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Air cargo helps Finnair restore some Asia service flying around Russia

High freight rates offset expenses from loss of overflight rights following Ukraine invasion

Finnair is rejiggering its passenger schedule because it can't directly overfly Russia anymore. Cargo rates are subsidizing the new routes. (Photo: Finnair/Mikko Pylkkö)

Elevated cargo rates are making it possible for Finnair to reinstate several long-haul passenger flights to Asia despite the added cost of detouring around Russia after the nation closed its airspace to Western airlines.

The Helsinki-based carrier said Monday it will resume service to Shanghai once per week beginning Thursday and three times per week to Seoul, South Korea, as of Saturday. It also canceled flights to Osaka, Japan, and Hong Kong until the end of April.

It is the third time in a week that Finnair has adjusted its schedule to the closure of Russian airspace in response to European Union sanctions for the invasion of Ukraine that bar all Russian aircraft.

The company on Feb. 27 temporarily canceled service to Seoul, Osaka, Tokyo, Shanghai and Guangzhou, China — and Hong Kong until the end of March — to determine its options, saying that bypassing Russian airspace was not economically sustainable because the extra flight time adds significant fuel, personnel and navigation costs. The longer flight times also wreck havoc with some connecting flights.


It also has stopped flying to Moscow and St. Petersburg, Russia.

Before the end of February, Finnair offered daily cargo service on the Seoul route, including with cargo-only flights. Now, cargo service will be combined on the three weekly passenger flights.

Flight time for the new Shanghai and Seoul routes, which avoid Russian airspace, will be 12 to 14 hours, depending on the direction. Both routes go around Russia from the south, and the return flight from Seoul to Helsinki can also take the northern route, Finnair said. On the Shanghai route, the return flight to Helsinki is up to two hours longer than the inbound flight due to the winds along the way.

“The further increased price of cargo currently enables continuing of passenger services to Finnair’s key Asian markets even with the longer flight times,” the airline said in a news release. 


According to the Freightos Air Index, China-Northern Europe rates jumped 34% in the past week to $8.40 a kilogram, just below the year-ago level when post-Chinese New Year shipping was especially strong. Globally, the average spot rate jumped 26 cents, or 6.4%, to $4.31 per kilogram in the past week. 

Freightos Air Index for China-Europe (100-300 kg)

Finnair flies Airbus A350 and A330 aircraft on its long-haul routes. The widebody planes have plenty of space for baggage and large amounts of cargo in the hold.

Making network decisions based on the cargo component is something Finnair got used to during COVID when the company focused more on cargo. Passenger aircraft were dedicated to cargo operations when travel demand evaporated and the company even removed the economy section of three large aircraft to squeeze more goods in the cabin. As bookings slowly recovered, cargo still often dictated the destinations, frequency and aircraft utilized.

“Carrying cargo is also a key enabler for operating the new flights in an economically viable manner despite the longer routes,” said spokesperson Milla Nyholm, adding the company is investigating how to again offer cargo charters to Asia under the new circumstances.

Finnair last week said it will resume operations to Tokyo four times per week from Helsinki as of  Wednesday because Japan is one of its most important markets for passengers and cargo. Norwegian salmon is one of the commodities in high demand in Japan. Flying around Russia between Helsinki and Tokyo adds 3.5 hours, according to Finnair. Going the northern or southern route depends on the wind direction.

The southern route to Japan goes roughly from Helsinki over the Baltics, Poland, Slovak Republic, Hungary, Romania, Bulgaria, Turkey, Georgia, Azerbaijan, Turkmenistan, Uzbekistan, Kazakhstan to China, Korea and then to Japan. The northern route goes from Finland to Norway over Svalbard and the North pole towards Alaska and then across the sea to Japan.

Finnair continues to fly to Bangkok and Phuket, Thailand; Delhi; and Singapore with routes that avoid Russian airspace and add about an hour to the trip.

The airline warned last week that it may put several hundred crew members on leave because of the reduced flying caused by the Russian war over Ukraine. 


Finnair’s challenges are a microcosm of the airline industry as it still tries to recover from the COVID crisis, with expectations for a strong summer season now in jeopardy.

On Friday, Lufthansa Cargo CEO Dorothea von Boxberg said the elimination of Russian all-cargo operators from the Asia-Europe trade lane and the displacement of cargo by fuel to keep planes in the air longer will translate into a 10% loss in cargo capacity.

According to the consultancy Seabury,  the direct air cargo capacity between Europe and North East Asia fell 20% in the immediate aftermath of Russia’s invasion, which translates to more than 1,100 tons per day or the equivalent of nine Boeing 747 freighters that are no longer available. 

The rapid loss of capacity is putting upward pressure on freight rates. 

But the biggest impact on airlines and shippers from the Russia-Ukraine war is the price of jet fuel. On Monday, the average price of a barrel of oil topped $130, and some analysts are forecasting $185 per barrel is on the horizon. Benchmark data from the International Air Transport Association shows the price of jet fuel, through last Friday, jumped 27.5% in one week to $141.70 per barrel and has nearly doubled in the past year. A week earlier, the per barrel price of jet fuel was $111.

Airlines have responded by applying fuel surcharges to their freight invoices.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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Eric Kulisch

Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He won Environmental Journalist of the Year from the Seahorse Freight Association in 2014 and was the group's 2013 Supply Chain Journalist of the Year. In December 2022, he was voted runner up for Air Cargo Journalist by the Seahorse Freight Association. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at [email protected]