Finnair (FIA1S) Q2 2023 earnings summary

Executive summary

• Strong demand and strategy execution lifted Q2 revenue 36.2% YoY to €749.2m and comparable operating result to €66.2m, versus a loss of €84.2m a year earlier.

• Positive net results continued for a third consecutive quarter; 2.8m passengers travelled in Q2.

• Q2 capacity was 75% of Q2 2019 ASKs on own flights and 78% including wet leases.

Financial highlights

• Q2 revenue was €749.2m; comparable EBIT was €66.2m and reported operating result was €65.8m.

• Q2 result before taxes was €43.6m and result for the period was €138.6m, including a €99m deferred-tax-asset recognition.

• H1 revenue was €1,443.9m and comparable operating result was €67.1m, versus a loss of €217.1m a year earlier.

• Q2 operating cash flow was €175.8m; cash funds were €1,530.6m at quarter-end.

Outlook and guidance

• FY2023 comparable operating result guidance was €150m–€210m; revenue was expected to rise significantly YoY but remain below 2019's €3,097.7m.

• FY capacity guidance remained 80%–85% of 2019 ASKs; comparable operating result was expected to probably reach or exceed the 2019 level of €162.8m.

• The long-term comparable EBIT margin target rose to 6% by end-2025; the prior target of at least 5% from mid-2024 was expected 12–18 months ahead of plan.

• Revenue growth is expected to outpace capacity growth through retailing, loyalty and more efficient fleet use.