Finnair (FIA1S) Q1 2021 earnings summary

Executive summary

• Travel restrictions kept passenger demand and flying severely depressed; cargo remained strong and supported Q1 revenue.

• Revenue fell 79.8% YoY to €113.6m, comparable operating loss widened to €143.2m, and net loss was €145.4m.

Financial highlights

• Comparable EBITDA was -€60.9m versus -€8.6m; reported operating loss was €149.1m versus €95.6m.

• Comparable operating loss was €143.2m versus €91.1m; pretax loss was €181.7m versus €178.2m.

• Operating expenses included in adjusted operating result fell 60.1% to €265.6m as capacity declined 87.6%; depreciation and impairment were €82.3m.

• Operating cash flow was -€117.7m, investing cash flow €5.2m and financing cash flow -€46.1m.

Outlook and guidance

• Q2 comparable operating loss was expected to be similar in magnitude to losses in each of the preceding four quarters; operations were to continue with a limited network.

• Demand was expected to recover gradually in Q3, with weak visibility; no FY 2021 revenue guidance was issued.

• The summer schedule planned service to more than 60 destinations, with flights adjusted as restrictions and demand evolved.

• 2019 capacity, measured in available seat kilometres, was expected to be reached in 2023; 2021 investment cash flow was estimated at ~€141m.