Finnair (Helsinki) reported a larger loss for 2014 than the previous year. The flag reported a widened net loss of €82.5 million ($93.9 million) for the year. This has grown from a previous net loss of €22.9 million ($26.1 million) for 2013.
CEO Pekka Vauramo commented:
“In 2014, we were successful in developing our operations and overhauling our cost structure, but due to a substantial decrease in revenue, our result showed a loss. Our revenue declined by 4.8 per cent and our operational result was -36.5 million euros. The decline in revenue was mainly attributable to a decrease in unit revenue in passenger and cargo traffic, the contraction of the sales of package tour operator Aurinkomatkat Suntours, and the loss of external revenue resulting from the restructuring of aviation services.
On a positive note, our unit revenue turned to growth in the fourth quarter for the first time since the first quarter of 2013. Moreover, the decrease in costs outpaced the decline in revenue in October–December. The fourth-quarter operational result improved year-on-year but nevertheless showed a loss of 9.3 million euros.
In order for Finnair’s profitability to improve, it is essential to increase unit revenue and continue to maintain tight costs control. I am pleased with the significant steps forward we took in 2014. We not only achieved our cost reduction target of 200 million euros, but exceeded it by approximately 17 million euros by the end of the year. The savings agreements we concluded with various employee groups will continue to provide us with important additional cost savings gradually, starting from the first quarter of 2015. I am particularly pleased that the outcome of the negotiations enables us to continue to develop our operations together with our employees. In this regard, we are well positioned to seek growth.
The year 2015 is a new beginning for Finnair: we will seek revenue growth through product upgrades introduced in recent months, as well as ancillary revenue, and we will be the first European airline to introduce to service the new Airbus A350 XWB aircraft in our long-haul traffic starting from October 2015.”
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Copyright Photo: SPA/AirlinersGallery.com. Airbus A321-231 OH-LZF (msn 2208) arrives in London (Heathrow).
Finnair aircraft slide show: