Finnair recorded a 73.8% year-on-year revenue increase to €694.7 million in the first quarter of 2023, despite the "adverse cost impact" of high fuel prices.
The revenue increase was around the same in percentage terms as the passenger traffic rise, the flag carrier reported, with fuel costing it $40 million more than in Q1 2022.
The airline's net cash flow from operating activities was $206.8 million and net cash flow from investing activities was -€143.7 million. Cash funds were €1,56bn, with the carrier giving an equity ratio of 9.6%
Q1 2023 net cash flow from investing activities included €63.8 million invested in money market funds or other financial assets that are part of the group’s liquidity management.
Looking ahead, Finnair warned revenue would not return to pre-Covid levels in 2023. The carrier estimates it will operate at up to 85% capacity in 2023, with the outcome to be "impacted by the development of demand, e.g., increase in travel on Chinese routes, and potential leases of aircraft with crew to other airlines".
While the airline estimates "that the strong demand for travel will continue in the short-term, supporting its unit revenues as in the second half of 2022," what it described as "continuing general economic uncertainty" would also "weaken the visibility of travel demand development".
Finnair faces further "significant uncertainty" due to the closure of Russian airspace, a factor that affects it more than most carriers given Finland's proximity to Russia.
Finnair estimates that its 2023 revenue will significantly increase year-on-year, especially as the first half of 2022 was heavily burdened by both the pandemic and the closed Russian airspace. Nonetheless, the company estimates that its revenue will not yet reach the level of 2019.
"We are heading in the right direction, but the road to recovery is a long one. We cannot expect that the current strong demand situation is a permanent one," said chief executive Topi Manner.