Summary
- Finnair’s oversubscribed rights offer has generated capital of €558.2 million ($610 million), providing much-needed financial support for the airline.
- The share issuance has allowed Finnair to offset a payment of €318 million ($349 million) towards its loan from the Finnish government.
- Despite challenges in adjusting its network on account of airspace closures, Finnair has seen a 38% increase in Asia traffic this yr, highlighting strong demand for its services.
Helsinki-based Finnair has oversubscribed a rights offer that may net the Finnish carrier €558.2 million ($610 million) in capital, in keeping with the airline’s offer results, published on November twenty first. This registered almost 20 billion latest shares, equaling 100.14% of the shares initially offered.
In line with ch-aviation, the injection will raise the overall variety of shares in Finnair by 19,012,413,069, from 1,408,726,198 to twenty,421,139,267 shares. The move, though still subject to board approval, will bring the airline money proceeds of around €239 million ($261 million). An official results of the shares issue will mean that the airline can now offset its capital loan with an amount corresponding to the share subscription price.
Photo: Finnair
Repayment to the Finnish Government
The airline had just recovered from the pandemic when airspace was firmly shut over neighboring Russia on account of the invasion of Ukraine. This resulted in Finnair’s Asian-focused network being sent right into a tailspin last yr, with the carrier drawing down a loan of €400 million ($437 million) to assist support it through network challenges. The Finnish government, which holds a majority stake, participated within the share issue, which offset a payment of €318 million ($349 million) towards the loan. Even with the challenges of adjusting its network to avoid Russian airspace, the carrier has adjusted its network and has seen a 38% rise in Asia traffic this yr.
Finnair’s last day of trading with its existing shares was earlier this week and might be reissued with the brand new shares combined. This is predicted to happen on November twenty seventh with the Helsinki Nasdaq.
Turning Things Around: Finnair Records 38% Yearly Rise In Asia Traffic
The airline remains to be hindered by Russian airspace closure.
104 destinations globally
The oneworld carrier operates 104 destinations from its Helsinki base. The airline has 80 aircraft serving 39 countries, with Asia remaining a long-term focus for the airline. This far-East market has seen strong demand and has resulted in increased frequencies on existing routes, alongside the resumption of services to Mumbai, India, on March thirty first, and Nagoya, Japan, resuming May thirtieth next yr.
Other Asian destinations under the airline’s hat include Bangkok, Latest Delhi, Hong Kong, Osaka, Seoul, Shanghai Pudong, Singapore, Tokyo Haneda, and Narita, alongside seasonal services to Phuket. Destinations near home that might be added in 2024 include Faro (October twenty ninth), Gdansk (March thirty first), and a seasonal service to Wroclaw (April 2nd).
Away from passenger operations, Finnair Cargo is the workhorse for its cargo operations, with three bases: Helsinki, Brussels, and London Heathrow. Heathrow is the airline’s most up-to-date hub, in a partnership with IAG cargo.
The airline has a mostly-Airbus fleet, with its long-haul operations operated by the Airbus A330-300 and A350-900. Narrowbody services operate with a mixture of Airbus A319-100, A320-200, and A321-200. For its regional services and choose flights around Europe, it deploys the ATR72-500 and Embraer 190 (each operated by Nordic Regional Airlines).
Sources: ch-Aviation