Vienna - Austrian Airlines made a net loss of 429.5 million euros (549 million dollars) in 2008, the company reported Friday.

A statement by the board attributed the loss to "cripplingly high fuel prices" and a "rapidly falling demand for flights due to the economic slump."

Adjustments of 334.4 million euros related to its fleet of aircraft also played a role, the statement added.

The airline is set to be bought by its German rival Lufthansa, subject to approval by the EU Commission in Brussels.

As part of the deal, the Austrian government has agreed to take over half of the airline's debt of 1 billion euros. (dpa)