Finnair Records Third Consecutive Quarterly Loss
Finnish flag carrier Finnair has recorded a third consecutive quarterly operating loss as the coronavirus pandemic weighed, and forecast another quarter in the red as it waits for vaccinations to kickstart a recovery in passenger traffic.
The airline is operating a limited network and said that it expects its operating losses in the first quarter of 2021 to be similar to the preceding three quarters.
Finnair provided no guidance on 2021 revenues, but said that it is well prepared to make it through the pandemic and focussed on improving competitiveness.
"Even if Finnair operated very few flights in the coming 12 months, our cash funds would still be enough," Finnair chief executive Topi Manner said at a press conference.
"When looking at our equity ratio, there are not many airlines in the world who could show a similar picture," he added.
Like many other airlines, Finnair expects travel to begin recovering during the northern hemisphere summer as coronavirus vaccines are increasingly rolled out and restrictions eased.
"We have enhanced the agility of our operations so that we can act fast when our customers are again ready to travel," Manner said.
The company is awaiting EU approval for an unsecured hybrid loan granted by the Finnish government, which holds a 55.9% stake in Finnair. Manner said that the process will be finished soon.
Finnair recorded an operating loss of €162.9 million for the final quarter of 2020, compared to a €167 million loss in July-September and a profit of €31.2 million a year earlier.
For full-year 2020, Finnair's revenue fell by nearly three quarters to €829.2 million while the number of passengers it flew tumbled by 76% compared to 2019.
The board of directors proposed that no dividend be distributed for 2020.