Finnair revenue down 21.6% in 2Q2009

Finnair revenue down 21.6% - financial highlights:

• Three months ended 30-Jun-2009:
  • Revenue: EUR427.4 million, -21.6% year-on-year;
  • Operating costs: EUR488.8 million, -10.6%;
    • Labour: EUR116.6 million, -9.0%;
    • Fuel: EUR109.3 million, -18.2%;
  • Operating profit (loss): (EUR56.9 million), compared to a profit of EUR20.1 million in the previous corresponding period;
  • Profit (loss) before tax: (EUR35.3 million), compared to a profit of EUR18.5 million in the previous corresponding period;
  • Net profit (loss): (EUR26.1 million), compared to a profit of EUR13.4 million in the previous corresponding period;
  • Unit revenue of flight operations per RTK: EUR64.2 cents, -14.9%;
  • Unit costs of flight operations per ATK: EUR44.7 cents, +2.8%;
• Six months ended 30-Jun-2009:
  • Revenue: EUR943.1 million, -15.7%;
  • Operating costs: EUR1,056 million, -5.3%;
    • Labour: EUR251.8 million, -6.3%;
    • Fuel: EUR241.1 million, -8.8%;
  • Operating profit (loss): (EUR104.4 million), compared to a profit of EUR12.4 million in the previous corresponding period;
  • Profit (loss) before tax: (EUR60.3 million), compared to a profit of EUR22.8 million in the previous corresponding period;
  • Net profit (loss): (EUR44.7 million), compared to a profit of EUR16.5 million in the previous corresponding period;
  • Passenger numbers: 3.7 million, -8.4%;
  • Passenger load factor: 74.1%, +1.8 ppt;
  • Cargo volume: 40,719 tonnes, -21.9%.

Finnair: "Demand for flight travel and cargo is expected to have reached their lowest level and to recover gradually if the global economy recovers. The crisis in air transport will continue as airlines encounter difficulties with their profitability, operational cash flow and financial position. Finnair will maintain its Asian strategy. The long-term goal of scheduled passenger traffic is to grow in services between Europe and Asia, utilising Helsinki as a geographically and logistically ideal transit location...Our aim is to slow down the development of indebtedness by sale and leaseback agreements...At the present price level and hedging policy, fuel costs are expected in 2009 to be around 24 per cent of Finnair's turnover, while the corresponding percentage last year was 24.6%. Even though the second half of the year is expected to be stronger than the first, the operational results for the third quarter and the full year are expected to remain clearly loss-making," Company statement. Source: Finnair, 07-Aug-2009.