Finnair lifts full-year profit forecast on stronger demand

Finnair has increased its full-year earnings forecast, pointing to travel demand that has held up better than the carrier had expected. The Helsinki-based airline, part of the Oneworld alliance, issued the revised guidance on 13 October.

Profit for the year is now projected at between €175 million and €220 million, equivalent to roughly $196-246 million. The previous range was €120-190 million. Revenue is also expected to come in higher, at €3.5-3.6 billion, against an earlier estimate of €3.4-3.5 billion.

The airline said demand for air travel has remained above its earlier assumptions, and that it has taken advantage of openings in the market. It also noted that higher fuel costs have been partly reflected in fares.

Uncertainty remains. Finnair said elevated fuel prices and questions about how they will develop are likely to make it hard to raise fuel hedging for 2027 beyond present levels. It listed inflation and interest rates among other risks in its operating environment.

Third-quarter results are due on 27 October. For the three months ending 30 June, the carrier reported operating profit of €86.6 million, four times the figure a year earlier. At that point it had cut its full-year capacity growth plan to 1%, down from an earlier intention to add 3%.