Finnair announces plans to revamp business

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Finnair announces plans to revamp business

We are working on a strategy renewal and aim to communicate more about our direction and the changes it brings in the autumn. Finnair reported that its second quarter revenue increased by more than 390 per cent year-on-year, from 112 to 550 million euro, as demand for air travel started to normalise and passenger volumes and load factors recovered, especially in Europe and the United States. Its comparable operating result improved from the previous year but remained more than 84 million euro in the red.

The airline pointed out that record-high fuel prices had an adverse cost impact of 126 million euros compared to the previous year, an impact that was compounded by the longer routes necessitated by the closure of Russian airspace.

In 2019, the airline operated about 64 per cent of its active capacity, with the airspace closure restricting flying to the traditionally important markets of Japan and South Korea. It was able to provide around 600 jobs by wet-leasing six percent of its aircraft capacity to partner airlines.

Finnair was impacted by one crisis after another during the second quarter of 2022, he summarised. The impacts of the severe, two-years- and-counting epidemic started to diminish as demand recovered, but at the same time we felt the full weight of the war in Ukraine. Finnair believes that its operating results for the whole year will be negatively for the third consecutive year due to the war in Ukraine.

The airline's shares fell by more than nine percent to 0.41 euros on the Helsinki Stock Exchange on Tuesday, down from a worse-than-expected operating result and a muted short-term outlook. The shares lost a third of their value since the beginning of the year.