The Helsinki-based Finnair's continuing cost-cutting and streamlining appear to be making a difference to the firm's performance, especially over the last quarter was proved to be more positive than many had forecast. Indeed, during what is the seasonally weakest quarter of the year for the carrier, it managed to reach the break-even point.
There are many reasons for the airline's more positive position, not least the commitment and dedication of the staff, which saw its Finland-based cabin crew sign a new agreement that actually means lower wages and increased work as productivity is enhanced which allows more savings. The airline is also subcontracting cabin service on long-haul operations, which the management sees as a key way to transform the carrier. Following the new agreement with cabin crew, the leaders are not bringing in the same subcontracting model of cabin service on domestic and European routes for the next five years.
Key figures released in the most recent publication show Finnair's revenue increased by 73.8% to 694.7 million euros in the first quarter. Net cash flow from operating activities was 206.8 million euros (35.4), and net cash flow from investing activities was -143.7 million euros (-23.7).
The higher fuel prices continued to have an adverse impact on the airline, which expects to cost an extra 40 million euros year-on-year, including the impact of currencies and hedging
Finnair estimates that in 2023, it will operate an average capacity of 80–85 per cent, as measured in ASKs, compared to 2019. The capacity is impacted by the development of demand, e.g., increase in travel on Chinese routes, and potential leases of aircraft with crew to other airlines.
CEO Topi Manner issued the following statement: "The year started on a positive note, as Finnair achieved a marginally positive comparable operating result in the seasonally weakest first quarter. This was the third consecutive profitable quarter after ten loss-making quarters caused by the pandemic and the closure of Russian airspace. Typically, the first quarter of the year is loss-making and, thus, the result speaks of both good progress in strategy implementation, and of a strong demand environment. Strong demand, combined with capacity and resource constraints in the aviation sector caused by the pandemic, contributed to the positive development of our unit revenues."