The Austrian Airlines (AUA) group incurred higher than expected losses in the first three months of this year, the airline said Wednesday. Operating losses were 73.6 million euros compared with 40.7 in the first three months of 2004. Rectified results were minus 64.0 million following minus 27.7 million. Turnover from January to March declined by 1.8 per cent by annual comparison to 462.5 million euros, said the AUA. The first quarter of this year had been burdened by declining passenger rates, over capacities on the markets, and "very high fuel prices". The Austrian Airlines Group includes the national carrier AUA, Lauda Air, and the regional airline "Austrian Arrows" (formerly Tyrolean Airways). It said a negative operating result was expected for the entire year 2005. The original aim had been to improve on last year's operating profit of 10 million euros. But due to the current negative factors this would not be possible, said chairman of the AUA board Vagn Soerensen. The high fuel prices with peaks of 600 dollars per ton of kerosine had been among factors making running costs jump by 7.5 per cent to 543.3 million euros. Soerensen said the AUA group would stick to its "Focus East" strategy as "market leader" to Central and East Europe, and also build up its already dense network of Asian and Australian routes. This was where "the successful future" lay, he said.
