Finnair reports fourth quarter and full year results

Dino D'Amore
By Dino D'Amore February 11, 2016 14:25

Finnair reports fourth quarter and full year results

Finnair has reported its revenue grew by 5.9% year-on-year to €585.5 million during the three months to December 2015. The airline’s operational result was €0.8 million euros during the quarter with an operational EBITDAR of €59.5 million. Net cash flow from operating activities stood at €7.1 million, and cash flow from investments was €-7.8 million.

Unit cost at constant currency excluding fuel (CASK excl. fuel) increased by 1.2% year-on-year, while unit revenue at constant currency (RASK) decreased by 1.1% year-on-year. Finnair’s ancillary service revenue per passenger grew by 27.3% year-on-year to €11.22 per passenger.

For the full year 2015, Finnair’s revenue grew by 1.7% year-on-year to €2.324bn, with an operational result of €23.7 million.

For the full year, Finnair’s unit cost at constant currency excluding fuel (CASK excl. fuel) increased by 0.6% year-on-year, with unit revenue at constant currency (RASK) decreased by 1.0% year-on-year. Ancillary service revenue per passenger grew by 23.7% year-on-year to €10.16 per passenger.

Despite of the demand outlook for passenger and cargo traffic in Finnair’s main markets involving renewed uncertainty, Finnair estimates that, in 2016, its capacity and revenue will grow. The lower price of jet fuel supports Finnair’s financial performance in 2016, the airline said in a statement.

CEO Pekka Vauramo said: “We are heading in the right direction, and we will now look to accelerate our profitable growth. We hit a new record in the number of passengers: more than 10 million passengers flew with us in 2015. Our revenue for the full year increased by 1.7 per cent, to 2,324 million euros, and our growth rate in the fourth quarter was higher than five per cent as our roll-out of A350 aircraft saw us move to a new phase of growth.”

He added that the new A350 aircraft “have proved to be very good, and the entire Finnair organisation has worked hard with the new aircraft to ensure a unique Nordic experience”.

Finnair takes delivery of four new A350 aircraft this year and in preparation it has strengthened its financial position. In October, it issued a €200 million hybrid bond, it signed sale and leaseback agreements for two A350 aircraft, with similar agreements to come later this year and the next, which will provide it with more than half a billion euros in financing.

Dino D'Amore
By Dino D'Amore February 11, 2016 14:25