Finland Times

However its fourth-quarter losses were considerably lower than during the same period of the previous year, about nine million euros compared to 21 million euros in late 2013.

In a release, Pekka Vauramo, CEO at Finnair, attributed the decline in revenue by 4.8 per cent to a decrease in unit revenue in passenger and cargo traffic, the contraction of the sales of package tour operator Aurinkomatkat Suntours, and the loss of external revenue resulting from the restructuring of aviation services.

Vauramo said the unit revenue, however, turned to growth in the fourth quarter for the first time since the first quarter of 2013. 

The Finnair CEO said he was pleased that the group not only achieved the cost reduction target of 200 million euros, but exceeded it by approximately 17 million euros by the end of the year.

He said for Finnair, to improve its profitability, it is essential to increase unit revenue and continue to maintain tight costs control. 

Finnair said the demand outlook for passenger and cargo traffic in Finnair’s main markets still involves uncertainty.

Finnair estimates that in 2015 its capacity measured in Available Seat Kilometres will grow by approximately three per cent and that its revenue will remain at the 2014 level.

Finnair further estimates that in 2015, its unit costs excluding fuel will decrease from the 2014 level.