Finnair - Q2 result below our estimates
Finnair’s Q2’19 adj. EBIT was EUR 47m vs. our expectation of EUR 65m and consensus of EUR 62m. Sales was EUR 793m. Finnair’s Q2 number of passengers rose to a new Q2 record and the company’s market share strengthened in both Asian and European markets. The growth development of cargo and travel services was not as favorable in Q2. Finnair issued its guidance for 2019E. The company expects capacity growth of 11-12% and revenue to grow at a somewhat slower pace than capacity in 2019. Finnair expects its EBIT% to be between 4.5%-6.0% in 2019.
- Q2 revenue was EUR 793m vs. EUR 806m/799m Evli/cons.
- ASK grew by 14.8% in Q2. RASK growth decreased by 3.8%.
- Q2 adj. EBIT was EUR 47 m vs. EUR 65m/62m Evli/cons. This was impacted by a EUR 13m increase in fuel price and exceptionally higher maintenance costs.
- Q2 comparable EBITDA was EUR 126m vs. EUR 143m our view.
- Absolute costs in Q2: Fuel costs were EUR 181m vs. EUR 174m our view. Staff costs were EUR 137 m vs. EUR 137m our view. All other OPEX combined were EUR 441m vs. EUR 370m our view.
- Unit costs: CASK was 6.06 eurocents vs. 6.02 our view while CASK ex fuel was 4.59 eurocents vs. our view of 4.61