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Finnair's operating profit for the first three months of
2005 was 18.7 million euros compared to last year's which was 2.4 million euros in the red. Turnover rose by
8.8% to 449.4 million euros. The airline expects the result for the whole year
to be clearly better in 2004.
"We are back on track towards healthy growth and we can be pleased with that. Our first quarter result clearly indicates that profitability has taken a turn for the better.
Our demand remains strong and our costs are in check," said Finnair President and CEO Keijo
Suila.
Traffic of Finnair Group airlines increased by 7.4% in the first quarter and the passenger load factor grew by two percentage points to 73.4. Scheduled Passenger
Traffic rose by 10.6% and the load factor improved by 5.1 percentage points. The growth came from Asian traffic and from Swedish subsidiary flynordic's
increased traffic. Every fourth euro of Finnair's Scheduled Passenger Traffic revenues comes from Asian traffic.
The Group result after taxes was 11.5 million euros and the earnings per share 0.14 euros. Operating costs rose by 3.7%, but unit costs dropped by 3.8%
despite the 25% increase in fuel prices. Unit revenues remained at last year's level, with a rise of 0.4%.
"We have managed to lower our unit costs despite expensive fuel prices. In addition, the long plummet of ticket prices has ended as we predicted. In some areas average
prices have even risen despite increased competition. The high price of fuel continues to burden the industry, which will reflect on price development," Suila
added.
The number of personnel decreased in January-March by 1.9% to under 9400 persons. Personnel costs increased by 1.5%.
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