Finnair Oyj · OMXHEX:FIA1S
Finnair Oyj — Q1 2025 Earnings Presentation
22 slides from Finnair Oyj's earnings presentation, Apr 29, 2025
Slide 1: Finnair
FINNAIR
Slide 2: Industrial action and increased costs weighed on the seasonally weak Q1 result
Industrial action and increased costs weighed on the seasonally weak Q1 result as anticipated 29 April 2025 Turkka Kuusisto, Finnair
Slide 3: Despite the weak result, operating cash flow was strong
Despite the weak result, operating cash flow was strong • Revenue increased by 1.9% to 694.2 million euros • Comparable operating result was -62.6 million euros (-11.6) – impact of industrial action around -22 million euros • Net cash flow from operating activities was 192.1 million euros (138.9) •
Slide 4: Good development in North Atlantic and Asia – unit revenue declined in other traffic areas
Good development in North Atlantic and Asia – unit revenue declined in other traffic areas Europe Total Change% Domestic North Atlantic ASK (million) 3,530.0 11.9 Total Change% Total Change% Revenue (M€) 216.2 3.8 ASK (million) 583.6 5.0 ASK (million) 1,033.7 16.4 RASK (€c) 6.12 -7.3 Revenue (M€) 55
Slide 5: Comparable operating result was clearly negative due to industrial action and increased costs
Comparable operating result was clearly negative due to industrial action and increased costs Q1 Q1 • Revenue increased by 1.9% mainly thanks to growth in ancillary Income statement, in M€ 2025 2024 revenue – passenger revenue negatively impacted by a decline in Revenue 694 681 Other operating incom
Slide 6: Industrial action had a direct result impact of around -22 million euros
Industrial action had a direct result impact of around -22 million euros Comparable operating result, M€ -12 ca. -10 ca. -10 -41 -22 -63 Q1 Increase in landing Increase in sustainable Other Q1 Industrial action Q1 and navigation aviation fuel and 2024 prices in Europe emissions trading costs 2025 20
Slide 7: Collective labour agreement negotiations underway
Collective labour agreement negotiations underway • We have been negotiating collective labour agreements with all our major personnel groups • Negotiation results with salaried employees as well as engineers and senior staff approved • Negotiations with the Finnish Aviation Union and the Finnish Ca
Slide 8: Both equity ratio and gearing declined
Both equity ratio and gearing declined Equity ratio % Gearing % • Equity ratio declined due to the negative result and return of -2.1pp -7.9pp capital 177.0 16.9 154.8 146.9 15.3 14.7 • Gearing declined, thanks to lower interest-bearing net debt Q1 Q4 Q1 Q1 Q4 Q1 2024 2024 2025 2024 2024 2025 8
Slide 9: Strong operating cash flow – cash funds at a good level
Strong operating cash flow – cash funds at a good level Cash funds, M€ +34 196 • Operating cash flow increased by 38%, supported by strong flight ticket sales -27 0 -52 • Loan repayments totalled c. 56 M€, including 23 918 repayments of JOLCO and ECA loans 884 -97 -9 • A revolving credit facility of
Slide 10: Strategy implementation continued
Strategy implementation continued • We made improvements to services provided to frequently flying customers • We continued preparations for the partial renewal of our narrow-body fleet • The number of users of the Finnair mobile application increased by 3.2% • Share of modern channels grew to 72.8%
Slide 11: Outlook and guidance unchanged
Outlook and guidance unchanged Global air traffic is expected to continue growing in 2025. However, international conflicts, global political instability, t he threat of trade wars and a tense labour market situation in Finland cause uncertainty in the operating environment. In particular, the risk
Slide 12: Finnair
FINNAIR
Slide 13: Appendices
Appendices
Slide 14: Comparable operating result declined due to industrial action and increased costs
Comparable operating result declined due to industrial action and increased costs • Operating expenses 786.5M€ Comparable operating result, M€ • Capacity +2.3% • Revenue +1.9% • Operating expenses +8.4% • Operating expenses excluding fuel +11.2% -51 13 -3 -12 -10 -3 -6 -10 -13 -2 -11 -1 -3 -63 Q1 20
Slide 15: Revenue increased, mainly thanks to growth in ancillary revenue
Revenue increased, mainly thanks to growth in ancillary revenue • Market demand improved, driven by strong growth in long-haul Revenue by product, M€ demand, but average ticket fares per revenue passenger kilometre +2% declined, and passenger revenue remained at the level of the comparison period 68
Slide 16: Decline in passenger revenue in the Middle East due to contraction of cooperation with Qatar Airways
Decline in passenger revenue in the Middle East was due to the contraction of cooperation with Qatar Airways in January Passenger revenue, M€ Other revenue, M€ 0% +10% 8 7 4 3 156 10 142 17 45 37 -20 -3 539 538 46 50 -13 Ancillary revenue Cargo 58 Travel services 61 Q1 2024 Asia North Europe Middle
Slide 17: Fuel costs increased despite the decline in fuel price
Fuel costs increased, despite the decline in fuel price partly offsetting the impact of increased costs related to the SAF mandate and emissions trading Fuel costs, M€ +3 2 5 213 • Higher capacity increased fuel costs 210 12 slightly 9 • Costs related to the sustainable aviation fuel (SAF) mandate a
Slide 18: Unit revenue declined, but unit cost increased
Unit revenue declined, but unit cost increased RASK development, € cents CASK development, € cents 12 12 Fuel 8.75 CASK excl. fuel 8.13 8.13 8.04 8.03 8.38 8.11 8.29 7.64 7.82 7.61 7.74 7.79 7.77 7.87 8 8 7.41 7.37 7.32 2.57 2.34 2.34 2.39 2.54 2.45 2.36 2.29 2.35 4 4 5.55 5.19 5.33 5.41 5.08 5.53 5
Slide 19: Industry standard capacity calculation does not reflect longer routings to Asia
Industry standard capacity calculation does not reflect longer routings to Asia – impact on Finnair greater than on competitors Q1 2025 available seat kilometres (ASK), million: • Great circle distance (GCKM) - Total based figures do not reflect the longer Asia routings caused by the ~15% Far East c
Slide 20: Comparable income statement
Comparable income statement M€ Q1 2025 Q1 2024 Change % Revenue 694.2 681.5 1.9 Other operating income 29.8 32.5 -8.4 Operating expenses Staff and other crew related costs -140.0 -129.7 -8.0 Fuel costs -213.5 -210.2 -1.6 Capacity rents -33.5 -27.2 -23.1 Aircraft materials and overhaul -60.0 -49.5 -2
Slide 21: Thank you.
Thank you. Have a wonderful day. Contact us: Finnair Investor Relations investor.relations@finnair.com
Slide 22: Finnair
FINNAIR