Finnair (FIA1S) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue rose 7.7% year-over-year to €782.9m, with comparable operating result more than doubling to €47.9m; full-year revenue up 2.0% to €3,048.8m and comparable operating result at €151.4m, down from €184.0m.

• Board proposes a return of capital of €0.11 per share, the first distribution since the crisis years, reflecting strong cash flow and financial position.

• Passenger numbers increased 9.1% in Q4 and 6.1% for the year; ancillary revenue grew 23% year-over-year.

• Industrial action and pension fund indexation negatively impacted results, with Q4 result for the period at -€8.4m and full-year at €37.0m.

• Strategy process initiated, focusing on customer centricity and fleet renewal, with updates expected in the coming months.

Financial highlights

• Q4 comparable operating result: €47.9m (Q4 2023: €22.5m); operating result: €12.1m (Q4 2023: €27.3m).

• Q4 net cash flow from operating activities: €201.8m; full-year: €612.7m.

• Passenger numbers grew 9.1% to 2.8m in Q4; capacity (ASK) up 3.3%.

• Ancillary revenue grew nearly 20% in Q4, exceeding €50m; cargo revenue up nearly 10% to €55m.

• Load factor in Q4 rose to 76.4%, up 3.3 percentage points year-over-year.

Outlook and guidance

• 2025 capacity (ASKs) to increase ~10%, focusing on North Atlantic; revenue expected at €3.3–3.4bn, comparable operating result €100–200m.

• Profitability in 2025 to be burdened by sustainable aviation fuel obligations, higher navigation/landing charges, and timing of Easter.

• Guidance excludes impacts from ongoing industrial action; Q1 2025 expected to be seasonally weak.

• Risks remain elevated due to inflation, interest rates, international conflicts, and labor market tensions.