Regional flights could become profitable without state subsidies, expert says

Regional flights could be operated profitably without government subsidies, according to Juhani Pakari, an aviation expert and CEO of business aviation company Scanwings. The Finnish Ministry of Transport and Communications is currently examining how state-procured domestic air routes could be made self-sustaining.

Profitability would require airlines to offer more frequent flights and sign longer contracts, said Pakari, citing Yle as the source of his comments. The routes easiest to make commercially profitable would be those serving Joensuu, Kajaani, Kemi, and Kokkola, according to Pakari. Over the past three years, flights to Kajaani and Joensuu have already achieved occupancy rates above 50 percent, while passenger numbers on other state-procured routes have been rising in 2026.

More challenging destinations include Jyväskylä, Savonlinna, and Pori, which are closer to the Helsinki metropolitan area. Under a market-based model, flights would operate at least four or five times daily, compared with the current two per day. “Five daily flights could build good, functional connections,” Pakari said.

State-procured flights from Helsinki-Vantaa to Joensuu, Jyväskylä, Kajaani, Kemi-Tornio, Kokkola-Pietarsaari, and Pori continue until February 2028, while Savonlinna state-procured flights continue through the end of 2028. The government has allocated a total of 45.4 million euros for flight procurements for the period 2026–2029. According to a government report, 71 percent of Finland’s export revenue originates from the regions.

New model under preparation

The Ministry of Transport and Communications has set up a working group to prepare a long-term model for regional air connections, with the aim of finalising a new design by the end of the current government term. The final decision on extending state-procured flights will be made by the next government, which will be formed after the spring parliamentary elections, Yle reports.

Pipsa Eklund, a director at the Finnish Transport and Communications Agency Traficom, said the absolute deadline for launching a new tender is August 2027. The EU Commission must be notified of the tender at least six months in advance, and the tender process itself requires two months, meaning new operators would be known by November if services continue. “If a foreign airline wins, three months is a short time to set up the necessary organisation here, hire staff, and bring in the aircraft,” Eklund said.

Eklund added that longer contract periods are being considered. For smaller airports such as Savonlinna, Pori, and Jyväskylä, a taxi-like model using smaller aircraft with more flexible, demand-driven schedules could be an option. This approach would also provide experience for Finland’s planned transition to regional electric aviation in the 2030s, which is already being tested on the route between Stavanger and Bergen in Norway.

Partial seasonal subsidies for regional routes are also possible, where flights would be supported for part of the year and operate commercially for the rest, a model the EU has approved in certain European regions, Eklund said.

“The more service, the more,” she said.

Pakari, who previously served as CEO and co-owner of airline Finncomm — which flew regional routes until 2011 that the state now procures — hopes the new contract model will encourage airlines to develop services and increase passenger numbers.