Half Year 2025 Finnair Oyj Earnings Call Transcript
Key Points
- Finnair Oyj (FNNNF) successfully concluded all collective labor agreements, stabilizing operations after industrial actions.
- The company reported a 3% revenue growth, with ancillary sales increasing by 11.5%, indicating a positive direction in commercial strategy and product development.
- Finnair Oyj (FNNNF) increased its weekly frequencies to Japan, becoming the largest carrier between Japan and Europe, which has been a successful capacity increase.
- Despite industrial actions, 94% of flights were operated as planned, demonstrating operational resilience.
- Finnair Oyj (FNNNF) maintains a solid cash position with a EUR200 million revolving credit facility available, ensuring financial stability.
- Industrial actions significantly impacted financial results, with a direct negative impact of approximately EUR70 million on the 2025 comparable operating results.
- The company had to cancel around 1,300 flights during the quarter, negatively affecting customer satisfaction and Net Promoter Score (NPS).
- There was a decline in the comparable operating result to EUR10 million from EUR44 million the previous year, largely due to industrial actions.
- Weaker-than-expected demand in the North Atlantic market, coupled with indirect effects from industrial actions, is expected to impact future profitability.
- Increased costs from landing, navigation, and environmental compliance charges added EUR15 million to the quarter's expenses.
Good day, ladies and gentlemen.
I'm Erkka Salonen from Finnair Investor Relations, and it's my pleasure to welcome you all to this Finnair's second-quarter 2025 earnings call. I have here with me our CEO, Mr. Turkka Kuusisto; and he is joined by our CFO, Mr. Kristian Pullola for the Q&A session.
I will now turn this call over to you, Turkka. Please, go ahead.
Thank you and welcome also on my behalf.
As expected, the second quarter of 2025 was pretty much overshadowed by the industrial action of the pilot union and the Finnish Aviation Union, and the consequent industrial actions did have a significant impact on our Q2 results.
All in all, Q2 came in with somewhat a modest revenue growth of 2.8%. But more importantly, we need to focus on the comparable operating result that declined to EUR10 million from the EUR44 million of last year. In this figure, we have a negative impact of the direct consequences of
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