Finnair revenue up 12%, operating loss widens in 2Q2010

Finnair revenue up 12% - financial/traffic highlights:

• Three months ended 30-Jun-2010:
  • Operating revenue: EUR483.8 million, +12.0% year-on-year;
  • Total costs: EUR517.1 million, +12.2%;
    • Labour: EUR105.9 million, -9.2%;
    • Fuel: EUR103.1 million, -5.7%;
  • Operating profit (loss): (EUR33.3 million), compared with a loss of EUR28.8 million in p-c-p;
  • Net profit (loss): (EUR27.8 million), compared with a loss of EUR23.3 million in p-c-p;
  • Net operating cash flow: EUR19.5 million, compared with a negative cash flow of EUR41.4 million in p-c-p;
  • Passenger traffic (RPKs): -2.1%;
  • Load factor: 73.4%, +1.5 ppt;
  • Revenue per RPK: +6.9%;
  • Yield per passenger: +14.0%;
• Six months ended 30-Jun-2010:
  • Operating revenue: EUR955.0 million, +1.3%;
  • Total costs: EUR1,028 million, +2.3%;
    • Labour: EUR217.8 million, -13.5%;
    • Fuel: EUR208.4 million, -13.6%;
  • Operating profit: (loss): (EUR59.2 million), compared with a loss of EUR52.9 million in p-c-p;
  • Net profit (loss): (EUR49.5 million), compared with a loss of EUR41.7 million in p-c-p;
  • Total assets: EUR2,548 million, +14.9%;
  • Total liabilities: EUR1,740 million, +16.3%;
  • Net operating cash flow: EUR1.6 million, compared with a negative cash flow of EUR114.8 million in p-c-p;
  • Cash and cash equivalents: EUR568.9 million;
  • Passenger numbers: 3.5 million, n/a;
  • Passenger load factor: 76.9%, +3.2 ppts;
  • Revenue per RPK: -0.7%;
  • Yield per passenger: -3.5%. [more]

Finnair: "Strengthening demand, recovering load factors and clearly improved unit revenues have restored profitability to a positive course. It is also positive that our operational cash flow has returned to black figures…we are continuing to implement a EUR200 million profitability improvement programme, the fruits of which are apparent in the result. Some of the savings still depend on how well elements improving our cost competitiveness can be incorporated into collective agreements currently being negotiated," Company statement. Source: Finnair, 06-Aug-2010.

Finnair: "Air travel demand has clearly picked up and unit revenues are improving. Business travel is expected to strengthen, particularly outside Finland. The challenge is to regulate the balance between pricing and passenger load factor to deliver the best overall yield," Company statement. Source: Finnair, 06-Aug-2010.