Finnair's passenger load factor rises 61%

Finnair's passenger load factor rises 61%

The passenger load factor of 72 per cent increased by almost 61 per cent to 2.5 million passengers, adding up to a passenger load factor of almost 61 per cent.

On Wednesday, Topi Manner, CEO of Finnair, said the flag carrier is about to leave behind the acute three-year phase of the crisis and will continue to recover.

He said that this is another important step in the right direction, but the road to profitability on an annual level is long and full of challenges in the operating environment. He added that the full-year operating result remained 164 million euros in the red.

In 2022, Finnair carried 9.1 million passengers, an increase of 6.2 million from 2021, with a passenger load factor of 68 per cent.

Manner reminded that despite the persistent challenges such as high fuel prices, the war in Ukraine and the closure of Russian airspace, the last three months of last year brought some good news. Japan opened its borders to international travellers. China has relaxed its pandemic restrictions, paving the way for a gradual restart of travel.

He commented on the strength of unit revenues to play a bigger role than we previously expected in reaching our targets, because the market is developing more positively than previously anticipated and the continued strong cost inflation on the other hand.

People want to travel, and strong demand is expected to continue despite the economic uncertainty and weak consumer confidence. YLE noted on Wednesday that passenger jets are filling up despite purchasing power eroding and fares are at their highest level in years. Manner told the public broadcaster that one of the contributing factors is remote work practices in the post-pandemic world: people working remotely on Friday so that they can enjoy a long weekend in other parts of Europe.

He said that people are prioritising different experiences while weighing up their consumption choices, and that is evident in booking habits.