Finnair - Revenue in line, EBIT missed
Finnair’s Q2 top line was as expected, but EBIT came in below estimates as costs were high especially because of fuel. We also find Finnair’s guidance leaves some downward pressure on H2’22 estimates. Finnair is preparing a new strategy and looks to complete the work on it this autumn.
- Finnair Q2 revenue amounted to EUR 550.3m vs the EUR 548.7m/541.9m Evli/consensus estimates.
- Adjusted EBIT landed at EUR -84.2m, compared to the EUR -41.3m/-56.5m Evli/consensus estimates.
- Fuel costs were EUR 229m vs our EUR 175m estimate. Staff costs were EUR 114m, compared to our EUR 108m estimate. All other OPEX+D&A amounted to EUR 329m, compared to our EUR 355m estimate.
- Cost per Available Seat Kilometer was 8.09 eurocents vs our estimate of 7.52 eurocents.
- Finnair expects to operate an average Q3’22 capacity of some 70%, in terms of ASK, relative to the corresponding period in 2019. Capacity in Q4 will be similar or slightly higher than in Q3. (We find these would imply levels slightly below our estimates for ASK). Leases would bring the total capacity deployed to more than 80% in Q3 and some 80-85% in Q4. The 2022 comparable operating result will remain significantly negative. Finnair is preparing a new strategy and aims to complete the work during the autumn of 2022.