Finnair - No big surprises
Finnair’s Q1 results landed very close to estimates. The report does not appear to contain any major surprises as demand continues to improve while Finnair also works on deploying some of its current capacity through leases and sales.
- Q1 revenue was EUR 399.8m, compared to the EUR 396.6m/390.9m Evli/consensus estimates.
- Adjusted EBIT amounted to EUR -132.9m vs the EUR -128.2m/-141.4m Evli/consensus estimates.
- Fuel costs were EUR 137m, compared to our EUR 115m estimate. Staff costs were EUR 102m vs our EUR 89m estimate. All other OPEX+D&A amounted to EUR 310m vs our EUR 333m estimate.
- Cost per Available Seat Kilometer was 7.70 eurocents vs our estimate of 7.59 eurocents.
- Finnair sees Q2’22 adjusted EBIT around the same level as that of Q4’21 (EUR -65m). Finnair expects to deploy, in the summer season of Q2 and Q3 this year, approximately 70% of the ASK it did during the comparison period of 2019. Leases to other airlines will raise the figure to almost 80%. The company also sees Q3 demand to be close to the pre-pandemic times in Europe, North America and South Asia (India, Singapore and Thailand).
- Finnair seeks to find EUR 60m in additional permanent cost savings on top of the already achieved EUR 200m.