FINNAIR BLAME VOLCANO AND STRIKE FOR LOSS

Finnair confirmed a Q4 net loss of €5.7 million from a €35.4 million loss during Q4 2009, on a 12.9% increase in revenue to €516.9 million. Scheduled traffic yield improved 15.3% year on year. Operating loss was €4.7 million from €41.4 million in Q4 09.

Finnair said that the volcanic ash in April 2010 and the 10-day long strike by its by cabin staff in December 2010 had hit the airline hard as it posted a €22.8m loss from a €95m loss in 2009. Operating loss decreased to €13.3 million from a €114.9 million operating deficit the year before. The volcanic ash and strike action cost the airline some €30 million and €24 million respectively. Without these problems Finnair confirmed that 2010 would have ended in profit.

Consolidated full-year revenue increased over 10% to €2.02 billion while operating expenses were up 1.1% to €2.05 billion. Scheduled RPKs rose 2.5% on a 1% increase in capacity, and scheduled passenger load factor improved 1.1% to 74.5%. Scheduled traffic yield rose 9.3%.

Finnair expects to grow revenue by more than 10% in 2011 on the back of Asian expansion as it aims to increase capacity to and from the region by 20%.