Fall in demand weakened Finnair’s average prices

Finnair traffic decline in March by 8 per cent compared with March last year. A weakening of demand reduced the average price per passenger kilometre by more than 13 per cent in the first quarter of 2009. Business travel in particular has fallen sharply.

In these adverse economic conditions, Finnair must be ready to fight for customers and with demand being as it is, this has to be done with price. We have reacted to the fall in demand also by cutting capacity. This will take place mainly by reducing flight frequencies to our present destinations, says Finnair’s SVP Communications Christer Haglund.

This year Finnair’s scheduled passenger traffic capacity is expected to be a good six per cent less than in 2008.

Weakened demand is also evident in load factors. Finnair’s load factor in all traffic fell in March by 3.4 percentage points and in scheduled passenger traffic by 4.8 percentage points.

Asian traffic declined in March by 15.5 per cent, due mainly to cuts in capacity. Capacity was reduced on Asian routes by 12 per cent.

European traffic declined by 12.5 per cent and capacity was cut by 3.2 per cent. The Europe traffic load factor fell by 6.5 percentage points compared with March last year.

Leisure Traffic grew in March by 6.1 per cent. The load factor, however, fell by 2.2 percentage points as capacity increased by 8.7 per cent.

Of Finnair’s flights, 88.0 per cent arrived on schedule, which represents an improvement of 17.9 percentage points from last year. The scheduled passenger traffic punctuality percentage rose from March last year by 18.0 percentage points to 90.9 per cent.

Finnair traffic

Finnair traffic altogether decreased by 8.0%, measured in revenue passenger kilometres. Capacity decreased by 3.7%. Passenger load factor was 3.4 percentage points lower than year before, 72.9%. Number of passengers carried decreased by 10.2% and was 668 437.

Scheduled traffic

Scheduled traffic decreased by 14.0%, measured in revenue passenger kilometres. Capacity decreased by 8.0%. Passenger load factor was 4.8 percentage points lower than year before, 67.0%. Number of passengers carried decreased by 12.1% and was 544 332.

Scheduled international traffic, decreased by 14.1%, measured in revenue passenger kilometres. Capacity decreased by 8.0%. Passenger load factor was 4.8 percentage points lower than year before, 67.6%. Number of passengers carried decreased by 13.7% and was 381 890.

European scheduled traffic, decreased by 12.5%, measured in revenue passenger kilometres. Capacity decreased by 3.2%. Passenger load factor was 6.5 percentage points lower than year before, 60.4%. Number of passengers carried decreased by 13.4% and was 280 415.

North Atlantic scheduled traffic decreased by 9.2%, measured in revenue passenger kilometres. Capacity increased by 2.2%. Passenger load factor was 9.7 percentage points lower than year before, 77.4%. Number of passengers carried decreased by 9.2% and was 10 034.

Asian scheduled traffic decreased by 15.5%, measured in revenue passenger kilometres. Capacity decreased by 12.0%. Passenger load factor was 2.9 percentage points lower than year before, 71.8%. Number of passengers carried decreased by 15.1% and was 91 441.

Domestic scheduled traffic decreased by 13.4%, measured in revenue passenger kilometres. Capacity decreased by 7.0%. Passenger load factor was 4.5 percentage points lower than year before, 60.6%. Number of passengers carried decreased by 8.2% and was 162 442.

Leisure traffic

Leisure traffic increased by 6.1%, measured in revenue passenger kilometres. Capacity increased by 8.7%. Passenger load factor was 2.2 percentage points lower than year before, 87.4%. Number of passengers carried decreased by 0.5% and was 124 105.

Cargo

Cargo traffic decreased by 17.5% in terms of cargo tonnes carried.

Decrease in scheduled traffic was 17.2%. Cargo traffic decreased by 22.1% in Asian traffic, decreased by 7.2% in European traffic and decreased by 19.6% in North-Atlantic traffic.

Cargo traffic carried on chartered cargo flights decreased by 53.4%. The cargo load factor in the Asian traffic was 66.5% and in the North Atlantic traffic 60.8%.

Fall in demand weakened Finnair’s average prices

Finnair traffic decline in March by 8 per cent compared with March last year. A weakening of demand reduced the average price per passenger kilometre by more than 13 per cent in the first quarter of 2009. Business travel in particular has fallen sharply.

In these adverse economic conditions, Finnair must be ready to fight for customers and with demand being as it is, this has to be done with price. We have reacted to the fall in demand also by cutting capacity. This will take place mainly by reducing flight frequencies to our present destinations, says Finnair’s SVP Communications Christer Haglund.

This year Finnair’s scheduled passenger traffic capacity is expected to be a good six per cent less than in 2008.

Weakened demand is also evident in load factors. Finnair’s load factor in all traffic fell in March by 3.4 percentage points and in scheduled passenger traffic by 4.8 percentage points.

Asian traffic declined in March by 15.5 per cent, due mainly to cuts in capacity. Capacity was reduced on Asian routes by 12 per cent.

European traffic declined by 12.5 per cent and capacity was cut by 3.2 per cent. The Europe traffic load factor fell by 6.5 percentage points compared with March last year.

Leisure Traffic grew in March by 6.1 per cent. The load factor, however, fell by 2.2 percentage points as capacity increased by 8.7 per cent.

Of Finnair’s flights, 88.0 per cent arrived on schedule, which represents an improvement of 17.9 percentage points from last year. The scheduled passenger traffic punctuality percentage rose from March last year by 18.0 percentage points to 90.9 per cent.

Finnair traffic

Finnair traffic altogether decreased by 8.0%, measured in revenue passenger kilometres. Capacity decreased by 3.7%. Passenger load factor was 3.4 percentage points lower than year before, 72.9%. Number of passengers carried decreased by 10.2% and was 668 437.

Scheduled traffic

Scheduled traffic decreased by 14.0%, measured in revenue passenger kilometres. Capacity decreased by 8.0%. Passenger load factor was 4.8 percentage points lower than year before, 67.0%. Number of passengers carried decreased by 12.1% and was 544 332.

Scheduled international traffic, decreased by 14.1%, measured in revenue passenger kilometres. Capacity decreased by 8.0%. Passenger load factor was 4.8 percentage points lower than year before, 67.6%. Number of passengers carried decreased by 13.7% and was 381 890.

European scheduled traffic, decreased by 12.5%, measured in revenue passenger kilometres. Capacity decreased by 3.2%. Passenger load factor was 6.5 percentage points lower than year before, 60.4%. Number of passengers carried decreased by 13.4% and was 280 415.

North Atlantic scheduled traffic decreased by 9.2%, measured in revenue passenger kilometres. Capacity increased by 2.2%. Passenger load factor was 9.7 percentage points lower than year before, 77.4%. Number of passengers carried decreased by 9.2% and was 10 034.

Asian scheduled traffic decreased by 15.5%, measured in revenue passenger kilometres. Capacity decreased by 12.0%. Passenger load factor was 2.9 percentage points lower than year before, 71.8%. Number of passengers carried decreased by 15.1% and was 91 441.

Domestic scheduled traffic decreased by 13.4%, measured in revenue passenger kilometres. Capacity decreased by 7.0%. Passenger load factor was 4.5 percentage points lower than year before, 60.6%. Number of passengers carried decreased by 8.2% and was 162 442.

Leisure traffic

Leisure traffic increased by 6.1%, measured in revenue passenger kilometres. Capacity increased by 8.7%. Passenger load factor was 2.2 percentage points lower than year before, 87.4%. Number of passengers carried decreased by 0.5% and was 124 105.

Cargo

Cargo traffic decreased by 17.5% in terms of cargo tonnes carried.

Decrease in scheduled traffic was 17.2%. Cargo traffic decreased by 22.1% in Asian traffic, decreased by 7.2% in European traffic and decreased by 19.6% in North-Atlantic traffic.

Cargo traffic carried on chartered cargo flights decreased by 53.4%. The cargo load factor in the Asian traffic was 66.5% and in the North Atlantic traffic 60.8%.