Finnair - Q4 landed pretty close to estimates
Finnair’s Q4 results came in much as estimated, although slightly below estimates. Top line growth continued at 5.8% y/y, but the EUR 727m revenue missed estimates by roughly EUR 20m and hence the EUR 22.5m EBIT was also some EUR 5m lower than estimated. Finnair’s capacity will grow more than 10% in FY ’24, however revenue growth will not quite keep up with the pace.
- Finnair’s Q4 revenue grew by 5.8% y/y to EUR 727.2m, compared to the EUR 749.4m/744.9m Evli/consensus. Passenger revenue increased 7.0% y/y to EUR 573.1m.
- Comparable EBIT landed at EUR 22.5m vs the EUR 26.4m/28.3m Evli/consensus estimates.
- Fuel costs amounted to EUR 222m vs our EUR 249m estimate while staff costs were EUR 124m, compared to our EUR 120m estimate. All other OPEX+D&A were EUR 390m, compared to our EUR 368m estimate.
- Cost per Available Seat Kilometer was 7.79 eurocents vs our estimate of 7.99 eurocents.
- Finnair plans to increase its total capacity by more than 10% this year, including the agreed wet leases, Asia and Europe being the focus areas. Finnair expects its revenue to grow somewhat slower than capacity in FY ’24. Finnair provides FY ’24 EBIT guidance in connection with the Q2 report in July.
- The BoD proposes no dividend to be distributed for FY ’23, as was expected.