Finnair Group Q1 results

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By TESTCustomwebLP TESTCustomwebLP May 7, 2015 15:29

Finnair Group Q1 results

Finnair has reported revenue on a par with the first quarter of 2014 at €540.4 million, with an operational result of €-28.4 million. Operational EBITDAR was €19.2 million. Net cash flow from operating activities stood at €13.0 million, and cash flow from investments totalled €142.8 million.

Unit cost at constant currency excluding fuel (CASK excl. fuel) increased by 1.1% from the comparison period.

Unit revenue at constant currency (RASK) decreased by 0.4% year-on-year.
Earnings per share amounted to -0.09 cents (-0.24).

Finnair estimates that its 2015 unit costs excluding fuel at constant currency, calculated by applying the changed calculation method, will decrease from the 2014 level.

CEO Pekka Vauramo said:  “Finnair’s revenue in the first quarter of 2015 was on a par with the corresponding period in 2014 at 540.4 million euros. Revenue was increased by higher passenger traffic revenue and negatively affected by lower revenue from Aurinkomatkat Suntours and cargo traffic, as well as the elimination of revenue from businesses sold after the comparison period. Our profitability improved substantially, although our operational result showed a loss of €28.4 million.

“The factors contributing to the improved result in addition to the increased revenue included further progress in cost savings as well as lower fuel prices. Unfortunately, the substantial appreciation of the dollar against the euro diluted the benefit gained from the fall in the price of jet fuel and significantly increased other dollar-denominated costs. The operational result also reflects the weak financial performance of Aurinkomatkat Suntours.

“During the reporting period and in the preceding years, Finnair result has been affected by strong changes in the yen and / or changes in the dollar exchange rate. Therefore we started to report unit revenue and unit cost excluding fuel at constant currency during the review period. This change will show the actual development of our Airline Business more clearly. At the same time we adjusted the calculation method to reflect the structural changes that have taken place within the Group – the transfer of Flybe Finland’s own risk flying to Finnair’s purchased traffic, for example. On this basis, unit revenue at constant currency fell by 0.4 per cent and unit cost excluding fuel at constant currency rose by 1.1 percent on the comparison period. The increase in unit cost excluding fuel at constant currency is largely explained by changes in our traffic structure.

“We are moving in the right direction, despite the fact that our result is still not at the level we are striving to reach. Our long-haul fleet renewal, which will start this coming 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 revenue. The positive effect of increased ancillary sales was visible already in our first quarter figures, although its share is still small.”

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By TESTCustomwebLP TESTCustomwebLP May 7, 2015 15:29