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Finnair’s business class demand strengthens in Asian

Finnair’s scheduled traffic declined in 2009 by nearly nine per cent compared
with the previous year. Last year, Finnair carried more than 7.4 million
passengers on its scheduled and leisure flights. Business class passenger
numbers fell in 2009 by a couple of per cent, but grew in December by 16 per
cent, despite scheduled traffic capacity cuts.

Passenger numbers in scheduled traffic were more than nine per cent lower. Due
to a more than ten per cent capacity cut, however, the passenger load factor
rose by more than one percentage point to over 73 per cent.

In December the fall in scheduled traffic demand levelled off. Scheduled traffic
declined by four per cent. Capacity in scheduled traffic was cut in December by
more than eight per cent, so load factor rose by more than three percentage
points to 75 per cent.

Asian traffic declined over the full year by nearly ten per cent, and in
December by less than four per cent. Last year, more than 1.1 million passengers
travelled on Finnair’s Asian flights. Business class demand in Asian traffic in
growing. In December the number of business class passengers in Asian traffic
grew by one quarter.

“A pick-up in business travel between Europe and Asia is perceptible. Growth is
now coming from markets outside Finland in particular. We have improved service
in long-haul traffic business class. Passengers on a flight to Asia can travel
in a full-flat bed seat,” says Finnair SVP Communications Christer Haglund.

European and domestic traffic both declined in December by more than three per
cent and capacity was cut by more than 11 per cent, so load factors rose in
European traffic by five and in domestic traffic by six percentage points. In
the full year, European traffic declined by more then eight per cent and
domestic traffic by nearly 13 per cent.

Leisure traffic declined in December by 30 per cent and capacity was cut by the
same amount compared with December of last year. In terms of the full year,
leisure traffic declined by more than ten per cent.

“Leisure flight passenger numbers have clearly declined, which is due both to a
fall in demand and a change in market share. Finnair’s leisure traffic capacity
has been successfully adjusted, which has kept load factors and prices at a
sound level,” says Haglund.

Finnair scheduled traffic’s average revenue per passenger kilometre fell last
year by 14 per cent and in the final quarter by more than 12 per cent. “The
price level of flight tickets has fallen significantly, and no rise in prices is
perceptible,” says Haglund.

For cargo traffic last year was difficult, which was apparent as a 12 per cent
fall in cargo demand. In December demand grew more than six per cent. The price
level is still clearly below the year 2008 level.

Of Finnair’s flights, 50 per cent arrived on schedule in December, which is 30
percentage points less than in the same period last year. Among the main
contributing factors to delays were an illegal walkout by loading personnel and
poor weather around the Christmas period at Helsinki-Vantaa and Central European
airports. For the full year, the arrival punctuality of scheduled flights was 87
per cent.

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