Finnair has continued its steadfast growth on account of its fleet investments and strategic focus on air traffic between Asia and Europe.
The state-owned airline reported yesterday that its passenger load factor on routes between Asia and Europe improved by almost 10 per cent year-on-year between April and June, pushing its second-quarter operating profits from 3.2 million in 2016 to 37.5 million euros in 2017.
Its operating result has therefore improved for eleven consecutive quarters.
“Finnair is now growing at an accelerated speed: We are opening new routes, adding capacity in existing routes, and recruiting new employees,” commented Pekka Vauramo, the chief executive of Finnair.
Vauramo revealed in the half-year report that the number of passengers who flew with the state-owned airline rose to an all-time quarterly high between April and June, allowing revenue to increase at a double-digit rate from the corresponding period last year.
“Sales grew particularly due to the solid demand for the backbone of our network, traffic between Asia and Europe,” he stated. “Our sales developed favourably in Japan, Korea and China.”
Finnair on Thursday reported that the demand for passenger transport grew not only on its well-established routes but also on newly-launched routes, such as that from Helsinki to San Francisco, and on routes with increased service frequency, such as that from Helsinki to Tokyo. The airline also recorded growth in outbound passenger traffic from Helsinki, as well as from the United States to the Nordics and Russia.
Vauramo said he is delighted also with the nearly ten per cent up-tick in ancillary and retail revenue per passenger and with the continuing improvements in customer satisfaction.
“Finnair’s Net Promoter Score during the second quarter was 48, an all-time high,” he told. “We are focusing on service development and improving the smoothness of the entire passenger journey to offer a unique Nordic experience to our customers.”
The better-than-expected first half-year is expected to provide a solid foundation for future growth. Finnair revealed that it expects its capacity to expand by approximately 15 per cent in the second half of the year, with the third quarter being traditionally its strongest and with the favourable market conditions likely to continue.
“We anticipate our comparable full-year operating profit to broadly double from last year,” said Vauramo.
Aleksi Teivainen – HT
Photo: Mikko Stig – Lehtikuva