Finnair (FIA1S) Q1 2025 earnings summary

Executive summary

• Q1 2025 performance was negatively impacted by industrial action and increased costs, resulting in a comparable operating result of -€62.6 million, with a €22 million hit from strikes.

• Revenue grew 1.9% year-over-year to €694.2 million, mainly due to ancillary revenue growth, while passenger revenue was pressured by lower ticket fares and compensation costs.

• Operating cash flow remained strong at €192.1 million, up 38% from the previous year, supported by robust ticket sales and unflown ticket liabilities.

• Passenger numbers increased 2.6% to 2.64 million, and ASK rose 2.3%, though ticket fares declined by 4.6%.

• Guidance for 2025 is unchanged, but uncertainty remains due to ongoing labor disputes and global risks.

Financial highlights

• Comparable operating result was -€62.6 million (vs. -€11.6 million Q1 2024), with industrial action accounting for a €22 million negative impact.

• Revenue increased by 1.9% year-over-year to €694.2 million, with ancillary sales up 19% and cargo business up 8%.

• Operating expenses rose 8.4%, mainly due to industrial action, higher traffic charges, and sustainability costs.

• Unit cost (CASK) excluding fuel rose 10% to 5.95 €c; unit revenue (RASK) declined 0.4% to 7.61 €c.

• Net result for the period was -€50.8 million, compared to -€29.9 million a year earlier.

Outlook and guidance

• 2025 guidance unchanged: planned ASK capacity increase of ~10%, revenue €3.3–3.4 billion, and comparable operating result €100–200 million, excluding industrial action.

• Industrial action in Q1 had a €31 million negative revenue impact and €22 million operating result hit; further impacts expected in Q2 and summer.

• Profitability in 2025 will be burdened by EU sustainable aviation fuel mandates and increased navigation and landing charges.

• Outlook and guidance will be updated with the half-year report in July.