Finnair (FIA1S) investor relations material

Executive summary

• Q2 2025 revenue grew 2.8% to €787.7M, but industrial action led to over 1,300 flight cancellations, affecting 100,000 passengers and causing a direct €29M negative impact on operating result.

• Comparable operating result dropped to €10.3M from €43.6M year-over-year, with cumulative industrial action impact estimated at €70M for the year.

• Customer satisfaction declined, with NPS dropping to 28 from 39 year-over-year.

• All collective labor agreements have been concluded, stabilizing operations and reducing strike risk until at least 2027.

• 94% of flights still operated as planned despite disruptions.

Financial highlights

• Q2 revenue: €787.7M (+2.8% YoY); comparable operating result: €10.3M (down from €43.6M); result for the period: €12M (down from €18M YoY).

• Ancillary sales increased by 11.5% year-over-year; cargo business remained flat in Q2.

• Operating expenses rose by 5.8% due to industrial action and price escalations; fuel costs increased despite lower prices, driven by higher capacity and SAF mandate costs.

• Equity ratio declined to 15.6% and gearing rose to 151.7% due to negative result and shareholder distributions.

• Cash position remains solid at €767M, supported by a €200M revolving credit facility.

Outlook and guidance

• 2025 capacity (ASK) planned to increase ~10% excluding industrial action; with direct impacts, growth is ~5%.

• 2025 revenue guidance: €3.2–3.3B (including industrial action impact); comparable operating result expected at lower end of €30–130M range.

• Profitability pressured by SAF costs, higher navigation/landing charges, and weak North Atlantic demand.

• Estimated €20M negative impact for Q3 from industrial actions; direct 2025 impact estimated at €100M revenue, €70M operating result, and 5% ASK.

• Focus is on stabilizing operations and regaining customer trust in H2.