You are here
Finnair misses market forecasts in fourth quarter
[HELSINKI] Finland's state-controlled airline Finnair reported on Wednesday a smaller than expected quarterly profit due to delays in the deliveries of its new A350 jets.
Finnair, which uses its Helsinki hub to take Asian travellers to European destinations, reported fourth-quarter core operating profit of 1.6 million euros (S$2.56 million), missing analysts' average forecast of 6.8 million euros in a Reuters poll.
Annual profit more than doubled to 55 million euros due to new capacity, and the company proposed a dividend of 0.1 euros per share - its first pay-out since 2013.
Finnair said delays in planemaker Airbus' A350 deliveries last year forced the Finnish company to "wet lease"aircraft and crews from other airliners in expensive arrangements.
Finnair has struggled in recent years with tough competition from discount carriers, but cost savings and a focus on Asia helped it back to growth.
Finnair did not give a profit guidance for 2017, but said its sales and capacity were set to grow.
"The demand outlook for passenger and cargo traffic in Finnair's main markets continues to involve uncertainty," it added.