Finnair’s business was hit hard by strikes at the beginning of the year, leading the company to estimate slower turnover growth compared to capacity in 2024. In the first quarter, Finnair reported an adjusted operating loss of EUR 11.6 million and a turnover of EUR 681.5 million, which was significantly lower than analysts had predicted.
Finnair’s interim CEO attributed the decrease in turnover to political strikes in Finland, normalized revenue from unused tickets, and lower freight prices. 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 plans to increase its total capacity by about 10 percent in 2024, with a focus on expanding in Asia and Europe. However, Finnair 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. The company will update its future outlook and guidelines in connection with its 2024 half-year report.