Finnair Posts Loss For Q1

Daniel Fowkes
26 Apr 2024
· Airlines 
A Finnair Airbus A350-900 arriving into Hong Kong International Airport

Finnair has published its financial results for the first quarter of 2024. An operating loss of USD 12.4 million highlighted the quarter.

The loss was larger than initially forecasted, resulting from strike action that disrupted the airline’s day-to-day operations. Additionally, the loss represents a step backward from the minor profit recorded for the same quarter one year prior.

In their release, Finnair also cited that revenues dropped by 1.9% yearly to 681.5 million euros. However, the airline quickly noted that it typically experiences smaller revenues during the year’s first quarter and will see this number rise with time.

Across the quarter, passenger traffic also decreased by 1.9% to 2.5 million, with the passenger load factor seeing a subsequent drop. The airline says that PLF fell to 72.1% from 75.1% for the same period in 2023.

The last few years have thrown curveballs at Finnair, which has been forced on more than one occasion to alter its flying schedule due to situations that are out of its control, whether the global pandemic, the Russian airspace closure, or other forms of conflict.

A Shakey 2024 Outlook

Finnair remains cautious about the remainder of 2024, with air traffic expected to grow. However, some concerns remain, such as the impact of inflation and higher interest rates. As a result, along with enhanced costs, there are related uncertainties to the operating environment.

Additionally, Finnair says it remains wary of the continued international conflicts that have broken out in the last 18 months and don’t seem to be slowing down. Along with further political instability, the airline monitors these areas when updating its outlook.

A Finnair Airbus A330-300 seen in Helsinki – Photo: Anna Zvereva

Finnair adds that these factors, alongside more, will likely affect demand for air travel and cargo operations. As a result, the company is looking to increase its capacity by ASKs by 10% in 2024. The growth is expected to focus solely on Asia and Europe.

While flights to Asian markets now take a long time, the airline still cites strong demand for these markets due to detours required because of the Russian airspace closure.

Ultimately, even with some growth expected throughout 2024, the airline says it’ll be slower than expected. Moreover, this will correlate back to revenues, which are also expected to slow down considerably.

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