Fuel costs and sharp drop in passenger load factors set to impact profits: Finnair
23 May 2008
Finnish flag carrier, Finnair, has said it now expects its operating result for both the half and the full- year to "fall short of last year's levels" as "rapidly rising oil prices and a sharp fall in passenger load factors" are "weakening" its "profit-making capacity."
For 2007, it reported a operating profit of €96.6 million ($151.7 million).
The Nordic carrier said its full-year fuel bill would exceed €600 million, up more than 36% year-over-year and will constitute more than 25% of estimated 2008 revenue.
It also said that April load factor was down 6 points and that it would "continue to fall" in May. "We are now planning to reduce capacity, particularly in Europe. Due to the short advance booking horizon, it is difficult to make forecasts far into the future," president and CEO Jukka Hienonen said.
