Austrian Airlines posts €94 million loss in H1 2026
Austrian government sets aside €60 million in the 2027–2028 budget as carriers warn the sum won’t restore competitiveness
Austrian Airlines (AUA) recorded a net loss of €94 million in the first half of 2026 as rising fuel costs tied to the Iran–Israel conflict and suspended routes to parts of the Middle East hit the carrier’s revenues and operations.
Government aid and industry demands
The Austrian government has earmarked €60 million in the two‑year budget for 2027–2028 to support the domestic aviation sector, but no final decision has been taken on how the money will be allocated. The Ministry of Transport says it plans to define concrete measures in September, with implementation scheduled to begin in January next year.
Industry representatives welcome the allocation as a signal of support, but they insist the amount will not be sufficient to restore competitiveness. Austrian Airlines’ CEO Anet Man described talks with the government as constructive but said she does not know whether the funds will be used solely to cut taxes and other charges.
Airport operators warn that Austria faces a competitive disadvantage because the national air ticket levy brings in around €180 million a year. If the entire €60 million package were applied to reduce that levy, the fee would fall from €12 to €10 per passenger — a change airport managers say would be too small to offset broader cost pressures.
Graz Airport director Wolfgang Grimus pointed to neighboring Bratislava as an example of a growing rival, while Vienna Airport director Julian Jeger urged a significant reduction or full abolition of the national levy. Several carriers, including Ryanair and Wizz Air, have been shifting capacity away from Vienna; Austrian Airlines itself is also optimizing its network under financial pressure.
The losses are already prompting concrete adjustments at the carrier: the last scheduled flight on the Vienna–Graz route will be discontinued in October, and further timetable optimization is planned. Management nonetheless remains cautiously optimistic, forecasting a return to profit by the end of 2026.
For context, the state intervened during the 2020 pandemic with a €600 million rescue package for Austrian Airlines; half of that was delivered as state‑guaranteed loans that the company repaid in 2022, while the remainder was granted as non‑repayable budget support.
Photo: Sloboden pechat - Zoran Rusmir
