Finnair sees signs of recovery

For Finnair the SARS epidemic caused a dramatic plunge in demand in April, May and June especially in Asian traffic, but also reflected on demand for European routes. Finnair said that pre-bookings show signs of a slow recovery on Finnair's Asian routes during the end of summer and beginning of autumn.

After the adjustments on the Asian routes, capacity is being added gradually. The Beijing route, which was cut to one weekly flight, will see capacity double by the end of July. In August weekly frequencies will increase to three and to four in September. The new route to Shanghai will also be launched in September.

In June 2003 Finnair carried a total of 567,700 passengers, which is 11.6% less than year before. 444,800 of the passengers were carried in scheduled traffic (-13.7%) and 122,900 in leisure traffic (-3.2%). The total passenger traffic (RPK's) decreased by 11.7%, while the capacity (ASK) was down by 3.8%, resulting in a passenger load factor (including leisure flights) of 71.4%, 6.4 points lower than last year. The June figures are reflecting a gradually improving demand, as SARS fears are decreasing, but figures were also affected by aviation workers' illegal two day strike, which cancelled all domestic and some European flights.

Cumulative January-June traffic (RPK) was 7.4% below 2002 level on a capacity decrease of 0.2%. Passenger load factor was 67.1% (-5.2%-points).

Total number of passengers carried was 3,348,700 (-6.4%).

Departure punctuality of scheduled flights was 88.2% (based on a fifteen minute standard), 2.5 percentage points better than in June 2002. 

Including leisure flights departure punctuality was 87.3% (-2.9 p.u).

As from January 2003 the traffic performance report will also include the figures of Finnair's associated company Aero Airlines AS, to which Finnair handed over most of it's Helsinki-Tallinn operations in June 1st 2002. In June Aero carried 9,000 passengers with a PLF of 47.2%.

Scheduled traffic

* RPKs in scheduled traffic (international + domestic) decreased by 14.3%. The change in capacity was -4.2%. Passenger load factor was 64.8%, 7.6 percentage points lower than last year. 

* In scheduled international traffic, premium traffic decreased by 15.6%, while the total number of passengers was down by 11.1%. Capacity in ASKs was -3.0%, while RPKs decreased by 13.9%.

* In European scheduled traffic, ASKs increased by 0.2%, and as RPKs decreased by 4.2%, the passenger load factor was 64.8%, down 3.0 points from previous year.

* In North Atlantic scheduled traffic, capacity increased by 3.2%. Change  in RPKs was -9.3%, and passenger load factor for June was 84.8%, 11.7 p.u. lower than previous year. Premium traffic decreased by 33.5%.

* In the Far East scheduled traffic, capacity decrease was 12.6%. The passenger traffic was down by 33.9%. Passenger load factor was 60.9%, 19.6 percentage units down. The number of premium passengers decreased by 41.3%.

* Domestic scheduled traffic decreased by 17.9% on a capacity decrease of 11.8%. Passenger load factor decreased by 4.0 p.u. to 52.7%. Domestic traffic was hit by an illegal two-day strike in June 10-11.

Leisure traffic

* ASKs for leisure traffic decreased in June by 2.7%, and RPKs decreased accordingly by 6.0%, resulting in a passenger load factor of 90.2%, 3.2 points lower than last year.

Cargo

* Cargo traffic decreased by 16.6% in terms of cargo tonnes carried. Cargo tonnes in scheduled traffic decreased by 13.8% due to lower cargo capacity in the Far Eastern traffic. In the Asian traffic cargo volumes were down by 21.2%. Cargo tonnes in North Atlantic traffic maintained approximately on last year's level and were down by 1.2%. Load factor in chartered cargo traffic was 69.7%.