Finnair posts positive figures in 2018
15 Feb 2019, 19:20 ( 1 Month ago)
The Finnish state-majority owned airline Finnair on Friday reported positive figures for 2018.
While success during the first half of 2018 was known, analysts had expected that the last three months would indicate a loss.
However, the company still managed to make profit of 9.2 million euros during October-December 2018. It was a major decline from the 22.9 million euros of profit a year earlier, but beat analyst consensus of 5 million loss quoted by earlier by Kauppalehti, a business daily.
Finnair stock rose at Nasdaq Helsinki by 7 percent by the early afternoon and was at 7.7 euros.
During the whole year 2018, Finnair turnover grew by over 10 percent and reached 2.8 billion euros.
The airline reported a passenger record at 13.3 million customers. The seat utilization rate was 81.8 percent. The profit for the whole year was 169 million euros, only slightly less than in 2017.
Even though Finnair is a traditional network airline, its sales approach has increasingly resembled the practices of low fare airlines.
In October 2018 Finnair announced it had started charging for alcohol in the economy class on many of its Asian long haul routes.
The company described the change "as a test on savings and costs". On the European routes only coffee, tea and juices have been complimentary for years.
CEO Topi Manner noted in a media release that competition had become harder on some European routes and the price of fuel had peaked.
Finnair expects a growing competition both in Europe and the flights between Asia and Europe. It plans to increase its capacity by 10 percent with a focus on the long haul routes to Asia. The airline will publish its 2019 prognosis in July.