Finnair reports good profit for 2007

The Finnish airline Finnair issued its financial statement on Tuesday, reporting strong cash flow and a solid balance sheet, which it sees as giving the company a good springboard for future investments, according to a HELSINGIN SANOMAT report.

Turnover rose 9.6 per cent to EUR 2,180.5 million, an increase of 12.2 per cent, if the impact of the sale of FlyNordic is excluded.

The operational result was EUR 96.6 million, representing 4.4 per cent of turnover. The pre-tax result was EUR 138.9 million.

The result was better than the company itself had expected in the autumn. In early November it was forecast that the result would reach EUR 70 million. Less than three weeks later this was upgraded to EUR 90 million.

Perhaps the most surprising aspect of Finnair's performance was the surge in profitability in the fourth quarter, which is often a time of more modest figures.

In addition to operating profit, a share issue brought Finnair EUR 240 in new investment money at the end of the year. This cash is to be used to help finance the purchase of new aircraft - a project which is set to cost a total of EUR two billion.     

Much of the Finnish carrier's improved productivity is attributed to a successful strategy in services to Asia.

The company has also succeeded in improving cost-effectiveness in recent years.

Productivity has grown 93 per cent. It is the key issue for Finnair in the current decade, and without it, the company might not have survived, Heinonen said at Tuesday's press conference.

Source:Transportweekly