Profit warning: Finnair's Apr-2010 - Jun-2010 loss projected to be lower than expected
09-Jun-2010 Finnair has updated its previous guidance on the second-quarter result. The company's operational loss for April-June is projected to be at the same level or smaller than the first-quarter operational loss. Earlier guidance projected the second-quarter result to be clearly worse than the first-quarter figure.
- We naturally cannot be satisfied with a loss-making result, but the trend in profitability is encouraging. We must complete the implementation of our 200 million euro profit improvement programme and at the same time safeguard our long-term cost-competitiveness, says Finnair's President & CEO Mika Vehviläinen.
The reasons for the improved financial performance are better than expected development of demand and unit revenues. The negative post-effects of the volcanic ash crisis, which disrupted air traffic in April, were milder than expected.
The strong growth in demand that began in March and continues still as well as a strengthening of load factors have improved unit revenues in Finnair's scheduled traffic.
- Demand is growing in markets outside Finland, but Finnish business travel remains subdued. It is fortunate that we have systematically invested in Asia-Europe traffic, which is not to the same extent dependent on Finnish demand as domestic or European flights.
Cargo traffic demand has improved significantly during the spring, which is reflected both in tonnes carried and in unit revenues. Last year passenger and cargo traffic volumes and unit revenues sustained historic declines.
Finnair Plc
Communications