Investing.com -- Shares of Finnair surged 15% in European trade following the airline’s announcement of fourth-quarter earnings that exceeded market expectations and an optimistic revenue forecast for the current year.
The Helsinki-based airline reported on Thursday a significant increase in its fourth-quarter comparable operating profit, which climbed to 47.9 million euros from 22.5 million euros in the same period last year.
Revenue for the quarter also saw a healthy increase, rising 7.7% to 782.9 million euros. These figures surpassed the FactSet poll of analysts who had projected a comparable operating profit of 30 million euros on revenue of 758 million euros.
Finnair’s positive performance is attributed to a 9.1% YoY increase in passenger numbers, lower fuel costs, and a stabilization in the decline of average ticket fares. This strong quarter comes despite the airline acknowledging the current uncertainty in the global environment, citing international conflicts, political instability, and a tense labor market in Finland.
Looking ahead, Finnair has set an ambitious revenue target for the year, expecting to achieve between 3.3 billion and 3.4 billion euros, up from 3.05 billion euros in 2024. The forecast for comparable operating profit is also optimistic, estimated to be in the range of 100 million to 200 million euros, compared to 151.4 million euros last year.
The company’s outlook is bolstered by its expectation that global air traffic will continue its growth trajectory through 2025, a sign of confidence in the airline industry’s recovery and future prospects.
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