30-Oct-2009 2:15 PM

Finnair revenue down 28% and loss of EUR21 million in 3Q2009

Finnair revenue down 21.8% - financial highlights for the three months ended 30-Sep-2009:

  • Revenue: EUR436.9 million, -21.8% year-on-year;
  • Operating income: EUR471.9 million, -16.3%;
  • Operating expenses: EUR477.1 million, -15.0%
    • Fuel: EUR108.0 million, -28.4%;
    • Staff: EUR118.7, -8.2%;
  • Total expenses: EUR496.0, -15.8%;
  • EBITDAR: EUR11.8 million, -74.9%;
  • EBIT (excluding capital assets, fair value changes of derivatives and non-recurring items): (EUR36.4 million), compared to profit of EUR2.1 million in the previous corresponding period;
  • EBIT: (EUR24.1 million), compared to an EBIT loss of EUR25.5 million in the previous corresponding period;
  • Profit before taxes: (EUR28.0 million), compared to a loss of EUR23 million in the previous corresponding period;
  • Profit: (EUR20.7 million), compared to a loss of EUR17.8 million in the previous corresponding period;
  • Yield (scheduled passenger and leisure traffic): -11.3%;
  • Unit revenue (scheduled passenger and leisure traffic): -10.4%;
  • Unit revenue (weighted; passenger and cargo): -13.5%;
  • Traffic (pax, scheduled): “more than 1.7 million”, “nearly” -14.0%;
  • Capacity (ASKs): -10.6%;
  • Traffic (RPKs): -10.8%;
  • Load factor: 79.6%, -0.2 ppts;

Finnair announced (29-Oct-2009) the following financial highlights for the nine months ended 30-Sep-2009:

  • Passenger traffic: 5.7 million, -8.9%;
  • Cargo and mail traffic (tonnes): 64,608, -17.4%;
  • Traffic (RPKs): 15,189, -6.4%;
  • Capacity (ASKs): 20,018, -7.8%;
  • Passenger load factor: 75.9%, +1.1 ppts;
  • Overall load factor: 57.6%, +1.0 ppts.


  • Decline in air cargo demand has levelled off, but it is “premature to project a sustainable strengthening of demand”;
  • Signs that the decline in travel demand is ending, but overcapacity “will not allow significant or wide-ranging increases in prices”. A pickup in business travel will require “a clear change in global economic conditions”;
  • Implementation of the Europe-Asia strategy to be “purposefully continued”;
  • Scheduled traffic capacity for 2009 to be reduced by 10% year-on-year;
  • At the present price level and hedging policy, fuel costs this year are expected to be around 24% of total Finnair turnover;
  • Operational result for the 2H2009 will be “clearly negative”, but less so than for 1H2009. [more]

Finnair: “The structure of demand has not essentially changed from the early part of the year. Clearly lower demand for business travel and the consequent decline in the average price have cut revenues by more than a fifth. Aircraft are flying with fairly reasonable passenger load factors, but the steep fall in the average price is eroding profitability. We have adjusted to falling demand by cutting capacity. Adjustment to the fall in price level, in contrast, has been less effective,” Company statement. Source: Finnair, 29-Oct-2009.

Finnair: “We do not expect any rapid change in demand structure. Only the fall in cargo demand has ceased, even though cargo prices remain low. In leisure traffic, the winter will be highly challenging... Finnair still has a long way to go before its corporate structures and the operating conditions they create are sustainably competitive. The company’s foundations are still stronger than many of its competitors, but a small domestic market requires the implementation of the company’s chosen Europe–Asia strategy at the price levels obtainable in an internationally competitive market,” Jukka Hienonen, CEO. Source: Finnair, 29-Oct-2009.

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