Finnair (FIA1S) Q3 2024 earnings summary

Executive summary

• Q3 2024 comparable EBIT declined to €71.5M from €94.3M year-over-year due to lower unit revenue and ticket prices, despite a 9% increase in passenger numbers and capacity; total revenue remained flat at €818.3M.

• Ancillary revenue grew 26% and cargo revenue rose 29%, offsetting some passenger revenue decline from a 9% ticket price drop.

• Load factor was 79.5%, down 1.4–1.5 percentage points year-over-year, with improvements in North Atlantic but declines in Europe, Middle East, and domestic routes.

• On-time performance dropped to 77% due to European airspace and air traffic control restrictions.

• Operating cash flow improved to €99M, supporting bond buybacks and strengthening the balance sheet.

Financial highlights

• Comparable EBIT margin fell to 8.7% from 11.5% year-over-year; net result for the period was €57.4M, up 9.4% year-over-year.

• RASK (unit revenue) dropped 8–8.2% to 8.03 € cents; CASK (unit cost) fell to 7.32 € cents (–5.3% YoY).

• Cash costs were 5.2 percentage points below last year, and financial expenses reduced by €10M.

• Cash funds at €908M at quarter-end; equity ratio improved to 16.1%, gearing reduced to 143.2%.

• Q3 EPS: €0.28 (–45.1% YoY); Q3 comparable EBITDA margin: 18.7% (–3.0pp YoY).

Outlook and guidance

• Full-year 2024 revenue expected at €3.0–3.2B; comparable EBIT guidance narrowed to €120–170M.

• Capacity (ASKs) to increase by ~10% in 2024, focused on Asia and Europe.

• Unflown ticket liability is 20% higher year-over-year, indicating a busier winter quarter ahead.

• Q4 yield and load factor comparisons expected to be easier due to last year's normalization.

• Updated climate target: reduce emission intensity (CO2e/RTK) by 34.5% by 2033 from 2023 baseline.