Finnair's share price soared by more than 14 percent on Wednesday after CEO Turkka Kuusisto said the company had the best final quarter in comparable history.
"Since the pandemic, we have seen that even though consumer confidence indices have been low, people still have money available. And in our view, it is being used more and more for experiences and travel," Kuusisto said. Based on that stronger travel demand, the company forecast higher earnings this year.
Finnair's turnover only grew by about one percent, but its comparable operating profit surged by 29 percent to around 62 million euros, up from 48 million a year earlier.
Demand grew briskly, especially in Asia and Europe. The company has increased flights to Japan and, according to Kuusisto, is the largest operator in European connecting traffic with 25 weekly flights.
"However, international conflicts, global political instability and the threat of trade wars cause uncertainty in the operating environment," the CEO said.
Kuusisto pointed to North America as a softer spot. Finnair has added routes there – but revenue has decreased. However, Finnair still sees the US market as important in the long term.
"Naturally, we are following the development of this market area with particular attention," he said.
Finnish tourism to the US fell by one quarter last year, according to the Association of Finnish Travel Industry.
Concerns over Russian airspace
Due to Russia’s war of aggression in Ukraine, Finnair is not flying over Russian airspace – but a Chinese rival plans to do so. China Southern Airlines aims to fly between Beijing and Helsinki, which would give it a clear competitive advantage over Finnair.
"It is obvious that flying over Siberia saves many hours and tens of tons of kerosene. This competitive imbalance is significant. We should consider at the EU level what to do about this – especially if Russia's war of aggression in Ukraine continues," said Kuusisto.
"However, I personally think that there are no shortcuts when it comes to value choices," he added.