Finnair (FIA1S) Q2 2024 earnings summary

Executive summary

• Revenue increased 2–2.3% year-over-year to €766.1m in Q2 2024, driven by strong ancillary and cargo sales, while passenger revenue remained nearly flat as demand normalized.

• Comparable EBIT declined to €43.6m from €66.2m in Q2 2023, reflecting lower yields and unit revenues as well as a decrease in passenger load factor.

• Passenger numbers rose 5–5.4% to 3 million in Q2, with ASK up 6% as previously wet-leased aircraft returned to own use.

• Strategic focus remains on competitiveness, profitability, and customer experience, highlighted by a completed €200m wide-body cabin renewal and new Schengen lounge.

• CEO transition completed in April 2024.

Financial highlights

• Q2 revenue: €766.1m (+2–2.3% y/y); Q2 comparable EBIT: €43.6m (down from €66.2m); Q2 comparable EBIT margin: 5.7% (down from 8.8%).

• Operating cash flow was strong at €173m for the quarter; cash funds at end of June: €966.3m.

• Gearing ratio decreased to 150.3% (down from 192.8% at 2023 year-end); equity ratio improved to 16.1%.

• Unit revenue (RASK) fell to 7.82 € cents; unit cost (CASK) declined to 7.37 € cents year-over-year.

• Cash position near €1bn at quarter-end, with an additional €200m revolving credit facility available.

Outlook and guidance

• Capacity (ASK) expected to increase by approximately 10% in 2024, mainly in Asia and Europe, including wet lease arrangements.

• Revenue guidance for 2024 set at €3.0–3.2bn; comparable EBIT guidance at €110–180m.

• Guidance will be updated with the Q3 report; risks remain from inflation, interest rates, geopolitical instability, and airspace closures.