Finnair says it still expects to increase flights in 2026, even as airlines across Europe face growing pressure from higher fuel prices linked to the Middle East crisis and the disruption caused by the Strait of Hormuz tensions.
Finnair’s first-quarter profit shows why the carrier is holding course
Finnair reported a net profit of €3.6 million for January to March, compared with a much weaker result a year earlier. Revenue rose by 12.1 percent to €778.1 million, while the airline carried 2.8 million passengers, up 7.3 percent from the same period last year.
The company’s comparable operating result was still slightly negative at €0.6 million, but that marked a major improvement from the €62.6 million loss reported in the first quarter of 2025. The first quarter is typically the airline’s weakest period.
Chief executive Turkka Kuusisto said Finnair’s operational cash flow remained strong and that demand on Asian routes increased in March as traffic through other regional hubs became more difficult because of the situation in the Middle East.
Fuel hedging is helping Finnair protect its 2026 flight expansion
Despite a sharp increase in jet fuel prices after the outbreak of the Iran war, Finnair said the impact on its cash flow is only partly visible with a delay. The airline also stressed that its fuel procurement is heavily hedged.
According to Kuusisto, 86 percent of first-quarter fuel purchases had been hedged at the turn of the year. At the end of March, the hedge ratio stood at 82 percent for the second quarter and 69 percent for the period from April to December.
That helps explain why Finnair is still sticking to its plan to increase total capacity, measured in available seat kilometres, by around 3 percent this year. During the current summer season, the airline is adding 12 new European destinations, and flights to Toronto are scheduled to begin in May.
Weaker Gulf hub traffic is pushing more demand onto Finnair’s Asia routes
Finnair said the direct operational effects of the Middle East war were limited for the company, although it cancelled its Dubai flights until the end of March and its Doha flights until early July. It also arranged a special repatriation flight via Muscat in Oman after rerouting options from the region were not available.
At the same time, the reduced role of Dubai and Doha as transfer hubs appears to have pushed some passengers towards alternative routes. For Finnair, this has translated into stronger demand on flights to Asia.
This places the Finnish carrier in a different position from some competitors. While several airlines have cut or reviewed services because of the fuel shock and uncertainty linked to supply routes, Finnair says fuel availability at its home hub, Helsinki Airport, remains stable for now.
Finnair’s growth plan contrasts with Europe’s wider fuel anxiety
The contrast is particularly notable because the broader European aviation sector is facing a more uncertain outlook. Airlines have been watching both fuel prices and supply security closely as the Middle East conflict raises fears over energy flows through the Strait of Hormuz.
Finnair argues that its exposure is partly softened by hedging and by the current stability of supply at Helsinki-Vantaa. The airline also says that, if needed, most of its European flights could operate with tankering strategies.
Still, the company warned that a prolonged war could turn fuel availability into a more serious risk factor, with potentially significant negative effects on both capacity growth and financial performance later in the year.
Lufthansa and other airlines show how unusual Finnair’s position is
Finnair’s position stands out even more after Lufthansa signalled significant flight cancellations linked to higher fuel costs. That makes the Finnish airline one of the clearer outliers in Europe at a time when the energy shock is already beginning to reshape airline operations.
For the Nordic region, the development is also relevant beyond aviation. It suggests that Finland’s flag carrier may benefit, at least in the short term, from shifts in long-haul demand and from its ability to manage fuel-price volatility more effectively than some rivals. Whether that advantage lasts will depend largely on how long the Middle East conflict continues and whether pressure on fuel supply intensifies.
