Finnair's losses deepened in the first quarter of 2025 as increased costs related to “long-term” industrial action and sustainability reached revenue.
OneWorld Carrier, who outlined the revenues for January to March 2025 on April 29, described the operating environment for the past three months as “severe” and characterized the impact of 22 million euros ($25 million) on comparable operating results from actions taken by the Finnish Aviation Pilot Association SSL. Additionally, mandatory increases in sustainable aviation fuel usage and changes to the European Union's emissions trading system have had an impact of 10 million euros.
However, Finnair said travel demand will remain “healthy” throughout the quarter and hopes for a decision on April 30 on another proposal to end industrial measures by SSL members.
However, Flight 230 removed from the summer schedule will not recover under any circumstances. We estimate that these cancellations will have an additional €10 million in impact on comparable operating results for the year.
Additionally, Finnair announced on April 28 that it will air nearly 40 long-distance pilots for at least eight months in connection with the ongoing dispute over OneWorld partner Qantas' wet lease operations.
Furthermore, businesses are currently facing new uncertainties, Finnea said in the outlook.
“The uncertainty associated with the threat of a trade war and economic development has increased significantly, so demand could drop,” said the Chief Executive Turkousist.
Finnair said it updated its year-round guidance, including the impact of industrial measures in the six-month stage, focusing on “ensuring profitability,” which contributed to reducing fuel costs.
The airline's first quarter revenue was 694 million euros, up 1.9% year-on-year as passenger capacity increased 2.3% and traffic volume increased 4.6%.
The equivalent operating loss came from around 50 million euros to 62.6 million euros, while the net loss rose by around 20 million euros, up 50.8 million euros.
So far, industrial measures are explained, and it is expected to reduce the full-year capacity of Finnare by about 5%, the airline says.
