Saturday 11/28/20
BUSINESS

Coronavirus sinks Finnair's revenue in the third quarter

Between February and September, the carrier paid over 400 million euros in refunds to customers for cancelled flights due to the pandemic.

A general view of Finnair's headquarters at Helsinki-Vantaa airport. Photo: Emmi Korhonen/dpa.
A general view of Finnair's headquarters at Helsinki-Vantaa airport. Photo: Emmi Korhonen/dpa.

Finnish flag carrier Finnair's third-quarter revenue plunged by almost 90 per cent amid a sharp decline in passenger numbers due to the coronavirus pandemic.

Revenue in the July-to-September period fell to 97.4 million euros (114 million dollars), the airline said on Wednesday.

The net loss for the period stood at 199 million euros, compared to a net profit of 57 million euros during the same period in 2019.

"The pandemic continued to impact Finnair heavily during the third quarter," chief executive Topi Manner said, noting that travel restrictions forced the carrier to operate a reduced network.

Between February and September, the carrier paid over 400 million euros in refunds to customers for cancelled flights due to the pandemic.

It has now almost completed its backlog of refund requests, according to Manner.

89% less passengers

The airline - majority-owned by the Finnish state - flew about 450,000 passengers in the quarter, down by 89 per cent year-on-year.

Demand for cargo remained strong and helped reduce the flow of red ink.

The airline recently announced plans to shed 700 positions, including 600 in Finland as part of cost-cutting measures.

Comments