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Finnair Group Interim results January-June 2001

Finnair Group Interim results January-June 2001. A strong downturn in the industry - Finnair one of the best performers. Industry market conditions. Total demand has clearly slowed down Airline profitability has weakened drastically Passenger and cargo volumes are declining

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Finnair Group Interim results January-June 2001

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  1. Finnair Group Interim results January-June 2001

  2. A strong downturn in the industry - Finnair one of the best performers

  3. Industry market conditions • Total demand has clearly slowed down • Airline profitability has weakened drastically • Passenger and cargo volumes are declining • Cabin factors among European airlines has fallen, especially on North American routes

  4. Finnair at the forefront • Finnair´s strong market position well maintained • Profitability well above the industry average • Healthy cashflow, strong balance sheet • Cost per unit trend good for eight quarters already • Improved productivity • Strong growth in on-line sales • Quality of operations on target • punctuality and quality among best in Europe

  5. Wind chill factors • First weaker quarter since autumn 1999 • Business travel on the decline, weaker domestic demand • High cost of fuel and the dollar • Low visibility due to uncertainty of global economy • Operating result expected to fall clearly below 2000 result

  6. Key figures MEUR

  7. Operating result for H1/2001 remained at the previous year’s level, but Q2 was weaker • January-June 2001 profit after financial items and excluding revenues from the sale of assets, amounted to EUR 28.6 million (MEUR 28,1), Q2 MEUR 22,6 (33,9 MEUR) • Q2 yield: -1.6 % (per RPK), +2.6 % (per RTK) • Q2 unit costs: -1,0 % • Q2 operating costs +9.5 %, excl. jet fuel +7.8 % • Q2 jet fuel costs +24.9 % (9.4 MEUR) • H1 Staff productivity +5 %

  8. Finnair trafficJanuary-July 2001 CF %: Cabin factor

  9. Growth in Business and Tourist class International scheduled traffic % 20,0 15,0 10,0 5,0 0,0 -5,0 -10,0 -15,0 -20,0 01.00 02.00 03.00 04.00 05.00 06.00 07.00 08.00 09.00 10.00 11.00 12.00 01.01 02.01 03.01 04.01 05.01 06.01 07.01 Business class Tourist class

  10. Cabin factor January-July 2001 & 2000 %

  11. Demand (RPK) and production (ASK) January-July 2001 %

  12. Growth in turnoverJanuary-June 2001 +5.8 %

  13. Second Quarter EBIT1997-2001 MEUR

  14. Yield and unit cost developmentYear on year change % 2001 1999 2000

  15. EBIT per quarter MEUR 1998 1999 2001 2000

  16. Change in EBIT per quarterExcluding book gains from asset disposals MEUR * * 2001 2000 1998 1999 * Change excl. exceptional items in the closing of accounts and due to change of fiscal year

  17. EBITDARExcluding gains from asset disposals MEUR

  18. Cash flow and Capex MEUR

  19. Net debt June 30, 200117.6 % of turnover

  20. Strong balance sheetEquity ratio

  21. Gearing

  22. ROCE and ROE rolling 12 months %

  23. Finnair sharePrice to Book EUR

  24. Finnair GroupBusiness Areas as of Jan 1, 2001

  25. Finnair Group business areas

  26. Capital employed per Business AreaJanuary 1, 2001

  27. Group personnel -2,3%

  28. Group Business AreasPersonnel Jan-Jun 2001

  29. From here onward • Increase of capacity for winter season approx. 2% in tonne and 6% in passenger kilometers • New growth in Asia and Baltic region • fourth MD-11 into regular scheduled service • two leased B757 into leisure traffic • Startup of Aero and development of feeder traffic • More in-depth cooperation within alliance • Operating costs • distribution and purchasing • Electronic and mobile eFinnair “Wind chill foreseen, but long term confidence remains”

  30. Appendices

  31. Changes in Passenger Traffic & Capacity TOTAL TRAFFIC % 25 1998 2000 2001 1999 20 Traffic - Revenue Passenger-Km 15 Capacity - Available Seat-Km 10 5 0 -5 -10 -15 jun apr jun feb jun feb jun feb apr oct apr oct apr oct dec dec dec aug aug aug

  32. Changes in Passenger Traffic & Capacity % EUROPE 20 1998 1999 2000 2001 15 10 5 0 -5 Traffic - Revenue Passenger-Km -10 Capacity - Available Seat-Km -15 -20 feb feb feb apr apr apr apr jun jun jun jun oct oct oct aug aug aug dec dec dec

  33. Changes in Passenger Traffic & Capacity ATLANTIC % 40 1999 2000 2001 1998 30 20 10 0 -10 -20 -30 Traffic - Revenue Passenger-Km -40 Capacity - Available Seat-Km -50 -60 jun jun jun jun oct feb oct feb oct feb apr apr apr apr dec dec dec aug aug aug

  34. Changes in Passenger Traffic & Capacity FAR EAST % 50 2001 1998 1999 2000 40 30 20 10 0 -10 Traffic - Revenue Passenger-Km Capacity - Available Seat-Km -20 -30 -40 feb feb feb oct oct oct jun jun jun jun apr apr apr apr dec dec dec aug aug aug

  35. Changes in Passenger Traffic & Capacity DOMESTIC % 30 1998 1999 2000 2001 20 10 0 -10 -20 Traffic - Revenue Passenger-Km -30 Capacity - Available Seat-Km -40 -50 -60 jun oct jun oct jun oct jun feb feb feb apr apr apr apr dec dec dec aug aug aug

  36. Changes in Passenger Traffic & Capacity LEISURE % 50 1999 2000 1998 2001 40 30 Traffic - Revenue Passenger-Km 20 Capacity - Available Seat-Km 10 0 -10 -20 -30 feb feb feb apr apr apr apr jun jun jun jun oct oct oct aug aug aug dec dec dec

  37. SHARE OF BUSINESS CLASS International scheduled traffic - 12 mths rolling average 26,5 26,0 25,5 % 25,0 24.7 24,5 24.3 24,0 23,5 23,0 01.00 02.00 03.00 04.00 05.00 06.00 07.00 08.00 09.00 10.00 11.00 12.00 01.01 02.01 03.01 04.01 05.01 06.01 07.01

  38. TRAFFIC GROWTH vs PASSENGER CABIN FACTOR RPK 12 m rolling sum cf % Y-o-y growth % 16,0 76,0 14,0 74,0 12,0 72,0 10,0 70,0 8,0 68,0 6,0 66,0 4,0 64,0 2,0 62,0 0,0 60,0 -2,0 -4,0 58,0 01.96 01.97 01.98 01.99 01.00 01.01 change, y-o-y (left) cabin factor (right)

  39. Jet fuel prices

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