Finnair's Apr-Jun-2010 loss projected to be lower than expected
Finnair updated (09-Jun-2010) its previous guidance on its 2Q2010 results, projecting its operational loss for the period would be at the same level or smaller than the 1Q2010 operational loss. The carrier's earlier guidance had projected the 2Q2010 result would be clearly worse than the 1Q2010 figure. The reasons for the improved financial performance are better than expected development of demand and unit revenues. The negative post-effects of the volcanic ash crisis, which disrupted air traffic in April, were milder than expected. The strong growth in demand that began in Mar-2010 continues, as well as a strengthening of load factors have improved unit revenues in Finnair's scheduled traffic. Demand is growing in markets outside Finland but Finnish business travel remains subdued. Cargo traffic demand has improved significantly during the spring, reflected in tonnes carried and in unit revenues. [more]
Finnair: "We naturally cannot be satisfied with a loss-making result, but the trend in profitability is encouraging. We must complete the implementation of our EUR200 million profit improvement programme and at the same time safeguard our long-term cost-competitiveness," Mika Vehviläinen, President & CEO. Source: Finnair, 09-Jun-2010.