Turbulent times - even for the European elite

The turbulent times continued for the scheduled passenger traffic airlines in 2002. Only those airlines with healthy finances managed to retain their competitiveness. Due to its strengths, Finnair maintained its earnings capacity, even though the level and nature of demand fell in many business areas.

The recovery of demand stalled due to the world economic and political situation and led to an intensification of price competition towards the end of the year. Price competition is undermining the scheduled passenger traffic airlines' profitability and operating environment.

Finnair's scheduled passenger traffic was adjusted to correspond with demand on European, North Atlantic and domestic routes. In Asia, however, adjustment meant a sharp increase in capacity. Demand on Asian routes grew by 40 per cent last year. Capacity adjustment led to a rise in cabin factors in all traffic areas.