Finnair’s turnover grew in the second quarter by 11% to 474 million euros. The
operational loss was 14 million euros. The result includes losses of around
30 million euros arising from the ash cloud crisis. The result before taxes was
a loss of 38 million euros.
“Strengthening demand, recovering load factors and clearly improved unit
revenues have restored profitability to a positive course. It is also
encouraging that cash flow from operations is again positive. It is clear that
we cannot be satisfied with a loss-making result, but the trend in profitability
is heartening,” says Finnair’s President & CEO Mika Vehviläinen.
Turnover growth in the second quarter was influenced by increased traffic
volumes and improved unit revenues. Scheduled traffic grew by 4% and revenue per
passenger kilometres rose by 7%. Profitability has been improved by efficiency
measures and improved load factors. Unit costs for flight operations fell by
6.4%.
“We have set finances on a better course by improving our cost competitiveness.
We are continuing to implement our 200 million euro profitability improvement
programme, the fruits of which are apparent in the result. The change in the
market has also helped us, but we have to continue with our efficiency measures
in order to improve our cost competitiveness.”
In January-June, Finnair carried 3.5 million passengers, which is more than 5%
below the previous year’s figure. Scheduled traffic grew by 5.5%. Asian traffic
grew during the first half of the year by 13%. Leisure traffic, on the other
hand, declined by 30%, because as demand fell tour operators brought their own
aircraft capacity to Finland.
The cargo tonnage carried by Finnair grew 34%, which results both from a
strengthening of the Asian market and the initiation of Finnair’s own cargo
aircraft traffic in May.
“In Finnair we have focused above all on traffic between Asia and Europe, where
demand comes mainly from outside Finland. Growth of business travel demand now
comes principally from Scandinavia, Central Europe and the Asian market,” adds
Vehviläinen.
Finnair will expand its long-haul fleet from 12 wide-bodied aircraft to 15 by
next February. Additional capacity is required for the opening of a daily
service to Singapore and more flights to Finnair’s present Asian destinations.
The average age of Finnair’s long-haul aircraft is 2.5 years.
To develop the network, Finnair has signed significant cooperation agreements.
One of the most important is the cooperation beginning at the end of this year
with the German airline Air Berlin.
“This will open new opportunities for us in the market that has the highest
purchasing power in Europe. Together we will be able to offer corporate
customers fast connections between German-speaking Europe and Asia.”
Within the oneworld alliance, the membership of the Kingfisher airline will open
up an extensive network in the Indian market. Cooperation with Japan Airlines
will also deepen. The authorities, moreover, have approved deeper cooperation
than before by oneworld companies in North Atlantic traffic. In domestic feeder
traffic, Finnair will gain a new partner in the autumn, the UK airline Flybe.
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