Finnair lowers financial guidance for 2013

Finnair’s turnover decreased slightly in the third quarter of the year from the corresponding period in 2012 and totalled €637m. Turnover was affected especially by the year-on-year decline in euro-denominated revenue, driven by the weak yen. Demand for air traffic developed well, but not enough to compensate the decrease in unit revenues, which was reflected both in turnover and in operating profit. As the third quarter is seasonally Finnair’s strongest, the operational result of €38.4m was disappointing. The bright spot during the period was the continued decline in costs: airline unit costs excluding fuel decreased by 6.2% year-on-year. Due to the weakening unit revenue development and the weakened outlook for the rest of the year especially in cargo and leisure traffic, Finnair lowered its financial guidance regarding turnover and operational profit for 2013.