Finnair (FIA1S) Q4 2024 earnings summary

Executive summary

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

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

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

• Industrial action and pension fund indexation negatively impacted results, with Q4 net result at -€8.4M and full-year at €37.0M.

• Strong cash flow from operations and improved equity ratio; gearing reduced to 154.8% from 192.8%.

Financial highlights

• Q4 comparable operating result: €47.9M (Q4 2023: €22.5M); full-year: €151.4M (2023: €184.0M).

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

• Passenger load factor in Q4 reached 76.4%, up 3.3 percentage points year-over-year.

• Ancillary revenue in Q4 rose by close to 20%, exceeding €50M; cargo revenue grew by nearly 10% to €55M.

• Cash funds at year-end: €884.0M; equity ratio: 16.9%.

Outlook and guidance

• 2025 capacity (ASKs) to increase about 10%, mainly from aircraft returning from wet lease and new A350 delivery.

• Revenue guidance for 2025 is €3.3–3.4B, with comparable operating result of €100–200M.

• Additional costs anticipated in 2025 from sustainable aviation fuel mandates and rising navigation/landing charges.

• Guidance excludes impacts from ongoing industrial action; January 2025 cost estimated at €5M.

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