Finnair - More challenges than expected
Finnair’s Q2 revenue fell a bit short of estimates as ticket prices developed slightly softer than estimated. The EUR 10m comparable EBIT missed estimates by about EUR 20m as Finnair updated its estimates regarding the effects of industrial action and North Atlantic routes’ demand.
- Finnair Q2 revenue grew by 2.8% y/y to EUR 787.7m, compared to the EUR 803.4m/800.0m Evli/consensus estimates. Passenger revenue increased by 2.2% from the comparison period.
- Comparable EBIT landed at EUR 10.3m vs the EUR 32.7m/30.3m Evli/consensus estimates. Industrial action had a direct negative impact of some EUR 29m on the result.
- North American traffic grew significantly, but according to Finnair the rate was more moderate than expected, while average ticket fares in the area declined.
- Fuel costs amounted to EUR 228m, compared to our EUR 226m estimate, while staff costs were EUR 132m vs our EUR 137m estimate. All other OPEX+D&A were EUR 439m vs our EUR 437m estimate.
- Cost per Available Seat Kilometer was 7.62 eurocents, compared to our estimate of 7.55 eurocents.
- Finnair guides FY’25 revenue to be within the range of EUR 3.2-3.3bn and comparable EBIT of EUR 30-130m, reflecting the new estimates regarding the negative effect of industrial action on results. Finnair left its guidance intact excluding the effects of industrial action. Finnair however estimates that EBIT will be closer to the lower end of the given range, due to weaker-than-expected demand in the North Atlantic traffic and the indirect effects of industrial action on demand in broader terms.