Category Archives: Finnair

Finnair extends the operating period for its Chicago and San Francisco routes

Best Seller

Finnair is extending the operating period for both its Chicago and San Francisco routes during the upcoming fall. The Helsinki-Chicago route will be extended until December 3 with two weekly flights. Originally, the route was set to operate from April 19 until October 27. Chicago is the largest city in the American Midwest and a global hub for business, leisure and the arts. Finnair started a seasonal service to Chicago during the summer of 2015.

The Helsinki-San Francisco route will now be extended until December 5 with two weekly frequencies. Originally, the route was to be operated from May 3 until September 27.  San Francisco is well-known for its buzzing food scene, hilly terrain, Victorian architecture and proximity to Silicon Valley. Finnair began a seasonal service to San Francisco during the summer of 2017.

Finnair operates its flights to the Unites States within the Atlantic joint business between Finnair, American Airlines, British Airways and Iberia. The joint business offers customers additional flight choices, better connections and better pricing on transatlantic routes. Currently, the four airlines operate over 100 daily return flights between Europe and North America.

Copyright Photo: Finnair Airbus A330-302 OH-LTS (msn 1078) HEL (Ton Jochems). Image: 908297.

Finnair aircraft slide show: 

Advertisements

Finnair to fly to Minsk

Finnair (Nordic Regional Airlines-Norra) Embraer ERJ 190-100LR OH-LKH (msn 19000086) ZRH (Paul Bannwarth). Image: 928865.

Finnair is expanding its network and will open a direct, year-round nonstop route between Helsinki and Minsk starting on June 9, 2018.

Flights between Helsinki and Minsk will be operated twice per week, on Tuesdays and Saturdays, with an Embraer 190 aircraft.

Currently, Finnair also co-operates with Belavia on the Helsinki-Minsk route and Finnair’s own flights will bring the total amount of weekly flights up to five.

Copyright Photo: Finnair (Nordic Regional Airlines-Norra) Embraer ERJ 190-100LR OH-LKH (msn 19000086) ZRH (Paul Bannwarth). Image: 928865.

Finnair-Nordic Regional aircraft slide show:

Finnair reports its 2017 financial results and outlook for 2018

Finnair Airbus A350-941 OH-LWB (msn 019) (Oneworld) LHR (SPA). Image: 934962.

Finnair issued its financial results for the fourth quarter and full-year 2017 and also issued its outlook for this year:

Q4 comparable operating result increased to 22.9 million euros and FY 2017 comparable operating result tripled to a record-high 170.4 million euros

Fourth Quarter – October–December 2017

  •  Revenue increased by 13.2% to 645.3 million euros (569.9)*.
  •  Available seat kilometres (ASK) grew by 17.2%.
  •  Comparable operating result was 22.9 million euros (1.6).
  •  Operating result was 23.5 million euros (18.2).
  •  Comparable EBITDAR** was 94.0 million euros (59.4).
  •  Net cash flow from operating activities was 92.6 million euros (30.5), and net cash flow from investing activities was -85.6 million euros (-264.7).***
  •  Unit revenue (RASK) decreased by 3.4%.
  •  Unit cost (CASK) decreased by 6.6%, and unit cost at constant currency excluding fuel decreased by 3.1%.
  •  Ancillary and retail revenue per passenger grew by 3.2% to 12.60 euros.
  •  Earnings per share were 0.11 euros (0.08).

Full Year 2017 – January–December 2017

  •  Revenue increased by 10.9% to 2,568.4 million euros (2,316.8)*.
  •  Available seat kilometres (ASK) grew by 8.9%.
  •  Comparable operating result was 170.4 million euros (55.2).
  •  Operating result was 224.8 million euros (116.2), including a sales gain on an A350 aircraft.
  •  Comparable EBITDAR** was 436.2 million euros (270.4).
  •  Net cash flow from operating activities was 382.3 million euros (219.7), and net cash flow from investing activities was -157.5 million euros (-499.6).***
  •  Unit revenue (RASK) increased by 1.8%.
  •  Unit cost (CASK) decreased by 2.6% and unit cost at constant currency excluding fuel increased by 0.3%.
  •  The 20-million euro cost-efficiency program was completed in full by the summer.
  •  Ancillary and retail revenue per passenger grew by 5.2% to 12.15 euros.
  •  Earnings per share were 1.23 euros (0.55).
  •  The Board of Directors proposes to the Annual General Meeting that a dividend of 0.30 euros per share be distributed for 2017.

*     Unless otherwise stated, comparisons and figures in parentheses refer to the comparison period, i.e. the same period last year.
**    Comparable operating result + depreciation + lease payments for aircraft.
***  Net cash flow from investing activities in Q4, includes 26.8 million euros of investments to money market funds or other financial assets maturing after more than three months. In 2017, these investments decreased in net terms by 82.9 million euros. These investments are part of the Group’s liquidity management.  

Outlook  

Global airline traffic is expected to grow strongly in 2018. Finnair expects increased competition as existing and new operators increase capacity, particularly on routes linking Europe with Asia and with North America.

Finnair plans on increasing its capacity by more than 15 per cent in 2018, with most of this growth coming in the first half of the year. Passenger volume is expected to grow broadly in line with capacity while revenue growth is expected to be slightly lower.

In line with its disclosure policy, Finnair will issue guidance on its full-year comparable operating result as part of its half-year report in July.

CEO Pekka Vauramo: 

The year 2017 was excellent for Finnair. The favourable business environment supported our growth together with the right capacity, route network and product decisions we made in recent years. We ended 2017 in the middle of the fastest growth phase in Finnair’s history and we plan to continue our transformation and growth also in 2018.

Towards the end of the year, our route network was expanded by four new long-haul destinations, namely Goa, Havana, Puerto Plata and Puerto Vallarta. At the same time, we increased our flight frequency to several Asian and European destinations. We also invested heavily in our routes to Northern Finland by increasing our capacity between Helsinki and Northern Finland by more than 20 per cent for the current winter season and by introducing direct flights to Lapland from London, Paris and Zürich. Lapland is again the number one European destination for our Chinese customers this winter. Passenger demand on our route network remained strong from October to December, and we achieved a new passenger record during the period by carrying nearly three million passengers. The favorable development continued also in ancillary revenue, cargo and travel services. Our comparable operating result for the fourth quarter was a record high 22.9 million euros.

In 2017, our revenue grew to 2,568 million euros and our comparable operating result more than tripled, reaching 170 million euros. While increasing our capacity by nearly 9 per cent, we also managed to increase our passenger load factor by 3.5 percentage points. Our customer satisfaction, measured by our Net Promoter Score, increased by 4 units to 47.

During the year, we also completed the first phase of our long-haul fleet renewal. We made significant investments in the development of digital solutions and services to enhance the customer experience and to improve processes and ways to work at Finnair. Other significant steps we took included the commissioning of the new Nordic Cargo COOL terminal and the launch of the new Finnair Holidays product. These moves enable us to deliver more personalized services to our customers and to facilitate further growth going forward. In travel services, Aurinkomatkat Suntours became the largest operator in terms of the number of customers in the Finnish market in 2017.

I am satisfied with the renewal efforts we made during the year. They have contributed to our growth and improved customer satisfaction. I am also pleased with our records in monthly passenger volumes and passenger load factors, as they indicate that our route network and product have developed in the right direction.

Everyone at Finnair has made an excellent contribution during this period of growth and transformation.

The turnaround we have achieved in our operations and financial performance is a shared accomplishment by everyone at Finnair. As a sign of gratitude for the transformation that has driven the company forward on the path of profitable growth, Finnair decided to reward Finnair’s employees with a one-time bonus announced in December. Throughout this period of growth, we have invested in the development and well-being of our employees. We will continue these efforts and our other development efforts in 2018 to support our continued strong growth.

Dividend policy and the Board’s proposal for the distribution of profit

The aim of Finnair’s dividend policy is to pay, on average, at least one-third of the earnings per share as a dividend during an economic cycle. The aim is to take into account the company’s earnings trend and outlook,

financial situation and capital needs in the distribution of dividends. In 2017, earnings per share was 1.23

euros (0.55).

Finnair Plc’s distributable equity amounted to 424,036,052.14 euros on December 31, 2017. The Board of Directors proposes to the Annual General Meeting that a dividend of 0.30 euros per share be distributed for 2017.

Copyright Photo: Finnair Airbus A350-941 OH-LWB (msn 019) (Oneworld) LHR (SPA). Image: 934962.

Finnair aircraft slide show:

Finnair to offer digital newspapers on its long-haul flights

Finnair Airbus A350-941 OH-LWA (msn 018) BRU (Ton Jochems). Image: 932911.

Finnair is making available a wide selection of international newspapers in digital format for customers on its long-haul flights. As of today, over 50 international newspapers can be read in pdf format through the Nordic Sky portal that is available onboard Finnair’s Airbus A330 and A350 aircraft. Customers can use the portal with their own devices, and do not need to purchase a Wi-Fi connection to access the newspapers.

At the same time, Finnair will discontinue distributing paper versions of newspapers on its long-haul flights. Paper issues will remain on European flights for the time being, until Finnair’s European fleet is also equipped with Wi-Fi later this year.

At this stage, digital newspapers are provided free of charge in both business and economy class of Finnair’s long-haul flights, as well as on the Helsinki-London-Helsinki flight flown with an Airbus A350 aircraft.

Copyright Photo: Finnair Airbus A350-941 OH-LWA (msn 018) BRU (Ton Jochems). Image: 932911.

Finnair aircraft slide show:

Finnair opens new route to Lyon, adds long-haul frequencies to Osaka, Hong Kong, Delhi and Phuket

Happy Holidays 2017

Finnair has announced the opening of a new winter route to Lyon, France, for the 2018/2019 winter season. Known for its gastronomy, historical landmarks and its proximity to the French Alps, Lyon is the second largest metropolitan area in France. As of December 11, 2018 Finnair will fly two weekly flights to Lyon from its Helsinki hub with an Embraer E190 aircraft. Operating on Tuesdays and Saturdays, the flights will offer smooth connections to Finnair’s Asian network.

Continuing with its growth strategy, Finnair is receiving its twelfth Airbus A350-900 aircraft in 2018 and will be adding several frequencies to its popular long-haul destinations. Finnair’s route to Osaka will now become daily during the winter season with two additional frequencies on Tuesdays and Thursdays. Two additional frequencies will also be added to the Hong Kong route on Fridays and Sundays, for a total of 12 weekly frequencies. Finnair’s route to Delhi will become a daily destination during the winter season with the addition of a flight on Wednesdays and a fourth weekly frequency will also be added to the Phuket route on Mondays starting as of December 10. In addition, the schedule for Finnair’s flight to Miami will be modified so it better coincides with Finnair’s other North American departures and its connecting flights to Europe.

Additional short-haul frequencies will also be added to popular Finnair destinations in Europe during the winter season. An additional weekly frequency will be added to Malaga, Funchal and Tenerife, two weekly frequencies will be added to both Rome and Gran Canaria and a daily flight on weekdays will be added to Rovaniemi in Finnish Lapland. Furthermore, Finnair will continue its non-stop flights to Lapland from London Gatwick, Paris and Zurich.

Finnair will also be extending the operating period on some of its existing routes. Malta and Antalya will now continue operating from the 2018 summer season until December 9. The routes to Edinburgh and Alanya-Gazipasa will also be extended for the winter, making them new year-round destinations for Finnair.

Copyright Photo: Finnair Airbus A350-941 OH-LWE (msn 023) (Happy Holidays) BKK (Michael B. Ing). Image: 940560.

 

Finnair revamps its business class with a Nordic touch

Finnair issued this statement and photos:

In conjunction with its annual Press Day, Finnair has today announced the launch of a new business class service concept and new Marimekko design elements for both cabin classes, celebrating its Nordic roots and offering customers a unique Nordic customer experience.

Personal service with dedicated crew 

Inspired by pure essentials, Nordic design and meaningful encounters, Finnair’s new service concept will offer a wider range of dining and wine options, served on-demand and at a customer’s preferred time, just as if you were in a restaurant.

As part of its new concept, Finnair is also introducing the classic Finnish tradition “Kahvikutsut”  – a coffee serving with seven different treats – for long-haul flights departing Asia in the morning. This exclusive coffee service allows customers to spend quality time enjoying traditional Finnish treats like Carelian pies, cinnamon buns, coffee cake and traditional Finnish chocolates between the two meal services.

Finnair’s new business class service concept will commence as of February 7, 2018, on flights to Seoul, Tokyo and Shanghai, with a gradual roll-out of the remaining long-haul destinations during the spring and summer.

Renewed textiles and Marimekko patterns for both classes 

Finnair will also bring the feeling of the Nordics to the cabin interior of Finnair A350 aircraft with new cabin textiles and amenities, including new simple and stylish seat covers, and pillows, blankets and chinaware with prints from the iconic Finnish design house Marimekko.

Photos: Finnair.

Finnair adds flights to top European destinations for summer 2018 and to Lapland for winter 2018/2019

Finnair Airbus A320-214 OH-LXB (msn 1470) LHR (SPA). Image: 928937.

Finnair has made this announcement:

In line with its growth strategy, Finnair continues to grow its traffic and will add frequencies to popular destinations in Europe for summer 2018 and winter 2018, as well as increase flights to the popular winter destinations in Finnish Lapland for the peak season in winter 2018/2019. The additions are fueled by the increasing number of Asians traveling to Finnair’s European destinations.

Starting in June 2018, Finnair adds frequencies to its new year-round destination, Lisbon, where Finnair will operate daily flights during the summer season. Finnair also adds frequencies to Barcelona, operating up to 18 weekly frequencies during the high season in summer 2018. Budapest will get a third daily flight for the summer season, with improved connections to Finnair’s US network. In addition, Krakow will get two new weekly frequencies, with improved connections from Krakow to Asia and America, and Geneva will get one additional weekly frequency in summer and winter 2018. Finnair will also fly again to Astana, with two weekly frequencies in July-August.

Driven by demand from Asia, Finnair is also adding frequencies to its winter 2018/2019 schedules. Finnair will fly to Madrid with a total of 10 weekly connections in winter 2018, and Keflavik (Reykjavik) will also get two additional weekly frequencies for winter 2018/2019.

Asian demand is also fueling Finnair’s growing traffic to Finnish Lapland, known for its untouched nature, northern lights and possibilities for snow activities. Finnair is adding over 230 flights to Finnish Lapland for the winter season 2018/2019, offering more connections to the popular winter destinations of Ivalo, Rovaniemi, Kittilä and Kuusamo during the peak travel season. Altogether, Finnair will offer 482,000 seats to Lapland during the 2018/2019 winter season, an increase of 15% compared to the current winter.  Finnair will also continue the non-stop flights from London Gatwick, Paris and Zürich to Lapland during the 2018/2019 winter season.

Finnair is also launching a new Rail & Fly cooperation with Deutsche Bahn, combining air and rail travel. The new cooperation means that customers buying a Finnair ticket to or from Germany can also include a rail trip to their booking. The cooperation covers more than 5,600 railway stations in Germany.

Copyright Photo: Finnair Airbus A320-214 OH-LXB (msn 1470) LHR (SPA). Image: 928937.