Finnair Posts €52m H1 Operating Loss Amid Strikes, North Atlantic Weakness

Finnair reported a significant financial downturn in the first half of 2025, with a comparable operating loss of 52.3 million euros, a sharp reversal from the previous year's profit, largely due to a prolonged labor dispute that forced the cancellation of over 1,300 flights and impacted around 100,000 passengers. The industrial action, involving the Finnish Aviation Union and employers' associations, directly cost the airline about 51 million euros and contributed to a notable drop in the second quarter's operating profit to 10.3 million euros from 43.6 million euros a year earlier. Weak demand for North Atlantic flights, influenced by customer sentiment affected by media coverage of the U.S. and policies under President Donald Trump, further pressured ticket prices and revenue. Despite a 2.4% revenue increase and a 2.9% rise in passenger numbers, Finnair lowered its full-year operating profit guidance to the lower end of its prior range of 100 million to 200 million euros. CEO Turkka Kuusisto acknowledged the challenges and apologized for the disruptions caused, noting that new labor agreements have been reached allowing the airline to resume reliable operations. Following these announcements, Finnair's share price fell nearly 9% on the Helsinki Stock Exchange.