Finnair revenue down nearly 5% in 2014

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By admin February 27, 2015 20:26

Finnair revenue down nearly 5% in 2014

For the full year 2014, Finnair reported a 4.8% drop in revenue to €2,284.5 million, with an operational result was a €36.5 million loss. Net cash flow from operating activities stood at €24.2 million, and cash flow from investments totalled €14.4 million.

Unit cost per available seat kilometre excluding fuel (CASK excl. fuel) decreased by 1.1% year-on-year, while unit revenue per available seat kilometre (RASK) fell by 2.2% year-on-year.

For the fourth quarter of 2014, Finnair’s revenue declined by 1.4% year-on-year to €552.7 million, with an operating loss of €9.3 million. Net cash flow from operating activities stood at €-15.7 million and cash flow from investments totalled €-111.9 million. Unit cost per available seat kilometre excluding fuel (CASK excl. fuel) decreased by 1.1% year-on-year, with unit revenue per available seat kilometre (RASK) increased by 2.8% year-on-year.

“In 2014, we were successful in developing our operations and overhauling our cost structure, but due to a substantial decrease in revenue, our result showed a loss,” said CEO Pekka Vauramo. “Our revenue declined by 4.8% and our operational result was €-36.5 million. The decline in revenue was mainly attributable to a decrease in unit revenue in passenger and cargo traffic, the contraction of the sales of package tour operator Aurinkomatkat Suntours, and the loss of external revenue resulting from the restructuring of aviation services. On a positive note, our unit revenue turned to growth in the fourth quarter for the first time since the first quarter of 2013.

Moreover, the decrease in costs outpaced the decline in revenue in October–December. The fourth quarter operational result improved year-on-year but nevertheless showed a loss of €9.3 million. In order for Finnair’s profitability to improve, it is essential to increase unit revenue and continue to maintain tight costs control. I am pleased with the significant steps forward we took in 2014. We not only achieved our cost reduction target of €200 million, but exceeded it by approximately €17 million by the end of the year. The savings agreements we concluded with various employee groups will continue to provide us with important additional cost savings gradually, starting from the first quarter of 2015. I am particularly pleased that the outcome of the negotiations enables us to continue to develop our operations together with our employees. In this regard, we are well positioned to seek growth.”

He added: “The year 2015 is a new beginning for Finnair: we will seek revenue growth through product upgrades introduced in recent months, as well as ancillary revenue, and we will be the first European airline to introduce to service the new Airbus A350 XWB aircraft in our long-haul traffic starting from October 2015.”

admin
By admin February 27, 2015 20:26