Finnair outlook for 2016 and beyond looks bright

Strong labour productivity and fleet improvements on its side
Labour agreements reached in 2014, fleet improvements now under way and low fuel prices are combining to give Finnair its brightest outlook for some years, the CAPA centre for aviation reports.
The Finnish flag carrier returned to profit in 2015, turning around a 2014 net loss of €83 million to a positive result of €90 million, excluding interest, tax and non-recurring items.
This was only its third positive result since before the global financial crisis, and Finnair continues to lag behind in profitability. Its revenue is still below where it was in 2013 and its operational margin is far behind the rest of the global airline industry, CAPA says.
The return to profit and revenue growth is welcome, but it still has much to do. However, on its side are strong labour productivity improvements and a fleet improvement program led by A350 deliveries scheduled between 2015 and 2023.
Finnair’s outlook is brighter than it has been for some years, CAPA concludes. It expects growth this year in both capacity and revenue, despite uncertainty in its markets. Another rise in operational profit should be expected in 2016.


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