Finnair (FIA1S) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 2.8% to €787.7 million, but industrial actions led to over 1,300 flight cancellations, affecting 100,000 passengers and causing a sharp drop in comparable operating result to €10.3 million from €43.6 million year-over-year.

• Direct negative impact from industrial actions is estimated at €29 million in Q2 and €70 million for the full year, with customer satisfaction declining as NPS dropped to 28 from 39.

• 94% of flights still operated as planned despite disruptions, and passenger numbers increased 3.1% in Q2.

• All collective labor agreements have been concluded, including salary increases, stabilizing operations for the remainder of the year.

• Net cash flow from operating activities was €43.7 million in Q2, with cash funds at €767 million at quarter end.

Financial highlights

• Q2 revenue: €787.7 million (+2.8% YoY); comparable operating result: €10.3 million (down from €43.6 million); result for the period: €12 million (down from €18 million).

• Operating expenses rose by 5.8% due to industrial action and price escalations; fuel costs increased despite lower prices, driven by higher capacity and SAF mandate costs.

• Ancillary sales increased by 11.5%, now matching cargo business revenue.

• Q2 comparable operating margin: 1.3% (down from 5.7%); Q2 CASK: 7.62 cents/ASK (+3.3% YoY); Q2 EPS: €0.06 (down from €0.09).

• Cash position remains solid, with a €200 million revolving credit facility available.

Outlook and guidance

• 2025 capacity (ASK) planned to increase ~10% excluding industrial action; with direct impacts, growth is ~5%.

• 2025 revenue guidance: €3.2–3.3 billion (including industrial action impact); comparable operating result expected at lower end of €30–130 million range.

• Profitability is expected to be at the lower end of the guidance range due to weaker North Atlantic demand, SAF distribution obligation, and higher navigation/landing charges.

• Direct negative impact of industrial action in 2025 estimated at €100 million revenue, €70 million operating result, and 5% ASK.

• Global air traffic is expected to grow in 2025, but risks from international conflicts and trade wars remain elevated.