Finnair’s Mainland promises: Growth from abroad will not be sought at the expense of Helsinki-Vantaa

This week’s Market Council is considering how business travel will return and to what level it will return once companies have learned to meet remotely during the Korona period. The recovery in air traffic is company- and region-specific, as airlines have different networks and national travel restrictions.

World air traffic is still recovering from the corona pandemic. Looking at traffic volumes on the basis of passenger kilometers sold, this year will not even reach half of the pre-crown situation.

“The recovery has been slower than expected, at least from Finland’s point of view and globally as well. It has been expected that vaccines would have brought a more cheerful start to travel, ”he says SMAL of the Finnish Tourism Association managing director Heli Mäki-Fränti.

Aktian Equity Investment Director Andreas Bergmanin according to business travel shows that has not yet properly returned to the offices. According to Bergman, there is a lot of demand and it will materialize in the coming quarters.

Finnair managing director Manner Hat believes that air traffic will recover. Globally, the recovery is, he said, very regional.

For example, in the US and China, the domestic air transport market is large and the recovery has been rapid. Cross-border traffic recovers more slowly.

“Europe is perhaps the best example of this with the EU Corona Certificate. It’s a very good practice, ”Manner says.

Eurocontrol According to statistics, on 27 October 2021, Finnair’s flight volume was 51 per cent less than on the same day in 2019, but the Irish low-cost airline Ryanair the number of flights decreased by only one percent.

According to Manner, the statistics reflect travel restrictions as well as different networks of companies. Ryanair flies virtually entirely in the EU and the UK, meaning that almost the entire market is already open.

“At Finnair, only half of the market is open because Asia is not open. British Airways again, there is an example of a company with not much of an open market. The situation could change quickly when the US opens on November 8, ”Manner estimates.

Worse than the WTC and the financial crisis

According to Mäki-Fränt, airline ticket sales by travel agencies have been about ten percent normal during the pandemic. Travel has been mainly business trips and government trips. In August, 25 percent of normal-time sales were reached.

Aktia’s Bergman does not see that strict travel restrictions would jeopardize Finnair’s important Asian strategy.

In October-November, Finnair also started long-haul flights from Stockholm Arlanda. Rival SAS has focused its flights on Kastrup in Copenhagen and on European routes. Low cost airline Norwegian again, with debt restructuring, abandoned long-haul flights altogether.

Helsinki’s hub, or hub, is still “everything in everything” for Finnair, and growth is not sought from abroad at the expense of Helsinki-Vantaa, but the goal is to restore Helsinki’s route network to a pre-pandemic level.

SMAL’s Mäki-Fränti also reminds that Korona has been a hard hit for business travel. After the 2001 WTC attacks, business travel fell by 11 percent and after the 2008 financial crisis by about eight percent. Now the drop was as high as 90 percent.

Airlines will also be required to take climate action in the future, and according to Mäki-Fränt, the tourism industry cannot ignore the Glasgow climate summit.

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Source: Arvopaperi by

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