Finnair retools in preparation for lengthy Russian airspace closure

Few European airlines bear the weight of sanctions on Russia and the closure of the country’s airspace more than Finnair. In the early days of the war in Ukraine, the carrier was forced to suspend its flights to North Asia while it found viable routings around Russia, and even now, must fly up to 40% longer to Seoul, Shanghai, and Tokyo, once mainstays of its international network. “Nobody really knows how long Russian airspace will remain closed,” Finnair CEO Topi Manner said during the airline’s Q1 results call on April 27. “What is clear is, first, a peace in Ukraine would be needed and then, after that, the political discussion of the willingness to lift at least some of the sanctions would start.” Manner does not expect Western countries to move quickly to lift sanctions, imposed shortly after Russia invaded Ukraine on February 24. Nor does he expect Russia to ease its overflight bans. And that means changes big and small are afoot for Finnair, which prior to the pandemic did good business connecting Europe and North Asia via its Helsinki hub. The airline has already pivoted its long-haul network towards more South Asia and US flying but also has turned to wet-leasing and selling aircraft to reflect its lower-than-planned flying levels. It also plans to shave another E60m in annual savings from its business. Finnair will operate 73% more capacity to North America in the September quarter than it did in 2019, according to Cirium schedules. And to South and Southeast Asia, it will operate 2% more capacity. This growth is driven by the network additions of Dallas-Fort Worth in March, Seattle in June, and Mumbai in August, as well as the nearly doubling of Delhi flights this summer.<br/>