Finnair has slightly scaled back its full-year revenue and capacity expectations for 2024 after posting a first-quarter comparable operating loss of €11.6 million ($12.4 million) for the first three months of the year.
The loss compares to a small profit of nearly €1 million for the first quarter of last year and partly reflects the impact of strike disruption by transport workers protesting government reforms during the period.
Finnair revenues fell 2% to €681.5 million in the first quarter, with lower cargo yields also responsible for the reduced turnover: cargo revenues were 13% down compared with the same period in 2023.
”Demand remained good in the quarter and customers booked trips especially for the upcoming summer season,” says Finnair interim chief executive Jaakko Schildt. ”As a result of the successful pricing, our yields remained strong despite a slight decrease year on year.”
Finnair, which is this year bringing back some of the aircraft which it redeployed on wet-lease operations following the pandemic, had originally expected to increase capacity by more than 10% across 2024 and for revenues to grow at a “somewhat slower pace” than capacity.
However it now cites the risk of inflation and higher interest rate impacts on demand, while noting costs remain elevated.
In subtly lowered guidance for the year, Finnair now sees capacity increasing by around 10% and says that revenue is expected to grow ”at a slower pace than capacity”.
Finnair will provide its first profit outlook for the year with its half-year results in July.
