Finnair - Significant losses due to COVID-19
Finnair’s Q1’20 adj. EBIT was EUR -91m vs. our expectation of EUR -73m and consensus of EUR -59m. Revenue decreased by 16% and was EUR 561m vs. our expectation of EUR 585m and consensus of EUR 555m.
- Q1 revenue was EUR 561m vs. EUR 585m/555m Evli/cons.
- ASK decreased by 9.4% y/y in Q1. RASK decreased by 7.3% y/y.
- Q1 adj. EBIT was EUR -91m vs. EUR -73m/-59m Evli/cons. Q1 comparable EBITDA was EUR -8.6m vs. EUR 4.5m our view.
- Absolute costs in Q1: Fuel costs were EUR 144m vs. EUR 132m our view. Staff costs were EUR 136m vs. EUR 117m our view. All other OPEX+D&A combined were EUR 386m vs. EUR 425m our view.
- Unit costs: CASK was 6.75 eurocents vs. 6.81 eurocents our view.
- Q1 EPS was EUR -1.14 vs. -0.61/-0.70 Evli/cons.
- Finnair expects that comparable operating loss will be significant in 20E. The company estimates that with the current minimum network, its comparable operating result will be a daily loss of approximately 2 million euros throughout the second quarter, despite cost adjustments.