Finnair Group operating loss more than doubles in 2Q2014, expects 'significant loss' in 2014

Finnair Group revenue down 7% - financial highlights:

• Three months ended 30-Jun-2014:
• • Revenue: EUR656.7 million, -7.2% year-on-year;
  • Operating costs:
  • • Fuel: EUR166.1 million, -3.2%;
    • Labour: EUR86.3 million, -14.2%;
  • Operating profit (loss): (EUR26.3 million), compared to a loss of EUR10.4 million in p-c-p;
  • Net profit (loss): (EUR24.0 million), compared to a profit of EUR17.9 million in p-c-p;
  • Passenger numbers: 2.5 million, +4.9%;
  • Passenger load factor: 79.5%, +1.3 ppt;
  • Revenue per ASK: EUR 6.02 cents, -5.8%;
  • Yield: EUR 6.60 cents, -8.1%;
  • Cost per ASK: EUR 6.39 cents, -2.4%;
  • Cost per ASK excl fuel: EUR 4.35 cents, -2.4%;
  • Cargo volume: 38,469 tonnes, +3.9%;
  • Cargo yield: EUR 23.22 cents, -3.2%;
• Six months ended 30-Jun-2014:
• • Revenue: EUR1109 million, -7.8%;
  • Operating costs:
  • • Fuel: EUR327.1 million, -4.0%;
    • Labour: EUR176.3 million, -12.8%;
  • Operating profit (loss): (EUR54.7 million), compared to a loss of EUR24.0 million in p-c-p;
  • Net profit (loss): (EUR52.2 million), compared to a profit of EUR2.2 million in p-c-p;
  • Passenger numbers: 4.7 million, +3.8%;
  • Passenger load factor: 79.1%, +0.2 ppt;
  • Revenue per ASK: EUR 5.92 cents, -4.9%;
  • Yield: EUR 6.51 cents, -6.0%;
  • Cost per ASK: EUR 6.41 cents, -1.7%;
  • Cost per ASK excl fuel: EUR 4.36 cents, -1.3%;
  • Cargo volume: 73,689 tonnes, +6.7%;
  • Cargo yield: EUR 23.35 cents, -5.3%;
  • Total assets: EUR1945 million;
  • Cash and cash equivalents: EUR237.3 million;
  • Total liabilities: EUR1336 million. [more - original PR]

Finnair Group: "The ongoing uncertain economic outlook in Europe and Asia is contributing to weak consumer demand in our main markets. Air traffic is expected to grow moderately in 2014. Finnair, however, will not be able to benefit from that growth without progress in its cost reduction program and its target cost structure in place. Finnair estimates its turnover in 2014 to be significantly lower than in 2013. Fuel costs are expected to remain high. Due to delays in the personnel cost reduction negotiations and the unfavourable market conditions driving the decline in unit revenue, Finnair estimates that its 2014 operational result will show significant loss." Source: Company statement, 15-Aug-2014.