Q1 2025 Finnair Oyj Earnings Call Transcript
Key Points
- Operating cash flow remained strong despite a weak start to the fiscal year, indicating favorable ticket sales for the upcoming summer season.
- Unflown ticket liability increased by €150 million compared to the previous year, showing positive sales momentum.
- Passenger numbers increased by 2.6%, and the load factor improved by 1.6%, particularly in Asia, North Atlantic, and the Middle East.
- Ancillary sales grew by nearly 20%, demonstrating the effectiveness of Finnair Oyj (FNNNF)'s commerce strategy.
- The cargo business saw an 8% growth, with positive yield developments from Asia to Europe and the USA.
- The company faced a €22 million hit from industrial action by the pilot union, impacting the first quarter results.
- Operating expenses increased by 8.4%, driven by industrial actions, price escalations, and increased traffic charges.
- Ticket fares declined by 4.6%, with a significant decrease in Middle East traffic.
- The equity ratio declined due to negative results, although net debt decreased.
- Industrial actions led to the cancellation of 230 flights for the summer schedule, resulting in a €10 million negative impact on the comparable operating result.
Good day ladies and gentlemen. I'm from Finnair Investor Relations, and it's my pleasure to welcome you all to this Finnair's first quarter 2025 earnings call. I have here with me Finnair CEO Mr. Turk, and he is joined by our CFO Mr. Kristian Pullola for the Q&A session. I will now turn this over to you Mr. Turk.
Thank you and good afternoon from my behalf. We had a weak start for the fiscal year of 2025 and in many ways it was expected when it comes to the increased cost profile we anticipated when we opened the fiscal year and also when we communicated the full year result in mid February.
The expected increase in cost of environmental compliance by some â¬10 million combined with the increase in traffic and landing charges hit, especially the seasonally weak first quarter of the year. But on top of that, we did face aâ¬22 million hit from the industrial action of the pilot union.
That is a combination of multiple factors EU
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