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Finavia’s profitability reached a record level in 2016

13.2.2017 at 07:58
The revenues and profitability of Finavia Group reached an all-time high in 2016. The Group’s revenues grew at a fast pace (+7.9%), reaching EUR 380.9 million (2015: 353.1 MEUR). The company’s profitability continued to improve, as well.

The company’s comparable operating margin without extraordinary items increased (+9.6%) to EUR 114.8 million (104.8 MEUR). Operating result without extraordinary items was EUR 55.1 million (55.7 MEUR), although the company’s investment programme increased depreciations to EUR 59.7 million (49.1 MEUR).

In addition to the increase in air traffic, Finavia’s revenue was positively influenced by the success of the commercial services at Helsinki Airport as well as the business growth of subsidiaries, Airpro and LAK. The revenue growth accelerated during the last quarter of the year due to, among other things, the strong tourism season in Lapland.

Passenger volumes at Finavia’s airports reached record numbers (+3.5%) in 2016, with a total of 20.8 million passengers during the year. Helsinki Airport was visited by 17.2 million passengers.

”The year was excellent, as Finavia’s profitability rose to an all-time high in 2016. The company’s strong investment in sales activities is reflected in the establishment of new flight routes in Finland and in the rapid growth of our revenues. At the same time, we have maintained tight cost control, which is evidenced by the greatly improved profitability of our business. We have been able to keep the prices we charge from airlines at a low level, which strongly supports the competitiveness of airlines operating in Finland. It can be said that our performance has been world-class while competition between airport companies has tightened,” says Finavia’s President and CEO Kari Savolainen.

From 2014 to 2016, Finavia has implemented an approximately EUR 100 million investment programme in its airport network. In addition, the extensive, EUR 900 million Helsinki Airport development programme, which started in 2014, has proceeded as planned. In 2016, Finavia’s investments increased to a total of EUR 182.8 million.

”Our major investments in Lapland were timed perfectly, right before the tourism boom in the area swelled. The progress of the Helsinki Airport development programme is also critical to the continued competitiveness of air traffic in Finland. The strong result enables us to continue to develop our services systematically and improve our services to both airline and passenger customers. Passenger satisfaction in our services improved last year at Helsinki Airport as well as in the airport network,” Savolainen says.

Finavia is currently preparing the corporatisation of its air navigation business in line with the decision made by the Ministerial Committee on Economic Policy of the Finnish Government in December 2016. The company will give more detailed information about the progress of the project during the spring.

The financial figures given in this release are based on unaudited preliminary information concerning Finavia’s result for 2016. Finavia will publish its complete financial statement on week 10.

Information about passenger volumes in 2016 has been released earlier this year.