Finnair’s First Quarter Results Show Slow Growth Despite Challenges

In the first quarter of 2023, Finnair reported a decrease in net sales by 1.9 percent compared to the same period last year, with a total of 681.5 million euros. Despite this, the company stated that unit revenues and cash flow remained at a good level, although affected by strikes that impacted turnover and profit.

Finnair carried 2.5 million passengers in the first quarter, a decrease of 100,000 passengers compared to the previous year. The passenger kilometers offered increased by 4.4 percent, while the passenger occupancy rate decreased by three percentage points to 72.1 percent. The company reported that on flights to Thailand, utilization rates were particularly strong.

Despite challenges faced in the first quarter, Finnair emphasized success in cost savings and efficient pricing of airline tickets. The company also made changes to its loyalty program and ticketing system to improve customer satisfaction. CEO Jaakko Schildt noted that the decrease in turnover was largely due to political strikes, normalized ticket revenue, and lower freight prices.

Looking ahead, Finnair plans to increase its total capacity by over 10 percent in 2024, focusing on growth in Asia and Europe. The company expects international air traffic to continue to grow, although risks such as inflation, increased interest rates