Finnair: An optimistic outlook for 2024 after strong year

A Finnair Airbus A350 climbs after takeoff.
Photo Credit: Finnair

Finnair has released its performance data for 2023, showing a solid end to a strong year due to a robust market and visible results from its revenue and cost actions.

Additionally, the airline has provided insights into its outlook for the year 2024, shedding light on its anticipated trajectory in the coming months.

Key Highlights of Finnair 2023 Performance

Revenue & Operations

Revenue witnessed a substantial surge, climbing by 26.8% to reach 2,988.5 million euros, reflecting the airline’s strong market position and effective business operations.

The comparable operating result showed significant improvement, standing at 184.0 million euros, compared to a notable deficit in the previous period, indicating Finnair’s enhanced operational efficiency and financial performance.

Earnings per share demonstrated a positive trend, amounting to 0.022 euros, marking a noteworthy turnaround from negative figures in the preceding period.

A Finnair A320 takes off in the snow.
Photo Credit: Finnair

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Passengers & Capacity

The number of passengers surged by 20.8%, reaching 11.0 million, underlining Finnair’s growing popularity among travelers.

Available seat kilometres (ASK) expanded by 15.5%, reaching 36,154.5 million kilometres, indicating the airline’s efforts to increase its operational capacity and cater to growing demand.

Despite challenging weather conditions, Finnair maintained a respectable overall flight on-time performance of 75%, surpassing many competitors and ensuring a high level of customer satisfaction.

Optimistic Net Promoter Score (NPS)

The airline’s Net Promoter Score (NPS) stood at 32 in the fourth quarter, reflecting positively on customer sentiment and satisfaction levels.

A Finnair aircraft enters the runway.
Photo Credit: Finnair

Insights from Interim CEO Jaakko Schildt

Jaakko Schildt, Interim CEO of Finnair, expressed satisfaction with the airline’s performance, highlighting the positive results driven by cost efficiency measures and robust sales activities.

Despite external challenges, Finnair’s operational resilience remained commendable, contributing to its consistent profitability and customer-centric approach.

“Our strategy implementation continued comprehensively during the period. Among other things, we started our cooperation with our oneworld partner Qantas by wet leasing two A330 aircraft for operations between Australia and Southeast Asia,” noted Schildt.

“This is another important step towards ensuring the efficient and profitable use of our fleet while Russian airspace remains closed.”

Summarizing the calendar year 2023, Schildt said: “Finnair celebrated its 100th anniversary on 1 November. Our anniversary year was filled with celebrations, but most importantly, it was a year of turnaround, as we left behind a double crisis.”

“Our systematic strategy work carried out since autumn 2022 has borne fruit, and we have returned our business operations to the targeted profitability level on an annual level.”

A Finnair Airbus A350 in flight.
Photo Credit: Finnair

Outlook for 2024

Looking ahead to 2024, Finnair remains optimistic about continued growth in global air traffic. However, the airline acknowledges potential risks stemming from inflation, higher interest rates, and geopolitical tensions, which could impact both demand and operating costs.

Strategic Expansion

Finnair plans to expand its total capacity by over 10% in 2024, with a particular focus on the Asian and European markets. This expansion aligns with the airline’s commitment to meeting evolving customer needs and capitalizing on emerging opportunities.

Revenue Growth Expectations

While capacity is set to increase, Finnair anticipates revenue growth to proceed at a slightly slower pace, reflecting a prudent approach to sustainable business expansion and market dynamics.

In adherence to its disclosure policy, Finnair will provide a full-year comparable EBIT estimate alongside its half-year report in July, offering stakeholders greater transparency and insight into the airline’s financial performance.

Conclusion

“We will continue to implement our strategy and, in addition to profitability, take care of operational quality, reliability and, consequently, customer satisfaction.”

“My thanks for the successful anniversary year and for achieving Finnair’s turnaround goes to the entire Finnair personnel. Thank you also to our customers and all stakeholders for the journey together,” Schildt concluded.


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By Len Varley - Assistant Editor 5 Min Read
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