Finnair reported its strongest final quarter on record and forecast higher earnings for 2026, as demand for air travel picked up in Asia and Europe.

The Finnish carrier said comparable operating profit rose to 61.7 million euros in October to December, up from 47.9 million euros a year earlier. Analysts had expected 43.3 million euros.

Revenue for the quarter increased by 0.8 per cent to 789.5 million euros, and passenger numbers rose by 2.2 per cent.

The result marked the highest comparable operating profit for a final quarter in the airline’s history.

Chief executive Turkka Kuusisto said during a press briefing that the company had delivered “the best comparable operating profit for a final quarter in our history”.

“It was a challenging year, but we got back on the wings you know,” he said.

Finnair’s shares rose more than 11 per cent in early trading in Helsinki following the announcement. The stock has gained 26 per cent over the past three months.

The airline said stronger demand in Asia and Europe supported the result, while demand in North Atlantic traffic remained weaker and weighed on ticket prices.

Lower fuel costs and a rise in passenger volumes also contributed to the quarterly performance.

Chief financial officer Pia Aaltonen-Forsell said that a fall in the dollar and oil price supported the company, though other external costs increased and offset part of the benefit. She said around 15 million euros of the comparable operating profit came from the company’s own measures.

Finnair said labour disputes had an immediate negative impact of about 68 million euros on comparable operating profit in 2025. For the full year, comparable operating profit fell to 60.1 million euros from 151.4 million euros the previous year. Revenue for the year rose by 1.9 per cent to 3.1 billion euros.

Earnings per share halved to 0.09 euros from 0.18 euros. The board proposed a capital repayment of 0.09 euros per share for 2025.

Finnair forecast revenue of 3.3 billion to 3.4 billion euros for 2026 and comparable operating profit of 120 million to 190 million euros.

The airline said it plans to increase total capacity, measured in available seat kilometres, by about five per cent in 2026. The increase includes wet lease agreements, where aircraft and crew are leased together.

Finnair has faced structural changes since Russia closed its airspace to European carriers in 2022 following the invasion of Ukraine.

The closure forced the airline to reroute flights to Asia. The carrier had built its strategy around shorter routes between Europe and Asia via Russian airspace.

In November, Finnair presented a new strategy for 2026 to 2029. The plan places greater focus on European routes and traffic to and from Finland.

Kuusisto said passengers travelling to and from Finland have become more important for the airline’s network. At the same time, he noted that Finnair had been the largest operator between Europe and Japan.

Kuusisto said the company is working on fleet changes, including the acquisition of narrow-body aircraft suited to European routes. “I believe that in the coming weeks or the next month we will have more to tell,” he said.

Finnair has announced seven new European destinations for the summer season, bringing the total number of new European routes to 12. In Asia, the airline said revenue growth was strongest on routes to the region.

Kuusisto said Finnair will operate three daily flights to Bangkok next winter. One of the frequencies will link to a new Melbourne service with a stop in Bangkok.

He also addressed competition from Chinese airlines that continue to fly over Siberia, which shortens flight times between Asia and Europe.

Kuusisto said the issue should be considered at European Union level. “There are no shortcuts in value choices,” he said.

HT