Finnair updates its financial targets, grows pax numbers in October 2019

victoria@aviationnews-online.com
By victoria@aviationnews-online.com November 11, 2019 09:26

Finnair updates its financial targets, grows pax numbers in October 2019

Following a period of accelerated growth, Finnair states that it is now moving into a new phase targeting sustainable and profitable growth.

For the 2020-2025 strategy period, Finnair aims to keep capacity growth, measured in Available Seat Kilometres (ASK) to 3-5% CAGR; it also seeks to optimise liquidity, yet keeping cash to sales ratio above 15% (34% as per 30 September 2019); keep its gearing ratio 175% at maximum (74% as per 30 September 2019). The airline will also assess renewal and downsizing of the hybrid bond, while increasing the share of owned aircraft compared to leased aircraft

Finnair aims to deliver these targets through a focused strategy that leverages the geographical advantage of Finnair’s hub in connecting Europe and Asia.

During its Capital Markets Day on 12 November 2019, Finnair will elaborate on network and fleet optimization, operational excellence, retailing strategy and sustainability. Finnair’s management will also discuss its estimated investments for the strategy period and their potential financial implications.

In October, Finnair carried 1,266,000 passengers, 10.9% more than in the corresponding period of 2018. The overall capacity measured in Available Seat Kilometres (ASK) increased in October by 10.1%. Finnair’s traffic measured in Revenue Passenger Kilometres (RPKs) increased by 14.1%, and the Passenger Load Factor (PLF) increased year-on-year by 2.8% points to 82.3%.  

Finnair’s long-haul capacity increased year-on-year with three new A350 aircraft that entered the service after the comparison period. The ASK growth in Asian traffic was 12.5%, mainly due to the doubling of frequencies to Hong Kong and increased frequencies to Osaka. The North American capacity increased by 27.5% following the opening of the new Los Angeles route in March.  

In European traffic, the ASKs were up by 5.4%. The growth derived from additional seating capacity in some of the existing narrow-body aircraft and the changes in route network. The added capacity was directed especially to London and Brussels and to new destinations Hannover and Trondheim. Capacity in domestic traffic decreased by 2.2% mainly due to changes in traffic plan.  

RPKs increased in Asian traffic by 14.7%, in North American traffic by 32.1%, in European traffic by 10.8% and in domestic traffic by 2.9%. The PLF was 82.8% in Asian traffic, 83.1% in North American traffic, particularly strong 82.5% in European traffic and 70.1% in domestic traffic. 

Passenger numbers increased in Asian traffic by 14.3%, in North American traffic by 27.2%, in European traffic by 11.9% and in domestic traffic by 0.8%. 

October resulted in record number of cargo tonnes in a single month and available scheduled cargo tonne kilometres increased by 13.3% year-on-year. Revenue scheduled cargo tonne kilometres increased by 6.2%. Global uncertainty in world trade continued to press global air freight market in October, and market softness and yield pressures were especially visible in Finnair’s cargo markets in Asia.

In October, 82.4% of all Finnair flights arrived on schedule (86.8%). 

victoria@aviationnews-online.com
By victoria@aviationnews-online.com November 11, 2019 09:26