Finnair’s newest strategy is set to be put in place to help the airline return to performing at pre-pandemic levels. The Finnish airline aims to make certain changes, including the reduction of fleet, to make its services more profitable after losing valuable Russian air space.
Announcement of Finnair’s Newest Strategy
One of the results of Russia invading Ukraine was the closure of Russian air space, which was previously used for Finnair’s direct flights from Europe to Asia. Avoiding this space has meant that travel through the short northern route is no longer possible, and longer flight times have been enforced on Finnair routes.
Finnair’s CEO Topi Manner explained in a recent statement the difficulties this loss of air space has proven, but remained optimistic in the airline’s future.
â€śThe target is to build a leaner Finnair that can return to the pre-pandemic levels of profitability… Reaching this will require profound change throughout the company. Especially during the hard pandemic years, the Finnair team has proven its ability to adapt and renew under the most challenging circumstances, and I am confident that we will reach our target as we now continue this journey.”
As part of this strategy, the number of aircraft in the airline’s fleet will be reduced,Â to make back profit they were losing through longer flights.
Loss of Air Space Affects Finnair’s Profitability
The strategy also includes other actions the airline hopes to take, such as strengthening their established partnerships, building further alliances and making flight routes that are “geographically more balanced.” Temporary suspensions to some routes have placed both customers and Finnair at loss, and so broadening their outreach could potentially gain them more profit in the long run as it opens up more possibilities in travel.
Although facing these barriers, Finnair’s CEO remains optimistic that the airline will pull through in these uncertain times. Manner reflected on the effect that these circumstances have had on their costs in a recent statement, but shows his determination to get the airline back on its feet.
“We have, however, an excellent foundation to build on: our excellent, differentiating product, strong safety culture, strong brand, our high-quality execution capabilities, our commitment to sustainability and our track record of adapting and renewing ourselves.â€ť
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