Finnair cautious on post-summer demand as it welcomes small Q1 profit

Finnair highlighted uncertainty about the durability of high passenger demand as it reported its third consecutive quarterly operating profit amid a strategic overhaul of the business. Outlining its first-quarter 2023 results on 27 April, the Oneworld carrier said the year had started on a “positive note”, with passenger demand and “well-progressed strategy implementation” driving its improved performance, alongside a unit-revenue boost from industry-wide capacity constraints. Finnair’s comparable operating profit of E1m for the January-March period compares with a loss of E133m in the same period of 2022, while its net profit of E3m represents a year-on-year swing from a loss of E213m. Revenue in the first quarter of €695 million was up 74% year on year. However, Finnair notes that its revenue and comparable operating performance are not expected to reach 2019 levels this year. Indeed, while Finnair chief executive Topi Manner says that “we are heading in the right direction”, he emphasises that the airline still faces “a long road to recovery”. Notably, post-summer passenger demand and outside uncertainties are factors to watch, he suggests. “We cannot expect that the current strong demand situation is a permanent one,” Manner states. “Our operating environment remains challenging in many respects, as the fuel price has remained high, inflation has not subsided, interest rates have risen, and the Russian airspace remains closed as the war in Ukraine continues.”<br/>