Finnair reports lower-than-expected revenue in the first quarter. Operating profit showed a loss compared to the previous period's profit. The company is lowering its guidance for capacity growth.
Turnover fell 1.9 percent to EUR 681.5 million (694.7). The outcome can be compared with the Bloomberg analyst consensus of 696.6. Traffic measured as the number of passengers has been communicated previously.
”"Demand remained good during the quarter and customers booked travel especially for the upcoming summer season. As a result of successful pricing, our yield remained strong despite a slight decrease compared to the previous year. Our operating cash flow was also at a good level," Finnair FIA1S -3.59% writes in the report.
The operating profit was EUR -17.2 million (8.3).
Adjusted operating profit amounted to EUR -11.6 million (0.9), expected to be -9.3.
The profit before tax was EUR -37.6 million (-7.4).
The result after tax was EUR -29.9 million (3).
Earnings per share amounted to -0.15 euros (-0.09), which is worse than the analyst consensus of -0.09.
Finnair is making adjustments to its forecasts. Capacity, ASK, is now expected to grow by approximately 10 percent for the full year. The previous forecast was over 10 percent. Growth remains focused on Europe and Asia.
Finnair's revenue is now expected to grow more slowly than capacity for the full year 2024. In its previous guidance, Finnair planned to increase its capacity by more than 10 percent and its revenue was expected to grow at a slightly slower rate than capacity in 2024.
Source: FinWire-DI.SE
