Finland's state-owned airline Finnair lost 142 million euros in the first three months of 2021, according to financial results published on Tuesday.
The company's comparable operating result in Q1 was a loss of 143.2 million euros, compared to a loss of 91.1 million euros for the corresponding period last year, while net sales decreased by 80 percent year-on-year to 113.6 million.
Finnair's CO2 emissions were down 76 percent in the first part of the year at 170,000 tonnes. That's roughly equivalent to the annual carbon emissions from 34,000 cars, but is still a big reduction on the 712,000 tonnes of carbon-equivalent emissions Finnair was responsible for in the first quarter of 2020.
The firm is aiming to cut emissions by 50 percent on 2019 levels by 2025, but this quarter's dramatic drop is down to the Covid pandemic and emissions figures are expected to increase in the summer.
The firm's CEO Topi Manner said in the firm's press release that the company had made efforts to improve sustainability even during the pandemic.
"Our biofuel partner Neste will supply biofuel to Helsinki Airport to reduce their business travel related emissions, and our cooperation with the Finnish air navigation services helps to improve fuel efficiency in the Finnish airspace," Manner's statement said.
Neste's palm oil-based biofuel operations have been dogged by controversy over links to deforestation of tropical rainforest, although the company says it does not use palm oil in its aviation fuel.
The airline's financial results have prompted it to raise its savings target from the beginning of 2022 to 170 million euros. The target announced in May last year was initially close to 80 million euros, but the company has since raised it gradually with each passing quarter's results.
However, in a statement announcing the results, Finnair said it anticipates that demand will begin to recover from the end of this summer but, due to the weak and uncertain outlook, it will not provide guidance on full-year revenue at this stage.
"Few bright spots"
Air passenger numbers have plummeted due to the pandemic, and Finnair reported that it carried 90 percent fewer passengers in January to March this year compared to the same period last year.
"As expected, the pandemic continued to impact Finnair as strict travel restrictions heavily limited travelling in many countries during the first quarter. We operated a limited network and frequencies throughout the quarter, as we had indicated. This was reflected in our passenger numbers, revenue and result," CEOManner wrote in the company's press release.
In his statement, Manner also mentioned a "few bright spots", including domestic tourism to Finnish Lapland and the re-opening of passenger flights to New York, supported by cargo demand.
Cargo demand was strengthened by supply chain challenges exacerbated by the Suez Canal blockage, and Finnair's cargo turnover hit a record high in March, Manner said.
"We operated 547 cargo-only flights in the first quarter, and cargo also supported the continuation of some long-haul passenger flights. Cargo continued to account for over 50 percent of our revenue," the CEO wrote.
He added that the company has recently commenced eligibility training for furloughed pilots and cabin crew, and the company announced on Monday that it intends to fly to more than 60 destinations in the summer.