After a period of accelerated expansion, Finnair said it will now focus on growing in line with the market as it updated its 2020-2025 strategy.

The airline forecasts comparable earnings before interest and tax (EBIT) of more than 7.5% over the cycle, at constant fuel and currency, and a return on capital employed of over 10%, both after a 12-18 month build-up period.

Capacity, measured in ASKs, is anticipated to increase at a 3%-5% compound annual growth rate. The airline will also increase its share of owned vs. leased aircraft.

Finnair is aiming for on-time performance of better than 85% over the period and expects an improved net promoter score.

“The company seeks to grow in line with the market, targeting sustainable and profitable growth,” the airline said in a statement.

“We are focused on our niche that connects Europe with Asia via Helsinki,” CEO Topi Manner told ATW in June.

The carrier sees the Asian market as its strategic tool “for the long term” and will continue to build its presence there while monitoring capacity allocations to the region.

Finnair said it will elaborate on network and fleet optimization plans, as well as other aspects of the strategy, during its Capital Markets Day on Nov. 12.

On Oct. 22, Finnair posted a 2019 third-quarter net profit of €57.6 million ($64.3 million), down 18% from €70.2 million in the year-ago period, primarily driven by higher fuel costs and adverse exchange rates.

Finnair operates a fleet of 14 Airbus A350-900s (plus four on order), eight A330-300s, 19 A321s, 10 A320s and eight A319s.

Twelve ATR 72-500s and 12 Embraer 190s are operated by Norra, a joint venture between Finnair and Danish Air Transport.

Kurt Hofmann, hofmann.aviation@netway.at