Finnair reports strong results

Victoria
By Victoria February 11, 2013 10:57

Finnair reports strong results

In 2012 Finnair turnover grew by 8.5% to €2.4bn with an operational profit of €44.9 million co0mpared to a €60.9 million loss in 2011. Net profit was €11.8 million, again reversing a loss of €87.5 million last year.
Traffic rose 9.5% to 23.6 billion RPKs on a 3.5% increase in capacity to 30.4 billion ASKs, producing a load factor of 77.6%, up 4.3 percentage points.
Yield rose 0.9% to 7.3 cents as RASK rose 7.7% to 6.49 cents and CASK rose 2.3% to 6.58 cents. CASK ex-fuel was 4.5 cents, down 3.6%. Finnair’s fuel costs, including hedging and costs incurred for emissions trade, rose by one fifth although personnel costs decreased, specifically in the fourth quarter by 14.8% to €100.4 million, due to the personnel reductions implemented in connection with the carrier’s structural changes.
Finnair reports that the cost-cutting programme has progressed faster than the original schedule, and the airline confirmed that, at the end of the year, it has achieved “permanent annual cost reductions of €100 million”.
Finnair has proposed a dividend of 0.10 euros per share to be distributed and that €4.8 million be contributed to the Personnel Fund this year.
Mika Vehviläinen, President and CEO stated that Finnair’s personnel costs are “still more expensive than our competitors” and that “this problem has to be solved… together with personnel groups to simplify the complex salary and remuneration structures”.
He added: “Additional cost reductions are absolutely necessary for Finnair: the goal is sustainable profitability so that Finnair is capable of investing in new Airbus 350 aircraft that are vital for a competitive future. Finnair is thus determined to continue working toward improved profitability.”

Victoria
By Victoria February 11, 2013 10:57
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