MIAMI – Finnair (AY) has released its financial report for 2020, highlighting what Topi Manner, AY CEO calls “the most difficult peacetime year in commercial aviation’s 100 years of existence.”
While commenting on the report he added “the COVID-19 pandemic has ben first and foremost a humanitarian crisis and a health crisis that has touched hundreds of millions of people. It has also been a severe crisis for aviation and for the tens of millions of people globally whose livelihoods depend on international travel, including us at Finnair.”
2020 Critical Year Figures
As published in the report, the year was indeed critical and the numbers speak for themselves. During the fiscal year 2020, AY carried 3.5 million passengers against 14.7 during 2019 (-76.2%), the revenue dropped to €829m (US$671m) against €3.097bn (US$2.5bn) from the previous year (-73.2%).
A comparable operating result for 2020 was €-595m (US$482m) against a positive €162.8m (US$132m) in 2019. Cash reserves remained in good shape at 823.7 million Euro (667 million USD) against 952.7 million Euro (771.6 million USD) the preceding year.
ASK (Available Seat Kilometer) shrank by 72.6% and PLF (Passenger Load Factor) stood at 63% against 81.7% in 2019.
Focus on Securing Operations and Competitiveness
Continuing on his comment on the financial report, Topi Manner added, “during the year we focused on securing the continuation of operations and our long-term competitiveness in a post-pandemic market that will be different from what it was before”.
He also added “Our financing measures were timely and comprehensive and we secured approximately €1.8bn (US$1.45bn) which included an oversubscribed rights issue of over €500m (US$405m). In addition, together with the State of Finland, we are preparing a hybrid loan of up to €400m (US$324m) which awaits EU approval”.
In view of the financial result for 2020, the Board of Directors proposed that no dividends be distributed for this fiscal year.
No Visibility on the Future
The new guidance announced on February 18, 2021 is based on the assumption that, due to the continuing travel restrictions, losses for Q1 – first quarter of 2021 – would be similar to those observed in Q2, Q3, and Q4 2020 and, as a consequence, AY shall continue to operate on a limited basis.
For the future, in view of the lack of visibility on the ongoing situation, its development, and all the possible scenarios on the timing of recovery AY has not issued any forecast on full 2021 revenue. The new guidance will be issued by AY on the basis of Q1 development and related interim report.
Featured image: Kochan Kleps/Airways