Finnair has increased its profit outlook for the full-year 2023 citing strong travel demand, fuel pricing and the success of its strategic adjustments following the closure of Russian airspace.
Finnair believes that its full-year operating profit for 2023 will reach or possibly exceed its 2019 total of €162.8 million.
The airline's previous estimate, published in late April, projected a significant increase in revenue and profit year-on-year, but figures still fell short of 2019.
"Finnair raises its guidance for comparable operating result for the full year 2023, as it expects the travel demand to continue stronger than previously anticipated, fuel price development has been more favorable than expected and as the company’s strategy implementation has progressed better than anticipated,” the airline said in a statement.
In terms of 2023 revenue, Finnair still estimates that it will not yet reach the 2019 level of €3,097.7 million
As a result of the improved profit outlook, Finnair's strategic comparable operating profit margin target of at least 5% from mid-2024 onwards would be reached 12–18 months earlier than anticipated.
However, uncertainty in Finnair’s operating environment continues as the fuel price is still high and also since the end of the closure of Russian airspace is not in sight. In addition, the extent of the impacts of inflation and rising interest rates on demand and costs is uncertain.
Finnair estimated in its guidance published on April 27, 2023 that its 2023 revenue will significantly increase and comparable operating result will significantly improve year-on-year, especially as the first half of 2022 was heavily burdened by both the pandemic and the closed Russian airspace.
However, the company estimated that revenue and comparable operating result would not yet reach the level of 2019.