Finnair warns of financial consequences of Russian airspace closure

Finnair has warned of the financial implications the closure of Russian airspace will have on its operations this year.  “The crisis in Ukraine touches all Europeans, and we understand the EU’s decision to close its airspace. We are implementing our contingency plan as the situation has a considerable impact on Finnair. Bypassing the Russian airspace lengthens flight times to Asia considerably and, thus, the operation of most our passenger and cargo flights to Asia is not economically sustainable or competitive”, Topi Manner, Finnair CEO, says.

Bookings in European and North American markets are clearly growing as the impacts of the pandemic are decreasing. Finnair is currently preparing new traffic and cost savings plans in case the situation prolongs and will provide further information during the coming weeks.

“Despite the massive negative financial impacts that the pandemic had on us, our cash position is still strong, c. 1.7 billion euros at the end of 2021. This includes the currently undrawn 400-million-euro hybrid loan granted by the State of Finland, which also supports our equity”, Manner says. “The State owner has stated that Finnair is a company of strategic interest. Under these new circumstances, we as a company feel that functioning flight connections are even more important for the Finnish economy, safety and security of supply. The company is considering different solutions in case the situation prolongs, and it has an active dialogue with the State of Finland.”

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