Finnair´s turnover grew last year by ten per cent to 2.2 billion
euros. The operational result rose from the previous year´s 11 million
euros to 97 million euros. In addition, non-recurring capital gains
totalled 30 million euros, including the sale of the FlyNordic
subsidiary. Profit before taxes was 140 million euros.
"Our hard work last year delivered a good result that we are proud
of. During 2006 we laid a solid foundation for the improvement of
profitability and the price for this was evident in the result. We
entered 2007 in good shape and profitability improved in every
quarter. We need strong cash flow for future acquisitions," says
Finnair´s President & CEO Jukka Hienonen.
Finnair will invest a total of nearly 700 million euros in new
long-haul aircraft this year and next.
Last year, Finnair carried nearly nine million passengers.
Passenger traffic overall grew by 13 per cent. Asian traffic grew by
over 30 per cent. Passenger load factor overall was 76 per cent, on
Asian flights slightly higher. Overall, passenger traffic unit revenue
per passenger kilometre fell by two per cent, while in Asian traffic
it rose slightly.
Operating costs rose by nearly four per cent. Unit costs of flight
operations fell by more than five per cent, as a result of the
implemented 80 million euro efficiency programme and the growth in
Asian traffic. Fuel costs rose last year by 14 per cent.
"The price of oil reached a record high at the end of the year,
crossing the 100 dollar a barrel mark. Fuel costs will remain high and
we will adjust our competitiveness accordingly," says Hienonen.
Asian traffic growth will continue this year, when two new Airbus
A340 long-haul aircraft join Finnair´s fleet. A new destination, Seoul
in South Korea, will open in June.
It is expected that the predicted slower growth in the global
economy will have less impact on air traffic between Europe and Asia
than on the development in certain other traffic areas.
"Finnair´s demand situation is currently good, both in leisure and
scheduled traffic. The solid result shows that Finnair is in good
shape, but further guidance in the present uncertain world economy
would be too adventurous," concludes Hienonen.
