At the beginning of the year, Finnair experienced strikes that impacted the company’s business. As a result, the company expects that its turnover will grow at a slower rate than its capacity in 2024. In the first quarter of the year, Finnair reported a loss, with an adjusted operating result of EUR 11.6 million in loss and a turnover of EUR 681.5 million.
Analysts predicted that Finnair’s adjusted operating result for the quarter would be an average loss of EUR 8 million, with a turnover of EUR 698 million. In the same period last year, Finnair had made an adjusted operating profit of one million euros on a turnover of 695 million euros. The unit cost of offered passenger kilometers decreased by 4.3 percent, and the number of passengers decreased by 1.9 percent.
The decrease in turnover was attributed to political strikes in Finland, normalized revenue from unused tickets, and lower freight prices. Despite this, additional sales and turnover from travel services increased, while operational expenses remained at the same level. The company also reported that strikes in Finland and Europe affected the punctuality of its flights during the quarter.
Finnair plans to increase its total capacity by about 10 percent in 2024, focusing on growth in Asia and Europe. However, the company expects its turnover to grow slower than capacity in 2024. Uncertainties related to inflation, higher interest rates, international conflicts, and political instability could impact the demand for air travel and cargo. Finnair will provide updated guidance in its 2024 half-year report.