Finnair speeds up growth, aims to double operational profit in 2017

Finnair said Thursday it expects full-year operational profit to double in 2017 after it flew a record number of passengers in Q2, boosting operational profit more than 11-fold. Q2 operational profit surged to E37.5m, well above the E23.7m expected by analysts polled by Reuters, lifted by Asia and Europe. The results and forecast propelled the Finnish airline's shares 5.5% higher to a 9-year high. The company wants to further strengthen its Asia routes, which represent about half its total capacity, aiming to fly 20m passengers annually by 2030, CE Pekka Vauramo said, adding that the goal was "realistic". Finnair now flies roughly 11m passengers a year. The airline, majority owned by the Finnish state, reiterated its 2017 capacity growth outlook of 8-10%, due to fleet renewal and introduction of new aircraft. The company said it expected its comparable operating profit for 2017 to broadly double from last year's E55m figure. Finnair has struggled in recent years with tough competition from discount carriers, but cost savings and more flights to Asia has helped it swing back into profit.<br/>