Finnair profit meets forecasts, to boost capacity by over 10% in 2024

Finland's national carrier Finnair on Wednesday reported its sixth straight quarter of positive operating earnings, and guided for a more than 10% capacity increase in the current year. The airline posted a comparable operating profit of E184m for 2023, after guiding for a profit of E160-200m in October. That was broadly in line with analysts' forecast of E185.5m, LSEG data showed. The company returned to an annual operating profit after ending 2022 with a loss of E163.9m. Finnair had guided for a profit recovery in 2023, as it tries to shake off the negative effects of the pandemic and the closure of Russian airspace after Moscow's invasion of Ukraine, which challenged the carrier's previously Asia-focused strategy. Comparable operating profit rose to E22.5m in the final quarter of 2023, from E17.9m a year earlier. "Russian airspace closure to EU carriers had a negative impact on Finnair's Asian traffic also during the period," the company said in a statement. Finnair expects to increase in its total capacity by more than 10% in 2024, mainly in Asia and Europe. However, it warned the risks related to the impact of inflation and higher interest rates on demand and costs would remain high. The Finnish airline also said its revenue would grow at a slower pace than capacity this year.<br/>