commercial Officer Dr. Josef E. Burger said the following about the Group’s
positive market performance: ‘The strong growth in the short- and medium-haul segment has
compensated in part for the reduction in long-haul routes, and produced a new passenger record
and very good load factor figures in the first half-year. We were particularly successful in our key
traffic regions of Central and Eastern Europe and the Middle East, where we are continually
expanding: Burgas and Tallinn were incorporated into the network during the first half-year, and
we will be serving the city of Astana from 4 September onwards, thereby expanding our room for
manoeuvre in the growth markets of the former USSR in Central Asia.’