Finnair - Nothing new with Q1 result
Finnair’s Q1 result was similar compared to the previous quarters. Q1’21 adj. EBIT was EUR -143m vs. our expectation of EUR -155m and consensus of EUR -159m. Revenue decreased by ~80% y/y and was EUR 114m vs. our expectation of EUR 96m and consensus of EUR 103m.
- Q1 revenue was EUR 114m (-79.8% y/y) vs. EUR 96m/103m Evli/cons. Revenue was supported by strong cargo demand.
- ASK decreased by ~88% y/y in Q1. PLF was 25.5% (-47.1pp). Strict travel restrictions continued to limit traveling in many countries and Finnair had to operate with limited network and frequencies during Q1.
- Q1 adj. EBIT was EUR -143m vs. EUR -155m/-159m Evli/cons. Q1 comparable EBITDA was EUR -61m vs. EUR -71m our view and consensus of EUR -67m.
- Absolute costs in Q1: Fuel costs were EUR 30m vs. EUR 28m our view. Staff costs were EUR 53m vs. EUR 41m our view. All other OPEX+D&A combined were EUR 183m vs. EUR 193m our view.
- Unit costs: CASK was 21.37 eurocents vs. 20.76 eurocents our view.
- The company will continue to operate with limited network during Q2 and it expects Q2 comparable loss to be of a similar magnitude as in the previous quarters.
- Finnair targets to reach permanent cost savings of approx. EUR 170m (prev. 140m) by 2022 (compared to 2019 levels).