Finnair (FIA1S) Q4 2023 earnings summary

Executive summary

• Q4 revenue rose 5.8% YoY to €727.2m; comparable EBIT was €22.5m and net result €60.2m, the fifth consecutive profitable quarter.

• FY revenue grew 26.8% to €2,988.5m; comparable EBIT reached €184.0m from a €163.9m loss, and net result was €254.3m.

• Strong demand, capacity growth, cost actions and a €570m rights issue supported the recovery and strengthened the balance sheet.

Financial highlights

• Q4 comparable EBITDA was €106.9m, up 7.8% YoY; comparable operating result rose 25.6% to €22.5m.

• FY comparable EBITDA was €516.5m versus €153.2m in 2022; operating result was €191.4m versus a €200.6m loss.

• Q4 operating result was €27.3m, result before taxes €16.4m and income tax benefit €43.8m; FY income tax benefit was €135.2m.

• FY operating cash flow was €472.3m; investing cash flow was -€464.0m and gross capital expenditure was €484.2m.

• Q4 operating expenses rose 4.2% to €736.1m as revenue increased 5.8%; fuel costs fell 2.6% to €222.0m.

Outlook and guidance

• 2024 capacity is planned to grow by more than 10%, including agreed wet leases, mainly in Asia and Europe; revenue is expected to grow more slowly than capacity.

• Global air traffic is expected to grow in 2024; inflation, higher interest rates, conflicts and political instability create demand and cost uncertainty.

• Outlook and guidance were due for an update with the Q1 2024 interim report; FY comparable EBIT guidance is scheduled with the July half-year report.

• Strategy targets include a 6% comparable operating profit margin and net debt of 1–2x comparable EBITDA by end-2025; shareholder distributions are targeted to resume from 2025.