Finnair profit meets forecasts, to boost capacity by over 10% in 2024

(Reuters) -Finland's national carrier Finnair on Wednesday reported its sixth straight quarter of positive operating earnings, and guided for a more than 10% capacity increase in the current year.

The airline posted a comparable operating profit of 184 million euros ($197 million) for 2023, after guiding for a profit of 160-200 million euros in October.

That was broadly in line with analysts' forecast of 185.5 million euros, LSEG data showed.

The company returned to an annual operating profit after ending 2022 with a loss of 163.9 million euros.

Finnair had guided for a profit recovery in 2023, as it tries to shake off the negative effects of the pandemic and the closure of Russian airspace after Moscow's invasion of Ukraine, which challenged the carrier's previously Asia-focused strategy.

Comparable operating profit rose to 22.5 million euros in the final quarter of 2023, from 17.9 million euros a year earlier.

"Russian airspace closure to EU carriers had a negative impact on Finnair's Asian traffic also during the period," the company said in a statement.

Finnair expects to increase in its total capacity by more than 10% in 2024, mainly in Asia and Europe. However, it warned the risks related to the impact of inflation and higher interest rates on demand and costs would remain high.

The Finnish airline also said its revenue would grow at a slower pace than capacity this year.

($1 = 0.9340 euros)

(Reporting by Agata Rybska in Gdansk; editing by Milla Nissi)