Wednesday, February 14, 2024
A successful conclusion to a robust year is attributed to a strong market performance and evident outcomes from revenue and cost management efforts.
October – December 2023
Revenue saw a 5.8% increase, reaching 727.2 million euros (687.3). Comparable operating result stood at 22.5 million euros (17.9), with an operating result of 27.3 million euros (38.0). Earnings per share were 0.004 euros (0.005). Positive, one-off deferred tax items of 46 million euros were included in the result for the period, stemming from previous years’ tax losses. Cash funds totaled 922.0 million euros (1,524.4), declining from Q3 primarily due to a 220-million-euro pension premium loan repayment and over 200-million-euro acquisition of previously leased aircraft during the period. The equity ratio stood at 15.6% (9.9). Net cash flow from operating activities was -5.7 million euros (29.9), while net cash flow from investing activities was -177.7 million euros (-54.3). Gross capital expenditure amounted to 268.6 million euros (61.8).
The number of passengers increased by 6.5% to 2.6 million (2.5).
Available seat kilometres (ASK) rose by 10.5% to 9,047.5 million kilometres (8,185.5).
Passenger load factor (PLF) reached 73.1% (72.3).
January – December 2023
Revenue soared by 26.8% to 2,988.5 million euros (2,356.6), marking a significant increase.
The comparable operating result reached 184.0 million euros (-163.9), while the operating result stood at 191.4 million euros (-200.6).
Earnings per share amounted to 0.022 euros (-0.060), reflecting a positive trend. The period’s results included one-off deferred tax items of 145 million euros, attributed to previous years’ tax losses. Net cash flow from operating activities surged to 472.3 million euros (259.0), whereas net cash flow from investing activities was -464.0 million euros (-75.5)*. Gross capital expenditure amounted to 484.2 million euros (199.6).
The number of passengers increased by 20.8% to 11.0 million (9.1), indicating robust growth.
Available seat kilometres (ASK) rose by 15.5% to 36,154.5 million kilometres (31,298.4), approximately 77% of 2019 ASKs. Including wet leases, ASKs reached around 81% compared to 2019.
Passenger load factor (PLF) reached 76.4% (67.6), highlighting improved efficiency.
The Board of Directors recommends to the Annual General Meeting that no dividend be distributed for 2023, reflecting prudent financial management.
Outlook
Guidance issued on 24 October 2023:
Finnair reiterates its capacity guidance, expecting to operate at an average capacity of 80–85% in 2023 compared to 2019, measured in ASKs, including agreed wet leases.
Full-year 2023 revenue is estimated to range from 2.9 to 3.1 billion euros.
Full-year 2023 comparable operating result is estimated to range from 160 to 200 million euros.
Risks related to inflation, rising interest rates, and geopolitical factors persist, influencing demand and costs, thus adding uncertainty to the operating environment.
Finnair plans to update its outlook and guidance with the financial statements bulletin for 2023.
New Guidance on 14 February 2024:
Global air traffic is anticipated to continue growing in 2024, although risks from inflation, higher interest rates, and international conflicts persist.
Finnair plans to increase total capacity by over 10% in 2024, mainly focusing on Asia and Europe, with revenue expected to grow at a slightly slower pace.
Finnair will update its outlook and guidance with the Q1 2024 interim report.
Interim CEO Jaakko Schildt commented on Finnair’s performance, emphasizing positive results driven by cost efficiency and sales activities in a favorable market. He highlighted operational achievements, strategic initiatives, and the company’s resilient performance despite challenges.
Financial reporting in 2024:
Interim Report for January–March 2024: Tuesday 23 April 2024
Half-year Report for January–June 2024: Friday 19 July 2024
Interim Report for January–September 2024: Tuesday 29 October 2024
Sunday, April 28, 2024
Sunday, April 28, 2024
Monday, April 29, 2024
