Finnair Group interim results

Dino D'Amore
By Dino D'Amore August 14, 2015 16:49

Finnair Group interim results

Finnair has reported revenue for the three months to end June 2015, as being on a par with second quarter of 2014, at €561.0 million. The carrier’s operational result improved to a loss of €12.9 million, compared to a loss of €19.6 million in the year-ago period. Operational EBITDAR was €37.4 million. Unit cost at constant currency excluding fuel (CASK excl. fuel) increased by 0.7% year-on-year, while unit revenue at constant currency (RASK) decreased by 1.9% year-on-year.

Revenue on a par with first half of 2014, at €1,101.4 million, with an improved operational result of a loss of €41.3 million compared to a loss of €53.9 million in the prior year period.

CEO Pekka Vauramo, said: “Our passenger traffic revenue from tickets and ancillary services saw strong growth in the second quarter of 2015, and we achieved a new record in June by carrying more than 37,500 passengers in one day. At the same time, ancillary sales grew by one third from the previous year. Our customers have heartily welcomed the Chicago route as well as our new seasonal summer routes, with demand exceeding our expectations. Furthermore, business travel has picked up noticeably.”

“Profitability improved significantly, although the operational result still showed a loss of 12.9 million euros. The result improvement is attributed to revenue growth in our core business operations, the progress of cost reduction measures and the decline in fuel prices, which is reflected in our costs gradually due to our hedging policy. The appreciation of the dollar diluted the benefit from fallen jet fuel price and significantly increased our other dollar-denominated costs, but at the same time, the appreciation of our income currencies boosted our revenues particularly in Asia. In addition, our positive performance was supported by the result improvement at Aurinkomatkat Suntours.”

“While we cannot be satisfied with our loss-making result, our financial position and liquidity are very strong. Our long-haul fleet renewal, which will start this autumn, will significantly improve the cost-competitiveness and customer experience of our long-haul traffic. At the same time, we will continue to focus on increasing our revenue through, for example, ancillary services and product improvements in intercontinental traffic.”

“We are moving in the right direction and our strategy, which was updated in the spring, is clear. Our goal is profitable growth, which we will be better equipped to achieve once the Airbus 350 aircraft start joining our fleet later this year. They will enable the gradual growth of capacity and substantially reduce our fuel costs on long-haul flights. In addition, we have begun to recruit cabin crew with a view to future growth. Our whole team is enthusiastically preparing for Finnair’s next phase.”

Dino D'Amore
By Dino D'Amore August 14, 2015 16:49