Flag carrier of Finland, Finnair, has turned the corner returning to operational profits in 2023 as it reports 27 pc rise in turnover and it ferried 11 million passengers in the year, up 21 pc from the previous year.

Finnair has reported strong performance in 2023 as its revenue increased by 26.8 pc to EUR 2,988.5 million, from EUR 2,356.6 million in the year 2022.

In a press statement, detailing its annual results, the airline says that comparable operating profit was EUR 184.0 million in 2023 as against an operating loss of EUR 163.9 million in 2022.

The airline adds that the number of passengers carried by it increased by 20.8 pc to 11 million last year as against 9.1 million in 2022 and r-the Available Seat Kilometres (ASK) increased by 15.5 pc to 36,154.5 million km as against 31,298.4 million km in 2022. This is 77 pc compared to 2019 ASKs. The airline says it recorded a Passenger Load factor (PLF) of 76.4 pc, a significant growth from PLF of 67.6 pc in 2022.

In the statement, Finnair reiterates its capacity guidance estimating that in 2023, it will operate an average capacity of 80–85 pc, as measured in ASKs, compared to 2019. The capacity estimate also includes the agreed wet leases.

Finnair specifies its previous guidance for full-year 2023 revenue and now estimates it to be in the range of EUR 2.9–3.1 billion. The company also specifies its previous guidance for full-year 2023 comparable operating result and now estimates it to be in the range of EUR 160–200 million.

The airline says that specific risks related to its operating environment have normalised as the impacts of the pandemic have faded and the markets have adapted to the closure of Russian airspace. However, risks related to the impacts of inflation and rising interest rates on demand and costs remain elevated, thus, causing uncertainty in the operating environment. Also the prevailing situation in the Middle East causes uncertainty in the operating environment.

Finnair says that global air traffic is expected to continue growing in 2024. However, risks related to the impact of inflation and higher interest rates on demand and costs remain elevated, causing uncertainty in the operating environment. International conflicts and global political instability also cause uncertainty in the operating environment. These factors may affect the demand for air travel and cargo.

It plans to increase its total capacity by more than 10 pc in 2024. The capacity estimate includes the agreed wet leases. This growth will mainly focus on Asia and Europe. Finnair’s revenue is expected to grow at a somewhat slower pace than capacity in 2024.

“Finnair carried 2.6 million passengers in October–December and revenue for the period totalled EUR 727.2 million ( EUR 687.3 in same period of 2022). Comparable operating result was EUR 22.5 million, as against EUR 17.9 in 2022, which means that our continued cost efficiency and sales activities generated good results, supported by a favourable market. Finnair’s comparable operating result was positive for the sixth quarter and net profit for the fifth quarter in a row,’’ says Jaakko Schildt, interim CEO, Finnair.

‘‘Despite the challenging weather conditions during the period, the on-time performance of our flights remained at a reasonable level at 75 pc. Unlike many other airlines, we were able to operate almost all our flights despite some delays. Our regularity has been top class in global comparison, both during the period and throughout the year. This has supported customer satisfaction, and our Net Promoter Score (NPS) was 32 in the fourth quarter, which is a good level internationally,’’ Schildt adds.

‘‘Finnair celebrated its 100th anniversary on November 1. 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. 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,” he says.