Finnair posts Q1 net loss on excess A350 capacity
Finnair posted a E38.8m (US$43.6m) net loss for Q1, marking a sharp decline from the record E13.4m net profit it delivered in Q1 2018, partly driven by excess capacity from the airline’s incoming Airbus A350 fleet. During the 3 months ended March 31, Finnair’s passenger numbers rose 4.3% year-over-year to a record 3.1m, growing revenue 5% to E672.9m. Ancillaries were up 4%, in line with traffic growth, despite Finnair removing its online booking fee. The revenue growth was offset by excess capacity, however. Finnair has taken delivery of 2 A350s since late 2018, pushing capacity up 10.4% and exceeding the additional demand. This—coupled with a new revenue management system that favours yield over loads—caused the airline’s average load factor to drop 4.6 points to 78.3%. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-04-25/oneworld/finnair-posts-q1-net-loss-on-excess-a350-capacity
https://portal.staralliance.com/cms/logo.png
Finnair posts Q1 net loss on excess A350 capacity
Finnair posted a E38.8m (US$43.6m) net loss for Q1, marking a sharp decline from the record E13.4m net profit it delivered in Q1 2018, partly driven by excess capacity from the airline’s incoming Airbus A350 fleet. During the 3 months ended March 31, Finnair’s passenger numbers rose 4.3% year-over-year to a record 3.1m, growing revenue 5% to E672.9m. Ancillaries were up 4%, in line with traffic growth, despite Finnair removing its online booking fee. The revenue growth was offset by excess capacity, however. Finnair has taken delivery of 2 A350s since late 2018, pushing capacity up 10.4% and exceeding the additional demand. This—coupled with a new revenue management system that favours yield over loads—caused the airline’s average load factor to drop 4.6 points to 78.3%. <br/>
