Wednesday 8/5/20

Finnair racks up millionaire losses over coronavirus

Revenue decreased in the April-to-June period by 91.3% to 68.6 million euros, while net loss grew to 172 million euros.
Photo: Pixabay.
Photo: Pixabay.

Finnish flag carrier Finnair said on Friday that its second-quarter revenue had plunged by over 90% and its net loss had soared in the wake of the coronavirus pandemic.

Revenue decreased in the April-to-June period by 91.3% to 68.6 million euros, while net loss grew to 172 million euros. In the corresponding period last year, it recorded a net profit of 31 million euros.

"Finnair's second quarter was characterized by a single factor: the Covid-19 pandemic," chief executive Topi Manner said.

"As we anticipated, it resulted in our capacity dropping to 3%, as during the second quarter we only maintained flight connections that are critical for Finland," he added.

97.5% decrease in passengers

The airline - majority-owned by the Finnish state - said the number of passengers decreased by 97.5% year-on-year to about 100,000 passengers.

Cargo flights were in demand and accounted for over two-thirds of the carrier's revenue in the quarter, Manner said. 

Also weighing on the results were requests for repayments of cancelled flights due to the pandemic. Between February and June, Finnair said it paid over 270 million euros to customers.

Looking ahead, Finnair said it expected demand to increase gradually but underlined uncertainties linked to how the pandemic will evolve.

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