• Sat. May 18th, 2024

Finnair Faces Challenges in 2023: Lower Turnover and Increased Expenses Plague Airline Amid Expansion Plans

BySamantha Jones

Apr 23, 2024
Finnair’s Q1 profit turns into loss, but summer travel demand looks hopeful

Finnair faced challenges at the start of the year as strikes affected its business, leading to slower growth in turnover compared to capacity. In the first quarter, the company reported an adjusted operating loss of EUR 11.6 million and a turnover of EUR 681.5 million, which was lower than what analysts had predicted. Despite a decline in passengers and lower load factor, Finnair managed to reduce its unit cost of offered passenger kilometers. The interim CEO attributed this reduction to strict expense monitoring and lower fuel prices.

Finnair plans to increase its total capacity by about 10 percent in 2024, with a focus 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 pose uncertainty in the operating environment. To address these challenges, Finnair will update its future outlook and guidelines when it releases its 2024 half-year report.

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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