AUA shares, which had already dropped 4.35 per cent Tuesday, slumped from Tuesday's close of 11 euros to 9.9 euros Wednesday morning, the lowest level this this year, the Vienna stock exchange said.

The slump came after accounting firm Deloitte and Touche reported that Lauda Air could expect losses of one billion schillings (73 million euros, 62 million dollars) this year. AUA owns 36 per cent of Lauda Air, and will increase this to a majority stake next year. Analysts said AUA was likely to make changes when it took full control of Lauda.

"The situation will change when AUA takes on the majority, I'm Confident of that," said Klara Szekffy from Austria's Raiffeisen Bank. "They will have considerable control over Lauda Air and will address the current problems. What really needs to happen is the restructuring of the industry, and I think they will take that in hand," she added.