Finnair - Q3 earnings miss
Finnair’s Q3 top line missed our estimate by almost 6% as average ticket fares continued to decrease more than we expected. Finnair’s costs were also lower than we estimated, however that wasn’t enough to compensate for the lower revenue and hence the EUR 71.5m comparable EBIT missed our and consensus estimates by roughly EUR 15-20m. Finnair also specified its FY’24 EBIT guidance a bit, which remains largely in line with previous estimates.
- Finnair Q3 revenue increased by 0.1% y/y to EUR 818.3m vs the EUR 867.1m/856.5m Evli/consensus estimates. Passenger revenue declined by 2.6% y/y as average ticket fares continued to decrease from record-high levels.
- Comparable EBIT amounted to EUR 71.5m vs the EUR 84.7m/91.2m Evli/consensus estimates as RASK decreased 8.2% y/y due to lower yields and passenger load factors.
- Fuel costs were EUR 239m, compared to our EUR 239m estimate, while staff costs amounted to EUR 125m vs our EUR 128m estimate. All other OPEX+D&A were EUR 413m, compared to our EUR 440m estimate.
- Cost per Available Seat Kilometer was 7.32 eurocents vs our estimate of 7.67 eurocents.
- Finnair specifies its FY’24 guidance and expects comparable EBIT to be within the range of EUR 120-170m, which is largely in line with estimates.