Finnair (FIA1S) Q1 2022 earnings summary

Executive summary

• Q1 revenue rose 252.1% YoY to €399.8m as travel rebounded; comparable operating loss narrowed to €132.9m from €143.2m.

• Omicron, Russia’s airspace closure and higher fuel prices weighed on demand, costs and route economics.

Financial highlights

• Revenue was €399.8m versus €113.6m; reported operating loss was €164.9m, loss before tax €212m and net loss €212.8m.

• Comparable EBITDA was -€54.1m versus -€60.9m; comparable operating loss was -€132.9m versus -€143.2m.

• Passenger revenue rose 427.3% to €227.6m, cargo revenue rose 97.8% to €120.5m and travel services revenue increased to €25.0m.

• Net loss included a €32.7m impairment of four owned A330 aircraft; financial expenses rose to €47m, mainly due to exchange-rate movements on USD debt.

Outlook and guidance

• Q2 comparable operating result was expected to improve from Q1 and be similar to Q4 2021’s -€65m, supported by recovering demand but constrained by fuel costs and low North Asia traffic.

• Q2–Q3 summer capacity was forecast at ~70% of 2019 ASK; wet leases to other airlines would raise capacity in use to nearly 80%.

• Q3 demand was expected to approach pre-pandemic levels in Europe, North America and South Asia; guidance was to be updated with the H1 report.

• 2022 estimated capital expenditure cash flow, including fixed-asset investments and advances, was ~€173m.