Airline is in midst of cost-cuts and sell-offs
Following several years of losses, Finnair reported a surprise profit in its “operational results” (earnings before interest and tax) for the second quarter. The Finnish national carrier pointed to higher passenger numbers and lower fuel costs to explain the €14.7 million operational profit for the April-June period. That compares with a €13.8 million loss for the same period in 2011. Turnover was up 10% to €594.4 million.
The result increases investors’ expectations that the airline could finally end its period of annual loss-making, which has continued for four years now. Finnair is in the middle of a period of austerity, cutting costs and jobs, selling its catering division to Lufthansa’s LSG Sky Chefs and giving more than a third of its European routes to the British low-cost carrier Flybe.
[photo courtesy Finnair]