Finnair is maintaining its forecast for full-year profit, despite a lower third-quarter performance as the post-pandemic traffic surge eased.
The carrier has reiterated its revenue outlook of €3-3.2 billion ($3.2-3.4 billion) and has narrowed its comparable earnings range to €120-170 million.
It is also sticking with plans to achieve an overall 10% increase in capacity this year.
Finnair chief executive Turkka Kuusisto says the third-quarter comparable operating profit of €71.5 million – down by 24% – is the result of “normalising demand” affecting unit revenues.
He points out that demand last year had been “exceptionally strong”, post-pandemic, but demand has since softened and capacity has risen – with the result that average fares have “decreased from record-high levels”.
Closure of Russian airspace continues to affect Finnair’s Asian traffic. While it has been flying most of its Asian routes, Finnair is limiting its Chinese services because competing Chinese carriers are able to fly shorter routes across Russia.
“Demand for air travel between Europe and China has yet to recover,” says Kuusisto.
While passenger revenues decreased in Europe, Asia and the Middle East, Kuusisto says there was an increase on North American routes.
Finnair also observed stronger cargo revenues, up 29% to €53 million, as a consequence of prolonged sea cargo shipping times benefiting the air freight sector.
“Cost control and continuous improvement continue to play an important role in securing our competitiveness,” says Kuusisto, adding that unit costs – excluding fuel – fell 4.2% for the quarter.
