Finnair’s 2Q2013 operational result falls, but there are positive signs too

Finnair's operational result fell by EUR10 million in 2Q2013 compared with the same period of 2012. Moreover, the carrier lowered its full year revenue outlook from expected growth to "approximately at the 2012 level", due to the weak Japanese yen. Nevertheless, there are also some more positive signs for new CEO Pekka Vauramo, who joined on 3-Jun-2013.

First, without the impact of its fuel hedging programme, Finnair's operational result would have improved by EUR12 million. Second, its strategic focus on carrying passengers between Europe and Asia was reflected in strong traffic growth and market share gains in these two regions. Third, Finnair's cost reduction programme reached its EUR140 million savings target six months ahead of schedule and the company remains committed to achieving a further EUR60 million in savings by 2014, mainly through labour productivity improvements.