Changes in Finnair’s financial reporting practices
Finnair Plc Stock Exchange Release 17 March 2016 at 2:45 pm EET
Finnair Plc revises its external financial reporting as from the first quarter of 2016. The changes are made since the company’s structure has changed in recent years and the new reporting better reflects the group’s present structure and strategy.
The reporting changes are as follows:
1. Reporting by segment is adjusted to correspond to the recent business developments and restructuring of the organisation. The previous operational segment Travel Services will be combined with the Airline Business segment, and Finnair will no longer show a breakdown of its revenue by business line. In 2015, Travel Services accounted for 9% of Finnair’s revenue.
2. Finnair revises the calculation of revenue so that aircraft leases received are longer included in group revenue, but in other operating income, since aircraft leasing is not part of Finnair’s core business, and its proportion of group revenues is decreasing further.
3. Finnair changes the name of its key figure ”operational result” into ”comparable operating result”. The purpose of this terminological change is to make a clearer distinction between operational result and operating result. The definition remains unchanged: As opposed to the IFRS operating result, comparable operational result excludes capital gains and losses, changes in the value of foreign currency denominated fleet maintenance reserves, changes in the unrealised fair value of derivatives and non-recurring items.
4. Finnair revises the calculation practices for the revenues per available seat kilometre (RASK) and cost per available seat kilometre (CASK). The previous calculation formulas included internal items which could not be derived straight from the group’s income statement. The purpose of this change is to improve transparency and the usability of these key figures for investors.
The first interim report prepared under the new reporting practices will be the interim report for January–March 2016 to be published on 12 May 2016. Before that date, Finnair will publish its comparative figures for 2015 prepared in accordance with the new reporting practices.
Finnair Plc
Communications
Further information:
Finnair communications, tel. +358 9 818 4020, comms(a)finnair.com
Distribution:
Nasdaq Helsinki
Principal media
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.