Q4 2024 Finnair Oyj Earnings Call Transcript
Key Points
- Finnair Oyj (FNNNF) reported a 7.7% increase in revenue for the fourth quarter, with the comparable operating result more than doubling.
- The board proposed a return of capital of EUR0.11 per share, reflecting strong financial performance.
- Ancillary revenue grew by close to 20% during the quarter, contributing over EUR50 million in revenue.
- The cargo business continued its positive trend with close to 10% growth, generating EUR55 million in revenue.
- Operating cash flow was robust at nearly EUR630 million, demonstrating strong cash conversion and investment discipline.
- On-time performance declined due to difficult weather conditions and industrial action by the pilot union, leading to the cancellation of 300 flights.
- Industrial actions have led to the cancellation of 800 flights, affecting approximately 100,000 passengers.
- The capacity increase was below the 10% guidance due to industrial action and higher-than-anticipated aircraft maintenance needs.
- The company faces cost pressures from rising navigation and landing charges, as well as sustainable aviation fuel costs.
- The European market saw a 2% lag in revenue growth compared to added capacity, indicating potential challenges in this region.
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 fourth quarter and full year 2024 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 Erkka and warm welcome also on my behalf.
The fourth quarter was a strong ending for the year of normalization for Finnair. Our revenue increased by 7.7% and the comparable operating result more than doubled during the fourth quarter. Also, as a positive highlight when it comes to the four-year closing, our board has proposed a return of capital of EUR0.11 per share.
When we take a deeper look into our fourth quarter performance, as already mentioned, the revenue grew by close to 8%, and that was a combination of number of passengers increasing by some
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