Finnair reports 80% revenue drop in Q1

Finland's flag carrier Finnair announced on Tuesday that its revenues dropped 79.8 percent and operating losses increased to 149.1 million euros (180 million U.S. dollars) in the first quarter (Q1) of 2021 due to the ongoing strict travel restrictions, reported Xinhua.

In the first three months of this year, the airline's net sales decreased by 79.8 percent to 113.6 million euros from 561.2 million euros in the corresponding period in 2020. Its operating result was a loss of 149.1 million euros, compared to a loss of 95.6 million euros one year earlier, according to a press release issued by Finnair on Tuesday.

However, Finnair Cargo's revenues in March this year were record high, as demand for cargo shipping was boosted by supply chain challenges caused by the pandemic and by the Suez Canal blockage this spring.

In Q1 of 2021, Finnair operated 547 cargo-only flights, and cargo traffic also supported the continuation of some long-haul passenger flights. Cargo sales continued to account for more than 50 percent of the airline's revenues, noted Topi Manner, chief executive officer (CEO) of Finnair, in the press release.

The gloomy financial results spurred the airline to raise its savings target from the beginning of 2022 by 30 million euros to 170 million euros.

"Cost efficiency will be crucial in the highly competitive post-pandemic market. Thanks to our significant permanent cost savings, Finnair will be well-positioned in this kind of operational environment," Manner said.

Finnair expects travel demand to gradually recover from late summer this year, driven by the ongoing vaccination campaigns and the expected lifting of the travel restrictions.

Manner said that the European Union's (EU) Digital Green Certificate planned to be launched by the end of June will play an important role in the return of free movement within the EU, while protecting the healthy and safe travel environment.

The CEO said that Finnair has recently launched eligibility training for furloughed pilots and cabin crew.

On Monday, Finnair announced that this summer it plans to serve more than 60 destinations globally, including the Chinese cities of Shanghai and Hong Kong.