Finnair Oyj (FNNNF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good day, ladies and gentlemen. I'm Erkka Salonen from Finnair Investor Relations, and it's my pleasure to welcome you all to this Finnair's first quarter 2025 earnings call. I have here with me Finnair's CEO, Mr. Turkkakuusisto, and he's joined by our CFO, Mr. Kristian Pullala, for the Q&A session. I will now turn this call over to you, Turkk. Please, go ahead. Thank you, Erkka, and also very good afternoon from my behalf. We had a weak start for the fiscal year of 2025 and in many ways it was expected when it comes to the increased cost profile we anticipated when we opened the fiscal year and also when we communicated the full year result in mid-February. The expected increase in cost of environmental compliance by some 10 million euros combined with the increasing traffic and landing charges hit especially the seasonally weak first quarter of the year. But on top of that, we did face a 22 million euro hit from the industrial action of the pilot union. And that is a combination of multiple factors, EU compensations, reroutings, hotel accommodation, and other costs related to disruptions and lost revenue. So all in all, that on top of the so-called operational result, the comparable operating result was below 60 million euros. But despite the weak result, the operating cash flow was relatively strong. That indicates that the booking of tickets and the accumulation of the sales towards the most important season, being the summer season, is developing favorably. Our unflown ticket liability was some €150 million higher than it was at the end of the year. And also, if you compare that to the closing of Q1 in 2024, we see also some of it €150 million positive delta. The number of passengers increased by some 2.6%, while the ASK increased by 2.3%, and that again was inf...