Finnair (FIA1S) Q2 2021 earnings summary

Executive summary

• Q2 operations averaged ~70 flights per day; passenger numbers edged above Q1 and NPS reached 45.

• COVID-19 restrictions constrained travel; gradual recovery was expected first in Europe and North America, with Asia lagging and traffic at 2019 levels no earlier than 2023.

Financial highlights

• Q2 revenue rose 63.0% YoY to €111.8m; comparable operating loss narrowed to €151.3m from €174.3m, and comparable EBITDA loss to €70.0m from €89.2m.

• Q2 reported operating loss was €139.1m versus €171.2m; net loss was €120.1m versus €172.1m, and diluted EPS was -€0.09 versus -€0.25.

• H1 revenue fell 64.2% YoY to €225.4m; comparable operating loss was €294.5m versus €265.4m, net loss €265.5m versus €314.6m, and comparable EBITDA -€130.9m versus -€97.8m.

• Q2 fuel expense fell to €30.8m from €33.2m as lower operating volume and currency effects offset higher fuel prices.

Outlook and guidance

• Demand was expected to recover gradually in autumn 2021 as restrictions eased; monthly operational cash flow was expected to turn positive by year-end.

• Q3 comparable operating loss was expected to be similar to the preceding five quarters, despite gradual revenue growth, due to restrictions and costs of increasing traffic.

• No FY2021 revenue guidance was issued amid pandemic uncertainty; traffic at 2019 levels was expected no earlier than 2023.

• Permanent annual savings target increased to €200m from €170m, measured at 2019 operating volumes and targeted from early 2022.