Finnair, the Finnish airline, announced on Tuesday that it has achieved a net profit of 52.5 million euros ($56 million) in the third quarter of this year. This is a significant improvement compared to a loss of EUR37.2 million in the same period last year. The airline also reported a 14% increase in revenue, reaching EUR817.3 million. These positive results can be attributed to the strong growth in travel demand and the implementation of capacity restrictions which led to higher ticket prices.
Throughout the quarter, Finnair observed a robust demand for package holidays and last-minute deals, despite the increase in prices. Additionally, there was a notable increase in demand for city holidays, and customers have started booking trips earlier following the pandemic. As a result, the airline expects the winter season to experience a good level of demand.
However, Finnair did face challenges in its cargo business due to growing supply, softer demand, and declining market prices. The airline anticipates that cargo demand will remain soft in the near future.
Despite these challenges, Finnair remains optimistic about its future performance. The company now forecasts revenue between EUR2.9 billion and EUR3.1 billion by 2023. This is an upgrade from their previous projection, which stated that revenue would increase but not reach the pre-pandemic level of EUR3.1 billion in 2019. Additionally, Finnair expects the comparable operating result for this year to range between EUR160 million and EUR200 million, compared to the previous estimate of EUR150 million to EUR210 million.
In conclusion, Finnair’s positive financial results reflect the strong recovery of travel demand. With the winter season approaching, the airline is optimistic about its future prospects.