HELSINKI, Feb 11 (Reuters) - Finnish carrier Finnair reported on Wednesday an unexpected rise in fourth-quarter comparable operating profit and said it sees higher profits, and plans to increase
Finnair's Share Prices Surge as Travel Demand Drives Profit Growth
Finnair's Financial Performance
HELSINKI, Feb 11 (Reuters) - Finnish carrier Finnair reported an unexpected jump in fourth-quarter profit on Wednesday and forecast higher earnings this year, helped by stronger travel demand. Its shares jumped more than 10%.
Comparable operating profit climbed to 61.7 million euros ($73.5 million) from 47.9 million a year earlier, beating the 43.3 million expected in a poll of analysts provided by Finnair.
Stronger demand in Asia and Europe, lower fuel costs and a small increase in passenger numbers contributed to the beat, the company said.
Factors Contributing to Profit Increase
CAPACITY INCREASE
Future Outlook and Capacity Plans
"Supported by an improving macroeconomic situation, including a rise in purchasing power among consumers, demand for air travel is anticipated to strengthen in Finnair’s key markets," it added in a statement.
Challenges Facing the Airline
"However, international conflicts, global political instability and the threat of trade wars cause uncertainty in the operating environment."
Shares in the company, majority-owned by the Finnish state, were up 11% in early trade, and have now risen 26% over the past three months.
Finnair has been forced to fly longer routes to Asia since Russia closed its airspace in 2022, eroding its competitive advantage and pushing up costs. Results last year were also hit by labour disputes, unplanned maintenance and weaker North Atlantic demand.
The group forecast full-year comparable operating profit of 120 million to 190 million euros on sales of 3.3 billion to 3.4 billion. In 2025, it posted a profit of 60.1 million euros on sales of 3.1 billion.
Finnair said it planned to lift capacity by around 5% this year, including already agreed wet leases - where crew is provided with the plane - and expects fuel prices at current levels to offset higher costs tied to environmental regulation.
The airline proposed a dividend for 2025 of 0.09 euros per share.
(Reporting by Essi Lehto. Editing by Anna Ringstrom and Mark Potter)
