High fuel prices could challenge Finnair next year

High fuel prices and uncertainty over their future level will challenge Finnair’s operating environment, the airline said, according to Yle.

Finnair has hedged an average of 34% of its fuel needs for next year, meaning it may have to buy some jet fuel at high prices. Successful hedging helped support the company’s profitability this year.

The airline previously issued a positive profit warning, saying higher ticket prices driven by fuel costs had not deterred passengers.

Finnair’s comparable operating profit for July to September was 84 million euros, in line with the company’s earlier estimate. It was up 66% from the same period last year, when labour disputes weighed on results. “The third quarter was very strong for Finnair,” chief executive Turkka Kuusisto said.

Finnair shares fell after the results were released, dropping by more than 3% after midday before recovering to close slightly lower. The share price has risen by about a third since the start of the year.