Subscribe Login
General Industry

Finnair Posts First Quarterly Profit Since 2019

By Dave Simpson

Finland's national carrier, Finnair, has reported its first positive quarterly operating profit since 2019 and said it expects strong demand to continue as it overhauls its strategy.

Details

A triple blow from the COVID-19 pandemic, Russian airspace closure and high fuel prices has taken its toll on the airline, which announced a new strategy last month in order to return to profitability.

"A positive operating result in the seasonally strongest third quarter is a step to the right direction, but we have a long journey ahead of us to nurse the company back to health," Finnair's chief executive, Topi Manner, said.

Get a FREE Digital Subscription!

Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy

Finnair began seeking new commercially-feasible routes after the closure of Russian airspace due to the war in Ukraine cut off its previously lucrative Asian connections via a short northern route.

The company expected demand to continue to be strong but significant uncertainty in its operating environment led it to cut its guidance for the use of its total capacity in the fourth quarter, to 80% from 80-85%, citing leases of aircraft to other airlines for the reason.

The airline reported a comparative quarterly operating profit of €35.2 million for the third quarter, compared to a €109.1 million loss a year earlier.

The net result for the period was still negative, a loss of €37.2 million, "due to high financial expenses resulting from heavy indebtedness and exchange losses caused by the strong dollar," Manner said in a statement.

Finnair said its operating profit was also burdened by the exceptionally high fuel price, the remaining effects of the pandemic including travel restrictions in China, as well as extended flight times and increased operating costs of their Asian routes due to the closure of Russian airspace.

Revenue increased by 261% in July-September from a year earlier to €719.2 million, the company said.

Adding More Flights

Finnair has said it is trying to build a geographically more balanced network by increasing cooperation with partner airlines as well as by adding more flights to India, the Middle East and North America via its home hub Helsinki.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

Enjoy a FREE Digital Subscription
Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
Enjoy a FREE Digital Subscription
Enjoy a FREE Digital Subscription
Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
Enjoy a FREE Digital Subscription