Finnair Q3 net profit down 18% on fuel costs, exchange rates
Finnair posted a 2019 Q3 net profit of E57.6m (US$64.3m), down 18% from E70.2m in the year-ago period, primarily driven by higher fuel costs and adverse exchange rates. During the 3 months ended Sept 30, Finnair carried 4.1m passengers, marking 12% growth. A 9.5% capacity increase was met with 11.6% year-over-year demand growth, pushing the airline’s load factor up 1.7 points to 86.2%. This demand growth caused revenue to rise 8% YOY to E870.3m. However, exchange rate headwinds and higher fuel costs caused operating profits to fall 17.8% YOY to E94.9m. Finnair’s fuel costs for the period were up E27.4m (+16.8% YOY), although half of this additional cost was driven by fuel hedges. Unit revenue (RASK) for the period fell 1.5%, or 2.5% at constant currency, while unit costs (CASK) were up 2%. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-10-23/oneworld/finnair-q3-net-profit-down-18-on-fuel-costs-exchange-rates
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Finnair Q3 net profit down 18% on fuel costs, exchange rates
Finnair posted a 2019 Q3 net profit of E57.6m (US$64.3m), down 18% from E70.2m in the year-ago period, primarily driven by higher fuel costs and adverse exchange rates. During the 3 months ended Sept 30, Finnair carried 4.1m passengers, marking 12% growth. A 9.5% capacity increase was met with 11.6% year-over-year demand growth, pushing the airline’s load factor up 1.7 points to 86.2%. This demand growth caused revenue to rise 8% YOY to E870.3m. However, exchange rate headwinds and higher fuel costs caused operating profits to fall 17.8% YOY to E94.9m. Finnair’s fuel costs for the period were up E27.4m (+16.8% YOY), although half of this additional cost was driven by fuel hedges. Unit revenue (RASK) for the period fell 1.5%, or 2.5% at constant currency, while unit costs (CASK) were up 2%. <br/>
