Finnair plans 600 million euros to consolidate its finances

Avatar photo

Finnair plans to raise up to 600 million euros by issuing new shares. The Finnish national carrier is looking to strengthen its balance sheet after its strategy was upended by the closure of theRussian airspace following the war in Ukraine.

The Finnish state, the carrier’s majority shareholder – it owns around 55.8% of the company – supports the offer. The Prime Minister’s Office even stated that it was preparing to participate in the issuance of shares at a level that would maintain its current participation. The minister responsible for overseeing state participation, Anders Adlercreutz (SPP), said that this agreement supports the long-term growth of the Finnish company and strengthens its capacity to achieve the investments required.

“As a responsible and long-term owner, the State will do its part to ensure that Finnair’s operating conditions continue to be preserved in the future,” Adlercreutz said. Finnair CEO Topi Manner said in July that the company had survived the ban on flights in Russian airspace and the difficulties caused by the Covid-19 pandemic. Passenger traffic had improved, although costs had increased by approximately 25% compared to the pre-Covid period.

In 2022, Finland and other countries imposed restrictions on Russia economic sanctions for his war of aggression in Ukraine. In return, Russia’s retaliation included a ban on Finnish planes to fly in theRussian airspace. This meant that Finnair’s major strategy of offering a “shortcut to Asia”, from its base from Helsinki, close to the North Pole, had to be abandoned.

John Walker Avatar