Finnish airline Finnair reports a pre-tax loss of -212 million euros for the first quarter of 2022. Analysts had expected -156 million euros, according to Infront's forecast compilation.
Net sales amounted to 400 million euros. Expectations were 378 million euros.
Finnish airline Finnair predicts that comparable operating profit will improve in the second quarter, compared to the now reported first, according to the forecast section of the interim report presented on Wednesday morning.
CEO Topi Manner attributes Finnair's continued loss trend to restrictions and quarantines imposed to stop the spread of the omicron virus variant, as well as the closure of Russian airspace, which is essential for the company. The situation has hampered the start-up of Finnair's route network, writes Topi Manner.
The operating environment has become two-fold, with Europe, the US and South Asia on one side and North Asia on the other, writes Finnair.
In the former regions, operations are currently normalizing as the pandemic has eased. However, travel restrictions remain in place in North Asia, which combined with the closure of Russian airspace has had a significant impact on Finnair's operations.
Capacity, measured as ASK, is expected to reach approximately 70 percent in the second and third quarters compared to pre-pandemic levels (2019). Including aircraft leasing with crew to other airlines, which has now been agreed with other airlines for the summer season, capacity is expected to reach close to 80 percent.
The fourth quarter operating profit is expected to be at about the same level as the fourth quarter of 2021 (-65 million euros). However, the recovery in demand is hampered by rising fuel prices and low traffic levels to North Asia.
After that, third-quarter demand is expected to come closer to pre-pandemic levels in Europe, North America and South Asia.
”"Finnair will update the outlook and forecast in connection with the half-year report 2022," the company writes.
