This summer, Finnair flew 2.8 million passengers across the skies. As a result, the flag carrier of Finland’s revenue increased to €719.2 million ($714.6 million). However, the airline’s net result for Q3 was still in the red, primarily due to high costs and exchange rates.
Still some way to go
According to the Finnair Group’s interim report, revenue increased by 260.6% in the period between July and September compared to last year. Moreover, the firm’s comparable operating result was €35.2 million (€34.98 million) as it started to see results from cost reduction and sales improvement strategies. A considerable rise in passenger numbers of 255.9% also helped the operator on the right path.
Still, the net result for the period was -€37.2 million ($36.96 million). This dire figure is due to global economic and political challenges, such as the consequences of the war in Ukraine and the strong US dollar.
Photo: Getty Images
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In practice, high fuel costs had a significant impact on finances, at a figure of €125 million ($124.21 million) year-on-year. Fuel spikes are something that airlines are having to deal with industry-wide, but there are additional factors that Finnair has had to deal with.
Notably, a key part of the airline’s business model is connecting Europe and Asia via Helsinki. The pandemic, however, rocked this strategy amid long-drawn travel restrictions. It was only last month when the likes of Japan, Taiwan, and Hong Kong started to relax their stringent entry requirements. China still has strict conditions in place.
These difficulties were complemented by the closure of Russian airspace, which saw the airline make long detours around Russia to fly to the likes of India. The company even had to start planning to trim its fleet due to the closure.
Nonetheless, Finnair’s leadership is determined to overcome the hurdles. As Finnair CEO Topi Manner puts it:
“In the third quarter, Finnair’s net result was negative, but our comparable operating result turned positive for the first time since the last quarter of 2019. A positive operating result in the seasonally strongest third quarter is a step to the right direction, but we have a long journey ahead of us to nurse the company back to health. Due to the combination of the heavy pandemic and the closure of Russian airspace, we are facing a uniquely difficult challenge. Thus, determined measures to implement our new strategy and to restore profitability at an annual level are vital.”
Photo: Vincenzo Pace | Simple Flying
Not wasting time
Finnair is already making the most of the recent progress in Asia. It is launching Airbus A350 Flights to Tokyo Haneda Airport despite the ongoing Russian airspace closure. It is intent on not letting industry challenges keep it down, even if it means taking the long route.
Partnerships will prove to be valuable in this next chapter. In August, Finnair launched three routes to Doha amid its partnership with Qatar Airways. This move will help keep passengers connected while the climate remains sensitive across the market.
What are your thoughts about Finnair’s results? What do you make of the overall prospects of the airline? Let us know what you think of the carrier and its figures in the comment section.
- IATA/ICAO Code:
- Airline Type:
- Full Service Carrier
- Helsinki Airport
- Year Founded:
- Topi Manner