Tag Archives: msn 019

Finnair continues its strong growth in Asia with additional frequencies for summer 2019

Finnair Airbus A350-941 OH-LWB (msn 019) (Oneworld) LHR (Keith Burton). Image: 939094.

Finnair has made this announcement:

Continuing its strong growth in key Asian markets, Finnair today announced it will be adding frequencies on many popular Asian routes for next summer, including double-daily flights to Hong Kong and additional flights to Japan.

Finnair will add flights on several of its Japanese routes, increasing its capacity to Japan by 15% for the summer season. Three weekly flights will be added on the Helsinki-Osaka route, meaning Finnair will now fly a total of ten weekly frequencies during the summer season starting on March 31, 2019. The new departures will now offer an alternative departure for customers with two daily frequencies on selected days. The added frequencies depart on Wednesdays, Fridays and Sundays from Helsinki, with departure times from Helsinki at 00:45.

Continuing on the success of the double-daily flights to Tokyo during the summer of 2018, Finnair will operate double-daily flights on the Tokyo route for the entire summer season in 2019 and will also add a third daily flight during Japan’s Golden Week holiday. With these changes, Finnair is increasing its capacity to Tokyo by 9% compared to the 2018 summer season.

In addition, Finnair is also adding capacity on the Nagoya route by flying the Airbus A350 from May 5th onwards.

Finnair operates all flights to Japan in cooperation with its joint business partners: Japan Airlines, British Airways and Iberia. Including the joint business flights with Japan Airlines, Finnair will now offer up to 41 weekly frequencies to Japan during the summer 2019 season.

Finnair will also significantly grow its presence in the Greater China area, with a 12% increase in overall capacity during the summer season, offering 42 weekly flights in total between Helsinki and Greater China.

Finnair will fly double-daily, or 14 weekly frequencies, to Hong Kong with the new Airbus A350 aircraft year-round as of 2019 summer season. Finnair is currently flying ten weekly flights during the 2018 summer season, and 12 weekly flights in the upcoming winter season.

Capacity will also be increased on the Guangzhou route as it will now be operated with a A350 aircraft. Finnair will fly four frequencies to Guangzhou during the 2019 summer season, increasing its capacity on the route by 16% compared to summer 2018.

Top Copyright Photo (all others by Finnair): Finnair Airbus A350-941 OH-LWB (msn 019) (Oneworld) LHR (Keith Burton). Image: 939094.

Finnair aircraft slide show:

x

Finnair opens a new year-round route to Hanover for summer 2019 and increases capacity to Dubai for winter 2018-2019

Finnair Airbus A350-941 OH-LWB (msn 019) (Oneworld) LHR (Keith Burton). Image: 939094.

Finnair made this announcement:

Continuing with its growth in the German market, Finnair will be launching a new route to Hanover, Germany, next summer. The new route will start on April 29, 2019 with five weekly frequencies and will become a daily and year-round frequency as of June 1, 2019. Hanover is one of Northern Germany’s largest cities and hosts several important fair and trade events throughout the calendar year. Hanover will be Finnair’s seventh destination in Germany. Finnair flies year-round to Berlin, Dusseldorf, Frankfurt, Hamburg, Munich and Stuttgart.

Additional capacity is also being added for the 2019 summer season on some popular European routes. Finnair will add four weekly frequencies to Barcelona from the beginning of June until the end of the summer season. An additional frequency will be added to Reykjavik, making it a daily destination for the entire summer season. In addition, an additional daily frequency will be added to Warsaw on both Saturdays and Sundays.

Finnair is also adding capacity on its Helsinki-Dubai route for the upcoming winter 2018 season. One weekly frequency will be added which means Finnair will now fly seven weekly frequencies to Dubai. In addition, two of the weekly frequencies will now be operated with a A350, instead of a narrow-body aircraft.

Copyright Photo: Finnair Airbus A350-941 OH-LWB (msn 019) (Oneworld) LHR (Keith Burton). Image: 939094.

Finnair 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: