Finnair (HEX:FIA1S) will revise its financial reporting as of the first quarter of 2016, since the structure of the company has changed over recent years, and the new reporting will better reflect the present structure and strategy, the company said.
As stated in the same release, the changes in reporting are as follows:
1) The previous operational segment Travel Services is combined with the Airline Business segment, and Finnair no longer shows a breakdown of its result by segment. In 2015, Travel Services accounted for 9 percent of Finnair´s revenue.
2) The calculation of revenue is adjusted so that certain non-core items, such as aircraft leases, are moved from revenues to other operating income. The change does not affect Finnair´s expenses or comparable operating profit.
3) The calculation practice for Revenue per Available Seat Kilometres (RASK) and Cost per Available Seat Kilometres (CASK) is revised. Previously, the formula included internal items which could not be derived directly from the consolidated income statement. From now on, RASK is calculated simply by dividing revenue by Available Seat Kilometres and CASK by calculating operating expenses adjusted with other operating income by available seat kilometres. The purpose of this change is to simplify the calculation of the key figures and to improve transparency.
4) In addition, the name of the key figure “operational result” is changed into ´”comparable operating result”. The definition of the key figure remains unchanged and the change does not necessitate the restatement of comparative figures.
The most important adjusted comparative figures referred to above are attached to this release. Comprehensive comparative information will be published in connection with the financial statements for 2016.
Finnair is a network airline specialising in passenger and cargo traffic between Asia and Europe. Helsinki´s geographical location gives Finnair a competitive advantage, since the fastest connections between many European destinations and Asian megacities fly over Finland. Finnair´s vision is to offer its passengers a unique Nordic experience, and its mission is to offer the smoothest, fastest connections in the northern hemisphere via Helsinki and the best network to the world from its home markets. Finnair is the only Nordic carrier with a 4-star Skytrax ranking and a member of the oneworld alliance. In 2015, Finnair´s revenues amounted to EUR 2,324 million and it had a personnel of 4,800 at the year-end. Finnair Plc´s shares are quoted on Nasdaq Helsinki.