Slide 1: Finnair
FINNAIR
Slide 2: Q3 2024: Comparable EBIT fell short of the strong comparison period
Q3 2024: Comparable EBIT fell short of the strong comparison period due to lower unit revenue. Full- year profit expectation unchanged. 29 October 2024 Turkka Kuusisto, Finnair
Slide 3: Passenger numbers increased in line with capacity; result weakened
Passenger numbers increased in line with capacity; result weakened against strong comparison period • Revenue at comparison period level and amounted to 818.3 M€. • Comparable EBIT was 71.5 M€ (94.3). • Number of passengers increased by 9% to 3.2 million, in sync with ASK increase (9%). • RASK decre
Slide 4: Q3 comparable EBIT decreased year-on-year due to lower yields and load factor
Q3 comparable EBIT decreased year-on-year due to lower yields and passenger load factor Income statement, in M€ Q3 2024 Q3 2023 Q3 2019 • Finnair’s total revenue remained flat year-on-year as higher ancillary (+26%) Revenue 818 817 865 and cargo revenue (+29%) were offset Other operating income 31 2
Slide 5: Strong operating cash flow, cash funds at a good level
Strong operating cash flow, cash funds at a good level -58 • Solid operating cash flow in 153 the seasonally busiest quarter. 2 Improved slightly year-on-year -56 (Q3 2023: 95 M€). -27 966 • Investments mainly included fleet 908 -114 maintenance activities and A350 -16 aircraft prepayments. Operatin
Slide 6: Strengthening of the balance sheet is visible in the key figures
Strengthening of the balance sheet is visible in the key figures Equity ratio % Gearing % • Equity ratio increased slightly +0.5 pp compared to year-end following -49.7 pp positive result for the period. 224.4 15.6 16.1 192.8 • Gearing decreased from year end 11.5 143.2 as a result of lower interest
Slide 7: Strategy implementation continued
Strategy implementation continued • Route network has been successfully refocused, supporting our revenue management and offering. • Organisational changes further strengthen our focus on understanding customer needs and customer experience. • Net Promoter Score (NPS) increased to 40, supported by w
Slide 8: Science-based emission reduction targets
Science-based emission reduction targets Reduction of emissions intensity 34.5% 2023-2033 Industry's united objective Targets Zero of achieving net-zero carbon emissions by 2050 13% reduction in absolute CO2e emissions Sustainable aviation fuel Operational efficiency Actions Optimising network Aircr
Slide 9: We continue to develop our offering
We continue to develop our offering • Winter season of 2024: Additional frequencies to favorite destinations • Added frequencies to London, Dallas, and Phuket. • Aurinkomatkat has increased capacity to Thailand, Madeira, and Gran Canaria. • Flying wide-body aircraft to Gran Canaria and Dubai. • 12 %
Slide 10: Outlook and guidance
Outlook and guidance New guidance on 29 October 2024: Guidance on 19 July 2024: Global air traffic is expected to continue growing in 2024. However, risks Global air traffic is expected to continue growing in 2024. However, risks related to the impact of inflation and higher interest rates on demand
Slide 11: Finnair
FINNAIR
Slide 12: Appendices
Appendices
Slide 13: Fuel costs stayed close to previous year level
Fuel costs stayed close to previous year level as volume increase was compensated with lower price Fuel costs, M€ +2M€ 28 • Higher capacity increased fuel costs. Additionally, increased Asian capacity year-on- year added costs as the closure of Russian 238 239 airspace in 2022 has increased Asian ro
Slide 14: Jet fuel price decreased during the quarter and year-on-year
Jet fuel price decreased during the quarter and year-on-year Jet fuel price per tonne, in euro Oil price per barrel, in euro Price per Price per Price per tonne barrel tonne 1,400 120 1,200 1,000 1,200 100 1,000 1,000 -38% 80 800 800 623 60 600 600 40 400 400 200 20 200 0 0 0 2005 2010 2015 2020 202
Slide 15: Revenue stayed at previous year's level; ancillary and cargo up
Revenue stayed at previous year’s level. Increase in ancillary and cargo revenues Revenue by product, M€ • Softened demand and increasing industry capacity decreased the average ticket fares from record high levels. 0% • Ancillary revenue increase is mainly related to ticket reforms 817 818 introduc
Slide 16: Capacity increase has not yet resulted in higher revenues
Due to softer demand, the capacity increase has not yet resulted in an increase in our revenues accordingly. The passenger load factor decreased 1.4%-points Passenger revenue, M€ Other revenue, M€ +13% -3% 5 12 163 673 10 144 -3 0 48 -6 38 -4 -1 655 41 53 -11 Ancillary revenue Cargo 66 63 Travel ser
Slide 17: Q3 comparable EBIT decreased due to lower average ticket prices
Q3 comparable EBIT decreased year-on-year due to average ticket prices decreasing from record high levels • Operating expenses 777.5 M€ in total Comparable EBIT Q3/24 vs Q3/23, M€ • Capacity increased +9.1% • Revenue increased +0.1% • Operating expenses +3.7% • Operating expenses excluding fuel +5.1
Slide 18: Unit revenue and unit cost declined year-on-year
Unit revenue and unit cost declined year-on-year RASK development, € cents CASK development, € cents 10 12 8.75 8.13 8.13 8.04 8.03 Fuel 7.64 7.82 10 8 CASK excl fuel 6.86 6.69 8.11 7.79 6.26 6.41 7.41 7.74 7.77 7.37 7.32 8 6 6.41 6.42 2.57 6.03 6.06 2.54 2.45 2.36 6 2.39 2.29 2.35 1.36 1.47 1.51 1.
Slide 19: Industry standard capacity calculation not reflecting longer Asia routings
Industry standard capacity calculation is not reflecting longer routings to Asia. Impact on Finnair is greater than on competitors Q3 2024 Available seat kilometres (ASK), million: • Great circle distance (GCKM) - based figures do not reflect the Total longer Asia routings, caused by ~15% the closur
Slide 20: Comparable income statement
Comparable income statement in M€ Q3 2024 Q3 2023 Change % Q1-Q3 2024 Q1-Q3 2023 Change % Revenue 818.3 817.3 0.1 2,265.9 2,261.3 0.2 Other operating income 30.7 26.7 15.0 95.7 85.5 11.9 Operating expenses Staff and other crew related costs -125.1 -119.9 -4.4 -385.1 -374.0 -3.0 Fuel costs -239.4 -23
Slide 21: Kiitos. Thank you.
Kiitos. Thank Ihanaa you. päivää. Have a wonderful day. Contact us: Finnair IR and financial communications investor.relations@finnair.com
Slide 22: Finnair
FINNAIR