HomeAir LineFinnair returns to profits due to strong increase in demand

Finnair returns to profits due to strong increase in demand

After three years in a row in the red, Finnair achieves its first positive results after the pandemic, due to the sharp increase in demand and the reopening of the Asian market. The airline, which celebrated its centenary last year, had a turnover 26.8% more than in 2022, reaching 2,988 million euros. By 2024, despite macroeconomic uncertainty arising from rising inflation and costs, Finnair expects to increase its operating capacity by 10%, especially on routes to Asia and Europe.

Finnair won 254.3 million euros net in 2023, compared to the 476.2 million losses of the previous year. The airline, whose majority shareholder is the Finnish State, obtained a gross operating profit (EBITDA) of 516.5 million euros in 2023while the previous year gross losses amounted to 153.2 million.

The airline’s turnover reached almost €3 billion in 2023. Source: Finnair.

The operating profit (EBIT) stood at just over 191 million last year, compared to the 200 million loss in 2022, due to the sharp increase in demand after the end of restrictions flight due to the pandemic in many countries. All this in the context of the negative impact of flight limitations in Asia, especially in China, and the closure of Russian airspace to European aircraft due to the war in Ukraine.

Operating costs grew by 9.5% year-on-year, to 2,921 million euros, of which 900 million corresponded to fuel spending, which increased by 7.6% due to the increase in capacity and the number of flights.

Finnair returns to profits due to strong increase in demand

Last year Finnair transported 11 million passengers, 20.8% more than in 2022. Source: Finnair.

The Finnish airline transported 11 million passengers in 2023, 20.8% more year-on-year, which allowed it to increase its revenue from ticket sales by 41%, to 2.4111 million euros. Billing for this concept increased in all regions – except North America – especially on its routes to destinations in the Middle East and Asia, with increases of 380% and 76%, respectively.

On the other hand, revenue from freight traffic fell by 45.5%, to 192 million euros, due to the drop in demand and cooperation with Qatar Airways on flights between Helsinki and Stockholm with Doha.

Jaakko Schildtacting CEO – until the incorporation of Turkka Kuusisto in July – has shown his satisfaction with the airline’s results in the year in which it celebrated its centenary, pointing out that the annual profitability objective has been achieved.

“We have left behind a double crisis. Our systematic strategic work carried out since autumn 2022 has borne fruit and we have returned our business operations to the target profitability level on an annual basis,” highlighted Schildt. Outlook 2024

Looking ahead to this year, the Finnish company expects global air traffic to continue growing, so it plans increase its total capacity by more than 10%especially on its routes to Asia and Europe, although it estimates that its revenue will grow more slowly than its capacity.

However, Finnair aims for revenue to grow at a somewhat slower pace than capacity in 2024.

Related news:

-This airline weighs the passenger and their carry-on luggage before departure

-Finnair will link Helsinki with five Spanish cities in summer

-Finnair completes the reactivation of all its operations with Spain

Source: Hosteltur

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