Strong growth in Finavia’s revenue

Reports
Published
29.4.2016 - 12:00
Press release
Finavia Group's interim report for January - March 2016

January–March 2016 in brief

  • Total passenger volume increased in the first quarter by 5.9%, compared to the corresponding period in 2015
  • Revenues increased by 9.4 per cent due to positive traffic development and the development of commercial services
  • Development and investment programmes continued at Helsinki Airport and network airports
  • Investments were EUR 30.7 million (Q1/2015: 24.7)
  • Operating result excluding non-recurring items was EUR 9.3 million (Q1/2015: 7.8)
  • Operating cash flow increased to EUR 24.8 million (Q1/2015: 11.6) due to volume growth and improved operational efficiency

Group's key figures

CEO Kari Savolainen:

”The year has started in a positive operating environment for Finavia. We are very satisfied with the increased demand for air traffic services. In early 2016, the number of passengers at airports increased by 5.9 per cent. In addition to international air traffic, domestic air traffic also increased due to the popularity of tourism in Lapland, in particular.

Finavia improved its result in early 2016 and its revenues increased by 9.4 per cent due to positive traffic development and strong volume growth of the business operations of Airpro, Finavia’s subsidiary. The reasons for the growth also include profits from commercial services offered to passengers, which started to grow after the sizeable service reform implemented at Helsinki Airport. The net profit for the financial period was also improved by a decrease in financial expenses.

Finavia is closely following the development of the operating environment of air traffic, and adapting to the rapidly changing market conditions is a prerequisite for our competitiveness. Finavia has managed to continuously improve the efficiency of its operations and has improved the profitability of its core business. In the first quarter of 2016, the positive development has continued.

The funding for the development of air traffic infrastructure and services in Finland is based on Finavia’s operating cash flow. Tax money is not used for the infrastructure of air traffic. As a result of this, Finavia’s financial performance has a key impact on how Finland survives in the battle for the international market shares of air traffic. Competition in the sector has continued to increase, and the development of airports requires large investments also in Finland. Large expansion and development work is currently under way at Helsinki Airport. In addition to this, during 2014–2016 we are investing about EUR 80 million in regional airports, which are now more competitive than ever before.

There is strong growth in the global demand for air transport. We maintain our good position among the most popular transit airports by ensuring the competitiveness of Helsinki Airport. We stay in the competition by ensuring our cost-effectiveness and offering a smooth service path to the passengers together with our airline clients. The ongoing expansion of the terminal prepares us for an even larger share of the growing transit traffic. We have intensified our cooperation with tourism operators in order to convince transit passengers to also stay in Finland and purchase our tourist products. The growing popularity of tourism in Lapland demonstrates that our strategy is working, and an increasing number of passengers take a scheduled flight to Lapland.”

Interim report Q1/2016