Finnair lowered its guidance for 2025 after a slew of industrial actions in the first half of the year, impacting its results.
Capacity is now expected to be up 5% in the year, down from its original plan of a 10% increase. Revenues were expected to be around €3.3-3.4bn, but was revised down to between €3.2 and 3.3bn. Operating result is expected to be in the range of €30 to €130 million for the year, though the company said this will likely be in the lower end of the range. The lower end operating result prediction was driven by the indirect effects of industrial action on demand and also “weaker-than expected” demand in North Atlantic traffic. The company had previously estimated an operating result of between €100 and €200 million.
Finnair CEO Turkka Kuusisto said the airline's operating result was “particularly burdened” by industrial action during the second quarter, but recently reached collective labour agreements, allowing to return to its normal schedule.
“The direct negative impact of the prolonged industrial action on second quarter revenue was around €41 million, on other operating income around €10 million, and on the comparable operating result around €29 million,” said Kuusisto.
The company reported revenues of €1.4bn in the first half, up 2.4%; €787.7 million in the second quarter, up 2.8%. Operating result for the second quarter plummeted from €114.2 million in the second quarter of 2024 down to €25.3 million in the second quarter of 2025. For the first half, operating result fell 55% to €19.2 million.
Result for the second quarter was down 30.3% to €12.5 million. The half year result was down from negative €12 million to a negative €38.4 million.
“We had to cancel over 1,300 flights during the quarter due to the industrial action, incurring costs related to customer rerouting and care, as well as compensation for delays,” continued Kuusisto.
He added that “general market uncertainties increased” during the second quarter, which saw demand soften for transatlantic flights amid the US-led tariff conflict.
The company has a total of 56 aircraft in its fleet as of the end of June. This includes 30 Airbus narrowbodies. The airline said it is preparing a “partial renewal” of its narrowbody fleet. The company has eight A330s and 18 A350 aircraft. The company expects its final A350 on order to be delivered in the fourth quarter of 2026. Finnair's €151 million investment for property, plant, and equipment, includes this upcoming narrowbody.
The company's operating expenses in the second quarter climbed 5.8% to €798.6 million, largely driven by higher capacity rents, traffic charges, as well as aircraft material and overhaul costs.