By Elviira Luoma
(Reuters) -Finnair on Tuesday swung to a bigger-than-expected first-quarter operating loss and cut its full-year revenue outlook after weeks of strikes across Finland grounded flights and disrupted the national carrier's operations.
The airline reported a comparable operating loss of 11.6 million euros ($12.4 million) for the January-March quarter, compared to a profit of 0.9 million euros a year ago and bigger than the loss of 9.5 million euros expected by analysts polled by LSEG.
Revenue fell 1.9% year-on-year to 681.5 million euros. The first quarter is typically its seasonally weakest of the year.
Shares in Finnair were down 1.4% at 0927 GMT.
Finnair expects its revenue to grow at a "slower pace" than capacity in 2024, compared to a previous outlook for a "somewhat slower pace".
It also said it planned to increase its total capacity by about 10% in 2024, compared to earlier view of more than 10%.
The airline said strikes against the government's planned labour reforms and welfare cuts in Finland forced it to cancel about 550 flights and reorganise refuelling operations as fuel deliveries were suspended for two weeks, hitting its revenue and earnings.
"During the two-day strike, when Finnair hardly flew at all, we are talking about millions of euros in damages per day," interim CEO Jaakko Schildt told Reuters.
He added that during the two-week fuel strike Finnair was able to fly all flights, but was still looking at seven-digit damages in euros.
The strikes are the latest headache for the carrier, which has been overhauling its strategy after a ban on using Russian airspace two years ago left its Asia-focused business in tatters. Its exposure to Asia meant it also suffered more than its European peers from the pandemic.
It continues flying to most of its Asian destinations although flight times take up to 40% longer.
Although costs have increased considerably, Asian market yields remain at a good level, thanks to demand and constrained capacity caused by the global labour shortage and operational challenges, it said.
($1 = 0.9396 euros)