Finnair Falls as Yen Clips Gains From Japan Push: Helsinki Mover
Finnair Oyj (FIA1S) suffered its biggest decline in three months in Helsinki after the airline said full-year revenue will miss targets as a weaker yen crimps the value of sales from the key Japanese market.
Finnair dropped 8.7 percent, the most since April 26, before trading 5.9 percent lower at 3:03 euros as of 11:16 a.m. local time. That limits gains this year to 27 percent and values the Vantaa-based company at 388 million euros ($515 million).
Annual revenue will be around the same level as 2012’s 2.45 billion euros after the yen slid 26 percent against the euro in the second quarter, Finnair said today, scrapping a prediction for higher full-year sales. Japan has become a major market as the carrier builds Helsinki into a hub for travel to north Asia, exploiting its position on the shortest “Great Circle” routes.
“The uncertain economic outlook in Europe, weakened consumer demand and slower growth in Asia increase the uncertainty of the future development of air traffic,” Chief Executive Officer Pekka Vauramo said in a statement, adding that Finnair will focus on boosting labor productivity as it seeks 60 million euros in savings on top of 140 million euros secured.
The carrier, a Oneworld-alliance member that competes with Stockholm-based SAS Group and Norwegian Air Shuttle AS (NAS) in local markets, posted net income of 1.2 million euros in the first half, versus a year-earlier loss of 37.9 million euros. Full-year results should show a profit at operating level, it said.
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