Finnair expects heavy full-year loss after weak quarter

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Finnair Group is expecting heavy losses for the full year, after turning in an operational loss of nearly €20 million ($26 million) for the second quarter.

The company says its turnover for the year will be “significantly lower” than during 2013 and its operational result will show a “significant loss”.

Improved passenger load factor and progress in its cost-savings plans could not compensate for weak unit revenue development, it states.

Turnover for the second quarter, a traditionally strong period for the company, was down by more than 7% to €566 million.

Chief executive Pekka Vauramo says the three months to 30 June were “difficult”. It suffered a loss of external turnover as a result of restructuring of aviation services operations, and tour operator Aurinkomatkat Suntours experienced weak development.

Finnair Group’s revenues were also affected by poor domestic demand and stronger international competition.