Finnair sees steady recovery, but it’s far from over

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Finnair sees steady recovery, but it’s far from over

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

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

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

On the one hand, the market developing more positively than previously anticipated, and on the other hand, the continued strong cost inflation, we expect the strengthening of unit revenues to play a larger role than we previously expected in achieving our targets, he said.

People want to travel, and strong demand is expected to continue despite the economic uncertainty and weak consumer confidence. YLE said passenger jets are filling up despite purchasing power eroding and fares are at their highest level in years. Manner said to the public broadcasting company that one factor that is related to remote work practices in the post-pandemic world is that people working remotely on Friday so 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.