Finnair has today swung to a bigger-than-expected first-quarter comparable operating loss and cut its full-year revenue outlook after weeks of strikes across Finland grounded flights and disrupted the national carrier's operations.
The airline reported a comparable operating loss of €11.6m for the January-March quarter, compared to a profit of €0.9m a year ago and bigger than the loss of €9.5m expected by analysts polled by LSEG.
Revenue fell 1.9% to €681.5m. The first quarter is typically its weakest of the year.
Finnair cut its full-year revenue guidance, saying it now expected revenue to grow at a slower pace than capacity in 2024 compared to previous outlook for a "somewhat slower pace".
It also said it planned to increase its total capacity by about 10% in 2024, compared to earlier view of more than 10%.
The airline said today that political strikes against planned government labour reforms and welfare cuts in Finland forced it to cancel about 550 flights and reorganise refuelling operations as fuel deliveries were suspended for two weeks.
The strikes are the latest headache for the carrier, which has been overhauling its strategy after the ban two years ago on using Russian airspace left its Asia-focused business in tatters. Its exposure to Asia meant it also suffered more than its European peers from the pandemic.
The airline continues flying to most of its Asian destinations although flight times take up to 40% longer.
Although costs increased considerably as a result, the Asian market yields remained at a good level, thanks to demand as well as constrained capacity caused by the global labour shortage and operational challenges, it said.
