In the first quarter of 2023, Finnair’s business was impacted by political strikes, leading to lower than expected turnover growth. The company reported an adjusted operating loss of EUR 11.6 million and a turnover of EUR 681.5 million, significantly below analyst predictions for an average adjusted operating loss of EUR 8 million with a turnover forecasted at EUR 698 million.
Despite a decrease in the number of passengers and a lower passenger load factor, Finnair managed to reduce its unit cost of offered passenger kilometers. The company attributed the decrease in turnover to the political strikes in Finland, normalized revenue from unused tickets, and lower freight prices. However, strict expense monitoring and lower fuel prices helped to keep operational expenses in line with the previous year.
Finnair plans to increase its total capacity by about 10 percent in 2024, focusing on expanding in Asia and Europe. However, the company expects turnover to grow slower than capacity in the coming year due to factors such as inflation, higher interest rates, international conflicts, and political instability that continue to pose uncertainty in the operating environment for Finnair. As such, the company will update its future outlook and guidelines in connection with its 2024 half-year report.
