Finnair Oyj · OMXHEX:FIA1S
Finnair Oyj — Q2 2024 Earnings Presentation
20 slides from Finnair Oyj's earnings presentation, Jul 9, 2024
Slide 1: Finnair
FINNAIR
Slide 2: Q2 2024: Normalising market decreased unit revenue and results
Q2 2024: Normalising market after a period of strong demand decreased unit revenue and results 19 July 2024 Turkka Kuusisto, Finnair
Slide 3: Capacity increase from improved aircraft utilisation, not yet visible in revenue
Capacity increase as a result of improved aircraft utilisation, not yet visible in revenue • Revenue increased by 2% y-o-y to 766.1 M€. • Comparable EBIT was 43.6 M€ (66.2). • Number of passengers increased by 5% to 3.0 million. • ASK increased by 6% as wet lease outs to British Airways ended at the
Slide 4: Strategy implementation continues
Strategy implementation continues • Main priority safeguarding competitiveness and profitability through continuous improvement actions. • Long-term work to continuously improve customer experience continues. • 200 M€ wide-body fleet cabin renewal completed during the quarter, all wide-bodies now re
Slide 5: Q2 comparable EBIT decreased year-on-year due to normalising travel demand
Q2 comparable EBIT decreased year-on-year due to normalising travel demand Income statement, in M€ Q2 2024 Q2 2023 Q2 2019 • Finnair’s total revenue increased slightly year- on-year due to higher ancillary and cargo Revenue 766 749 789 revenue. Other operating income 32 28 13 Operating expenses excl
Slide 6: Strong operating cash flow, loan repayments decreased cash funds
Strong operating cash flow, loan repayments decreased cash funds • Positive operating cash flow in -15 a seasonally strong sales 496 quarter. • Investments included fleet 64 maintenance activities. 126 981 -17 -35 8 966 • Proceeds from loans include a -656 new 500 M€ senior unsecured bond. Operating
Slide 7: Equity ratio improved slightly and gearing decreased
Equity ratio improved slightly and gearing decreased compared to year-end 2023 Equity ratio, %: Gearing, %: • Equity ratio increased slightly +0.4 pp -42.6 pp compared to year-end due to higher equity. 192.8 15.6 16.1 153.7 150.3 13.1 • Gearing decreased from year end as a result of strong operating
Slide 8: Customer perception and continuous improvement secure competitiveness
Customer perception and continuous improvement secure competitiveness • Finnair’s team has made right choices in order to increase revenues, manage costs and take advantage of the opportunities offered by the market after pandemic years. • Continuous improvement of competitiveness and profitability
Slide 9: Outlook and guidance
Outlook and guidance Guidance on 19 July 2024: Guidance on 24 April 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 relat
Slide 10: Finnair
FINNAIR
Slide 11: Appendices
Appendices 11
Slide 12: Fuel costs increased with volume, hedges compensated the price
Fuel costs increased with volume, when hedges compensated the risen fuel price Fuel costs Q2/24 vs. Q2/23, M€ +5M€ • Higher capacity increased fuel costs. 14 0 Additionally, increased Asian capacity year-on- 16 year added costs as the closure of Russian airspace in 2022 has increased Asian routings
Slide 13: Revenue increase was driven by higher ancillary and cargo revenue
Revenue increase was driven by higher ancillary and cargo revenue Revenue by product, M€ • Lower consumer confidence is now being reflected also in travel demand, which is normalising after a period of strong +2% demand during 2023. 749 766 • Ancillary revenue increase is mainly related to ticket re
Slide 14: Capacity increase has not yet resulted in higher revenues
Due to normalising demand, the capacity increase has not yet resulted in an increase in our revenues accordingly. The passenger load factor decreased 1.6 %-points Passenger revenue Q2/24 vs Q2/23, M€ Other revenue Q2/24 vs Q2/23, M€ +11% 0% 6 1 11 4 153 137 0 45 -2 33 1 614 612 47 51 -4 0 Ancillary
Slide 15: Q2 comparable EBIT decreased due to normalising demand
Q2 comparable EBIT decreased year-on-year due to normalising demand • Operating expenses 754.9 M€ in total Comparable EBIT Q2/24 vs Q2/23, M€ • Capacity increased +6.4% • Revenue increased +2.3% • Operating expenses +6.2% • Operating expenses excluding fuel +8.1% -23M€ 5 17 66 -5 -5 -2 -12 -9 1 44 -
Slide 16: 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 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 8 6 6.41 6.42 2.57 6.03 6.06 2.54 2.45 2.36 6 2.39 2.29 1.36 1.47 1.51 1.48 4 4 2 5.05 4
Slide 17: Industry standard capacity calculation not reflecting longer routings to Asia
Industry standard capacity calculation is not reflecting longer routings to Asia. Impact on Finnair is greater than on competitors Q2 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 18: Comparable income statement
Comparable income statement in M€ Q2 2024 Q2 2023 Change % Q1-Q2 2024 Q1-Q2 2023 Change % Revenue 766.1 749.2 2.3 1,447.6 1,443.9 0.3 Other operating income 32.4 27.7 17.2 64.9 58.8 10.5 Operating expenses Staff and other crew related costs -130.3 -125.1 -4.2 -260.0 -254.2 -2.3 Fuel costs -224.8 -22
Slide 19: Thank You.
Thank You. Have a wonderful day. Contact us: Finnair IR and financial communications investor.relations@finnair.com
Slide 20: Finnair
FINNAIR