Slide 1: Finnair
FINNAIR
Slide 2: Q1 2024: Yields and operative cash flow remained at a good level
Q1 2024: Yields and operative cash flow remained at a good level. Strikes had a negative impact on revenue and result 23 April 2024 Jaakko Schildt, Finnair
Slide 3: Revenue decreased slightly despite increased capacity, cost control continued
Revenue decreased slightly despite increased capacity, cost control continued • Revenue decreased by 1.9% year-on-year. • Operating expenses remained on par with the previous year due to cost efficiency actions, although capacity increased by 4.4%. • Comparable EBIT -12M€ due to seasonality, net res
Slide 4: Strategy implementation continued
Strategy implementation continued • A new era started in Finnair Plus programme as Avios adopted to loyalty currency, new benefits for customers and the programme became spend based. • Another A330 transferred to Qantas. Total A330 fleet now in productive use. • At the end of the quarter, aircraft r
Slide 5: Q1 comparable EBIT decreased year-on-year in seasonally weakest quarter
Q1 comparable EBIT decreased year-on-year in seasonally weakest quarter of the year Income statement, in M€ Q1 2024 Q1 2023 Q1 2019 • Revenue decrease was caused by strikes, lower load factor, normalised level of revenue Revenue 681 695 668 recognition related to expired tickets and lower Other oper
Slide 6: Cash funds increased driven by strong operating cash flow
Cash funds increased driven by strong operating cash flow +59 81 • Positive operative cash flow in a seasonally strong sales -13 quarter. 71 -32 -10 15 981 • Sold but unflown tickets 26 922 -52 M€ higher year-on-year. • Investments included normal Operating fleet maintenance activities. cash flow 13
Slide 7: Equity ratio remained stable and gearing decreased compared to year end 2023
Equity ratio remained stable and gearing decreased compared to year end 2023 Equity ratio, %: Gearing, %: • Equity ratio remained stable -0.3 pp compared to year end despite -15.8 pp negative net result for the period. 15.6 15.3 238.4 192.8 177.0 • Gearing decreased from year end 9.6 as a result of
Slide 8: Preparing for busy summer season
Preparing for busy summer season • Extensive network, new destinations: Wroclaw and Tartu. • Improving customer experience: • Wide-body fleet cabin renewal will be completed by summer. • New Schengen Lounge to be completed during the summer. • New recruitments for the needs of the busy summer season
Slide 9: Outlook and guidance
Outlook and guidance New guidance on 23 April 2024: Guidance on 14 February 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 dema
Slide 10: Finnair
FINNAIR
Slide 11: Appendices
Appendices 11
Slide 12: Fuel costs decreased with lower fuel price and weaker dollar
Fuel costs decreased with lower fuel price and weaker dollar despite increased volume Fuel costs Q1/24 vs. Q1/23, M€ -9M€ • Increased Asian capacity year-on—year 13 added costs as the closure of Russian 220 210 -8 -2 -12 airspace in 2022 has increased Asian routings up to 40%. • Fuel price decreased
Slide 13: Revenue decreased year-on-year due to lower passenger and cargo revenue
Revenue decreased year-on-year due to lower passenger and cargo revenue • Despite increased capacity, passenger revenue decreased due to strikes, lower load factor Revenue by product, M€ and normalized revenue recognition related to expired tickets. -2% • Ancillary revenue growth significantly outpa
Slide 14: Passenger revenue decreased in almost all traffic areas
Passenger revenue decreased in almost all traffic areas. Cargo revenue declined due to lower yields Passenger revenue Q1/24 vs Q1/23, M€ Other revenue Q1/24 vs Q1/23, M€ -3% +1% 553 141 4 4 142 -1 33 -7 37 -3 -3 1 539 53 46 -4 -4 Ancillary revenue Cargo 55 58 Travel services Q1 2023 Asia North Europ
Slide 15: Q1 comparable EBIT decreased year-on-year due to lower revenue
Q1 comparable EBIT decreased year-on-year due to lower revenue despite increased capacity • Operating expenses 725.6M€ in total Comparable EBIT Q1/24 vs Q1/23, M€ • Capacity increased +4.4% • Revenue decreased -1.9% • Operating expenses +0.1% • Operating expenses excluding fuel +2.0% -12M€ 1 9 0 0 1
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 8 7.64 10 6.86 CASK excl fuel 6.41 6.69 8.11 7.74 7.79 7.77 6.26 8 7.41 6 6.41 6.42 2.57 6.03 6.06 2.54 2.45 2.36 6 2.39 1.36 1.47 1.51 1.48 4 4 2 5.05 4.94 5.55 5.02 5
Slide 17: Industry standard capacity calculation is 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. Q1 2024 Available seat kilometres (ASK), million: • Great circle distance (GCKM) - based figures do not reflect the Total longer Asia routings, caused by ~15% the closu
Slide 18: Comparable income statement
Comparable income statement in M€ Q1 2024 Q1 2023 Change % Revenue 681.5 694.7 -1.9 Other operating income 32.5 31.1 4.4 Operating expenses Staff and other crew related costs -129.7 -129.1 -0.4 Fuel costs -210.2 -219.6 4.3 Capacity rents -27.2 -26.8 -1.6 Aircraft materials and overhaul -49.5 -49.6 0
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