Finnair ‘making progress’ on sourcing used A320s, could look at wet-leases¶
Oneworld carrier says it is benefiting from strong demand and Middle East capacity constraints.
Finnair is “making progress” sourcing up to 12 used Airbus A320ceo-family jets and is considering aircraft leases “or even wet-leases” to support its medium-term network plans, the carrier’s finance chief says.
Addressing analysts on a 29 June investor call ahead of reporting its first-half results later this month, Finnair chief financial officer Pia Aaltonen-Forsell said the carrier is keeping its medium-term fleet options “flexible” ahead of the arrival of its first three Embraer 195-E2s “at the end of 2027”.
“We are considering used aircraft leases and even wet-leases, if need be, so we get the total fleet that keeps supporting the network we have announced,” adds Aaltonen-Forsell. “There could be some additions through these more-flexible measures even throughout this year.”
Finnair chief executive Turkka Kuusistosaid in March that the carrier had chosen to source up to 12 older-variant A320s and A319sfrom the used aircraft market, to help replenish its narrowbody fleet alongside introduction of E195-E2s. Finnair has placed a firm order for 18 E195-E2s, which will be operated by its regional division Norra. It also has options on 16 and purchase rights on 12 more of the type.
“We’ve talked about acquiring up to 12 used Ceo Airbus [A320-family aircraft] – we’re making progress and we’re working on those,” says Aaltonen-Forsell, adding that there are no further details to announce at this stage.
Strong demand¶
Finnair has seen “strong demand” for air travel during a period of constrained supply, following the start of the Iran war in late February, and has benefited from capacity cuts by Middle East carriers.
“We have actively optimised our network, capacity allocation and pricing to capture the demand and take advantage of the reduced market capacity caused by the war in the Middle East,” says Aaltonen-Forsell, noting the carrier has seen improved yields, which have compensated for increased fuel costs.
“It’s fair to say that with a combination of good market demand, some constraints in supply and good load factors, that gives us a position where RASK [revenue per available seat kilometre] growth is at least a strong counter-balance with the CASK [cost per available seat kilometre] we’ve seen,” she says.
“Looking forward, at this point in time, we start to see the pressure easing off on the cost side and we see a demand picture that continues to be on a strong level.”
While there is hope that conditions in the Middle East are starting to normalise amid peace negotiations between the USA and Iran, Aaltonen-Forsell cautions that the situation remains “fragile”, noting: “I don’t think anyone could dare to say that they are certain about a development such as a peace agreement”.
Assuming the situation does continue to improve and the Strait of Hormuz opens to oil tankers, Finnair’s finance chief believes it will still take “some months” before jet fuel supplies and costs normalise.
Finnair has hedged 69% of its fuel between April and December of this year. It is 40% hedged in the first quarter of 2027, 29% hedged in the second quarter, and 10% hedged in the final two quarters of next year.
“Hedging has resumed but at a slower pace,” says Aaltonen-Forsell. “If markets [continue] normalising, this will give back the opportunity to hedge with the tempo and pace we’ve seen historically.”
Finnair is scheduled to report its first-half results on 22 July.Subscribe to gain access to all newsAlready have a subscription?Log in.Choose your subscriptionConsidering a corporate subscription?Contact usto find out more.
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