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Finnair gains from SAS withdrawal and Middle East disruption

Finnair has reported that it is experiencing a rise in 'transit traffic' on its Asian routes, as rival SAS reduces some of their'services. Other airlines are also struggling with Middle East -related disruptions.

Scandinavian Airlines, the largest airline in the Nordic region, will make Copenhagen its hub in 2024 after a post pandemic restructuring where the Swedish government sold its shares. Air France-KLM has now considered a controlling interest.

This overhaul has resulted in a reduction of direct long-haul flights from Stockholm Arlanda Airport, despite Sweden's being the largest economy within this region. It has also pushed more passengers to transit through Finnair's hub at Helsinki instead of Copenhagen.

Finnair's Chief Sales Officer Christine Rovelli stated that "as they (SAS), have rearranged the flights to focus on Copenhagen, we have (...) noticed a shift from some of their destinations they have stopped servicing onto our own networks."

Rovelli stated that Finnair has 19 long haul?destinations this year from Helsinki, while SAS only flies 11 destinations from Stockholm.

High?Hedging

The Iran War has caused fuel prices to soar and disrupted travel in the Gulf, as well as on long-haul routes that stop there. SAS increased ticket prices and canceled 1,000 flights just in April.

Finnair's first-quarter operating results improved by 47 million euros (40 million euro) after it hedged over 80% of fuel during the first two quarters, and 69% throughout the rest of the calendar year.

Rovelli stated, "The Middle East situation has helped us increase demand for our flights, but it's controversial."

Finnair's revenue from Asian routes increased by nearly 15% between 2024 and 2025. Finnair is also upgrading its 'European fleet' after struggling through the pandemic, and the closures of Russian airspace. This was supported by an extensive state recapitalisation.

Rovelli stated that SAS's decision to abandon the three-hub model?spanning Copenhagen Oslo and Stockholm also created growth opportunities for Finnair?Norway.

Norwegian is the main airline at Oslo Gardermoen Airport. It has no international routes.

Rovelli stated that the decision by Sweden and Norway to "give up their national holdings" in airlines has only reinforced Finnair's argument for remaining independent.

She said, "We are very happy to remain independently and we fully anticipate success in doing so."

Finland owns a 55.7% share in Finnair. Finnair is a member of the Oneworld alliance.

(source: Reuters)