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.