2017 was a historical, record-breaking year at Finnair. The annual report, released 16th February 2018, records that 2017 was the fastest growth period in Finnair’s 94-year history. Finnair Cargo’s contribution was significant: revenue grew by 13.5 percent on the back of the COOL terminal opening.
Finnair Cargo growth on all fronts
The air cargo market continued its strong growth during the year and globally all regions made a positive contribution to the annual growth. Market capacity growth levelled out and, as a result, together with favourable demand, cargo load factors and yields developed positively in 2017. Air Cargo is a significant factor in Finnair’s success.
Finnair Cargo constructed a modern cargo terminal at Helsinki Airport, which opened in Q4 2017 and which will carry out all cargo activities from January 2018 onward. COOL is the most modern cargo terminal in Europe at the time of its commissioning and it gives Finnair Cargo the possibility to increase cargo volumes and the handling of special cargo. The shift away from bulk to speciality cargo is the key margin driver in a highly competitive market.
By joining a nation-wide energy efficiency agreement in the service sector, Finnair has committed to reduce energy consumption in its properties by seven percent from the 2016 level by 2025. In pursuit of this goal, Finnair Cargo has deployed solar power at the new COOL Nordic Cargo Terminal and various other sustainable innovations in its facilities.
In 2018-2023, Finnair will receive a further eight A350s, and thus the entire wide-body fleet will grow to 19 aircraft by 2022.
Key results from Finnair's 2017 financial statement
- In 2017 Finnair revenue grew by 10.9% to €2.57 billion, up from €2.3 billion in 2016.
- Finnair's comparable operating result more than tripled to reach an all-time high of €170.4 million (€55.2 million in FY 2016).
- Finnair had almost one billion euros in cash for future growth and investment at the end of 2017.
- Finnair Cargo’s revenue in 2017 was €197.4 million, up 13.5% on €173.8 million (2016).
- Finnair Cargo’s revenue amounted to 7.7% of Finnair’s total revenue in 2017.
- Of €197.4 million in cargo revenue, Asia contributed €147.1M, North Atlantic €10.9M, Europe €31M, Domestic €1.8M and €6.5M was Unallocated.
- In 2016 Finnair Cargo revenue was €173.8 million: Asia €134.5M, North Atlantic €11.1M, Europe €15.8M, Domestic €4M and €8.4M was Unallocated.
- Available cargo ton kilometers increased by 6.5% in 2017 on comparable result.
- Revenue cargo ton kilometers increased by 11% in 2017 on comparable result.
- The volume of cargo carried increased by 8.6% to 157,028 tons (FY 2016, 144,596).
- Skytrax World Airline Awards named Finnair the Best Airline in Northern Europe for the eighth year in a row.
- Finnair was named the Best European Airline in China for the second year in a row at the TTG China Travel Awards.
- There are one thousand more people working at Finnair now than at the beginning of 2017.
- The modernisation of Finnair’s fleet continued: by year-end 2017 there were eleven next-generation Airbus A350 XWB wide-body aircraft in operation.
- The new Airbus A350 XWB aircraft offer 20 percent more cargo and passenger capacity than their predecessors.
- Finnair added seven new Airbus A321 to its fleet in 2017.
- The last Airbus A340 aircraft was taken out of service by Finnair in 2017 and at year-end 2017 the average age of the fleet operated by Finnair was approximately 9 years.
- Finnair increased fuel efficiency in 2017: fuel consumption per available seat kilometer was reduced by 3.2 percent.
- During summer 2017, Finnair’s new cargo terminal activated 1,200 solar panels with the potential of generating 254 MWh electricity per year.
Annual Report 2017
Finnair Group Financial Statement Release
Presentation of Finnair Q4 and FY 2017 result, CEO Pekka Vauramo