More than 3,600 affected employees, of whom 750 will lose their jobs – that is the known extent of the bankruptcy at motorcycle manufacturer KTM so far. Mattighofen’s suppliers are threatened with great loss of life, and other industries and companies are also in crisis. The situation is also causing tremors in the travel industry.
A record summer in 2024, 24.1 million passengers after three quarters and therefore an increase of more than seven percent, a turnover approaching the billion-dollar mark – these could all be reasons for Julian Jäger, board member of Vienna Airport, to take a back seat and relax. But Pupping’s manager doesn’t do that.
Because Jäger does not close its eyes to the economic development in Austria, which is causing a series of crisis reports: the bankruptcy at KTM, the austerity package at car supplier Stiwa, Schaeffler’s decision to close the Berndorf factory, but also the cost-cutting packages and efficiency-enhancing programs wherever you watch.
“I think that as Europe and as an economic nation we have to fight hard to maintain the prosperity that we have achieved,” says Jäger. Can you sense at Vienna airport that the local industry is in recession and that the symptoms of the crisis are becoming more and more visible? “It arrives at the airports a little later. The first to feel such an economic downturn are the airlines. Because they see it every day in the ticket price they maintain. What I’m hearing at the moment is that bookings for Christmas and the first quarter are very good,” says the 53-year-old. But what comes next?
“Expect conditions to become more difficult”
Unemployment in Austria is rising, companies have to make cuts or falter completely – that will leave its mark. “I expect conditions to become more difficult,” says Jäger. Because if people have less income, ticket prices also have to go down. This in turn has consequences for the airlines, which adjust their capacities in such cases. What could such capacity adjustments look like? This varies from airline to airline, according to the Vienna airport boss. It could be that frequencies are reduced, that fewer aircraft are stationed or “that the planned growth does not continue”.
What atmosphere does a regional airport like Linz experience? “Everyone is nervous about the summer of 2025, because no one knows what impact unemployment will have,” reports Norbert Draskovits, Managing Director of Hörsching Airport.
Frankfurt’s comeback started well
Since October 28, Linz has had a connection to London-Stansted twice a week thanks to Ryanair. In addition, Austrian Airlines also started flights to Frankfurt on the same day, using an aircraft from Braathens Regional Airlines. The first conclusion? “The occupancy rate is gratifyingly good, the figures are improving from week to week,” says Draskovits. The passengers return faster than expected.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
