The Ticketor
ScanFlyer Dusty
Press Release
16 Aug 2005
Interim Report avilable here: http://www.finnairgroup.com/investor/sijoittaja_8_1_1.html?&Id=hex_200508160000033490.html
Strong growth lends wings to Finnair half year result
Finnair's sales grew clearly more strongly than the industry average. Turnover rose by almost 16 per cent to 471.9 million euros in April-June. Operating profit improved from 4.7 million euros in last year to 35.5 million euros. Traffic growth has been at over ten per cent in the first half of the year.
"Finnair's growth is among the best in the industry, which shows that our strategy is working well. The engine of sustainable, profitable growth is Asian traffic, but our subsidiary flynordic is also contributing to an increasing extent. At this rate we will increase our turnover by around 200 million euros this year," says Finnair President and CEO Keijo Suila.
The turnover for the first half of the year rose 12 per cent. The total result after taxes was 37.9 million euros and earnings per share were 0.45 euros.
"The work we have done to improve productivity and efficiency over many difficult years is now bearing fruit. The positive trend is even exceeding our expectations and I am delighted with the good result we have achieved. Our strong price and cost competitiveness means that our result for the current year will be clearly in profit."
Operating costs in the second quarter rose by over nine per cent. Due to the high price of fuel unit costs for flight operations rose 1.3 per cent while excluding fuel costs fell by just over three per cent. Unit revenues for passenger traffic rose by a little under five per cent.
The first four of 12 Embraer 170 aircraft ordered by Finnair will join the fleet in September-November. The seventh Boeing MD-11 long-haul aircraft will join the Finnair fleet in autumn 2005. Preparations for the opening of new routes in Europe and Asia are underway. Guangzhou in China and Nagoya in Japan as well as Edinburgh, Geneva, Krakow and Florence in Europe will boost Finnair's gateway traffic capacity.
"Competition in the northern skies continues to be tight and costs are burdened by rising fuel prices. Without continual operational rationalisation we cannot achieve the financial level we need when we will modernise and expand our fleet in the coming years. As far as the future is concerned, I am confident. The new destinations we have announced, our aircraft acquisitions and the recruitment and training of new personnel are clear indications of this," Suila declares.
Finnair Plc
Communications
16.8.2005
Further information:
Lasse Heinonen, SVP and CFO, tel. +358 9 818 4950
Christer Haglund, SVP Communications, tel. +358 9 818 4007
Taneli Hassinen, Director, Investor Relations, tel. +358 9 818 4976
http://www.finnairgroup.com
16 Aug 2005
Interim Report avilable here: http://www.finnairgroup.com/investor/sijoittaja_8_1_1.html?&Id=hex_200508160000033490.html
Strong growth lends wings to Finnair half year result
Finnair's sales grew clearly more strongly than the industry average. Turnover rose by almost 16 per cent to 471.9 million euros in April-June. Operating profit improved from 4.7 million euros in last year to 35.5 million euros. Traffic growth has been at over ten per cent in the first half of the year.
"Finnair's growth is among the best in the industry, which shows that our strategy is working well. The engine of sustainable, profitable growth is Asian traffic, but our subsidiary flynordic is also contributing to an increasing extent. At this rate we will increase our turnover by around 200 million euros this year," says Finnair President and CEO Keijo Suila.
The turnover for the first half of the year rose 12 per cent. The total result after taxes was 37.9 million euros and earnings per share were 0.45 euros.
"The work we have done to improve productivity and efficiency over many difficult years is now bearing fruit. The positive trend is even exceeding our expectations and I am delighted with the good result we have achieved. Our strong price and cost competitiveness means that our result for the current year will be clearly in profit."
Operating costs in the second quarter rose by over nine per cent. Due to the high price of fuel unit costs for flight operations rose 1.3 per cent while excluding fuel costs fell by just over three per cent. Unit revenues for passenger traffic rose by a little under five per cent.
The first four of 12 Embraer 170 aircraft ordered by Finnair will join the fleet in September-November. The seventh Boeing MD-11 long-haul aircraft will join the Finnair fleet in autumn 2005. Preparations for the opening of new routes in Europe and Asia are underway. Guangzhou in China and Nagoya in Japan as well as Edinburgh, Geneva, Krakow and Florence in Europe will boost Finnair's gateway traffic capacity.
"Competition in the northern skies continues to be tight and costs are burdened by rising fuel prices. Without continual operational rationalisation we cannot achieve the financial level we need when we will modernise and expand our fleet in the coming years. As far as the future is concerned, I am confident. The new destinations we have announced, our aircraft acquisitions and the recruitment and training of new personnel are clear indications of this," Suila declares.
Finnair Plc
Communications
16.8.2005
Further information:
Lasse Heinonen, SVP and CFO, tel. +358 9 818 4950
Christer Haglund, SVP Communications, tel. +358 9 818 4007
Taneli Hassinen, Director, Investor Relations, tel. +358 9 818 4976
http://www.finnairgroup.com
