Finland’s national flag carrier Finnair announced its 2023 full year financial results on February 14, 2024, reporting its best results for a decade, with a €191.4 million operating profit.
This figure compares with the €200 million operating million loss the airline experienced the preceding year, when it was severely impacted by Russia’s invasion of Ukraine and the subsequent closure of the Siberian routes that were important to efficiently operate its valuable Asian network.
However, Finnair continues to operate below its 2019 capacity. While Available Seat Kilometers (ASK) increased by 15.5%, capacity offered is currently still at 77% of the pre-pandemic level. This figure would go up to 81% if wet leased aircraft, which are expected to return to Finnair in the Spring of 2024, were included. The load factor increased to 76.4% compared to 67.6% in 2023.
Despite the ongoing war in Ukraine and Russian airspace remaining closed to European airlines, Finnair saw a recovery in revenue originating in Asia, as the region continues to open up and travel is again on the rise. The Middle East was another area of revenue growth for Finnair, as it consolidates it partnership with Qatar Airways.
Passenger numbers were up 20.8% to 11 million and this was reflected in top-line revenue, which almost reached the €3 billion mark (€2.98 billion), up from €2.3 billion the preceding year.
The airline managed to reduce its financial costs significantly, repaying debt to the tune of €1.2 billion and acquiring nine of the narrowbody aircraft it had previously operated through leasing arrangements.
Profit after tax was €254 million after Finnair brought forward €135 million in deferred losses from the previous year.