January - June 2017
- The total passenger volume for January–June increased by 7.9 per cent compared to the corresponding period in 2016
- A total of 18 new routes were launched to Europe, the US and Asia
- Revenue growth remained at 1.4 per cent due to the separation of the air navigation business into its own company. Comparable revenues increased by 9.1 per cent due to good passenger development and the success of commercial services.
- Development and investment programmes at Helsinki Airport and network airports continued
- Investments totalled EUR 76.1 million (H1/2016: 81.7)
- EBITDA excluding non-recurring items increased to EUR 62.9 million (H1/2016: 52.3)
- Operating profit excluding non-recurring items increased to EUR 29.6 million (H1/2016: 23.9)
- Cash flow from operations increased to EUR 56.0 million (H1/2016: 41.9)
CEO Kari Savolainen:
The first half-year has been very successful for Finavia Group due to strong growth in air traffic and purposeful development work. Access to Finland from different parts of the world is at top level thanks to persistent sales and cooperation with Finnair and other airlines in route development. 18 new routes from Finland to different locations around the world were launched during the first half of the year. Investments in the expansion of Helsinki Airport, travel in Lapland and passenger experience at the airports are behind the success.
Finavia’s operating profit excluding non-recurring items increased to EUR 29.6 million (23.9) and EBITDA improved to EUR 62.9 million (52.3). The separation of the air navigation business into a separate company curbed revenue growth to 1.4 per cent. However, comparable revenues increased by 9.1 per cent due to positive traffic development and the success of commercial services at the Helsinki Airport. During the first half of the year, we have further developed our service offering, and customer satisfaction has remained on an excellent level both at Helsinki Airport and at network airports.
The good financial performance stems from strong growth in passenger volume and good cost management. Despite the largest investment in the history of the company in the terminal expansion at Helsinki Airport, we have been able to keep our costs in check. We have carried out the construction contracts in schedule and within the budget, supported also by Finavia’s good financial standing. The first part of the terminal expansion, the South Pier, was taken into use during the summer to serve passenger traffic between Asia and Europe.
Passenger volumes at Finavia airports increased by 7.9 per cent in total, predicting an excellent year when it comes to passenger traffic. As the year has progressed, international transit traffic through Helsinki Airport has picked up an unforeseen pace, and we expect passenger records to be broken during the year. Finland’s attractiveness as a travel destination is also experiencing a boost. Strong demand especially for destinations in Lapland brings new possibilities in tourism development for those operating in the area.
We believe that the positive passenger development will continue, but the company’s operating profit excluding non-recurring items is estimated to remain lower than in 2016 due to increasing write-downs relating to the development programme.