Finnair tightens annual operating profit outlook, shares skid

(Reuters) -Finnair, Finland’s national carrier, tightened its annual operating profit forecast range on Tuesday after third-quarter earnings fell from a strong year-ago comparable period, sending its shares down 8% in early trade.

The airline now expects comparable earnings before interest and taxes (EBIT) in the range of 120–170 million euros ($130-$184 million) for 2024, compared with 110–180 million euros previously forecast.

Finnair, however, reiterated that its revenue in 2024 would be between 3.0 billion euros and 3.2 billion euros.

The airline, majority owned by the Finnish state, reported a comparable operating profit of 71.5 million euros for the third quarter, down from 94.3 million euros in the year-earlier period due to lower unit revenue amid normalising demand.

Market situation weakened in all Finnair’s markets compared with the year-ago period when demand was exceptionally strong, bolstered by the end of the COVID-19 pandemic, the carrier said in a statement.

Finnair said it has continued operating to most of its Asian destinations, despite routes that take up to 40% more time, but that it has limited operations, especially to China, as demand for air travel between Europe and China has yet to recover.

European airlines bypass Russian airspace, while Chinese airlines can fly directly through, giving them a significant flight time and cost advantage,” CEO Turkka Kuusisto said in a presentation. ($1 = 0.9251 euros)

(Reporting by Elviira Luoma in Gdansk, Editing by Subhranshu Sahu and Savio D’Souza)