Finnair - Earnings above expectations
Finnair’s Q4’19 adj. EBIT was EUR 31.2m vs. our expectation of EUR 8.2m and consensus of EUR 9.0m. Revenue was EUR 775m vs. our expectation of EUR 740m and consensus of EUR 744m.
• Q4 revenue was EUR 774.9m vs. EUR 740m/744m Evli/cons.
• ASK increased by 10.6% in Q4. RASK increased by 2.5% y/y.
• Q4 adj. EBIT was EUR 31.2m vs. EUR 8.2m/9.0m Evli/cons. Q4 comparable EBITDA was EUR 120.7m vs. EUR 89.7m our view.
• Absolute costs in Q4: Fuel costs were EUR 171m vs. EUR 171m our view. Staff costs were EUR 136m vs. EUR 133m our view. All other OPEX+D&A combined were EUR 451m vs. EUR 447m our view.
• Unit costs: CASK was 6.42 eurocents vs. 6.31 eurocents our view.
• Q4 EPS was EUR 0.17 vs. -0.14/-0.12 Evli/cons.
• 2019 dividend: EUR 0.20 vs. 0.11/0.10 Evli/cons.
• Finnair expects capacity increase of ~4% in 2020 but due to the coronavirus the company does not provide a full year revenue estimate.