Finnair income up 200%, more cost cuts

Airline celebrates “best quarterly result in its history”

Finnair has posted a third-quarter net income of €50.8 million. This is a rise of more than 200% from the €1.9 million profit reported for the same period in 2011. These best-ever results are due to increased turnover (up 7.1% to €650.3 million), a higher load factor (67.5%), improved unit revenue and the ongoing program of cost cutting, the airline said.
“This is the best quarterly result in Finnair’s history,” Finnair CEO Mika Vehviläinen said. “The improvement in the company’s result is particularly positive considering that our most significant cost item, fuel, increased by some 25% year-on-year. Our more aggressive pricing and the continued optimization of our route network have resulted in improved load factors compared to 2011. The challenging market conditions have also reduced the intensity of competition on certain routes, which has benefited Finnair somewhat.”
However, on top of a program of cost cuts launched last year that aims at savings of €140 million, a new program of cuts is being implemented targeting annual cost savings of €60 million by the end of 2014.
[pictured: Finnair and Marimekko launch design collaboration from spring 2013; courtesy Finnair]

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