Finnair´s earning drops significantly in Q2

The earnings of the national flag carrier Finnair decreased significantly during the April-June period compared to the stipulated period of the previous year, said Finnair on Friday.

Comparable operating result was 43.6 million euros in the second quarter of this year, which 66.2 million euros in the second quarter in 2023.

“We carried 3.0 million passengers in April–June and revenue for the period increased by 2.3 per cent driven by higher ancillary and cargo revenue. Comparable operating result amounted to 43.6 million euros (66.2). The decrease was caused by lower yields and passenger load factor in the quarter,” said Finnair Chief Executive Officer Turkka Kuusisto in a statement.

Runway renovation at Helsinki Airport in April–June impacted negatively Finnair´s on-time performance and increased costs in the form of re-routing customers to their connecting flights, said the CEO, adding that the on-time performance was 76.0 per cent, which was 84.9 in April-June period of 2023.

“On-time performance was also affected by challenging weather conditions that delayed flights and increased our costs,” Kuusisto said.

Pent-up demand after the COVID-19 pandemic has largely been released and consumer confidence has been low for a long time.

“These are now being reflected also in travel demand, which is normalising after a period of strong demand during 2023,” the CEO added.

As travel demand is normalising, the capacity increase has not yet increased our revenues accordingly, and the passenger load factor was 74.7 per cent, which was 76.3 per cent in the second quarter in last year.