Finnair Oyj on Tuesday lifted its cost-saving target and said it expects demand to start gradually recovering from late summer as coronavirus vaccination coverage improves and travel restrictions are expected to ease.
Demand for cargo remained strong during the first quarter and cargo revenue in March hit a record high, supported by supply-chain challenges exacerbated by the Suez Canal blockage, it said.
The airline reported a net loss of 145.4 million euros ($175.8 million) for the first quarter compared with a loss of EUR142.6 million for the same quarter last year. Revenue fell 80% to EUR113.6 million.
“Our cost-savings program targeting permanent savings of EUR140 million by 2022 progressed well during the quarter and we raised the target to EUR170 million,” said Chief Executive Topi Manner.
“We will continue to seek new savings items from all cost categories.”
Finnair expects its comparable operating loss in the second quarter of 2021 to be of a similar magnitude as in the four previous quarters, it said.
The airline said that while a gradual recovery of demand is expected in the third quarter, visibility is weak and it therefore didn’t provide full-year revenue guidance.
The airline expects its 2019 traffic levels measured in available seat kilometers–a key airline measure of capacity–to be regained in 2023.
Write to Dominic Chopping at email@example.com