Finnair has posted a worse-than-expected operating loss for the first three months of 2024 – heavily driven by strike action during the period.
The world’s oldest airline – which celebrated its 100th anniversary last year – reported an operating loss of €11.6bn for the first quarter of the year. That compares negatively to a first quarter operating profit of €900,000 last year.
The €11.6bn loss is also worse than expected, with market analysts having anticipated a €9.5bn loss.
Revenue, for the quarter, fell by 1.9%, year-on-year, to €681.5m. Finnair carried 2.5 million passengers in January–March.
Finnair’s interim chief executive, Jaako Schidt, said: “The revenue decrease was driven by the political strikes in Finland, normalised revenue recognition related to expired tickets and lower cargo yields, despite higher ancillary and travel services revenue. On the other hand, operating expenses remained unchanged year-on-year due to a strict cost control and a lower fuel price even though capacity increased.”
“Demand remained good in the quarter and customers booked trips especially for the upcoming summer season. As a result of the successful pricing, our yields remained strong despite a slight decrease year-on-year. Also our operating cash flow was at a good level.
“The strikes in Finland and in Europe negatively affected our on-time performance during the quarter. Our on-time performance was also burdened by winter weather conditions, landing at 75%.”
