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Finnair takes profit hit from flight hold-ups

Finland's nationwide provider Finnair reported a steeper than anticipated drop in secondquarter operating revenue on Friday, as flight delays due to bad weather and a runway renovation in Helsinki increased costs.

Finnair's shares were down 11% by 0908 GMT, the most significant faller on the Helsinki stock market, as it also flagged lower yields and guest load factor in the quarter.

The airline, which is bulk owned by the Finnish state, posted a similar operating revenue of 43.6 million euros ($ 47.45 million) for the quarter, versus 66.2 million a year earlier and analysts' forecast of 62 million in an LSEG poll.

Runway restoration at Helsinki Airport in April-- June. affected adversely our on-time efficiency and increased expenses. in the kind of re-routing consumers to their connecting. flights, CEO Turkka Kuusisto stated in a statement.

Challenging weather also postponed flights and. increased expenses, Finnair said.

April was struck by an extraordinary winter season weather, which. affected the on-time efficiency, Kuusisto informed in an. interview.

The Finnish flag carrier likewise specified its full-year. outlook, forecasting an income of 3.0 billion to 3.2 billion. euros and a similar operating earnings of 110 million to 180. million euros for 2024.

It had formerly stated it anticipated the yearly earnings to. grow at a slower pace than its capability, which it plans to. increase by around 10% this year.

Finnair in April stopped briefly flights to Tartu in eastern Estonia. for one month due to GPS disruptions in the location that had. avoided two aircraft from landing.

GPS jamming is a big subject in the headlines but does not. impact air traffic in practice. Flying is safe even if GPS gets. disrupted, as contemporary aircrafts have lots of navigation systems,. Kuusisto stated.

(source: Reuters)