Finnair saw its losses deepen in the first quarter of 2025 as “prolonged” industrial action by pilots and increased sustainability-linked costs hit its bottom line.
Outlining its earnings for the January-March 2025 period on 29 April, the Oneworld carrier described the operating environment during those three months as “tough”, featuring a €22 million ($25 million) impact on its comparable operating result from the action taken by the Finnish Airline Pilots’ Association, SSL. There was also a €10 million impact from a mandated increase in sustainable aviation fuel useage and changes to the European Union’s Emissions Trading System.
But Finnair notes that travel demand “remained healthy” during the quarter and says that it expects a decision on 30 April on another proposal to bring the industrial action by SSL members to an end.
The 230 flights it has removed from its summer schedule will not be reinstated under any circumstances, however, and it estimates those cancellations will have a further €10 million impact on its comparable operating result for the year.
Moreover, Finnair announced on 28 April that it would furlough nearly 40 long-haul pilots for at least eight months in relation to the continuing dispute over its wet-lease operation for Oneworld partner Qantas, which has prompted the latter to cut its use of the European carrier’s Airbus A330 twinjets over concerns about the “reliability” of service being provided amid the industrial action.
Moreover, the business is now facing fresh uncertainties, Finnair says in its outlook.
“The threat of trade wars and uncertainty related to economic development have increased significantly, which may weaken demand,” states chief executive Turkka Kuusisto.
Finnair says it will update its full-year guidance – including the impact of industrial action – at the half-year stage, and that its focus remains on “securing profitability”, aided by lower fuel costs.
The carrier’s first-quarter revenue of €694 million was up 1.9% year on year, on a 2.3% rise in passenger capacity and a 4.6% rise in traffic.
Its comparable operating loss deepened by around €50 million to €62.6 million, while its net loss increased by around €20 million to €50.8 million.
The industrial action accounted for so far is expected to reduce Finnair’s full-year capacity by around 5%, the airline says.
