– We are working on a thorough strategy reform and aim to communicate our direction and the changes it brings more during the fall.
Finnair reports that its second-quarter net sales increased by more than 390 percent from 112 million euros a year ago to 550 million euros as demand for air travel began to normalize and passenger numbers and utilization rates recovered, especially in Europe and the United States. . Its comparable operating result improved accordingly from the previous year, but remained at a loss of more than 84 million euros.
The airline pointed out that the record high fuel prices had a negative cost impact of approximately 126 million euros compared to the previous year, which was increased by the longer route required by the closure of Russian airspace.
Manner said the airline used about 64 percent of its active capacity in 2019, and the airspace closure limited flying to the traditionally important markets of Japan and South Korea. It managed to provide employment to around 600 employees by leasing six percent of its aircraft capacity to partner airlines.
“In the second quarter of 2022, Finnair was affected by one crisis after another,” he summarized. “The effects of the severe, two-year-long pandemic began to ease as demand recovered, but at the same time we felt the full weight of the effects of the war in Ukraine.”
Finnair stated that it expects the full-year comparable operating result to be “significantly negative” for the third year in a row due to the war in Ukraine.
Due to a weaker-than-expected operating result and dim near-term prospects, the airline’s shares fell by more than nine percent to EUR 0.41 on the Helsinki Stock Exchange on Tuesday. Shares have lost almost a third of their value since the beginning of the year.
Aleksi Teivainen โ HT
Source: The Nordic Page