By Essi Lehto HELSINKI (Reuters) -Finnair warned on Wednesday that weaker-than-expected demand for North Atlantic flights, falling ticket prices, and the impact of strikes could weigh on its 2025
Finnair Signals Decline in Demand for North Atlantic Flights
By Essi Lehto
HELSINKI (Reuters) -Finnair warned on Wednesday that weaker-than-expected demand for North Atlantic flights, falling ticket prices, and the impact of strikes could weigh on its 2025 comparable operating profit, sending its shares down as much as 9%.
The Finnish carrier said North American traffic growth was more moderate than estimated during the second quarter, with average ticket fares declining and booking windows shortening amid general market uncertainties.
"Demand growth on North Atlantic routes was moderated by customer sentiment, influenced by media coverage of the U.S., especially in Finland," CEO Turkka Kuusisto said in a statement. He did not elaborate.
Fewer Europeans are travelling to the United States due to concerns about U.S. border controls and President Donald Trump's policies, leading to lower transatlantic airfares, preliminary data showed.
Finnair shares fell 5.8% by 0848 GMT after the airline also reported weaker-than-expected quarterly core earnings, affected by labour disputes with pilots and other staff.
Its second-quarter comparable operating profit was 10.3 million euros ($12 million) against a year-earlier 43.6 million euros.
Finnair said it now expects full-year comparable operating profit to be closer to the lower end of its previously guided range of 100 million euros to 200 million euros.
($1 = 0.8607 euros)
(Reporting by Essi Lehto; Editing by Louise Rasmussen, Stine Jacobsen and Emelia Sithole-Matarise)
