Finnair (FIA1S) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered record profitability, with revenue up 0.8% to €789.5M and comparable operating result up 28.9% to €61.7M, driven by strong demand in Asia and Europe, effective cost management, and operational execution despite higher regulatory and environmental costs.

• Full-year comparable EBIT reached €60.1M, rebounding after a challenging first half impacted by industrial action and disruptions, with direct costs of €68M.

• Customer satisfaction (NPS) recovered to 33 in Q4, with a 2% YoY increase in passenger numbers and top-tier frequent flyers trending above 40.

• Issued a €300M bond before year-end, reflecting restored stakeholder confidence and supporting strategy execution.

• The year began with industrial action but ended with a strong turnaround in performance.

Financial highlights

• Q4 comparable operating profit was €61.7M, up 28.9% YoY, marking the strongest Q4 on record.

• Full-year revenue grew 1.9% to €3,106.2M, with ancillary revenue exceeding €50M in Q4 and rising 10.3% to €200.4M for the year.

• Unflown ticket liability increased by 7% YoY, indicating strong forward sales.

• Fuel costs decreased by €14.5M due to favorable currency and hedging, offset by higher sustainability and navigation costs (each >€10M per quarter).

• Cash funds rose to €1,061M, supported by the €300M bond issue; equity ratio improved to 17.3%, and gearing declined to 116.3%.

Outlook and guidance

• 2026 ASK capacity expected to grow by approximately 5% over 2025 actuals, including wet leases.

• Revenue guidance for 2026 set at €3.3–3.4B; comparable operating result expected between €120–190M.

• CapEx for 2026 guided at €400–500M, with a focus on fleet, digitalization, and technology investments.

• Board proposes a €0.09/share capital return, subject to AGM approval, to be paid in two instalments.

• Profitability remains sensitive to fuel prices and exchange rates; a 10% change in fuel prices impacts operating result by €34M.