Of all the airlines to have suffered from the Covid crisis and then Russia's offensive on Ukraine, the one that will have paid the highest price for the consequences of both events is certainly Finnair. Covid has decimated traffic, particularly to Asia - the last continent to reopen to international flights at the end of 2022/beginning of 2023. While the closure of Russian airspace to Western airlines has deprived Finnair of its main asset: shorter flight times than elsewhere from Helsinki to Asia.
As a result, the company lost money for three years 523 million in 2020, 464.3 million in 2021 and 476.2 million in 2022. It was only last year that Finnair posts first net profit of 254.3 million euros. For this year, the company's management estimates that it should make profits of between 110 and 180 million euros.
Strengthening in North America
The network has been extensively restructured to become less dependent on Asia. " We are still very present in Asia, with flights to Bangkok (14 frequencies this winter), Delhi, Hong Kong, Nagoya, Osaka, Phuket, Seoul, Shanghai, Singapore and Tokyo (Haneda and Narita) this winter. Finnair is thus continuing its cautious expansion in Asia. We've resumed our flights to Nagoya this spring as well as our flights on Phuket this winter. In spring 2025, we will be adding extra flights to Japan." says Javier Roig.
However, Finnair is increasingly focusing on the North Atlantic. The airline now serves six destinations (New York JFK, Chicago, Dallas, Los Angeles, Miami and Seattle). Dallas is the most recent destination and from this winter will be served daily.. " The flight gives us access to the entire network of our partner American Airlines at its hub" says Javier Roig.
More on-board services
In terms of services, Finnair had partly reduced its in-flight services in order to protect its finances. The baggage allowance was restricted in business class and small duvets disappeared from long-haul economy class. These measures led to some misunderstandings on the part of passengers, particularly in business class.
" This has resulted in a deterioration in our NPS (Net Promoter Score), which analyses customer satisfaction. Our management is aware of this and has begun to review our services.. For example, we have restored baggage allowance business class. Finnair wants to really listen to its customers and offer what passengers expect from a traditional airline." admits Javier Roig. He adds that further reflections are underway to improve on-board services in all classes over the coming months.
