Finnair Group revenues increased by 5% to €672.9 million in the first quarter 2019, despite profits being undercut by higher costs due to increased capacity and pricier fuel.
Meanwhile, the group showed a operating losses of €16.2 million outweighing its profit of €14.6 million in the same period of last year.
Global airline traffic is expected to continue growing in 2019. Finnair expects increased competition as capacity is added, particularly on routes linking Europe with Asia as well as in short-haul traffic. The slowdown in the economy of Finnair’s key markets and the continued uncertainties surrounding global trade, including from Brexit, could impact the demand for air travel and cargo.
Finnair CEO Topi Manner said in a statement: "Our revenue increased by 5% in January to March compared to the same period last year. We grew our transfer traffic between Asia and Europe in particular, and our cargo performed well too. Despite this, our revenue growth fell short of our approximately 10% capacity increase in this period, which was partly due to the two new A350 aircraft delivered at the end of last year and during the review period.
"Increases in capacity put pressure on our unit revenues particularly in European and domestic traffic. On routes from Japan to Europe, and on the main North Atlantic routes, demand remained strong.
"Finnair will continue to invest in its future and key productivity drivers: personnel experience, customer experience, responsible air transport and simplified processes. In addition, we continue to develop the ability to respond to changes in the external environment. Our goal is to continue sustainable, profitable growth.