Finnair announces plans to review strategy

Finnair announces plans to review strategy

We are working on a thorough strategy renewal and we want 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 began to normalise and passenger volumes and load factors recovered, particularly in Europe and the United States. Its comparable operating result was similarly improved from the previous year, but it still retained more than 84 million euros in the red.

The airline pointed out that record-high fuel prices had an adverse cost impact of around 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 roughly 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 work for around 600 employees 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. As demand recovered, the impacts of the severe, two-years- and-counting epidemic started to lessen as demand recovered, but at the same time we felt the full weight of the war in Ukraine. Finnair expects its operating results to be negatively for the entire year for the entire year to be negative due to the war in Ukraine.

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