Finavia Group financial statements release 1 January–31 December 2022

January–December 2022

• The total number of passengers was 28.8 million (15.4), representing an increase of 186.7% compared to 2021.
• Revenues totalled EUR 298.4 million (145.4), an increase of 105.3%.
• The operating margin was EUR 65.4 million (-27.2), representing growth of 340.8%.
• The operating result was EUR -52.3 million (-130.7), representing a year-on-year improvement of 60.0%.
• Cash flow-based investments totalled EUR 105.7 million (164.7).
• Interest-bearing liabilities at the end of the review period amounted to EUR 807.3 million (738.1).
• Finavia took out EUR 100 million in new interest-bearing loans during the year.

Unless otherwise stated, the figures in brackets are from the reference period, i.e. the same period in the previous year.

Finavia Group’s key figures

Kimmo Mäki, CEO:

Finavia Group’s profitability improved in 2022 as business volumes grew, but the operating result was negative at EUR -52.3 million. Our revenues grew compared to 2021, and the operating margin turned positive. The growth was attributable to the positive development of air traffic revenues and other revenues, driven by the increased volumes of air traffic.

A total of 15.4 million passengers travelled through Finavia’s airports in 2022. Air traffic volumes to European and North American destinations improved after the pandemic. However, the volumes of Helsinki Airport’s transfer travel between Europe and Asia remained low due to the COVID-19 restrictions in effect in China and the closure of Russian airspace to EU countries.

We continued the Helsinki Airport development programme. The airport transitioned to a single-terminal operating model and we also introduced state-of-the-art security control technology. The development programme will be completed in 2023. We also invested in renovating the runway at Savonlinna Airport.

In autumn 2022, we published our strategic goals adapted to the new situation. They guide our operations effective from the beginning of 2023. Our strategic goals are as follows: dedicated and motivated personnel, business growth and financially sustainable operations.

Finavia’s business performance

Finavia Group’s revenues in 2022 increased by 105.3% and amounted to EUR 298.4 million (145.4). Revenues from air traffic grew by 110.3% to EUR 149.3 million (71.0). Revenues from air traffic accounted for 50.0% (48.8) of total revenues.

Revenues from operations other than air traffic accounted for 50.0% (51.2) of total revenues. The Group’s other revenues increased by 100.3%. These included revenues from parking services, commercial revenues, rental income as well as the Airpro sub-group’s income from ground forwarding, security control, cabin services and customer services.

The Group’s operating result was EUR -52.3 million (-130.7), or -17.5% (-89.9) of revenues. Due to the investment programme, depreciation increased to EUR 117.7 million (103.5). Finavia has a EUR 300 million cost-cutting programme under way to minimise losses.

Transfer travel at Helsinki Airport plays a significant role in Finavia’s financial performance. Before the COVID-19 crisis, Helsinki Airport’s revenues were used to fund the operations of several regional airports in accordance with the network principle. The cash flow generated by transfer passengers remained low, which led to Finavia’s result showing a loss.

The result for the financial year came to EUR -57.9 million (-143.8). Financial income and expenses totalled EUR 2.7 million (-7.8).

Outlook for 2023

The company expects its revenues for 2023 to be higher than in 2022. This expectation is based on the current view of the development of air traffic. The operating profit before extraordinary items is expected to be clearly higher than in 2022 but still unprofitable.

Due to the war started by Russia and the related airspace closure, it is likely to take years for traffic to return to the levels seen before the COVID-19 crisis. The rapid rise in prices has an impact on the finances of consumers and businesses, as well as costs in the aviation industry. This may slow down the development of air traffic in the long term.

The Board’s proposal regarding the distribution of dividend

The parent company’s distributable funds on the balance sheet date, 31 December 2022, stood at EUR 360,031,222, of which the loss for the financial year was EUR 69,927,871. The Board of Directors proposes to the Ordinary General Meeting of Shareholders that no dividend be distributed.

• Finavia Corporation’s Board of Directors’ report, financial statements and the Corporate Governance and Remuneration Statement are available in the “Financial information” section of Finavia’s website.
• Finavia has also published an Annual Report and sustainability disclosures with reference to the GRI Standards framework on its website in the “Annual reports” section.