FINNAIR PLC INTERIM REPORT 7.8.2009 AT 0900
FINNAIR GROUP INTERIM REPORT FOR JANUARY 1 -JUNE 30, 2009
EARLY-YEAR RESULT A CLEAR LOSS DUE TO FALLING PRICE LEVELS
Summary of the second-quarter 2009 key figures
- Turnover fell 21.6% to 427.4 million euros (545.2 million)
- Passenger traffic declined 8.5% in passenger kilometres from the previous
year, passenger load factor rose 2.5 percentage points to 71.9% (69.4%)
- Unit revenues from flight operations fell by 14.9%, while unit costs rose by
2.8%
- Operating loss was 32.5 million euros (20.1 million profit).
- The operational result, i.e. EBIT excluding capital gains, non-recurring items
and changes in the fair value of derivatives, was a loss of 56.9 million euros
(4.6 million profit)
- The result before taxes was a loss of 35.3 million euros (18.5 million profit)
- Gearing at the end of June was 43.2% (-15.7%) and gearing adjusted for leasing
liabilities was 117.1% (39.6%)
- Balance sheet cash and cash equivalents at the end of June totalled 266.0
million euros (437.1 million)
- Equity ratio 34.9% (45.7%)
- Equity per share 5.90 euros (8.25)
- Earnings per share -0.20 euros (0.12)
- Return on capital employed -9.5% (11.9%)
In this interim statement, figures for 2008 are presented in brackets after the
figures for the current year.
President and CEO Jukka Hienonen on the interim result:
Our sector is facing its deepest crisis. Finnair, too, has suffered from the
fall of average prices caused by the decline in air travel. Turnover has been
undermined by reduced demand and weaker price levels.
The present financial performance is corroding Finnair's capital adequacy. We
have secured various sources of financing to ensure that our cash position is
not endangered amid the large investments underway. Even so we have to embark on
more radical measures to restore our profitability.
In recent years, we have energetically pursued efficiency targets in order to
adjust our operating costs to lower revenues. In an airline the proportion of
total costs accounted for by fixed costs is generally high. In connection with
the substantial decline in turnover, however, we have seen that many
inflexibilities also hinder the adjustment of variable costs.
Achieving flexibility in the labour cost has proved to be difficult. The reason
lies in the working conditions agreed in the good times, whose realignment to
the present situation simply seems impossible.
We have assiduously engaged in a dialogue with all seven personnel organisations
in recent years. Often the negotiating atmosphere has been constructive.
Regrettably few good discussions, however, have materialised into agreements by
which we could safeguard the company's profitability and at the same time
preserve jobs. Redundancies or temporary lay-offs have remained our only
options.
One excellent exception is, though, a stabilization agreement in Finnair
Technical Services. All five personnel unions and Finnair have agreed upon
temporary flexible arrangements. The agreement includes an extra bonus system in
case the profitability improves.
Because, moreover, it has not been possible, despite several attempts, to
achieve flexibility agreements in other units, we are initiating new statutory
employer-employee negotiations (YT negotiations) with the entire workforce to
achieve the savings targets announced earlier.
The aircraft investments planned for this year will be implemented, but the aim
is to relax the timetable for aircraft acquisitions in the coming years.
The positive signals are few, but remarkably improved on-time performance and
excellent results in customer surveys are worth to mention.
Difficult times lie ahead. However, because of a clearly defined strategy and a
strong cash and financial situation, the company's opportunities to recover from
a difficult period are better than average, but it requires a full
implementation of the efficiency programmes and a change in the organisational
culture.
Market and General Review
The airline sector has suffered a historically strong recession, which deepened
as the first half of the year progressed. The trend in airlines' profitability
has been rapidly downward. The decline in average revenues has resulted from an
exceptionally strong reduction in business travel as well as a fall in the price
level of tickets caused by overcapacity in the market.
The Finnair Group's turnover fell by more than 20 per cent. The decline took
place above all in Scheduled Passenger Traffic, where revenue passenger
kilometres have fallen by seven per cent in the early part of the year. Due to
capacity cuts, passenger load factor has risen, however, by a couple of
percentage points.
The fall in absolute scheduled traffic revenues and average prices, together
with a too slow reduction in costs, have led to a sharp decline in profitability
compared with the previous year. Corporate travel on Finnair flights has fallen
by more than 30 per cent. To some extent, business travel demand has shifted to
cheaper price classes. Price campaigns have increased demand for other types of
travel need.
Leisure Traffic profitability has remained at a good level, despite a weakening
of demand and a decline in turnover. Leisure flight capacity and package tour
supply have been correspondingly adjusted to demand.
Finnair's cargo traffic has declined by more than 20 per cent in the early part
of the year in line with the overall trend in the sector. In the summer months,
the fall in volume has stabilised at a lower level. Pressure on price levels
continues due to overcapacity in the market. Finnair's cargo companies have
adjusted their personnel and costs according to the volume of cargo and mail
handled.
The Finnair Group's negative operational cash flow and investment programme have
weakened the company's capital structure. Compared with the sector, however,
Finnair's gearing remains moderate and solidity is strong. There are a number of
sources of finance in the market, but an effort will be made to lighten the
level of investment in 2010. To release capital, the sale and leaseback of
certain properties in Finnair's ownership is under preparation.
In response to rapidly weakened profitability, Finnair has initiated during the
last 15 months efficiency programmes totalling 200 million euros to improve
profitability. In the programmes, around 120 million euros of targeted savings
are directed at personnel costs. Instead of simple personnel cuts, the objective
is to find flexibility factors by which the unit price of work performance could
be reduced.
As part of the efficiency programme and operational development, in the early
autumn Finnair will implement an organisational change which will remove
overlapping functions and make production planning and implementation more
efficient. In addition, the change aims to achieve synergy benefits between
different units.
The modernisation of the long-haul fleet has proceeded according to the plan in
terms of the acquisition of new aircraft. Four new Airbus A330 wide-bodied
aircraft joined the Finnair fleet during the first half of the year and the
fifth new aircraft of the current year will arrive in November.
Financial Result, 1 April - 30 June 2009
Turnover fell in the second quarter by 21.6 per cent to 427.4 million euros
(545.2 million). The Group's operational result, i.e. EBIT excluding capital
gains, non-recurring items and changes in the fair value of derivatives was a
loss of 56.9 million euros (4.6 million profit). Adjusted operating profit
margin was -13.3 per cent(+0.8). The result before taxes was a loss of 35.3
million euros (18.5 million profit)
A 24.2 million euro (12.6 million) item improving the second quarter result has
been recognised for changes in the fair value of derivatives. Changes in the
fair value of derivatives have no effect on cash flow.
In April-June, Finnair's passenger traffic capacity was cut by 11.7 per cent and
revenue passenger kilometres declined by 8.5 per cent. In Asian traffic, revenue
passenger kilometres fell by 10.8 per cent and Leisure Traffic performance by
5.9 per cent. Passenger load factor for all traffic rose by 2.5 percentage
points from the previous year to 71.9 per cent. The amount of cargo carried fell
by 24.0 per cent.
In scheduled passenger and leisure traffic, total unit revenues per passenger
kilometre fell by 15.9 per cent. Yield per passenger fell by 17.2 per cent. Unit
revenues per tonne kilometre for cargo traffic declined by 33.1 per cent.
Weighted unit revenues for passenger and cargo traffic fell by 14.9 per cent.
Euro-denominated operating costs fell during the period by 13.0 per cent as
turnover contracted by 21.6 per cent, which weakened operational profitability
significantly. Unit costs of flight operations rose by 2.8 per cent. The impact
of initiated cost-cutting programmes on the second quarter result was more than
20 million euros.
Fuel costs fell in the second quarter by 18.2 per cent from April-June the
previous year, partly due to a fall in the price of fuel, partly to reduced fuel
consumption. Fuel costs per tonne kilometre flown towards fell by 5.4 per cent.
In the comparison, realised gains and losses on fuel derivatives and foreign
exchange have also been recognised as fuel costs. Fleet materials and overhauls
-item includes delivery maintenances of Boeing MD-11.
The significant decline in traffic charges as well as in ground handling and
catering expenses is due mainly to capacity cuts. The more than 18 per cent fall
in sales and marketing expenses resulted mainly from reduced payment of sales
commissions, which in turn was a consequence of lower travel agency and
codeshare sales.
The new Airbus 330 aircraft were purchased, which caused a growth in
depreciations.
Financial Result, 1 January - 30 June 2009
Turnover fell in January-June by 15.7 per cent and was 943.1 million
euros(1.118.1 million). The Group's operational result, i.e. EBIT excluding
capital gains, changes in the fair value of derivatives and non-recurring items,
declined to a loss of 104.4 million euros (12.4 million profit). Adjusted
operating profit margin was -11.1 per cent (+1.1). The result before taxes was a
loss of 60.3 million euros (22.8 million profit). Changes in the fair value of
derivatives had a 47.6 million euro (12.5 million) improvement effect on the
result reported for the first six months of the year.
In January-June, Finnair's passenger traffic capacity has been cut by 6.3 per
cent and revenue passenger kilometres fell by 4.0 per cent. Asian traffic
declined by 7.0 per cent. Passenger load factor rose 1.8 percentage points from
the previous year to 74.1 per cent. The amount of cargo carried fell by 21.9 per
cent.
In Group passenger traffic, total unit revenues per passenger kilometre fell by
13.6 per cent. Yield per passenger fell by 12.1 per cent. Unit revenues per
tonne kilometre for cargo traffic declined by 25.9 per cent. Weighted unit
revenues for passenger and cargo traffic fell by 12.1 per cent.
Euro-denominated operating costs decreased during the period by 8.6 per cent as
turnover contracted by 15.7 per cent. Unit costs per tonne kilometre for flight
operations increased by 1.6 per cent. ‘Other lease payments' were more than 27
per cent higher than a year earlier, mainly due to an Air European Airbus A330
aircraft, leased to Leisure Flights in the first quarter.
Net cash flow from operations fell from last year's +86.5 million euros to
-114.8 million euros. In addition to the operating loss, the cash flow weakening
is explained by a decline in trade payables, which stems from, among other
things, a reduction in fuel purchases. The impact of the change in net working
capital on cash flow was more positive in the second quarter than in the first
quarter of the year, but below expectations. Bookings of flight tickets paid in
advance were lower than expected.
Earnings per share for January-June amounted to -0.35 euros (0.15).
Investment, Financing and Risk Management
Balance sheet cash and cash equivalents at the end of June totalled 266.0
million euros (437.1 million). A long-term pension fund loan amounting to 85
million euros was raised during the second quarter.
Gearing at the end of June was 43.2 per cent (-15.7). Gearing adjusted for
leasing liabilities was 117.1 per cent (39.6). The equity ratio was 34.9%
(45.7). Finnair's solidity is good within industry comparison.
Agreed, but to date unused, revolving credit facilities total 200 million euros.
In addition to this, Finnair has a 250 million euro credit facility from the
European Investment Bank and an option of a loan-back of employment pension fund
reserves from llmarinen Mutual Pension Insurance Company amounting to around 350
million euros, both of which require a bank guarantee.
In terms of 2010, the aim is to reduce the level of investment from an original
300 million euros by, among others, relaxing the acquisition schedule for new
wide-bodied aircraft.
For its Airbus A330 wide-bodied aircraft, Finnair is negotiating for funding
from the export credit agencies of Airbus owner states. The funding has being
offered to purchasers of Airbus aircraft.
In the second quarter, investments totalled 199.3 million euros (80.4 million),
including three Airbus A330-aircraft. Including advance payments, the cash-flow
impact of fleet and auxiliary investments was around 305 million euros in
January-June and the estimate for the full year is over 400 million euros.
To release capital, Finnair is negotiating the sale and leaseback of certain
properties located in the area of Helsinki-Vantaa Airport. Financial flexibility
is also achieved through a 200 million euro short-term commercial paper
programme, of which
105 million euros was in use at the end of the period.
According to the financial risk management policy approved by Finnair's Board of
Directors, the company has hedged 71 per cent of scheduled traffic's jet fuel
purchases during the next six months and thereafter for the following 24 months
with a decreasing level of hedging. Finnair Leisure Flights price-hedges fuel
consumption according to its agreed traffic programme within the framework of
the hedging policy. Derivatives linked to jet fuel and gasoil prices are mainly
used as the fuel price hedging instruments.
Fair value change of derivatives that mature in future is quarterly recognised
in the Finnair income statement. The change is a valuation loss reported in
accordance with IFRS reporting practice. It is not realised and has no effect on
cash flow. The item is excluded from the operational result. In January-June,
the change in the fair value of derivatives improved the result by 47.6 million
euros.
The operational result for January-June includes realised losses on derivatives
of 91.0 million euros, which appear in the fuel item of the income statement. In
the second quarter, losses were 40.8 million euros. The figure includes both
foreign exchange and fuel derivatives.
Shareholders' equity includes, as a variable item, the hedging reserve, whose
value is directly affected by oil price and foreign exchange rate changes. The
size of the item on the closing date was -62 million euros, which includes
foreign exchange and fuel derivatives as well as, to lesser degree, other
financial items less deferred taxes.
Thanks to the currency hedging policy, the strengthening of the US dollar in
relation to the euro compared with the previous year did not significantly
influence Finnair's second quarter operational result. At the end of June, the
degree of hedging for a dollar basket over the next 12 months was 66 per cent.
Shares and Share Capital
Finnair's market value at the end of June on the NASDAQ OMX Helsinki Stock
Exchange was 481.8 million euros (594.6 million) and the closing price 3.76
euros. During the period January-June, the highest price for the Finnair Plc
share was 5.24 (8.49) euros, while the lowest price was 3.52 (4.61) euros and
the average price 4.36 (6.83) euros. Some 6.8 million (43.2 million) of the
company's shares, with a value of 29.8 million (295.4 million), were traded.
The total number of Finnair shares at the end of June was 128,136,115. The
Finnish State owned 55.8 per cent (55.8) of Finnair's shares, while 18.3 per
cent (16.6) were held by foreign investors or in the name of a nominee.
On 30 June 2009, Finnair held 387,429 of its own shares (treasury shares),
representing 0.3 per cent of the total number of the company's shares.
President and CEO
President and CEO Jukka Hienonen has announced his resignation for personal
reasons on 6 August 2009. Hienonen will leave the company at the end of his
notice period of six months.
Organisational change
As part of its operational efficiency programme, Finnair is changing the Group
structure starting from 1.10.2009. The aim of the planned organisational change
is to centralise the Group's scheduled traffic and leisure operations into an
integrated organisation and also to achieve closer cooperation between
operations and Group Administration. In this way, overlapping functions will be
removed in support operations.
The reorganisation of operations will clarify areas of responsibility and
enhance efficient use of resources. Administrative support functions, such as
ICT, HR and Business Control will be centralised in Group Administration.
Resource Control and Strategic Business Planning will be part of the Group
Administration.
Personnel
In the period January-June, the average number of employees employed by the
Finnair Group amounted to 9,098 (9,573), which was five per cent less than a
year earlier. Scheduled Passenger Traffic had 4,034 employees and Leisure
Traffic 495 employees. The total number of personnel in technical, catering and
ground handling services was 3,447 and in travel services 979. A total of 143
people were employed in other functions.
Finnair has collective employment agreements valid until spring 2010 with six
personnel organisations. However, during early autumn 2009, negotiations will be
held with the unions representing ground handling workers, technical workers,
engineers and managers, on a wage solution for the final year of the agreement.
If these negotiations do not result in a mutual understanding, each agreement
can be revoked to terminate 30.9.2009.
The pilots' collective employment agreement expired at the end of November 2008
and negotiations on a new agreement have been under way since the autumn last
year. These negotiations continue. The most significant points of contention
between the employer and the Finnish Airline Pilots' Association (SLL), which
represents the pilots, relate to pension benefits, restrictions on business
management decision-making and working time arrangements.
YT negotiations aimed at reducing personnel expenses also continued in the
second quarter in different business units within Finnair. Altogether, Finnair
Group personnel cost-cutting measures affect more than 6,000 employees in terms
of temporary lay-offs. The duration of the lay-offs for the most part varies
from two weeks to three months. Through workforce reduction measures, the number
of Finnair Group personnel had fallen by the end of June by nearly 500 employees
compared with the previous year.
In collaboration with personnel organisations, Finnair management arranged a
series of meetings in which alternatives to redundancies and temporary lay-offs
were sought for savings in personnel costs. Finnair Technical Services was the
only unit to achieve an understanding on stabilization agreement upon flexible
arrangements to improve the work productivity. The stabilization agreement
includes an extra bonus system that enables to return the saved-in amounts as
the operating income of Finnair Technical Services improves. This agreement
gives slightly around 14 million euros' share of savings of the 70 million
euros' target.
In other units, new YT negotiations to achieve the 15 per cent, namely 70
million euro, targeted savings in personnel costs set earlier will take place
during the late summer/early autumn. Personnel reductions resulting from the
organisational change are also part of this programme.
The number of travel agency personnel has been reduced by 12 per cent from June
last year, i.e. by 156 people. In addition, 4-9 week lay-offs of the entire
workforce are underway.
Fleet Changes
Finnair Group's fleet is managed by Finnair Aircraft Finance Oy, which belongs
to the Scheduled Passenger Traffic business area. At the end of June, the
Finnair Group had a total of 67 aircraft in flight operations. The average age
of the Finnair's entire fleet is 6.3 years, and in European traffic around five
years.
Three new Airbus A330-300 aircraft joined Finnair's wide-bodied fleet in the
second quarter. This year one more new Airbus A330-300 long-haul aircraft will
be acquired. Finnair currently has a total of 12 long-haul aircraft. The Airbus
aircraft will replace three Boeing MD-11 aircraft to be withdrawn from Finnair's
fleet by the end of March 2010. We aim at relaxing the fleet renewal schedule in
the years to come in order to protect the capital structure.
To protect the capital structure, Finnair aims to relax the fleet modernisation
schedule. Orders of Embraer 190 aircraft planned for 2010-2011 will also be
rescheduled. Finnair also intends to postpone an order for one Airbus A330
aircraft scheduled for next year.
The lease agreements of the Boeing 757 aircraft used by Finnair Leisure Flights
are valid until 2010, after which they can if necessary be extended on current
terms twice at two years at a time. Before a possible extension decision, the
company will assess the most efficient way of managing its leisure flight
commitments.
Environment and Social Responsibility
Finnair takes the environment into consideration in all of its actions and
decisions.
Finnair has been systematically modernising its fleet since 1999. The European
and domestic traffic's Airbus A320 and Embraer aircraft represent the latest
technology. A modern fleet loads the environment less in terms of carbon dioxide
and noise emissions. The modernisation of the long-haul fleet currently under
way will influence the amount of emissions significantly. The Airbus A330
reduces the fuel consumption and emissions index per passenger by around twenty
per cent compared with the MD-11 aircraft.
Last year the EU approved a model for the implementation of emissions trading in
air transport starting in 2012. The emissions trading calculation principles
will take into account fuel consumption in relation to performance. Finnair will
strive as part of the community of European airlines to argue successfully that
the system should be worldwide and not distort competition in the sector. In
addition, Finnair became a member of the international Aviation Global Deal
Group, which is proposing a model as the basis of a sector agreement in
international emissions trading.
Finnair is actively involved in environmental cooperation work with interest
groups. A new emissions calculator as well as a social responsibility report was
published in May. In addition, Finnair has already been reporting on its
environmental impact in the international Carbon Disclosure Project (CDP) for
three years now.
Finnair's VP Sustainable Development Kati Ihamäki has been appointed to IATA's
15-member Environmental Committee.
Business Area Development in the Second Quarter
The primary segment reporting of the Finnair Group's financial statements is
based on business areas. The reporting business areas are Scheduled Passenger
Traffic, Leisure Traffic, Aviation Services and Travel Services.
Scheduled Traffic
This business area is responsible for scheduled passenger traffic and cargo
sales, service concepts, flight operations and activity connected with the
procurement and financing of aircraft. Scheduled Passenger Traffic leases to
Leisure Traffic the crews and aircraft it requires. The business area consists
of the following units and companies: Finnair Scheduled Passenger Traffic,
Finnair Cargo Oy, Finnair Cargo Terminal Operations Oy and Finnair Aircraft
Finance Oy.
The business area's turnover fell in the second quarter by 24.9 per cent to
329.0 million euros (438.0 million). The operational result was a loss of 55.9
million euros (1.3 million profit).
Scheduled Passenger Traffic carried more than 1.5 million passengers in
April-June, representing a decline of ten per cent from the previous year.
Scheduled Passenger Traffic revenue passenger kilometres fell from the previous
year by nine per cent as capacity contracted by nearly 13 per cent, which
improved the scheduled traffic passenger load factor by 2.5 percentage points to
70 per cent.
In the second quarter, unit revenues for scheduled passenger traffic fell by
18.2 per cent. The falling of Easter into different quarters in different years
influences demand and average revenues to some extent, because business travel
is lower at Easter and in the week before and after it. Easter falling in the
second quarter of this year contributed to a weakening of unit revenues. The
main reason for weak price development, however, was a general reduction in
business travel.
The information of the spreading of the H1N1 virus caused a decline in the
demand of flight traffic on a part of the Asian market.
Cargo revenues account for more than ten per cent of all Scheduled Traffic's
revenues. The profitability of Finnair's cargo business has weakened quickly
worldwide due to adverse global economic climate. In April-June, cargo unit
revenues declined by 33.6 per cent. In scheduled traffic, the amount of cargo
kilos carried fell by 24.0 per cent.
On Finnair's route network, capacity cuts have been made by reducing the number
of flights on European and Asian routes. On the other hand, European summer
destinations have again been opened this summer, but with lower seating
capacities. Finnair is flying to Tokyo and New York three additional times per
week in the summer months. The Tokyo route is operated daily and New York ten
times per week. In 2009 scheduled traffic capacity in passenger kilometres is,
with the present traffic programme, nearly eight per cent lower than last year.
The reduction of capacity has weakened the Finnair fleet's average daily
utilisation rate, measured in flying hours, by around 15 per cent.
During April-June, the arrival punctuality of scheduled passenger flights
improved by 11.7 percentage points from the previous year to 89.5 per cent
(77.8). Finnair's punctuality is one of the best among European airlines.
Finnair's cargo companies, Finnair Cargo Oy and Finnair Cargo Terminal
Operations Oy, have suffered from the economic downturn. Cargo demand has
collapsed worldwide by more than 20 per cent. As a consequence of increased
capacity, the price level has also fallen steeply.
Finnair's cargo companies have made major adjustments to their operations. The
terminal company in particular has managed to reduce personnel resources to
match falling cargo volumes. Profitability is undermined, however, the weak
correspondence of unit costs with the downward trend in unit revenues.
Leisure Traffic
This business area consists of Finnair Leisure Flights plus the
Aurinkomatkat-Suntours package tour company and its subsidiaries, the Estonian
tour operator Horizon Travel and the St. Petersburg Calypso travel agency, as
well as the Finnish takeOFF brand, which focuses on youth travel.
Aurinkomatkat-Suntours is Finland's largest tour operator, with a market share
of more than 35 per cent. Finnair Leisure Flights enjoys strong market
leadership in leisure travel flights and all of Finland's largest tour operators
are its customers. For their package tour production, tour operators buy the
flight series they need to holiday destinations for the summer and winter
seasons.
Leisure Traffic's turnover fell in the second quarter by 6.4 per cent to 79.4
million euros (84.8 million). The business area's operational profit was 2.9
million euros(2.5 million loss).
In the second quarter, Finnair Leisure Flights carried 257,500 passengers,
around six per cent fewer than a year earlier. Performance calculated in
passenger kilometres rose 5.9 per cent. Leisure Flights' passenger load factor
was at the previous year's level, 81.8 per cent.
The economic recession and uncertainty are evident in consumer behaviour and in
package tour sales. Trips are purchased closer to the travel date. Tour
operators have to sell a larger proportion of their trips with last-minute
discounts, which weakens the sector's profitability. Tour operators have cut
their tour production for the current summer by around ten per cent from the
previous year. In Estonia the package tour market has nearly halved. In Russia,
Aurinkomatkat's sales are growing, even though demand for holiday trips has
clearly fallen.
Aurinkomatkat-Suntours and Finnair Leisure Flights prepared in advance for the
weakening of demand by adjusting their summer season production significantly
from the previous year's level. Leisure Flights was able to compensate for loss
of revenue caused by a reduction in package tour volume by selling seats on
holiday route flights, by in-flight sales, through temporary lay-offs of Finnair
personnel and as result of the lower price for jet fuel compared with the
previous year.
Sales of holiday trips for next winter season have started off at a clearly more
leisurely rate compared with the record demand of last winter. The tour
operators' capacity cuts will weaken the efficient utilisation of Leisure
Flights' fleet in the latter part of the year.
Aviation Services
This business area comprises aircraft maintenance services, ground handling and
the Group's catering operations. In addition, most of the Group's property
holdings, the procurement of office services, and the management and maintenance
of properties related to the Group's operational activities also belong to the
Aviation Services business area.
Aviation Services' turnover fell in the second quarter by 8.9 per cent to 101.6
million euros (111.5 million). The operational result weakened by 4.6 million
euros and was a loss of 0.2 million euros (4.4 million).
The stabilisation agreement made in Finnair Technical Services improves the
competitive strength of the unit as regards the costs, which enables the unit to
obtain new external clients.
Finnair Catering's business is profitable, even though turnover has fallen as
passenger numbers have declined. The unit has implemented adjustment measures by
which labour has been dimensioned to the level of demand for meals.
The turnover of ground handling services company Northport Oy has declined due
to the lower number of flights. The level of fixed costs has raised unit costs.
Travel Services
The business area consists of the Group's travel agencies: Matkatoimisto Area,
Finland Travel Bureau (FTP) and its subsidiary Estravel, which operates in the
Baltic states, as well as Amadeus Finland Oy, which integrates travel agency
systems and sells travel reservation systems.
Aviation Services' turnover fell in the second quarter by 18.9 per cent to 16.7
million euros (20.6 million). The operational result fell to a loss of 0.9
million euros (1.4 million profit).
Most of the Finnair travel agencies' sales comes from business travel. The
exceptionally steep decline in business travel that began in the late autumn
continued into the spring. Business travel is expected to fall by 20-30 per cent
from the previous year. Some large corporate customers have reduced their travel
by up to 70 per cent.
Aspects of the structural change in business travel are expected to remain
permanent after the recession. The economic situation has also influenced to
some extent the travel of private consumers. Trips are bought on the internet
and price is the key factor in the purchasing decision.
Area, FTB and Estravel have adjusted their cost structure to the new market
situation. Service locations have been cut, personnel reduced and development
projects focused on developing electronic services as well as enhancing and
automating processes. The savings will be evident as an improved financial
performance in the latter part of the year.
Area initiated cooperation with the S-Matkat.fi service, providing various
travel services for S Group's customer-owners. In April, Finland's oldest travel
agency FTB celebrated the 100th anniversary of its founding. In the Baltic
states, demand for travel services has contracted more sharply than in Finland.
Air Traffic Services and Products
In the summer season, Finnair has a total of 55 direct flights per week to nine
Asian destinations. Finnair's Asian destinations are Bangkok, Delhi, Hong Kong,
Nagoya, Osaka, Beijing, Shanghai, Seoul and Tokyo. The Mumbai route, which
belongs to the route network, is not flown in the summer season.
Flights covering 34 European and domestic destinations connect into Finnair's
Asian network. At the same time, a wide selection of direct connections is
offered from Finland to the rest of Europe.
In the summer season Finnair also flies to Ljubljana, Krakow, Venice, Pisa and
Bergen. Flights to Ljubljana began at the end of March, and to Krakow and Venice
at the beginning of April. The Pisa and Bergen routes started up in May.
In June, Finnair and the Italian airline Meridiana began cooperation flights
from Helsinki to Cagliari and Olbia in Sardinia, to Palermo in Sicily and from
the Finnair destinations of Amsterdam, Rome and Paris to Florence.
In long-haul traffic, Finnair flies to Tokyo in June-September daily instead of
its normal four flights per week schedule, and to New York ten times per week.
Finnair and its oneworld partner Cathay Pacific began cooperating between Hong
Kong and Brisbane in Australia in May.
Leisure Flights' fleet consists of seven Boeing 757 aircraft. In the summer
season, Leisure Flights flies, in addition to charter flight traffic, certain
holiday routes, including Boston and Toronto.
In the coming winter season Finnair will use in its Leisure Traffic one of its
five long-haul traffic Airbus A330-300 aircraft. The 271-seat wide-bodied
aircraft will fly non-stop leisure flights from Helsinki to Phuket in Thailand
four days a week from November to April. Last winter, an Airbus A330-200
aircraft leased from outside the Group was used for the corresponding leisure
flight series, six days a week.
In addition to leisure traffic, the Airbus A330-300 aircraft will also be used
on Finnair's Asian route flights, as a result of which the aircraft has a
42-seat business class section. On leisure flights, business class is called
Comfort class, which offers, in addition to lie-flat seats, a more comprehensive
service than economy class.
Finnair has introduced the new-generation Altéa Departure Control System
developed by Amadeus. The system enhances processes connected with passenger
check-in, aircraft load planning control and gate service.
Short-term Risks and Uncertainty Factors
Globally, the airline industry is one of the sectors most sensitive to cyclical
changes in economic conditions. The development of gross domestic product and
international trade strongly affect the development of air transport passenger
and cargo demand. A weakening of domestic consumer confidence might also have an
adverse impact on demand for non-business travel in both leisure and scheduled
traffic services.
The financial difficulties of customers will increase the bad debt risk in the
future. Due to the short booking horizon in passenger and cargo traffic, it is
difficult to forecast demand far into the future.
A change of one percentage point in the load factor of scheduled passenger
traffic services affects the Group's operating profit by around 15 million
euros. A change of one per cent in the average yield of scheduled passenger
traffic services also affects the Group's operating profit by around 15 million
euros.
The influenza caused by the H1N1-virus may cause a temporary decline in the
flight traffic demand as well as increase the sick leaves of the personnel, thus
causing extra costs and a short-term lack of resources.
The tightening of the financial markets has raised the cost of planned financing
higher than was anticipated. The financial crisis will be reflected in the
financing of Finnair's fleet modernisation primarily via the cost of borrowed
capital and the price level of lease agreements.
The risk in the acquisition of new aircraft is that demand will fall more
quickly than capacity can be meaningfully reduced. The lease agreements of
Finnair Leisure Flights' seven Boeing 757 aircraft will expire in 2010, at which
time the size of the scheduled traffic and leisure flight fleets can be
optimised according to demand forecasts.
Fuel costs constitute around one fifth of the Group's costs and are one of the
most significant uncertainty factors where costs are concerned. Foreign exchange
rate changes also represent a risk. Finnair provides against fuel price and
foreign exchange rate volatility by entering into option and future contracts.
The rising cost of hedging arrangements also poses a risk.
The hedging policy practised by Finnair dampens fuel price fluctuations.
Finnair's more than 70 per cent hedging level over the next six months will slow
the transfer of the benefit of the fall in market price of jet fuel to the
company's fuel costs. Hedging losses will be most evident in the first half of
the year. Finnair's relative competitive position in terms of costs is also
influenced by competitors' fuel price hedging policies. The company's main
competitors adhere to the same principles as Finnair in their hedging policies.
If the market price of fuel rises, Finnair's hedging losses will decline.
Outlook
Demand for flight travel and cargo is expected to have reached their lowest
level and to recover gradually if the global economy recovers. The crisis in air
transport will continue as airlines encounter difficulties with their
profitability, operational cash flow and financial position.
Finnair's scheduled traffic will also suffer from the market situation, but with
the aid of a strong cash and financial situation, the profitability improvement
measures under way and its clearly defined strategy, the company's opportunities
to recover from a difficult period are better than average, even though an
improvement of profitability will, though, require the full implementation of
the efficiency programmes.
Finnair will maintain its Asian strategy. The long-term goal of scheduled
passenger traffic is to grow in services between Europe and Asia, utilising
Helsinki as a geographically and logistically ideal transit location.
Our aim is to slow down the development of indebtedness by sale and leaseback
agreements for certain properties as well as by relaxing the schedule for
aircraft and building investments. Finnair is negotiating on debt and lease
arrangements for more than 400 million euros.
Finnair's fuel costs are expected to be slightly lower this year than last due
to a fall in fuel prices and the improved fuel economy of aircraft. At the
present price level and hedging policy, fuel costs are expected in 2009 to be
around 24 per cent of Finnair's turnover, while the corresponding percentage
last year was 24.6.
The development of demand for business travel can not be estimated reliably
until in the autumn, based on the yearly seasonal fluctuation. Through the
adjustment decisions that have now been made, Finnair's scheduled traffic
capacity for the whole of 2009 will fall by more than eight per cent compared
with 2008.
Demand for package tours in the coming winter season is expected to be lower
than last year. To avoid a weakening of price level, Aurinkomatkat-Suntours has
adjusted its capacity, and Finnair Leisure Flights its flight programme, to
correspond with weakened demand.
Cargo demand is dependent on industrial investments and the durable consumer
goods market. Only a change of sentiment in the global economy will enable cargo
demand to turn to growth. Similarly, a pick-up in business travel will require a
clear change in international economic conditions.
The Finnair Group has announced efficiency measures totalling around 200 million
euros, of which more than half are being implemented. Around 120 million euros
of targeted savings are directed at personnel costs. Means to achieve 70 million
euros of savings in personnel expenses will include personnel reductions,
temporary lay-offs, outsourcing of operations and flexibilities in working
conditions to be possibly agreed with personnel organisations. So far, Finnair
Technical Services is the only unit to have agreed upon major flexible
arrangements.
Finnair is aiming at turning Finnair Technical Services and flight training
center into independent companies.
Even though the second half of the year is expected to be stronger than the
first, the operational results for the third quarter and the full year are
expected to remain clearly loss-making.
FINNAIR PLC
Board of Directors
Finnair Plc
Communications
Christer Haglund
Senior Vice President, Communications
Press conference
Finnair will hold briefings for media representatives (11 a.m.) and analysts
(12.30 p.m.) on 7 August 2009. The location is Toimistotorni, Lentäjäntie 3, at
Helsinki-Vantaa Airport. Further information and registrations: Marjo Kalliola,
tel. +358 9 818 4972 or Marjo.kalliola@finnair.com.
For further information, please contact:
EVP & CFO Lasse Heinonen
tel. +358 9 818 4950
lasse.heinonen@finnair.fi
SVP Corporate Communications, Christer Haglund
tel. +358 9 818 4007
christer.haglund@finnair.fi
VP Financial Communications and Investor Relations, Taneli Hassinen
tel. +358 9 818 4976
taneli.hassinen@finnair.fi
KEY FIGURES EUR mill.
--------------------------------------------------------------------------------
| | 2009 | 2008 | Chan-ge | 2009 |
--------------------------------------------------------------------------------
| | 1 | 1 | % | 1 Jan- |
| | Apr- | Apr- | | 30 June |
| | 30 | 30 | | |
| | June | June | | |
--------------------------------------------------------------------------------
| Turnover | 427.4 | 545.2 | -21.6 | 943.1 |
--------------------------------------------------------------------------------
| Profit before depreciation and | -8.6 | 49.5 | - | -10.1 |
| lease payments, EBITDAR * | | | | |
--------------------------------------------------------------------------------
| Lease payments for aircraft | 18.9 | 20.7 | -8.7 | 38.2 |
--------------------------------------------------------------------------------
| Operational profit, EBIT* | -56.9 | 4.6 | - | -104.4 |
--------------------------------------------------------------------------------
| Fair value changes of | 24.2 | 12.6 | - | 47.6 |
| derivatives | | | | |
--------------------------------------------------------------------------------
| Profit from disposal of capital | 0.2 | 2.9 | - | 0.0 |
| assets | | | | |
--------------------------------------------------------------------------------
| Operating profit, EBIT | -32.5 | 20.1 | - | -56.8 |
--------------------------------------------------------------------------------
| Profit for the period (share | -26.1 | 13.4 | - | -44.7 |
| attributable to shareholders of | | | | |
| parent company) | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Operating profit, EBIT, % of | -13.3 | 0.8 | - | -11.1 |
| turnover * | | | | |
--------------------------------------------------------------------------------
| EBITDAR, % of turnover * | -2.0 | 9.1 | - | -1.1 |
--------------------------------------------------------------------------------
| Unit revenues of flight | 64.2 | 75.4 | -14.9 | 63.5 |
| operations c/RTK | | | | |
--------------------------------------------------------------------------------
| Unit costs of flight operations | 44.7 | 43.4 | 2.8 | 43.6 |
| c/ATK | | | | |
--------------------------------------------------------------------------------
| Earnings per share EUR (basic) | -0.20 | 0.12 | - | -0.35 |
--------------------------------------------------------------------------------
| Earnings per share EUR (diluted) | -0.20 | 0.12 | - | -0.35 |
--------------------------------------------------------------------------------
| Equity per share EUR | 5.90 | 8.25 | -28.5 | 5.90 |
--------------------------------------------------------------------------------
| Gross investment EUR mill. | 199.3 | 80.4 | - | 327.5 |
--------------------------------------------------------------------------------
| Gross investment, % of turnover | 46.6 | 14.7 | - | 34.7 |
--------------------------------------------------------------------------------
| Equity ratio % | | | | 34.9 |
--------------------------------------------------------------------------------
| Gearing % | | | | 43.2 |
--------------------------------------------------------------------------------
| Adjusted gearing % | | | | 117.1 |
--------------------------------------------------------------------------------
| Rolling 12-month ROCE % | | | | -9.5 |
--------------------------------------------------------------------------------
| Rolling 12-month ROE % | | | | -12.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 2008 | Change | 2008 |
--------------------------------------------------------------------------------
| | 1 Apr- | % | 1.1.-31.12 |
| | 30 | | . |
| | June | | |
--------------------------------------------------------------------------------
| Turnover | 1 118.1 | -15.7 | 2 255.8 |
--------------------------------------------------------------------------------
| Profit before depreciation and lease | 103.9 | - | 188.5 |
| payments, EBITDAR * | | | |
--------------------------------------------------------------------------------
| Lease payments for aircraft | 41.1 | -7.1 | 82.6 |
--------------------------------------------------------------------------------
| Operational profit, EBIT* | 12.4 | - | 0.8 |
--------------------------------------------------------------------------------
| Fair value changes of derivatives | 12.5 | - | -57.4 |
--------------------------------------------------------------------------------
| Profit from disposal of capital assets | 4.0 | - | -1.3 |
--------------------------------------------------------------------------------
| Operating profit, EBIT | 28.9 | - | -57.9 |
--------------------------------------------------------------------------------
| Profit for the period (share | 16.5 | - | -46.3 |
| attributable to shareholders of parent | | | |
| company) | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Operating profit, EBIT, % of turnover * | 1.1 | - | 0.0 |
--------------------------------------------------------------------------------
| EBITDAR, % of turnover * | 9.3 | - | 8.4 |
--------------------------------------------------------------------------------
| Unit revenues of flight operations | 72.1 | -12.0 | 70.1 |
| c/RTK | | | |
--------------------------------------------------------------------------------
| Unit costs of flight operations c/ATK | 43.0 | 1.6 | 43.5 |
--------------------------------------------------------------------------------
| Earnings per share EUR (basic) | 0.15 | - | -0.36 |
--------------------------------------------------------------------------------
| Earnings per share EUR (diluted) | 0.15 | - | -0.36 |
--------------------------------------------------------------------------------
| Equity per share EUR | 8.25 | -28.5 | 5.87 |
--------------------------------------------------------------------------------
| Gross investment EUR mill. | 144.8 | - | 232.8 |
--------------------------------------------------------------------------------
| Gross investment, % of turnover | 13.0 | - | 10.3 |
--------------------------------------------------------------------------------
| Equity ratio % | 45.7 | | 36.9 |
--------------------------------------------------------------------------------
| Gearing % | -15.7 | | -12.0 |
--------------------------------------------------------------------------------
| Adjusted gearing % | 39.6 | | 65.1 |
--------------------------------------------------------------------------------
| Rolling 12-month ROCE % | 11.9 | | -3.0 |
--------------------------------------------------------------------------------
| Rolling 12-month ROE % | 10.0 | | -5.3 |
--------------------------------------------------------------------------------
* Excluding capital assets, fair value changes of derivatives and non-recurring
items.
Unit costs of flight operations c / ATK = Operating expenses (excluding fair
value changes of derivatives and non-recurring items) of Scheduled Traffic
business area and Leisure Flights business unit / ATK of Group.
In connection with the adoption of IAS 1 standard 1.1.2009 the figures of the
statement of comprehensive income have been reported in the appendix 15 and the
correspondence of the previous year's figures has been made.
CALCULATION OF KEY RATIOS
Earnings / share:
Profit for the period/
Average number of shares at the end of the financial year adjusted for share
issues
Equity / share:
Shareholders' equity/
Number of shares at the end of the financial year
adjusted for share issues
Gearing %:
Net interest bearing liabilities*100/
Shareholders' equity + minority interest
Return on capital employed % (ROCE):
Profit before taxes + interest and other financial expenses *100/
Balance sheet total - non-interest-bearing liabilities (average)
Net interest-bearing liabilities:
Interest-bearing liabilities - interest-bearing assets - listed shares
Equity ratio %:
Shareholders' equity + minority interest*100/
Balance sheet total - advances received
Return on equity %: (ROE)
Result *100/
Equity + minority interests (average)
Operating profit, EBIT = Operating profit excluding the disposal of the capital
assets, fair value changes of derivatives and non-recurring items
Shareholders equity = To equity holders of the parent
The figures of interim report have not been audited.
CONSOLIDATED INCOME STATEMENT (EUR mill.)
--------------------------------------------------------------------------------
| | 2009 | 2008 | Change | 2009 |
--------------------------------------------------------------------------------
| | 1 Apr- | 1 Apr | % | 1 Jan- |
| | 30 June | 30 | | 30 June |
| | | June | | |
--------------------------------------------------------------------------------
| Turnover | 427.4 | 545.2 | -21.6 | 943.1 |
--------------------------------------------------------------------------------
| Work used for own purposes and | 0.5 | 0.5 | 0.0 | 0.9 |
| capitalized | | | | |
--------------------------------------------------------------------------------
| Other operating income | 4.0 | 5.4 | -25.9 | 7.9 |
--------------------------------------------------------------------------------
| Profit from disposal *) | 0.2 | 2.9 | -93.1 | 0.0 |
--------------------------------------------------------------------------------
| Operating income | 432.1 | 554.0 | -22.0 | 951.9 |
--------------------------------------------------------------------------------
| Operating expenses | | | | |
--------------------------------------------------------------------------------
| Staff costs | 116.6 | 128.2 | -9.0 | 251.8 |
--------------------------------------------------------------------------------
| Fuel | 109.3 | 133.7 | -18.2 | 241.1 |
--------------------------------------------------------------------------------
| Lease payment for aircraft | 18.9 | 20.7 | -8.7 | 38.2 |
--------------------------------------------------------------------------------
| Other rental payments | 18.1 | 17.2 | 5.2 | 44.8 |
--------------------------------------------------------------------------------
| Fleet materials and overhauls | 25.1 | 23.1 | 8.7 | 51.4 |
--------------------------------------------------------------------------------
| Traffic charges | 42.2 | 47.1 | -10.4 | 87.2 |
--------------------------------------------------------------------------------
| Ground handling and catering | 30.1 | 36.5 | -17.5 | 63.5 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Expenses for tour operations | 25.3 | 25.5 | -0.8 | 70.8 |
--------------------------------------------------------------------------------
| Sales and marketing expenses | 20.1 | 24.6 | -18.3 | 40.5 |
--------------------------------------------------------------------------------
| Depreciation | 29.4 | 24.2 | 21.5 | 56.1 |
--------------------------------------------------------------------------------
| Other expenses | 53.7 | 65.7 | -18.3 | 110.9 |
--------------------------------------------------------------------------------
| Operational expenses total | 488.8 | 546.5 | -10,6 | 1 056.3 |
--------------------------------------------------------------------------------
| Operational profit, EBIT | -56.9 | 4.6 | - | -104.4 |
--------------------------------------------------------------------------------
| Fair value changes of | 24.2 | 12.6 | 92.1 | 47.6 |
| derivatives | | | | |
--------------------------------------------------------------------------------
| Non-recurring items | 0.0 | 0.0 | - | 0.0 |
--------------------------------------------------------------------------------
| Total expenses | 464.6 | 533.9 | -13.0 | 1 008.7 |
--------------------------------------------------------------------------------
| Operating profit EBIT | -32.5 | 20.1 | - | -56.8 |
--------------------------------------------------------------------------------
| Financial income | 0.9 | 7.2 | -87.5 | 4.0 |
--------------------------------------------------------------------------------
| Financial expenses | -3.7 | -8.8 | -58.0 | -7.5 |
--------------------------------------------------------------------------------
| Share of result in associates | 0.0 | 0.0 | - | 0.0 |
--------------------------------------------------------------------------------
| Profit before taxes | -35.3 | 18.5 | - | -60.3 |
--------------------------------------------------------------------------------
| Direct taxes | 9.3 | -5.1 | - | 15.7 |
--------------------------------------------------------------------------------
| Profit for the period | -26.0 | 13.4 | - | -44.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share to | -26.1 | 13.4 | | -44.7 |
| shareholders of the parent | | | | |
| company profit of the period | | | | |
--------------------------------------------------------------------------------
| Minority interest profit of the | 0.1 | 0.0 | | 0.1 |
| period | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Earnings per share calculated | | | | |
| from profit of the period | | | | |
| attributable to shareholders of | | | | |
| the parent company | | | | |
--------------------------------------------------------------------------------
| Earnings per share EUR (basic) | -0.20 | 0.12 | | -0.35 |
--------------------------------------------------------------------------------
| Earnings per share EUR | -0.20 | 0.12 | | -0.35 |
| (diluted) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 2008 | Change | 2008 |
--------------------------------------------------------------------------------
| | 1 Jan- | % | 1.1.-31.12 |
| | 30 June | | . |
--------------------------------------------------------------------------------
| Turnover | 1 118.1 | -15.7 | 2 255.8 |
--------------------------------------------------------------------------------
| Work used for own purposes and | 0.6 | 50.0 | 1.6 |
| capitalized | | | |
--------------------------------------------------------------------------------
| Other operating income | 9.2 | -14.1 | 20.9 |
--------------------------------------------------------------------------------
| Profit from disposal *) | 5.0 | - | 6.2 |
--------------------------------------------------------------------------------
| Operating income | 1 132.9 | -16.0 | 2 284.5 |
--------------------------------------------------------------------------------
| Operating expenses | | | |
--------------------------------------------------------------------------------
| Staff costs | 268.7 | -6.3 | 538.6 |
--------------------------------------------------------------------------------
| Fuel | 264.3 | -8.8 | 557.6 |
--------------------------------------------------------------------------------
| Lease payment for aircraft | 41.1 | -7.1 | 82.6 |
--------------------------------------------------------------------------------
| Other rental payments | 35.2 | 27.3 | 69.3 |
--------------------------------------------------------------------------------
| Fleet materials and overhauls | 43.3 | 18.7 | 96.1 |
--------------------------------------------------------------------------------
| Traffic charges | 90.7 | -3.9 | 188.5 |
--------------------------------------------------------------------------------
| Ground handling and catering expenses | 71.7 | -11.4 | 146.6 |
--------------------------------------------------------------------------------
| Expenses for tour operations | 70.1 | 1.0 | 138.9 |
--------------------------------------------------------------------------------
| Sales and marketing expenses | 51.4 | -21.2 | 102.9 |
--------------------------------------------------------------------------------
| Depreciation | 50.4 | 11.3 | 105.1 |
--------------------------------------------------------------------------------
| Other expenses | 128.6 | -13.8 | 251.3 |
--------------------------------------------------------------------------------
| Operational expenses total | 1 115.5 | -5.3 | 2 277.5 |
--------------------------------------------------------------------------------
| Operational profit, EBIT | 12.4 | - | 0.8 |
--------------------------------------------------------------------------------
| Fair value changes of derivatives | 12.5 | - | -57.4 |
--------------------------------------------------------------------------------
| Non-recurring items | -1.0 | - | -7.5 |
--------------------------------------------------------------------------------
| Total expenses | 1104.0 | -8.6 | 2 342.4 |
--------------------------------------------------------------------------------
| Operating profit EBIT | 28.9 | - | -57.9 |
--------------------------------------------------------------------------------
| Financial income | 12.6 | -68.3 | 22.1 |
--------------------------------------------------------------------------------
| Financial expenses | -18.7 | -59.9 | -26.7 |
--------------------------------------------------------------------------------
| Share of result in associates | 0.0 | - | 0.3 |
--------------------------------------------------------------------------------
| Profit before taxes | 22.8 | - | -62.2 |
--------------------------------------------------------------------------------
| Direct taxes | -6.3 | - | 16.1 |
--------------------------------------------------------------------------------
| Profit for the period | 16.5 | - | -46.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share to shareholders of | 16.5 | | -46.3 |
| the parent company profit of the | | | |
| period | | | |
--------------------------------------------------------------------------------
| Minority interest profit of the | 0.0 | | 0.2 |
| period | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Earnings per share calculated from | | | |
| profit of the period attributable to | | | |
| shareholders of the parent company | | | |
--------------------------------------------------------------------------------
| Earnings per share EUR (basic) | 0.15 | | -0.36 |
--------------------------------------------------------------------------------
| Earnings per share EUR (diluted) | 0.15 | | -0.36 |
--------------------------------------------------------------------------------
*) Is not included in the operational profit, EBIT.
After the adoption of IFRIC 13, Customer Loyalty Programmes'. (Finnair-Plus
program, the correspondence of turnover, marketing expenses and deferred taxes
of the previous year income statement has been made.
The fleet materials and overhauls expenses and depreciation has been adjusted to
correspondence to the recognition method of the current year so, that
depreciation has been decreased 4.4 million euros in period Q1-Q2/ 2008 and 3.9
million euros in period Q2/2008. The correspondence values have been increased
to fleet materials and overhaul expenses.
From other expenses has been transferred to fuel expenses the effect of fair
value changes of derivatives as follows:
Q2/2009 20.3 EUR mill. Q1-Q2/2009 48.2 EUR mill.
Q2/2008 -9.8 EUR mill. Q1-Q2/2008 -14.1 EUR mill. Q1-Q4/2008 -10.3 EUR mill.
CONSOLIDATED BALANCE SHEET (EUR mill.)
--------------------------------------------------------------------------------
| | 30 June | 30 June | 31 Dec | 1 Jan 2008 |
| | 2009 | 2008 | 2008 | |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Intangible assets | 46.9 | 48.9 | 48.1 | 46.6 |
--------------------------------------------------------------------------------
| Tangible assets | 1 524.0 | 1 232.0 | 1 272.1 | 1 168.9 |
--------------------------------------------------------------------------------
| Investments in associates | 5.8 | 5.8 | 6.1 | 5.7 |
--------------------------------------------------------------------------------
| Financial assets | 21.3 | 19.9 | 21.5 | 13.8 |
--------------------------------------------------------------------------------
| Deferred tax receivables | 63.6 | 30.8 | 57.7 | 16.7 |
--------------------------------------------------------------------------------
| Total | 1 661.6 | 1 337.4 | 1 405.5 | 1 251.7 |
--------------------------------------------------------------------------------
| Short-term receivables | | | | |
--------------------------------------------------------------------------------
| Inventories | 37.4 | 38.3 | 35.1 | 36.1 |
--------------------------------------------------------------------------------
| Trade receivables and | 222.1 | 477.8 | 231.8 | 287.3 |
| other receivables | | | | |
--------------------------------------------------------------------------------
| Investments | 249.5 | 418.5 | 373.8 | 518.6 |
--------------------------------------------------------------------------------
| Cash and bank equivalents | 16.5 | 18.6 | 18.3 | 21.5 |
--------------------------------------------------------------------------------
| Total | 525.5 | 953.2 | 659.0 | 863.5 |
--------------------------------------------------------------------------------
| Non-current Assets held | 19.4 | 16.2 | 19.4 | 34.7 |
| for sale | | | | |
--------------------------------------------------------------------------------
| Assets total | 2 206.5 | 2 306.8 | 2 083.9 | 2 149.9 |
--------------------------------------------------------------------------------
| SHAREHOLDERS´ EQUITY AND | | | | |
| LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Capital and reserves | | | | |
| attributable to equity | | | | |
| holders of the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Shareholders´equity | 75.4 | 75.4 | 75.4 | 75.4 |
--------------------------------------------------------------------------------
| Other equity | 678.2 | 957.0 | 674.0 | 891.8 |
--------------------------------------------------------------------------------
| Total | 753.6 | 1 032.4 | 749.4 | 967.2 |
--------------------------------------------------------------------------------
| Minority interest | 0.7 | 0.8 | 1.1 | 1.7 |
--------------------------------------------------------------------------------
| Equity, total | 754.3 | 1 033.2 | 750.5 | 968.9 |
--------------------------------------------------------------------------------
| Long-term liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 121.6 | 176.3 | 120.6 | 144.5 |
--------------------------------------------------------------------------------
| Financial liabilities | 421.1 | 226.9 | 261.1 | 269.6 |
--------------------------------------------------------------------------------
| Pension obligations | 0.0 | 12.2 | 6.1 | 15.8 |
--------------------------------------------------------------------------------
| Total | 542.7 | 415.4 | 387.8 | 429.9 |
--------------------------------------------------------------------------------
| Short-term liabilities | | | | |
--------------------------------------------------------------------------------
| Current income tax | 0.0 | 13.3 | 1.5 | 8.2 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Reserves | 60.2 | 54.3 | 61.5 | 0.0 |
--------------------------------------------------------------------------------
| Financial liabilities | 181.4 | 53.2 | 48.5 | 54.5 |
--------------------------------------------------------------------------------
| Trade payables and other | 667.9 | 737.4 | 834.1 | 688.4 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Total | 909.5 | 858.2 | 945.6 | 751.1 |
--------------------------------------------------------------------------------
| Liabilities total | 1 452.2 | 1 273.6 | 1 333.4 | 1 181.0 |
--------------------------------------------------------------------------------
| Shareholders' equity and | 2 206.5 | 2 306.8 | 2 083.9 | 2 149.9 |
| liabilities, total | | | | |
--------------------------------------------------------------------------------
After the adoption of IFRIC 13, Customer Loyalty Programmes'. (Finnair-Plus
program, the correspondence of deferred credits, equity and deferred taxes of
the previous year reported balance sheet has been made.
CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| EUR mill. | 1 Jan - 30 | 1 Jan - 30 | 1 Jan - 31 |
| | June 2009 | June | Dec 2008 |
| | | 2008 | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash flow from operating | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Profit for the period | -44.6 | 16.5 | -46.1 |
--------------------------------------------------------------------------------
| Operations for which a payment is | -4.5 | 32.7 | 174.6 |
| not included 1) | | | |
--------------------------------------------------------------------------------
| Interest and other financial | 7.5 | 18.7 | 26.7 |
| expenses | | | |
--------------------------------------------------------------------------------
| Interest income | -3.8 | -10.3 | -18.9 |
--------------------------------------------------------------------------------
| Other financial income | -0.1 | -2.3 | -3.2 |
--------------------------------------------------------------------------------
| Dividend income | -0.1 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Taxes | -15.7 | 6.3 | -16.1 |
--------------------------------------------------------------------------------
| Changes in working capital: | | | |
--------------------------------------------------------------------------------
| Change in trade and other | 13.2 | -74.9 | -2.7 |
| receivables | | | |
--------------------------------------------------------------------------------
| Change in inventories | -2.3 | -2.2 | 1.0 |
--------------------------------------------------------------------------------
| Change in accounts payables and | -60.2 | 111.3 | -11.8 |
| other liabilities | | | |
--------------------------------------------------------------------------------
| Interest paid | -5.9 | -7.5 | -13.1 |
--------------------------------------------------------------------------------
| Paid financial expenses | -0.4 | -3.6 | -1.3 |
--------------------------------------------------------------------------------
| Received interest | 4.5 | 6.4 | 15.4 |
--------------------------------------------------------------------------------
| Received financial income | 0.1 | 0.0 | 3.2 |
--------------------------------------------------------------------------------
| Taxes paid | -2.5 | -4.6 | 12.5 |
--------------------------------------------------------------------------------
| Net cash flow from operating | -114.8 | 86.5 | 120.2 |
| activities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash flow from investing | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Acquisitions of subsidiaries | 0.0 | -2.5 | -3.2 |
--------------------------------------------------------------------------------
| Investments in intangible assets | -3.9 | -5.9 | -12.7 |
--------------------------------------------------------------------------------
| Investments in tangible assets | -300.9 | -159.2 | -215.3 |
--------------------------------------------------------------------------------
| Net Change of shares classified | 39.6 | 113.2 | 183.1 |
| as available for sale | | | |
--------------------------------------------------------------------------------
| Sales of tangible fixed assets | 6.3 | 15.9 | 0.0 |
--------------------------------------------------------------------------------
| Net Change of shares classified | 0.3 | 64.9 | 69.0 |
| as available for sale | | | |
--------------------------------------------------------------------------------
| Received dividends | 0.1 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Change in non-current receivable | 0.2 | -6.2 | -7.8 |
--------------------------------------------------------------------------------
| Net cash flow from investing | -258.3 | 20.2 | 13.1 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Loan withdrawals | 308.0 | 2.4 | 4.9 |
--------------------------------------------------------------------------------
| Loan repayments and changes | -15.1 | -46.4 | -50.0 |
--------------------------------------------------------------------------------
| Purchase of own shares | 0.0 | -4.7 | -4.7 |
--------------------------------------------------------------------------------
| Dividends paid | 0.0 | -31.9 | -31.9 |
--------------------------------------------------------------------------------
| Net cash flow from financing | 292.9 | -80.6 | -81.7 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash flows | -80.2 | 26.1 | 51.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid funds | | | |
--------------------------------------------------------------------------------
| Liquid funds, at beginning | 343.4 | 291.8 | 291.8 |
--------------------------------------------------------------------------------
| Change in cash flows | -80.2 | 26.1 | 51.6 |
--------------------------------------------------------------------------------
| Liquit funds, in the end | 263.2 | 317.9 | 343.4 |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| EUR mill. | 1 Jan - 30 | 1 Jan - 30 | 1 Jan - 31 |
| | June 2009 | June 2008 | Dec 2008 |
--------------------------------------------------------------------------------
| Notes to consolidated cash flow | | | |
| statement | | | |
--------------------------------------------------------------------------------
| 1) Operations for which a payment is | | | |
| not included | | | |
--------------------------------------------------------------------------------
| Depreciation | 56.1 | 51.4 | 110.2 |
--------------------------------------------------------------------------------
| Employee benefits | -10.0 | -3.7 | -10.3 |
--------------------------------------------------------------------------------
| Fair value changes of derivatives | -47.6 | -12.5 | 57.4 |
--------------------------------------------------------------------------------
| Other adjustments | -3.0 | -2.5 | 17.3 |
--------------------------------------------------------------------------------
| Total | -4.5 | 32.7 | 174.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial asset at fair value | 249.5 | 418.5 | 373.8 |
--------------------------------------------------------------------------------
| Liquid funds | 16.5 | 18.6 | 18.3 |
--------------------------------------------------------------------------------
| Short-term cash and cash equivalents | 266.0 | 437.1 | 392.1 |
| in balance sheet | | | |
--------------------------------------------------------------------------------
| Maturing after more than 3 months | 0.0 | -109.5 | -39.6 |
--------------------------------------------------------------------------------
| Shares held to trading purposes | -2.8 | -9.7 | -9.1 |
--------------------------------------------------------------------------------
| Total in cash flow statement | 263.2 | 317.9 | 343.4 |
--------------------------------------------------------------------------------
SHAREHOLDERS´EQUITY EUR mill.
--------------------------------------------------------------------------------
| Equity attributable to shareholders of parent company | | |
--------------------------------------------------------------------------------
| | Sh | Ne | Sha | Bon | Hed | Sha | Tran | Reta | Total | Min | Own |
| | a- | w | re | us | -gi | re | s-la | i-ne | | o-r | equity |
| | re | is | pre | iss | ng | cap | tion | d | | ity | total |
| | ca | -s | -mi | ue | re- | i-t | diff | ear- | | int | |
| | -p | ue | um | | ser | al | e-re | ning | | e-r | |
| | i- | | ac- | | ve | | nce | s | | est | |
| | ta | | cou | | | | | | | s | |
| | l | | nt | | | | | | | | |
--------------------------------------------------------------------------------
| Shar | 75 | 0. | 20. | 147 | 26. | 244 | -0.1 | 452. | 967.2 | 1.7 | 968.9 |
| e-ho | .4 | 0 | 4 | .7 | 8 | .9 | | 1 | | | |
| lder | | | | | | | | | | | |
| s´ | | | | | | | | | | | |
| equi | | | | | | | | | | | |
| ty | | | | | | | | | | | |
| 1.1. | | | | | | | | | | | |
| 2008 | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Divi | | | | | | | | -31. | -31.9 | -0. | -32.5 |
| dend | | | | | | | | 9 | | 6 | |
| paym | | | | | | | | | | | |
| ent | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Mino | | | | | | | | 0.0 | 0.0 | -0. | -0.3 |
| rity | | | | | | | | | | 3 | |
| chan | | | | | | | | | | | |
| ge | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Purc | 0. | 0. | 0.0 | | | | | -4.7 | -4.7 | | -4.7 |
| hase | 0 | 0 | | | | | | | | | |
| of | | | | | | | | | | | |
| own | | | | | | | | | | | |
| shar | | | | | | | | | | | |
| es | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Assi | | | | | | 2.1 | | 0.8 | 2.9 | | 2.9 |
| gn-m | | | | | | | | | | | |
| ent | | | | | | | | | | | |
| of | | | | | | | | | | | |
| own | | | | | | | | | | | |
| shar | | | | | | | | | | | |
| es/ | | | | | | | | | | | |
| Shar | | | | | | | | | | | |
| e | | | | | | | | | | | |
| prem | | | | | | | | | | | |
| ium | | | | | | | | | | | |
| acco | | | | | | | | | | | |
| unt | | | | | | | | | | | |
| char | | | | | | | | | | | |
| ges | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Shar | 75 | 0. | 20. | 147 | 26. | 247 | -0.1 | 416. | 933.5 | 0.8 | 934.3 |
| e-ho | .4 | 0 | 4 | .7 | 8 | .0 | | 3 | | | |
| lder | | | | | | | | | | | |
| s | | | | | | | | | | | |
| equi | | | | | | | | | | | |
| ty | | | | | | | | | | | |
| rela | | | | | | | | | | | |
| ted | | | | | | | | | | | |
| to | | | | | | | | | | | |
| owne | | | | | | | | | | | |
| rs | | | | | | | | | | | |
| 30.6 | | | | | | | | | | | |
| .200 | | | | | | | | | | | |
| 8 | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Sta- | | | | | 82. | | 0.2 | 16.5 | 98.9 | 0.0 | 98.9 |
| teme | | | | | 2 | | | | | | |
| nt | | | | | | | | | | | |
| of | | | | | | | | | | | |
| comp | | | | | | | | | | | |
| re-h | | | | | | | | | | | |
| ensi | | | | | | | | | | | |
| ve | | | | | | | | | | | |
| inco | | | | | | | | | | | |
| me | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Shar | 75 | 0. | 20. | 147 | 109 | 247 | 0.1 | 432. | 1032. | 0.8 | 1033.2 |
| e-ho | .4 | 0 | 4 | .7 | .0 | .0 | | 8 | 4 | | |
| lder | | | | | | | | | | | |
| s´ | | | | | | | | | | | |
| equi | | | | | | | | | | | |
| ty | | | | | | | | | | | |
| 30.6 | | | | | | | | | | | |
| .200 | | | | | | | | | | | |
| 8 | | | | | | | | | | | |
--------------------------------------------------------------------------------
SHAREHOLDERS´EQUITY EUR mill.
--------------------------------------------------------------------------------
| Equity attributable to shareholders of parent company | | |
--------------------------------------------------------------------------------
| | Sh | Ne | Sha | Bon | Hed- | Sha | Tran | Reta | Tota | Mi- | Own |
| | a- | w | re | us | ging | re | -s-l | i-ne | l | no- | equity |
| | re | is | pre | iss | rese | ca- | a-ti | d | | rit | total |
| | ca | -s | -mi | ue | rve | pit | on | ear- | | y | |
| | pi | ue | um | | | al | dif- | ning | | in- | |
| | -t | | ac- | | | | fe-r | s | | te- | |
| | al | | cou | | | | ence | | | res | |
| | | | nt | | | | | | | ts | |
--------------------------------------------------------------------------------
| Shar | 75 | 0. | 20. | 147 | -110 | 247 | 0.0 | 369. | 749. | 1.1 | 750.5 |
| e-ho | .4 | 0 | 4 | .7 | .5 | .2 | | 2 | 4 | | |
| lder | | | | | | | | | | | |
| s´ | | | | | | | | | | | |
| equi | | | | | | | | | | | |
| ty | | | | | | | | | | | |
| 1.1. | | | | | | | | | | | |
| 2009 | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Divi | | | | | | | | 0.0 | 0.0 | -0. | -0.4 |
| dend | | | | | | | | | | 4 | |
| paym | | | | | | | | | | | |
| ent | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Purc | 0. | 0. | 0.0 | | | | | 0.0 | 0.0 | | 0.0 |
| hase | 0 | 0 | | | | | | | | | |
| of | | | | | | | | | | | |
| own | | | | | | | | | | | |
| shar | | | | | | | | | | | |
| es | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Shar | 75 | 0. | 20. | 147 | -110 | 247 | | 369. | 749. | 0.7 | 750.1 |
| e-ho | .4 | 0 | 4 | .7 | .5 | .2 | | 2 | 4 | | |
| lder | | | | | | | | | | | |
| s | | | | | | | | | | | |
| equi | | | | | | | | | | | |
| ty | | | | | | | | | | | |
| rela | | | | | | | | | | | |
| ted | | | | | | | | | | | |
| to | | | | | | | | | | | |
| owne | | | | | | | | | | | |
| rs | | | | | | | | | | | |
| 30.6 | | | | | | | | | | | |
| . | | | | | | | | | | | |
| 2009 | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Sta- | | | | | 48.5 | | 0.4 | -44. | 4.2 | 0.0 | 4.2 |
| teme | | | | | | | | 7 | | | |
| nt | | | | | | | | | | | |
| of | | | | | | | | | | | |
| comp | | | | | | | | | | | |
| re-h | | | | | | | | | | | |
| ensi | | | | | | | | | | | |
| ve | | | | | | | | | | | |
| inco | | | | | | | | | | | |
| me | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Shar | 75 | 0. | 20. | 147 | -62. | 247 | 0.4 | 324. | 753. | 0.7 | 754.3 |
| e-ho | .4 | 0 | 4 | .7 | 0 | .2 | | 5 | 6 | | |
| lder | | | | | | | | | | | |
| s´ | | | | | | | | | | | |
| equi | | | | | | | | | | | |
| ty | | | | | | | | | | | |
| 310. | | | | | | | | | | | |
| 6. | | | | | | | | | | | |
| 2009 | | | | | | | | | | | |
--------------------------------------------------------------------------------
SHAREHOLDERS´EQUITY EUR mill.
--------------------------------------------------------------------------------
| Equity attributable to shareholders of parent company | | |
--------------------------------------------------------------------------------
| | Sh | Ne | Sha | Bon | Hed- | Sha | Tran | Reta | Tota | Mi- | Own |
| | a- | w | re | us | ging | re | s-la | i-ne | l | no- | equity |
| | re | is | pre | iss | rese | ca- | -tio | d | | rit | total |
| | ca | -s | -mi | ue | rve | pit | n | ear- | | y | |
| | -p | ue | um | | | al | dif- | ning | | in- | |
| | i- | | ac- | | | | fe-r | s | | te- | |
| | ta | | cou | | | | ence | | | res | |
| | l | | nt | | | | | | | ts | |
--------------------------------------------------------------------------------
| Shar | 75 | 0. | 20. | 147 | 26.8 | 244 | -0.1 | 470. | 985. | 1.7 | 987.0 |
| e-ho | .4 | 0 | 4 | .7 | | .9 | | 2 | 3 | | |
| lder | | | | | | | | | | | |
| s´ | | | | | | | | | | | |
| equi | | | | | | | | | | | |
| ty | | | | | | | | | | | |
| 1.1. | | | | | | | | | | | |
| 2008 | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Chan | | | | | | | | -18. | -18. | 0.0 | -18.1 |
| ge | | | | | | | | 1 | 1 | | |
| of | | | | | | | | | | | |
| acco | | | | | | | | | | | |
| unt- | | | | | | | | | | | |
| ting | | | | | | | | | | | |
| prin | | | | | | | | | | | |
| cipl | | | | | | | | | | | |
| e | | | | | | | | | | | |
| (IFR | | | | | | | | | | | |
| IC | | | | | | | | | | | |
| 13) | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Adju | 75 | 0. | 20. | 147 | 26.8 | 244 | -0.1 | 452. | 967. | 1.7 | 968.9 |
| sted | .4 | 0 | 4 | .7 | | .9 | | 1 | 2 | | |
| ´ | | | | | | | | | | | |
| equi | | | | | | | | | | | |
| ty | | | | | | | | | | | |
| 1.1. | | | | | | | | | | | |
| 2008 | | | | | | | | | | | |
--------------------------------------------------------------------------------
NOTES TO THE CONSOLIDATED INTERIM REPORT
1. BASIS OF PREPARATION
This consolidated interim report has been prepared according to the
International (IAS) Standard 34: Interim Financial Reporting, which has been
introduced in the EU.
2. ACCOUNTING PRINCIPLES
The accounting principles adhered to in the interim report are consistent with
the principles adhered to in the 2008 consolidated financial statements,
excluding the changes listed below.
The following new standards, changes to standards and the application of
interpretations which are perceived to be essential for the Group have been
introduced from the beginning of 2009:
- IFRIC 13, Customer Loyalty Programmes'. The interpretation clarifies that
where goods or services are sold together with a customer loyalty incentive, the
arrangement is a multiple-element arrangement and the consideration receivable
from the customer is allocated between the components of the arrangement using
fair values. The group operates loyalty programmes as defined by the
interpretation (Finnair-Plus program) in the scheduled traffic segment. After
the adoption of the interpretation the correspondence of deferred credits,
equity and deferred taxes of the previous year reported balance sheet and
turnover, marketing expenses and deferred credits of the previous year income
and loss statement has been made.
- IFRIC 13. The effect of Customer Loyalty Programmes to profit and loss
statement and balance sheet of year 2008 have been reported in the interim
report Q1/2009.
- IAS 1 (Revised), ‘Presentation of Financial Statements'. The revised standard
is aimed at improving users' ability to analyse and compare the information
given in financial statements by separating changes in equity of an entity
arising from transactions with owners from other changes in equity. Non-owner
changed in equity will be presented in the statement of comprehensive income.
The group has been reported the income statement and statement of comprehensive
income and made the correspondence of the previous year income statement and
statement of the comprehensive income according to the IAS 1 (Revised).
- IFRS 8, ‘Operating Segments'. The new standard replaces IAS 14. The new
standard requires a ‘management approach', under which segment information is
presented on the same basis as that used for internal reporting purposes. The
segments reported by the group will also in the future be the same as the
business segments under IAS 14. The reported operating segments are the same as
under IAS 14 business segments and they correspond the internal reporting.
- Amendment to IAS 23, ‘Borrowing Costs'. The amended standard requires an
entity to capitalise borrowing costs directly attributable to a qualifying asset
as part of the cost of that asset. The option of immediately expensing those
borrowing costs will be removed. The group will commence capitalisation of
borrowing cost related to such undertakings as well as projects to be accounted
for under the stage of completion method embarked in 2009. Such Borrowing Costs
are expected to be most in the Scheduled Traffic segment. So far, there have not
been the Borrowing Costs according to IAS 23 standard.
3. CRITICAL FINANCIAL STATEMENT ESTIMATES AND ASSUMPTIONS
The preparation of interim reports requires the company's management to make
estimates and assumptions that influence the levels of reported assets and
liabilities as well as of revenue and expenses. Realised results might differ
from these estimates.
In connection with the preparation of this interim report, the significant
estimates made by management relating to the consolidated accounting principles
and the key uncertainty factors are the same as those applied in the 2008 annual
financial statements.
4. SEGMENT INFORMATION
The business segments, Scheduled Passenger,Traffic, Leisure Traffic, Aviation
Services and Travel Services, are the primary reporting format. The geographical
segments, Finland, Europe, Asia, North America and Others, are the secondary
reporting format. Segment information will based on the corresponding
information reported in the financial statement.
PRIMARY REPORTING FORMAT - BUSINESS SEGMENT DATA 1 January - 30 June 2009
--------------------------------------------------------------------------------
| | Schedu | Leisu | Aviati | Travel | Group | Unallo | Group |
| | led | re | on | Servic | eliminat | -cated | |
| | Passen | Traff | Servic | es | ions | items | |
| | ger | ic | es | | | | |
| | Traffi | | | | | | |
| | c | | | | | | |
--------------------------------------------------------------------------------
| EUR mill. | | | | | | | |
--------------------------------------------------------------------------------
| External | 635.1 | 225.3 | 52.4 | 30.3 | | | 943.1 |
| turnover | | | | | | | |
--------------------------------------------------------------------------------
| Internal | 47.7 | 2.9 | 162.0 | 1.6 | -214.2 | | 0.0 |
| turnover | | | | | | | |
--------------------------------------------------------------------------------
| Turnover | 682.8 | 228.2 | 214.4 | 31.9 | -214.2 | 0.0 | 943.1 |
--------------------------------------------------------------------------------
| Operating | -106.2 | 8.4 | 2.1 | -2.4 | | 41.3 | -56.8 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| Share of | | | | | | 0.0 | 0.0 |
| results of | | | | | | | |
| associated | | | | | | | |
| undertaking | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
| Financial | | | | | | 4.0 | 4.0 |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Financial | | | | | | -7.5 | -7.5 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Income tax | | | | | | 15.7 | 15.7 |
--------------------------------------------------------------------------------
| Minority | | | | | | -0.1 | -0.1 |
| interest | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | | | -44.7 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| Other items | | | | | | | |
--------------------------------------------------------------------------------
| Investments | 313.9 | 0.2 | 12.1 | 0.8 | 0.0 | 0.5 | 327.5 |
--------------------------------------------------------------------------------
| Depreciatio | 43.0 | 0.2 | 11.5 | 0.5 | 0.0 | 0.9 | 56.1 |
| n | | | | | | | |
--------------------------------------------------------------------------------
PRIMARY REPORTING FORMAT - BUSINESS SEGMENT DATA 1 January- 30 June 2008
--------------------------------------------------------------------------------
| | Schedu | Leisu | Aviati | Travel | Group | Unallo- | Group |
| | led | re | on | Service | eli-min | cated | |
| | Passen | Traff | Servic | s | ations | items | |
| | ger | ic | es | | | | |
| | Traffi | | | | | | |
| | c | | | | | | |
--------------------------------------------------------------------------------
| EUR mill. | | | | | | | |
--------------------------------------------------------------------------------
| External | 802.9 | 220.5 | 55.1 | 39.6 | | | 1 |
| turnover | | | | | | | 118.1 |
--------------------------------------------------------------------------------
| Internal | 54.7 | 3.6 | 166.3 | 2.1 | -226.7 | | 0.0 |
| turnover | | | | | | | |
--------------------------------------------------------------------------------
| Turnover | 857.6 | 224.1 | 221.4 | 41.7 | -226.7 | 0.0 | 1 |
| | | | | | | | 118.1 |
--------------------------------------------------------------------------------
| Operating | -5.6 | 8.5 | 7.0 | 1.9 | | 17.1 | 28.9 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| Share of | | | | | | 0.0 | 0.0 |
| results of | | | | | | | |
| associated | | | | | | | |
| undertaking | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
| Financial | | | | | | 12.6 | 12.6 |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Financial | | | | | | -18.7 | -18.7 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Income tax | | | | | | -6.3 | -6.3 |
--------------------------------------------------------------------------------
| Minority | | | | | | 0.0 | 0.0 |
| interest | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | | | 16.5 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | |
--------------------------------------------------------------------------------
| Other items | | | | | | | |
--------------------------------------------------------------------------------
| Investments | 115.5 | 0.1 | 28.6 | 0.3 | 0.0 | 0.3 | 144.8 |
--------------------------------------------------------------------------------
| Depreciatio | 37.4 | 0.2 | 12.5 | 0.7 | 0.0 | 0.6 | 51.4 |
| n | | | | | | | |
--------------------------------------------------------------------------------
TURNOVER
--------------------------------------------------------------------------------
| | 2009 | 2008 | Change | 2009 | 2008 | Change | 2008 |
--------------------------------------------------------------------------------
| | 1 | 1 | % | 1 Jan- | 1 Jan- | % | 1 Jan- |
| | Apr- | Apr- | | 30 | 30 June | | 31 Dec |
| | 30 | 30 | | June | | | |
| | June | June | | | | | |
--------------------------------------------------------------------------------
| EUR mill. | | | | | | | |
--------------------------------------------------------------------------------
| Scheduled | 329.0 | 438.0 | -24.9 | 682.8 | 857.6 | -20.4 | 1 728.9 |
| Passenger | | | | | | | |
| Traffic | | | | | | | |
--------------------------------------------------------------------------------
| Leisure | 79.4 | 84.8 | -6.4 | 228.2 | 224.1 | 1.8 | 454.6 |
| Traffic | | | | | | | |
--------------------------------------------------------------------------------
| Aviation | 101.6 | 111.5 | -8.9 | 214.4 | 221.4 | -3.2 | 445.8 |
| Services | | | | | | | |
--------------------------------------------------------------------------------
| Travel | 16.7 | 20.6 | -18.9 | 31.9 | 41.7 | -23.5 | 77.9 |
| Services | | | | | | | |
--------------------------------------------------------------------------------
| Group | -99.3 | -109. | -9.5 | -214.2 | -226.7 | -5.5 | -451.4 |
| eliminatio | | 7 | | | | | |
| ns | | | | | | | |
--------------------------------------------------------------------------------
| Total | 427.4 | 545.2 | -21.6 | 943.1 | 1 118.1 | -15.7 | 2 255.8 |
--------------------------------------------------------------------------------
OPERATING PROFIT EXCLUDING THE DISPOSAL OF THE CAPITAL ASSETS AND FAIR VALUE
CHANGES OF DERIVATIVES AND NON-RECURRING ITEMS
--------------------------------------------------------------------------------
| | 2009 | 2008 | Change | 2009 | 2008 | Change | 2008 |
--------------------------------------------------------------------------------
| | 1 | 1 | % | 1 Jan- | 1 | % | 1 Jan- |
| | Apr- | Apr- | | 30 | Jan- | | 31 Dec |
| | 30 | 30 | | June | 30 | | |
| | June | June | | | June | | |
--------------------------------------------------------------------------------
| EUR mill. | | | | | | | |
--------------------------------------------------------------------------------
| Scheduled | -55.9 | 1.3 | - | -106.2 | -2.4 | - | -35.9 |
| Passenger | | | | | | | |
| Traffic | | | | | | | |
--------------------------------------------------------------------------------
| Leisure | 2.9 | -2.5 | - | 8.4 | 8.6 | - | 26.7 |
| Traffic | | | | | | | |
--------------------------------------------------------------------------------
| Aviation | -0.2 | 4.4 | - | 2.1 | 6.9 | - | 13.8 |
| Services | | | | | | | |
--------------------------------------------------------------------------------
| Travel | -0.9 | 1.4 | - | -2.4 | 1.8 | - | 2.1 |
| Services | | | | | | | |
--------------------------------------------------------------------------------
| Unallocated | -2.8 | 0.0 | - | -6.3 | -2.5 | - | -5.9 |
| items | | | | | | | |
--------------------------------------------------------------------------------
| Total | -56.9 | 4.6 | - | -104.4 | 12.4 | - | 0.8 |
--------------------------------------------------------------------------------
EMPLOYEES AVERAGE BY SEGMENT
--------------------------------------------------------------------------------
| | 2009 | 2008 | Change |
--------------------------------------------------------------------------------
| | 1 Jan- | 1 Jan- | % |
| | 30 | 30 | |
| | June | June | |
--------------------------------------------------------------------------------
| Scheduled Passenger Traffic | 4 034 | 4 222 | -4.5 |
--------------------------------------------------------------------------------
| Leisure Traffic | 495 | 461 | 7.4 |
--------------------------------------------------------------------------------
| Aviation Services | 3 447 | 3 632 | -5.1 |
--------------------------------------------------------------------------------
| Travel Services | 979 | 1 106 | -11.5 |
--------------------------------------------------------------------------------
| Other functions | 143 | 152 | -5.9 |
--------------------------------------------------------------------------------
| Finnair Group Total | 9 098 | 9 573 | -5.0 |
--------------------------------------------------------------------------------
SECONDARY REPORTING FORMAT - GEOGRAPHICAL SEGMENTS
TURNOVER OUTSIDE THE GROUP BY SALES DESTINATION
--------------------------------------------------------------------------------
| | 2009 | 2008 | Change | 2009 | 2008 | Change | 2008 |
--------------------------------------------------------------------------------
| | 1 | 1 | % | 1 Jan- | 1 Jan- | % | 1 Jan- |
| | Apr- | Apr- | | 30 | 30 June | | 31 Dec |
| | 30 | 30 | | June | | | |
| | June | June | | | | | |
--------------------------------------------------------------------------------
| EUR mill. | | | | | | | |
--------------------------------------------------------------------------------
| Finland | 78.0 | 94.3 | -17.3 | 193.8 | 216.4 | -10.4 | 432.8 |
--------------------------------------------------------------------------------
| Europe | 207.4 | 272.8 | -24.0 | 398.6 | 496.3 | -19.7 | 962.5 |
--------------------------------------------------------------------------------
| Asia | 118.4 | 149.6 | -20.9 | 278.6 | 336.6 | -17.2 | 708.8 |
--------------------------------------------------------------------------------
| North | 14.1 | 18.6 | -24.2 | 24.9 | 30.1 | -17.3 | 67.6 |
| America | | | | | | | |
--------------------------------------------------------------------------------
| Others | 9.5 | 9.9 | -4.0 | 47.2 | 38.7 | 22.0 | 84.1 |
--------------------------------------------------------------------------------
| Total | 427.4 | 545.2 | -21.6 | 943.1 | 1 118.1 | -15.7 | 2 255.8 |
--------------------------------------------------------------------------------
5. MANAGEMENT OF FINANCIAL RISKS
No significant changes have been made to the Group's risk management principles
in the reporting period. The objectives and principles of risk management are
consistent with information presented in the Group's 2008 Annual Report.
The tables below present the nominal value or the amount and net fair value of
derivative contracts used in the Group's hedge accounting.
DERIVATIVE CONTRACTS EUR mill.
--------------------------------------------------------------------------------
| Derivative | 30 June 2009 | 30 June 2008 | 31 Dec 2008 |
| contracts | | | |
--------------------------------------------------------------------------------
| Currency | Nominal | Fair | Nominal | Fair | Nominal | Fair |
| derivatives | value | value | value | value | value | value |
| | (EUR | (EUR | (EUR | (EUR | (EUR | (EUR |
| | mill.) | mill.) | mill.) | mill.) | mill.) | mill.) |
--------------------------------------------------------------------------------
| Hedge | | | | | | |
| accounting | | | | | | |
| items | | | | | | |
--------------------------------------------------------------------------------
| Forward | 329.1 | 1.8 | 280.9 | -24.6 | 382.7 | 14.0 |
| contracts, | | | | | | |
| Jet Fuel | | | | | | |
| currency | | | | | | |
| hedging | | | | | | |
--------------------------------------------------------------------------------
| Forward | | | | | | |
| contracts, | | | | | | |
| Hedging of | | | | | | |
| Aircraft | | | | | | |
| purchace | | | | | | |
| price | | | | | | |
--------------------------------------------------------------------------------
| Fair value | 503.4 | 11.8 | 348.5 | -24.2 | 425.8 | 26.4 |
| hedging | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | 34.5 | 0.3 | 60.5 | 0.2 | 58.9 | 0.4 |
| hedging | | | | | | |
--------------------------------------------------------------------------------
| Forward | 29.4 | 0.5 | 45.9 | -4.1 | 48.4 | 2.2 |
| contracts, | | | | | | |
| Currency | | | | | | |
| hedging of | | | | | | |
| lease | | | | | | |
| payments | | | | | | |
--------------------------------------------------------------------------------
| Total | 896.4 | 14.4 | 735.8 | -52.7 | 915.8 | 43.0 |
--------------------------------------------------------------------------------
| Currency | | | | | | |
| derivatives | | | | | | |
| at fair value | | | | | | |
| through | | | | | | |
| profit or | | | | | | |
| loss | | | | | | |
--------------------------------------------------------------------------------
| Operating | 40.8 | 1.4 | 58.3 | -1.5 | 74.4 | 3.2 |
| cash (flow | | | | | | |
| hedging) | | | | | | |
--------------------------------------------------------------------------------
| Operational | | | | | | |
| cash flow | | | | | | |
| hedging | | | | | | |
| (options) | | | | | | |
--------------------------------------------------------------------------------
| Call options | 8.0 | 0.0 | 18.0 | 0.4 | 12.8 | 0.2 |
--------------------------------------------------------------------------------
| Put options | 8.0 | 0.0 | 17.0 | -0.2 | 18.8 | -0.1 |
--------------------------------------------------------------------------------
| Balance sheet | 90.4 | -4.3 | 46.4 | -1.1 | 46.9 | -2.3 |
| hedging | | | | | | |
| (forward | | | | | | |
| contracts) | | | | | | |
--------------------------------------------------------------------------------
| Total | 147.2 | -2.9 | 139.7 | -2.4 | 152.9 | 1.0 |
--------------------------------------------------------------------------------
| Currency | 1 043.7 | 11.5 | 875.5 | -55.1 | 1 068.8 | 44.0 |
| derivatives, | | | | | | |
| total | | | | | | |
--------------------------------------------------------------------------------
| | 30 June 2009 | 30 June 2008 | 31 Dec 2008 |
--------------------------------------------------------------------------------
| | Nominal | Fair | Nominal | Fair | Nominal | Fair |
| | value | value | value | value | value | value |
| | (tonnes) | (EUR | (tonnes) | (EUR | (tonnes) | (EUR |
| | | mill.) | | mill.) | | mill.) |
--------------------------------------------------------------------------------
| Commodity | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Hedge | | | | | | |
| accounting | | | | | | |
| items | | | | | | |
--------------------------------------------------------------------------------
| Jet Fuel | 542 600 | -78.0 | 551 800 | 184.1 | 591 300 | -153.1 |
| swaps | | | | | | |
--------------------------------------------------------------------------------
| Commodity | | | | | | |
| derivatives | | | | | | |
| at fair value | | | | | | |
| through | | | | | | |
| profit or | | | | | | |
| loss | | | | | | |
--------------------------------------------------------------------------------
| Jet Fuel | 61 700 | -7.5 | 4 500 | 1.4 | 71 700 | -27.6 |
| Forward | | | | | | |
| contracts | | | | | | |
--------------------------------------------------------------------------------
| Gasoil | 2 000 | -0.4 | 33 000 | 7.5 | 17 000 | -5.5 |
| forward | | | | | | |
| contracts | | | | | | |
--------------------------------------------------------------------------------
| Jet | 202 500 | 7.2 | 404 000 | -3.3 | 340 500 | 6.9 |
| differential | | | | | | |
| forward | | | | | | |
| contracts | | | | | | |
--------------------------------------------------------------------------------
| Options | | | | | | |
--------------------------------------------------------------------------------
| Jet Fuel call | 75 000 | 0.0 | 72 000 | 13.6 | 28 000 | 0.1 |
| options | | | | | | |
--------------------------------------------------------------------------------
| Jet Fuel put | 89 500 | -2.3 | 72 000 | -0.6 | 28 000 | -8.9 |
| options | | | | | | |
--------------------------------------------------------------------------------
| Gasoil call | 0 | 0.0 | 39 000 | 3.3 | 47 000 | 0.0 |
| options | | | | | | |
--------------------------------------------------------------------------------
| Gasoil put | 0 | 0.0 | 74 500 | 0.0 | 63 500 | -17.6 |
| options | | | | | | |
--------------------------------------------------------------------------------
| Total | | -81.0 | | 206.0 | | -205.6 |
--------------------------------------------------------------------------------
| | 30 June 2009 | 30 June 2008 | 31 Dec 2008 |
--------------------------------------------------------------------------------
| | Nominal | Fair | Nominal | Fair | Nominal | Fair |
| | value | value | value | value | value | value |
| | (EUR | (EUR | (EUR | (EUR | (EUR | (EUR |
| | mill.) | mill.) | mill.) | mill.) | mill.) | mill.) |
--------------------------------------------------------------------------------
| Interest rate | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Cross | | | | | | |
| currency | | | | | | |
| Interest rate | | | | | | |
| swaps | | | | | | |
--------------------------------------------------------------------------------
| Hedge | 10.6 | -5.2 | 19.9 | -12.0 | 16.7 | -7.3 |
| accounting | | | | | | |
| items | | | | | | |
--------------------------------------------------------------------------------
| Cross | 9.3 | -4.8 | 12.4 | -9.4 | 11.7 | -6.3 |
| currency | | | | | | |
| interest rate | | | | | | |
| swaps at fair | | | | | | |
| value through | | | | | | |
| profit or | | | | | | |
| loss | | | | | | |
--------------------------------------------------------------------------------
| Total | 19.9 | -10.0 | 32.3 | -21.4 | 28.4 | -13.6 |
--------------------------------------------------------------------------------
| Interest rate | | | | | | |
| swaps | | | | | | |
--------------------------------------------------------------------------------
| Hedge | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| accounting | | | | | | |
| items | | | | | | |
--------------------------------------------------------------------------------
| Interest rate | 20.0 | 0.2 | 20.0 | 1.0 | 20.0 | 0.1 |
| swaps at fair | | | | | | |
| value through | | | | | | |
| profit or | | | | | | |
| loss | | | | | | |
--------------------------------------------------------------------------------
| Total | 20.0 | 0.2 | 20.0 | 1.0 | 20.0 | 0.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Shares | | | | | | |
--------------------------------------------------------------------------------
| Call options, | 0.0 | 0.0 | 15.4 | 0.0 | 0.0 | 0.0 |
| share | | | | | | |
--------------------------------------------------------------------------------
6. COMPANY ACQUISITIONS AND SALES
Group subsidiary Oy Aurinkomatkat - Suntours Ltd Ab purchased in March 2009 the
entire share stock of Toivelomat Oy, and the company has been consolidated as a
Group subsidiary in this interim report.
7. INCOME TAXES
Income taxes have been entered in the income statement using the tax rates that
will be applied to the expected total profit for the year.
8. DIVIDEND PER SHARE
The Annual General Meeting on 26 March 2009 decided not to distribute a dividend
for financial year 2008.
9. CHANGE IN INTANGIBLE AND TANGIBLE ASSETS EUR mill.
--------------------------------------------------------------------------------
| | 30 June | 30 June | 31 Dec |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Carrying amount at beginning of | 1 339.6 | 1 250.2 | 1 250.2 |
| period | | | |
--------------------------------------------------------------------------------
| Fixed asset investments | 330.3 | 147.2 | 273.2 |
--------------------------------------------------------------------------------
| Change in advances | -22.6 | 16.0 | -4.6 |
--------------------------------------------------------------------------------
| Disposals | -0.9 | -64.9 | -69.0 |
--------------------------------------------------------------------------------
| Depreciation | -56.1 | -51.4 | -110.2 |
--------------------------------------------------------------------------------
| Carrying amount at end of period | 1 590.3 | 1 297.1 | 1 339.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Proportion of assets held for sale | 19.4 | 34.7 | 34.7 |
| at beginning of period | | | |
--------------------------------------------------------------------------------
| Proportion of assets held for sale | 19.4 | 16.2 | 19.4 |
| at end of period | | | |
--------------------------------------------------------------------------------
10. INTEREST-BEARING LIABILITIES
In the first quarter of 2009, Group loans were repaid in accordance with a
repayment programme. During the first period the loan withdrawals were 308.0
million euros, the part of short-term loans was 103.3 million euros. The rest of
the loan transactions presented in the accounts relate to old secured loans,
which owing to their exceptional agreement structure have a net repayment
entered gross both as a withdrawal and a repayment.
11. CONTINGENT LIABILITIES EUR mill.
--------------------------------------------------------------------------------
| | 30 June | 30 June | 31 Dec |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Other contingent liabilities | | | |
--------------------------------------------------------------------------------
| Pledges on own behalf | 451.8 | 251.3 | 273.3 |
--------------------------------------------------------------------------------
| Guarantees on group undertakings | 82.1 | 67.5 | 68.0 |
--------------------------------------------------------------------------------
| Total | 533.9 | 318.8 | 341.3 |
--------------------------------------------------------------------------------
Investment commitments for property, plant and equipment on 30 June 2009
totalled 1, 200.0 million euros (31 December 2008: 1. 508.9 million euros)
12. LIABILITIES (EUR million)
--------------------------------------------------------------------------------
| | 30 June | 30 June | 31 Dec |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Fleet lease payment liabilities | 245.1 | 311.3 | 285.9 |
--------------------------------------------------------------------------------
| Other liabilities | 198.0 | 205.5 | 202.5 |
--------------------------------------------------------------------------------
| Total | 443.1 | 516.8 | 488.4 |
--------------------------------------------------------------------------------
13. RELATED PARTY TRANSACTIONS
Related party transactions are presented in Finnair's 2008 Annual Report. There
have been no substantial changes after the closing date.
Transactions and open balances with associated undertakings were of very minor
significance in the reporting period.
14. AIR TRAFFIC 1 January - 30 June 2009
--------------------------------------------------------------------------------
| | Total | Europ | Nort | Asia | Domes- | Schedu- | Leisu | Cargo |
| | traff | e | h | | tic | led | re | |
| | ic | | Am | | | Traf-fi | | |
| | | | eric | | | c Total | | |
| | | | a | | | | | |
--------------------------------------------------------------------------------
| Passengers | 3 721 | 1 753 | 72 | 542 | 734 | 3 102 | 619 | |
| (1000) | | | | | | | | |
--------------------------------------------------------------------------------
| %-change | -8.4 | -9.9 | 6.3 | -7.1 | -11.5 | -9.5 | -2.9 | |
--------------------------------------------------------------------------------
| Cargo and | 40 | 8 913 | 2 | 26 | 1 396 | 39 318 | 613 | 40 |
| mail | 719 | | 931 | 079 | | | | 719 |
| (tonnes) | | | | | | | | |
--------------------------------------------------------------------------------
| %-change | -21.9 | -17.1 | -17. | -23.9 | -9.3 | -21.5 | 189.1 | -21.9 |
| | | | 1 | | | | | |
--------------------------------------------------------------------------------
| Available | 13 | 3 800 | 602 | 5 302 | 691 | 10 394 | 3 172 | |
| seat-kilom | 567 | | | | | | | |
| etres mill | | | | | | | | |
--------------------------------------------------------------------------------
| %-change | -6.3 | -9.1 | 8.8 | -10.7 | -14.8 | -9.5 | 5.6 | |
--------------------------------------------------------------------------------
| Revenue | 10 | 2 435 | 477 | 3 928 | 407 | 7 247 | 2 807 | |
| passenger | 054 | | | | | | | |
| kilometres | | | | | | | | |
--------------------------------------------------------------------------------
| %-change | -4.0 | -8.3 | 6.4 | -7.0 | -13.9 | -7.1 | 5.1 | |
--------------------------------------------------------------------------------
| Passenger | 74.1 | 64.1 | 79.3 | 74.1 | 59.0 | 69.7 | 88.5 | |
| load | | | | | | | | |
| factor % | | | | | | | | |
--------------------------------------------------------------------------------
| %-change | 1.8 | 0.6 | -1.8 | 3.0 | 0.6 | 1.8 | -0.4 | |
--------------------------------------------------------------------------------
| Available | 2 037 | | | | | | | 433 |
| tonne-kilo | | | | | | | | |
| metres | | | | | | | | |
--------------------------------------------------------------------------------
| %-change | -7.9 | | | | | | | -9.3 |
--------------------------------------------------------------------------------
| Revenue | 1 129 | | | | | | | 228 |
| tonne-kilo | | | | | | | | |
| metres | | | | | | | | |
| mill | | | | | | | | |
--------------------------------------------------------------------------------
| %-change | -8.5 | | | | | | | -23.1 |
--------------------------------------------------------------------------------
| Overall | 55.4 | | | | | | | 52.6 |
| load | | | | | | | | * |
| factor % | | | | | | | | |
--------------------------------------------------------------------------------
| %-change | -0.4 | | | | | | | -9.5 |
--------------------------------------------------------------------------------
* Operational calculatory capacity
15. ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME
Other comprehensive income include the unrealisable change in the fair value of
the hedging instruments of the hedge accounting items which has earlier
recognised straight in the hedging reserve of the shareholders' equity and the
translation difference.
--------------------------------------------------------------------------------
| | 2009 | 2008 | Muuto | 2009 | 2008 | Muuto | 2008 |
| | | | s | | | s | |
--------------------------------------------------------------------------------
| | 1 | 1 | % | 1 Jan | 1 | % | 1 Jan |
| | Jan-3 | Jan-3 | | -30 | Jan-3 | | -31 |
| | 0 | 0 | | June | 0 | | Dec |
| | June | June | | | June | | |
--------------------------------------------------------------------------------
| Profit for the | -26.0 | 13.4 | - | -44.6 | 16.5 | - | -46.1 |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | | | | | | | |
| income items | | | | | | | |
--------------------------------------------------------------------------------
| Translation | -0.1 | 0.0 | - | 0.4 | 0.2 | - | 0.1 |
| differences | | | | | | | |
--------------------------------------------------------------------------------
| Fair value change | 1.4 | -7.0 | | 2.7 | -11.7 | | -13.7 |
| of hedging | | | | | | | |
| instruments after | | | | | | | |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| - Taxes | -0.6 | 2.4 | | -1.0 | 4.1 | | 4.8 |
--------------------------------------------------------------------------------
| Change in fair | 34.8 | 77.9 | - | 45.8 | 93.9 | - | -123.6 |
| value of hedging | | | | | | | |
| instruments after | | | | | | | |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
| - Taxes | -12.1 | -27.3 | | -16.0 | -33.0 | | 43.4 |
--------------------------------------------------------------------------------
| Other comprehensive | 36.1 | 70.9 | - | 48.9 | 82.4 | - | -137.2 |
| income items, total | | | | | | | |
--------------------------------------------------------------------------------
| Comprehensive | 10.1 | 84.3 | - | 4.3 | 98.9 | - | -183.3 |
| income for the | | | | | | | |
| financial period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | 10.0 | 84.3 | | 4.2 | 98.9 | | -183.5 |
| to shareholders of | | | | | | | |
| the parent company | | | | | | | |
| of the | | | | | | | |
| comprehensive | | | | | | | |
| income statement | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | 0.1 | 0.0 | | 0.1 | 0.0 | | 0.2 |
| to minority of the | | | | | | | |
| parent company of | | | | | | | |
| the comprehensive | | | | | | | |
| income statement | | | | | | | |
--------------------------------------------------------------------------------
16. EVENTS AFTER THE REVIEW PERIOD
There have not been other remarkable events after the closing date as told in
the interim report.
